You can run SQL Monitor on a virtual machine, but you should make sure your VM host can deliver the required resources (CPU and RAM). If your physical machine hosts multiple VMs, for example, this will limit the resources available to SQL Monitor, which might slow performance.

If you locate the data repository database on a SQL Server instance running on a VM, we recommend you use a physical disk or partition rather than a virtual disk for the database data files. For more information about using mapped hardware in Hyper-V, see http://msdn.microsoft.com/en-us/library/cc768529(v=bts.10).aspx.