Description of problem:
We created 120 Vms on a 80core Intel Xeon E7-4870 quad-socket system, and observed 25% CPU utilization of the entire system even those VMs were idle.
Disable cgconfig or applied the patches for cgroup would solve this problem.

Version-Release number of selected component (if applicable):
RHEL6.1 (2.6.32-125.el6.x86_64 as native)
KVM: 0.12.1
Guest RHEL6.1(2.6.32-71.el6.x86_64)

How reproducible:
Create 120VMs on the RHEL6.1 snap 1 system.

Steps to Reproduce:
1. Install RHEL6.1 snapshot 1 (2.6.32-125.el6.x86_64) on Intel Xeon E7-4870 system (WSM-EX).
2. created 120 RHEL6.1 VMs 
3. using top to collect system CPU utilization, and it reached 25% when the VMs doing nothing. 
  
Actual results:
1. System CPU utilization is 25% for 120 idle VMs. 


Expected results:
1. CPU utilization with idle VMs should be less than 1%


Additional info:
1. VM configuration
1 tile contains 6 types of VMs, two of them has 2 vcpus, others has one vcpus, 5 of those VMs were assigned 1 or 2 10G SRIOV VFs.
VMs were created with following commands, using x2apic and removed usb, sound and video devices. 
/usr/libexec/qemu-kvm -S -M rhel6.0.0 -cpu qemu64,+x2apic -enable-kvm -m 2560 -smp 2,sockets=2,cores=1,threads=1 -name app1 -uuid b7a2140e-ede1-319d-0001-8eefd210ba04 -nodefconfig -nodefaults -chardev socket,id=charmonitor,path=/var/lib/libvirt/qemu/app1.monitor,server,nowait -mon chardev=charmonitor,id=monitor,mode=control -rtc base=utc -boot c -drive file=/root/mnt/tile1/os/appserver1.img,if=none,id=drive-virtio-disk0,format=raw,cache=none -device virtio-blk-pci,bus=pci.0,addr=0x5,drive=drive-virtio-disk0,id=virtio-disk0 -chardev pty,id=charserial0 -device isa-serial,chardev=charserial0,id=serial0 -usb -vnc 127.0.0.1:2 -vga std -device pci-assign,host=07:10.1,id=hostdev0,configfd=29,bus=pci.0,addr=0x3 -device virtio-balloon-pci,id=balloon0,bus=pci.0,addr=0x6 -no-kvm-pit-reinjection
2. CPU utilization with different tile # from top
Top_CPU%	us	sy	ni	id	wa	hi	si	st	Total
5tile	0.42%	1.23%	0.00%	98.10%	0.02%	0.00%	0.24%	0.00%	1.90%
10tile	0.28%	1.67%	0.00%	95.05%	0.01%	0.00%	2.98%	0.00%	4.95%
15tile	0.55%	4.97%	0.00%	85.12%	0.06%	0.00%	9.30%	0.00%	14.88%
20tile	0.88%	9.75%	0.00%	75.54%	0.24%	0.00%	13.59%	0.00%	24.46%

3. perf showed the most overhead comes from tg_shares_up
oprofile showed the same results:
CPU: Intel Architectural Perfmon, speed 2393.88 MHz (estimated)
Counted CPU_CLK_UNHALTED events (Clock cycles when not halted) with a unit mask of 0x00 (No unit mask) count 6000
Counted INST_RETIRED events (number of instructions retired) with a unit mask of 0x00 (No unit mask) count 6000
samples  %        samples  %        image nam   app name  symbol name
2533563  80.9886  742681   64.5997  vmlinux   vmlinux      tg_shares_up
104855    3.3518  86379     7.5134  vmlinux   vmlinux      rb_get_reader_page
88494     2.8288  78282     6.8091  vmlinux   vmlinux      ring_buffer_consume
78932     2.5232  26442     2.3000  vmlinux   vmlinux      generic_exec_single
54653     1.7471  40614     3.5327  vmlinux   vmlinux      find_next_bit
52626     1.6823  50637     4.4045  oprofile   oprofile      /oprofile
26927     0.8608  9068      0.7888  vmlinux     vmlinux     __set_se_shares
19265     0.6158  7033      0.6117  kvm_intel    kvm_intel   /kvm_intel

4. there was already patches for the issues in https://lkml.org/lkml/2010/10/16/17
5. we tried 2.6.38.2 upstream Linux kernel, the system CPU utilization droped tp 0.6% immediately. Disable cgconfig service could also solve this problem.