Jas,
This will technically work, but will not be a supported configuration. You will also not be able to do SSL acceleration, disk encryption, schedule prepositioning, or have a central location for reporting and configuration without a Central Manager.
If physical space is a limitation in your DC you may want to look at vCM (virtual CM), which runs on VMware vSphere 4.0u1 or later.
Regards,
Mike Korenbaum
Cisco Data Center PDI Help Desk
http://www.cisco.com/go/pdihelpdesk