Gilt uses virtualization including LXC containers and CloudStack to improve efficiency and reliability. They aim to automate provisioning, use immutable containers, and avoid repeated config enforcement. Currently they use LXC containers provisioned through CloudStack and their in-house Galactica system, which integrates with services like Puppet, LDAP, DNS and load balancers. They are testing provisioning LXC containers on different Linux distros and configurations to optimize performance.