Emulating different processor type ?
 

I am wondering, wheather this is possible. Can I change processor architechture type in virtualization software for different virtul machines ?

Like I want to do some compilation on intel itanium and I have physically intel xeon CPU.

You can use Qemu to emulate different processors. Currently it is supporting the emulation of x86, PowerPC, SPARC, ARM, Microblaze and, with external patches, Z80 and HP PA-RISC. Itanium seems currently not to be available.
But keep in mind that emulating a different processor-architecture is really slow, even if you have a really fast processor. If you only want to do that because of compiling for a different architecture I would recommend a cross-compiling environment.