The maximum number of virtual machines is determined by the resource that becomes fully utilized first. In this case, each virtual machine uses two CPU cores. With an 8-core CPU, the host could support up to four virtual machines based on CPU allocation (8 cores / 2 cores per VM = 4 VMs). In terms of RAM, each VM requires 4GB, and with 32GB total, the host could support up to eight VMs based on RAM allocation (32GB / 4GB per VM = 8 VMs). Therefore, the CPU is the limiting factor, and only four VMs can be run simultaneously without over-allocating resources.