Dedicated Resources on VMs hosting SQL Server
What you're asking is, "Is it okay if we overcommit CPUs?"

It's okay until you start experiencing performance bottlenecks that are related to CPU consumption. The same answer holds true with network overcommitment as well - it's not like you're putting 5 separate 10Gb Ethernet cards in the host, and dedicating one card per VM. Virtualization is all about overcommitment, and walking the line between resource availability and resource requirements.

Generally speaking, you don't want to overcommit on memory, though, since SQL Server will actively use whatever memory you present to it. Rather than letting the VMs page to the host's disk, you're better off doing VM-by-VM analysis to figure out which VMs could live with less memory, and then configuring them with less memory to begin with.