Moving from old to New NAS with virtualization
Yes, this will work.
The DS918+ will handle very well a couple of VMs. If you want more than that then you may want to look into something more professional like DS3617XS with Xeon processor.
Virtualization software might cost you money. Whereas Synology will let you do this for free. You may even find interesting docker, which will let you virtualize certain applications instead of the entire operating system. This saves times and resources.
More reading:
https://www.synology.com/en-uk/dsm/packages/Virtualization
https://www.synology.com/en-uk/dsm/feature/virtual_machine_manager
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