Microsoft System Center Virtual Machine Manager 2012 SP1 had the ability to convert physical servers to virtual machines (P2V) running on Hyper-V. For some reason Microsoft removed the P2V ability in Virtual Machine Manager 2012 R2.
Microsoft’s other tool for conversion is called Virtual Machine Converter. This free tool does not require any System Center component and is used to convert VMware virtual machines to Hyper-V or Azure (VHD format). Conversions can be performed using the console or using PowerShell. The current version is 2.0. It allows for a maximum of 3 parallel conversions running on the server which has Virtual Machine Converter installed.
Version 3.0 available in fall 2014 will support Physical to Virtual (P2V) conversions.