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Don't use Blades for Virtualization!



Well thats what a guru (shudder) says here:

For one thing, VMware ESX is very particular about which logical unit number (LUN) it boots from. Also, if you boot from SAN and your SAN crashes, you're stuck. But if the ESX server boots from local disks, it's a relatively easy process to point it to another source of virtual machine images.

In short, boot from SAN "works, but we've seen it be problematic," Lucero said. "We'd certainly never recommend it, especially not with the cost of internal disks today."


Read the rest of the advice here but take your own decision. In anycase, Please virtualize starting now! ;-)
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