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Large VM system on ESXi 5 storage question

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I have been tasked with building a server with quite a few guest servers and guest clients.  The customer wants to store all of the guests on a scsi storage array.  Won't the VM's performance suffer considerably because the guest information has to travel across the scsi to the VM Host machine?

 

It's going to be around 15 guest servers and 15 guest clients.

 

Would it be better to store the guests locally on the ESXi servers with large hdd's?

 

Thanks in advance


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