We are using an iSCSI SAN from LeftHand Networks (Now owned by HP) with our HP servers and have not had a single problem with it. We have 3 NSM 2060’s that host about 30 VMs including an Exchange 2007 and SQL 2008 server. Works fantastic and easily scales up if you need more speed and capacity.
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Equallogic is a great option for you since all key components are already licensed. Most other products you need to purchase a license for example to replicate or to do snapshots, etc. I would lean towards a hardware over software-based appliance for your SAN needs.
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I think you can try stonefly storage. I found its giving an excellent perfomance with ESX 3.0 & 3.5.
Just to add a monatery figure into this you can get a new equallogic iSCSI SAN for around £4k now, only scales in a small way but starter SAN is great with perfromance to match.
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