NFS, ISCSI and FC storage are all supported in VMware vSphere today. As some of the benchmark been done recently showed the performance of ISCSI and NFS had been improved versus ESX version 3.5.  In the benchmark report it show that the overhead on NFS and ISCSI were higher VS FC storage. With the latest processors chip from Intel and AMD, I believe the overhead on the CPU will not be the major concern as users are always considering to maximize the usage of the CPU power they have in the physical server.

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