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VirtualizationSystems ArchitectureIntermediate

Storage virtualisation and datastores

In short: Storage virtualisation pools physical disks and hides their details, so each VM sees a simple virtual disk. Hypervisors keep virtual disks as files on datastores, which can sit on local disks, a SAN, a NAS or software-defined storage. Thin provisioning saves space but needs careful capacity monitoring.

What storage virtualisation means

Storage virtualisation separates the storage a workload sees from the physical disks that hold it. Disks from one or many devices are pooled, protected and carved into logical volumes. In a virtual environment this goes one step further: each VM's disk is just a file the hypervisor manages.

From disks to virtual disksVirtual diskVMDK, VHDX, qcow2DatastoreVMFS, NFS, vSANLUN or sharefrom arrayStorage poolRAID, tiersPhysical disksSSD, HDD
Figure 1. Each layer hides the one below, so VMs see simple disks while storage is pooled underneath.

Virtual disks and datastores

A virtual disk is a file (or set of files) that a VM sees as a physical drive. Formats include VMDK (VMware), VHDX (Hyper-V) and qcow2 or raw (KVM/Proxmox). Because disks are files, they can be copied, moved and snapshotted easily.

A datastore is where the hypervisor keeps those files. Datastores can be built on several kinds of storage; see DAS, NAS and SAN for the underlying technology.

Datastore typeBuilt onNotes
LocalDisks inside one hostSimple and fast, but VMs cannot fail over to other hosts
Block (VMFS, CSV)SAN LUNs via FC or iSCSIShared by a cluster; a cluster-aware file system lets many hosts use one LUN
File (NFS, SMB 3)NAS sharesEasy to manage; the NAS owns the file system
Software-defined (vSAN, Storage Spaces Direct, Ceph)Local disks across many hostsData replicated between hosts; the basis of hyperconverged systems

Shared storage, of any kind, is what allows high availability and live migration, because every host in the cluster can reach every VM's disks.

Thin and thick provisioning

Thin versus thick provisioningThinSpace used on writeEfficient startRisk of running outNeeds monitoringThickSpace reserved up frontPredictableWastes unused spaceSlightly faster first write
Figure 2. Thin provisioning saves space but you must watch real usage closely.

With thin provisioning, a 200 GB virtual disk might use only 30 GB on the datastore until the guest writes more. This lets you overcommit storage, giving VMs more total capacity than physically exists. It is efficient but dangerous if many VMs grow at once: a full datastore can pause or crash every VM on it. Thick provisioning reserves all the space at creation, which is predictable but wastes capacity that is never used.

Tip: if you thin provision, set alerts at around 75 to 80 percent datastore usage, track the overcommit ratio and remember that snapshots and swap files also consume space. Arrays may thin provision too; thin on thin needs double monitoring.

Useful features and good practice

  • Storage migration (such as Storage vMotion or Hyper-V storage migration) moves a running VM's disks to another datastore with no downtime, useful when retiring an array.
  • Storage policies define requirements such as replication level or performance tier, and the platform places disks accordingly.
  • Space reclamation (TRIM/UNMAP) returns freed blocks from the guest to the array so thin disks can shrink in real usage.
  • Tiering and caching keep hot data on flash and cold data on cheaper disks.

When sizing, think about IOPS (input/output operations per second) and latency, not just capacity. A few busy databases can overwhelm a datastore with plenty of free space. Spread heavy workloads across datastores and monitor latency; sustained values above a few milliseconds on flash storage usually mean contention.

Finally, protect the data: storage features such as RAID and replication handle hardware failure, but you still need separate backups, ideally including an immutable or offline copy.

Practice

What virtual disk format does Hyper-V use?
VHDX (and the older VHD).
Why is shared storage needed for live migration in a traditional cluster?
Every host must be able to reach the VM's disk files, so only memory and state need to move between hosts.
What risk does thin provisioning introduce?
The datastore can run out of physical space if VMs grow beyond what exists, which can pause or crash all VMs on it.

Key takeaways

  • Storage virtualisation pools physical disks and presents simple virtual disks.
  • Virtual disks are files (VMDK, VHDX, qcow2) stored on datastores.
  • Datastores can be local, SAN, NAS or software-defined.
  • Thin provisioning saves space but needs alerts and capacity tracking.
  • Monitor IOPS and latency, and keep separate backups.
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About the author

Mohamed Fayas

Founder of FM TecHub. CCNA certified, with a BTEC HND in Network Engineering, and BEng (Hons) in Computer Networking and Cloud Security. He writes practical, plain-English guides on networking, security and cloud.

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Original content written by Mohamed Fayas for FM TecHub. © 2026 FM TecHub. You're welcome to share a link to this page; please don't copy the text elsewhere without permission.

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