Great for a lab environtment. If we're going to put our eggs in one basket, it's got to be a reliable basket with someone else to blame if something goes wrong. Which seems to put you back in the 10k SAN range, with 5k of that going for the "someone to blame". Which means the economics of a 5 to 10 server rack doesn't make a whole lot of sense, even though we can get vmware itself at a fairly steep discount.

I suspect this will change as vmware is no longer owned by a storage company, and as VMWare goes after the low end that microsoft will be going after. There's no reason they can't sync disk images over the management wire, even if it's a little slower.