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question about virtual machine networking vs phy networking

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This should be a simple question.

 

I have many hosts in a DRS cluster. All of the VMs are on vSwitch0 and are connected to 2 vmnics per host.

 

I am seeing poor performance when i copy files.

For instance, i am logged in to VM1 and i copy files to a share on VM2.

 

Both of those VMs are on the same Virtual Machine Switch.

Both of those virtual machines are on the same datastore.

 

When i copy files from vm1 to vm2....does it go out to the physical switch to make this transaction or is it all handled internally by the vswitch for the virutal machines?

 

Aside from being curious, I am trying to figure out if we have a network problem or  storage bottleneck.


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