The virtual machine (VM) requires storage for its data programs and system files. Virtual storage can be utilized to improve the performance of the VM by showing a single physical device or network-based storage in various types. The VM can then access it without having to know the underlying hardware.

Virtual storage management requires a cautious balance between capacity, performance and costs. Administrators must determine whether to deploy all solid-state drives or hard-drive disks, what kind of storage controllers to use; and how to combine them in a hybrid configuration. IT managers can lower storage costs by using compression and deduplication.

There are three kinds: RAID groups, logical volumes (LV) and physical disks. Physical disks and groups of RAID divide the physical capacity into smaller units that applications or servers interpret as one storage device. A virtualization layer handles I/O requests from the server and then converts them into the correct physical disk.

The virtual storage model helps reduce hardware overhead by separating the operating system from physical devices and providing a single point of administration. It also permits scaling up, as it automatically adjusts the physical capacity in order to meet the demands. Moreover, it allows administrators to complete a variety of tasks in a way that is not disruptive such as moving data off storage devices that are being over-utilized. This is done using the technique of data migration. Generally, the mapping granularity determines how quickly meta-data can be updated, how much additional space is required during migration and how quickly the prior location can be designated as free.

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