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Example: You have a DRS cluster with 3 Hosts. If i run a test in VM1 which resides in ESX1, needs more CPU it will be allocated from the Cluster (== ESX2) now how this done ? will one of my VM1 process thread will run on ESX2 CPU ?

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No, any given VM's vCPU resources can only be provided by the host it's residing on.

Of course if that host can't provide the VM's processing resources, you have DRS set to automatic and another host has those resources it may choose to vMotion the VM to the more capacious host to meet the requirement but all VM vCPU allocation will still then only be provided by a single host.

Good question though, one I can imagine many others will ask over time.

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No, each VM lives on its own ESX host. DRS can move VM's to another ESX host if they need more resources.

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No. If you have vmotion/DRS and an aggressive enough automation setting it might move machines around to make 'space' for one with high resource needs.

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My understanding is that DRS moves the least (or less at any rate) busy VM's in order to enable the busier VM that is triggering the load to gain more resources on the host it's already running on. This is an easier scheduling challenge for the cluster in any case. The busy VM may still end up being moved if one host has more actual physical resources. – Helvick Jun 20 '09 at 2:09

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