Folks, can some one please tell me - What happens, when we set the notify switches option in the properties of the Vswitch -
1) Is the physical switch notified when the virtual nic link state changes, OR
2) Is the physical switch is notified when a virtual nic location changes
The Notify Switches option is designed to reduce latecy in the vMotion process. Therefore when a failover occurs ESX informs the physical switch that the vNIC has moved. So Option2 is correct.