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Depending on the RAID controller, number of disks and - what's most important - whether it supports write-cache you may run a couple of VM's on local storage without issues. It certainly depends on the workload how many VM you can run. I setup a couple of environments where we run XenApp VMs on local storage - two SAS 15k disks RAID 1 - (usually 4 Windows Enterprise instances due to MS licensing) and I don't see any disk performace issues.
André