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ITTech2002
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The volume capacity of a LUN and IOPs available for that LUN/datastore are too separate things, but you bring up a great point. 

Sizing the LUN smaller and allocating less VMs per datastore may reduce the IOPs required per datastore, but it does NOT ensure the datastore has the required the IOPs.  Look at 3PAR, Compellent, and EqualLogic for more details about block level storage.

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