Storage Setup Best Practices

I currently have an environment where all of my VMs are on shared Fiber Channel Storage.  However, now that I know more about VMWare I realize our setup is not ideal and I need some recommendations on how to fix this.

Currently all VMs have their OS drive on the Fiber Channel shared storage.   However, when it was setup, we set this up like normal servers where we attached a data drive to each VM to our iSCSI storage we have.   This iSCSI storage is currently not in our VM environment.  Each VM just has it's data drive as an attached partition that resides in our iSCSI storage.

I am assuming the correct way to have done this would have been to make our data drives on the VMs as virtual drives as well rather then attaching it directly to partitions on our iSCSI storage?  

With that said, my issue is our Fiber Channel Storage we have allocated to VMWare is running low on space.   We also don't have anymore Fiber Channel Storage to expand it.  

I am planning on fixing one VM at a time.  My tenative plan is to add some iSCSI storage space to our VM environment.  Then I will vMotion one VM at a time from the Fiber Channel to the iSCSI storage and get it fixed.  That all I think I am good with. 

I could then add a new data drive to the server that is a VM drive.  My only issue is, how can I get my current data from the Fiber Channel partition to the VM drive I will create?  Do I just have both the VM drive and iSCSI parttion attached in Windows in the VM and just do a copy and paste?   What about rights and shares to files and folders, will that stay with the data?   Am I better to do a backup of the data and then restore it onto the new virtual partition?   Some of this data won't be too big of a deal, but what about databases and things like that?   If I keep my drive letters the same will it all work after moving the data?

I am assuming with all of this said, down time will certainly be in order as the data is moved?   I think the main question is would it be better to do a backup and restore of the data or would a copy (or cut) and paste work just as well?

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