Virtual (soft) switches present in almost every hypervisor significantly reduce the performance of high-bandwidth virtual machines (measurements done by Cisco a while ago indicate you could get up to 38% more throughput if you tie VMs directly to hardware NICs), but as I argued in my “Soft Switching Might Not Scale, But We Need It” post, we need hypervisor switches to isolate the virtual machines from the vagaries of the physical NICs.
Engineering gurus from Cisco and VMware have yet again proven me wrong – you can combine VMDirectPath and vMotion if you use VM-FEX.
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