The gurus at Xtravirt have cooked-up a virtual SAN appliance (VSA) to be run directly on ESX using local VMFS storage as the SAN backing. While this approach may imply some performance hits, the price is worth a look: free.
The appliance is designed to be deployed on two ESX hosts and replicates synchronously between them for fail-over capability. We'll throw their VSA onto our lab machines and see what the fuss is about.
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