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I have a server with VMware Server 2 configured to host several virtual machines. I chose XFS as the filesystem for this main server because of his great handling of large files.

But I want the virtual machines to have EXT3 filesystem. My question is:

Are there any drawbacks/disadvantages of having a different filesystem from the host in virtual guests?

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No, not particularly. Use the best file system for the application. There is a layer of abstraction in there anyway since the VM server has it's own file format.

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