Hi,
A virtual SAN appliance (VSA) is a software bundle that allows a storage manager to turn the unused storage capacity in his network's virtual servers into a storage area network (SAN). The SAN provides a pool of shared storage that can be accessed by the virtual servers as needed.
A virtual SAN appliance is most often downloaded as a software program that runs on a virtual machine (VM), but some storage hardware vendors are beginning to incorporate SAN appliances into their firmware. Depending on the vendor, a virtual SAN appliance might also be called a virtual storage network appliance, a virtual storage optimization appliance or simply a virtual storage appliance.
Now you could use the local storage on your ESX servers to house the virtual SAN and have one on the ESX1 and replicate to ESX2 you could also as suggested setup a virtual SAN that both your ESX host use to house the vm’s. This would mean running vCenter (another license from VMware) to enable you to get the functionality you require.
As another member commented you could also use a replication software offering that would mean no VMware license cost but you would get a cost implication from the software. The virtual SAN would also be a license cost but if used as a proper virtual SAN that both ESX hosts are connected to using vCenter it would give you stability and resilience to your VMware infrastructure.
Please have a read through the following sites for a better understanding of what I suggested:
HP P4000 (used to be LeftHand VSA) http://h18000.www1.hp.com/products/storage/software/vsa/index.html
FalconStor NSS http://www.falconstor.com/en/pages/?pn=NSS
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