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Xen 3.0 Virtualization User Guide
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6.2 Using File-backed VBDs

It is also possible to use a file in Domain 0 as the primary storage for a virtual machine. As well as being convenient, this also has the advantage that the virtual block device will be sparse -- space will only really be allocated as parts of the file are used. So if a virtual machine uses only half of its disk space then the file really takes up half of the size allocated.

For example, to create a 2GB sparse file-backed virtual block device (actually only consumes 1KB of disk):

# dd if=/dev/zero of=vm1disk bs=1k seek=2048k count=1

Make a file system in the disk file:

# mkfs -t ext3 vm1disk

(when the tool asks for confirmation, answer `y')

Populate the file system e.g. by copying from the current root:

# mount -o loop vm1disk /mnt
# cp -ax /{root,dev,var,etc,usr,bin,sbin,lib} /mnt
# mkdir /mnt/{proc,sys,home,tmp}

Tailor the file system by editing /etc/fstab, /etc/hostname, etc. Don't forget to edit the files in the mounted file system, instead of your domain 0 filesystem, e.g. you would edit /mnt/etc/fstab instead of /etc/fstab. For this example put /dev/sda1 to root in fstab.

Now unmount (this is important!):

# umount /mnt

In the configuration file set:

disk = ['file:/full/path/to/vm1disk,sda1,w']

As the virtual machine writes to its `disk', the sparse file will be filled in and consume more space up to the original 2GB.

Note that file-backed VBDs may not be appropriate for backing I/O-intensive domains. File-backed VBDs are known to experience substantial slowdowns under heavy I/O workloads, due to the I/O handling by the loopback block device used to support file-backed VBDs in dom0. Better I/O performance can be achieved by using either LVM-backed VBDs (Section 6.3) or physical devices as VBDs (Section 6.1).

Linux supports a maximum of eight file-backed VBDs across all domains by default. This limit can be statically increased by using the max_loop module parameter if CONFIG_BLK_DEV_LOOP is compiled as a module in the dom0 kernel, or by using the max_loop=n boot option if CONFIG_BLK_DEV_LOOP is compiled directly into the dom0 kernel.

Xen 3.0 Virtualization User Guide
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  Published under the terms of the GNU General Public License Design by Interspire