Corporate economic demands for greater consolidation and agility have given rise to virtual environment technology. The promise is greater simplicity and efficiency but the reality is that fragmentation exists at both the host and guest level– fragmentation on top of fragmentation. The result is rapidly increased "unnecessary" I/O traffic. Worse, virtual machines have limited knowledge of hardware resource usage and cannot effectively prioritize I/O. Defrag attempts will cut across production resources.

Additionally, virtual disks that are set to dynamically grow don't shrink when users or applications remove data, bloating space and wasting what could be allocated to other virtual systems.
V-locity: making virtualization an efficient reality
Diskeeper Corporation has created a vital component previously missing from virtualized environment productivity. V-locity with InvisiTasking® technology installs on both the Windows Server® 2008 Hyper-V OS that is running the virtual host and all Windows® virtual machines (guests). Each component optimizes its respective Windows OS and performs defragmentation of files and consolidation of free space. This minimizes unnecessary I/O passed from the OS to the disk subsystem and aligns data on the drives for optimal access. With the proprietary InvisiTasking, V-locity will automatically and invisibly defragment files and consolidate free space on every Windows system it is installed on, eliminating unnecessary and excess I/O to restore system performance and reliability for the entire platform. At the same time, V-locity provides a tool to analyze and compact wasted virtual disk space.