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[Xen-users] SW RAID powered Xen node - knowledgeable feedback much needed

I would like to know your opinion on the viability of a SW RAID 1 powered
Xen node. The CPU is a i7-920 Quad core, 2.66Ghz, 8MB cache and 8GB of RAM.
The 2 HDDs are absolutely normal (no raptor, 10k-15k etc - just normal
SATA) and there's no HW RAID. I was thinking to allocate some 70% of the
resources to VEs and the rest to the node itself.

Can this be done reasonably?

Adding HW raid would mean an 60% price increase which would lead to 60%
more VEs on the node. Would the 60% increase in VEs count but with HW RAID
be preferable over the SW RAID with less VEs?

Thanks a lot in advance for any knowledgeable feedback.

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