I've got about 60 servers that were migrated from physical machines running on ESX 4. I'm having issues with the Diskeeper software installed, and I'm trying to decide if I should try to fix the software or just disable/uninstall it. Any need to defrag VMs?
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You should defrag VM disks in the same way and for the same reasons as you'd do so on physical servers - file systems still fragment the same.
Chopper3
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There shouldn't be a need to defrag the disk-images on the VMFS side, but inside the VMs themselves fragmentation can still be an issue.
sysadmin1138
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A Thin privisioned disk scatterd around a LUN is not a big problem, because the VMFS kernel allocates around 5MB for each time the VM hit's the limit. So in a worse case scenario you have A1 B1 A2 B2 A3 B3 each being around 5MB in size. Your harddrive solution will probably won't decrease a lot of performance hopping the disk head each 5MB. It will affect performance a little but not that much.
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As I understand it, the Diskeeper app you were using called V-Locity defragments the guests but not the host. A colleague of mine wrote into their Support for help with the same application and said they were good about getting him some help with it. You might consider contacting them.