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There was no support of Link Aggregation Protocols, there was scarce choice of load balancing hashing algorithms and no presence of monitoring and troubleshooting tools like Netflow or Port Mirroring, but it was still good enough to automate networking provisioning for ESXi hosts and virtual machines.
The Cisco Nexus 1000V was introduced almost at the same time and provided significantly richer set of capabilities while delivering similar network configuration, security policies and tools to physical and virtual servers, which I guess tipped the scale in favour of Cisco product.
For example: I am running a simple installation of the v Center Server (Inventory Service, Web Client, Single Sign-On) on a Windows Server 2008 R2 virtual machine with Update Manager, Auto Deploy, Dump Collector, Syslog and a Microsoft SQL Server 2008 R2 Express.
So according to the upgrade guide, my new v Center Server infrastructure will look as depicted below.
Recently VMware announced End of Sale of Nexus 1000v which caused some confusion amongst clients.It won’t cover every single feature, but will give you enough food for thought to make an educated choice.