VMware - SAN verses server for the guest operating system

We set up our VMware environment 4 years ago and want to replace the hardware and upgrade to VSphere. We are now part of a large organization and they are questioning our original facility regarding using a San to host Windows Server guests in this environment. They believe that a San is only for storage and VMware customers have to live on a server. I'm looking for confirmation that we use "best practices" by having the OS guest systems on a San, rather than a server. I'd really like something VMware that says to use a SAN and why. It's our Installer; We have 4 servers ESX 3.5 with dual processors core quad, 32 GB of ram and quad port network adapters. The ESX servers connected to the SAN via redundant fiber via HABs connections. The SAN has 6 TB of storage space and we accommodate 24 people from Windows 2003. I say that we have this right and they say I should welcome the guests on a server and not a SAN. My point is why are in charge of the server OS and everything that comes with it as patching and antivirus and multiple HBA when I can get a SAN form HP at equal or lower cost. I just need help to make my case.

Shared storage is a requirement for features such as vMotion, DRS, and HA.

It is certainly having a guest on local storage, but what happens if you have a question of host or need maintenance?   If you use a shared storage and you need to host maintenance you can simply vMotion the VMS to another host and there is no interruption of service.   Without shared storage log off the virtual machines or need to spend downtime to migrate them to another host.   If a host goes down, your VM on local storage is down until the host is repaired.  With HA and a shared storage, another host will reboot the virtual machine and it will be online in a few minutes.

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