The new Hyper-V leverages several new networking technologies contained in Windows Server 2008 R2 to improve overall VM networking performance. Two key examples are the new VM Chimney (also called TCP Offload) and the use of Jumbo Frames.
VM Chimney allows a VM to dump its network processing load onto the NIC of the host computer. This works the same as in a physical TCP Offload scenario, Hyper-V now simply extends this functionality into the virtual world. This benefits both CPU and overall network throughput performance, and it’s fully supported by Live Migration.
VM Chimney is disabled by default in Windows Server 2008 R2, primarily for short-term hardware compatibility reasons. But combined with compatible hardware, currently including vendors like Intel, VM Chimney significantly reduces the host server’s CPU burden when dealing with VM network traffic. This translates into better host system performance and a simultaneous boost to VM network throughput.
Like TCP Offloading, support for Jumbo Frames was also introduced with Windows Server 2008. Hyper-V in Windows Server 2008 R2 simply extends this capability to VMs. So just like in physical network scenarios, Jumbo Frames add the same basic performance enhancements to virtual networking. That includes up to 6 times larger payloads per packet, which improves not only overall throughput but also reduces CPU utilization for large file transfers.