I saw this and thought I would share it. Hyper-V R2, which is in beta already supports hot add/remove of drives, so native SBS 2008 Backup will work as youcan now dynamically add and remove those USB drives and they can be configured as pass-through disks so you will not have to create VHDs on them. Other interesting features for me were the live migration and huge memory support , all in the free version along with the management console! Hyper-V R2 BETA is available to test here . There is also an overview document that can be found here . In the overview document is the summary of Hyper-V as shipping today and the products as of tomorrow: Capabilities Microsoft Hyper-V Server 2008 Microsoft Hyper-V Server 2008 R2 Windows Server 2008 R2 EE, DC Processor Architecture x64 only Yes Yes Yes Hypervisor-based Yes Yes Yes Product Type Standalone product Standalone product Operating System Number of Sockets (Licensing) Up to 4 Up to 8 Up to 8 = EE | Up to 64 = DC Number of cores supported by the hypervisor 24 (with QFE) 32 32 Memory Up to 32 GB Up to 1 TB Up to 1TB VM Migration None Quick and live migration Quick and live migration (EE & DC) Administrative UI Command line, text based configuration utility and remote GUI management Command line, text based configuration utility and remote GUI management Command line, remote management, and local GUI (Hyper-V Manager MMC) Management Existing management tools Manageable by SCVMM Yes (SCVMM 2008) Yes (SCVMM 2008 SP1) Yes (SCVMM 2008 SP1) Virtualization Rights for Windows Server guests 0 0 EE = 4 VM DC Edition = unlimited VM per proc Number of running VM Guests Up to 192, or as many as physical resources allow Up to 256, or as many as physical resources allow Up to 256, or as many as physical resources allow Storage Direct Attach Storage (DAS): SATA, eSATA, PATA, SAS, SCSI, Firewire, Storage Area Networks (SANs): iSCSI, Fiber Channel, SAS Planned Guest OS support Windows Server 2008 R2, Windows Server 2008, Windows Server 2003 SP2, Windows 2000 Server, Novell SUSE Linux...