iSCSI has become widely used now from home lab to datacenters. Whilst is not as widely used in production where FC is still a preferred solution, it is a smart move in branch office data centers or to store your virtual DEV environment for instance. Consolidation and lowering the TCO becoming the key pair.
Even if the performances are not as good comparing to FC SANs the price IS very attractive. True that iSCSI is younger and has still a lot to prove comparing to FC but it is getting better as it becomes more widely deployed.
“A basic difference between iSCSI and Fibre Channel is that when an iSCSI path is overloaded, the TCP/IP protocol drops packets and requires them to be resent. Fibre Channel communications over a dedicated path are not at risk of being overloaded. When a network path carrying iSCSI storage traffic is oversubscribed, a bad situation quickly grows worse and performance further degrades as dropped packets must be resent…”
You want to deploy iSCSI in your environment, here is a must read at VMware.com
From Vladan Seget, a step by step guide to configure OpenFiler iSCSI Storage for use with VMware ESX