Any downside to putting my Channels Server on a Virtual Machine?

I couldn't find any Shield "Best Practices" guides. I know I can put both the server & client on my Nvidia Shield 2019 Pro (with USB-attached SSD). But I have the ability to move the server onto a VM on my ESXi server with an SSD drive datastore. Is there any reason not to do this? I like the idea of freeing up resources on the Shield. I just tried it and it seems to work fine. But I'm brand new to Channels and not aware of all the gotchas/tricks yet. 4K playback, pause/skip-back and skip-forward are things I'll want flawless performance on.

You didn't say much about the specs on your server, but if you want/need hardware transcoding that may require some special setup.

I run my Channels DVR server in a Windows VM on Proxmox, with software transcoding only and it works well -- but I'm using a 13th gen i9. Every once in a while I'll hear the CPU cooler kick into a higher gear, but it doesn't last long, and I have a number of VMs and CTs running.

Generally resource requirements for Channels DVR are quite reasonable.

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Thank you for sharing your experience. I'm not sure I'll need transcoding. All I really do is watch in the house on my TV. But that's something to consider. My specs are 2.6Ghz Xeon, all the RAM I could want and the ability to add a passthrough video card if needed for transcoding.

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This would be a much better setup than running it directly on the Shield.

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Just a heads up. I ran channels on a Windows VM on TrueNAS for a couple of years and it was fine when I used an Intel CPU. When I migrated to an AMD CPU, I ran into some very strange issues and had to move away from that configuration. I expect you will be fine with that Xeon.