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A fair criticism.
Notes from today's testing - IMPORTANT NOTICE
Rebooting the virtual machine may cause your entire system to lock up and you will have to manually reboot. If this happens during, say, a reboot caused by Windows Update, your VM might be totally screwed. System Restore might be able to save it though. This link - http://blog.ktz.me/?p=219 - suggests that ejecting the video card, and probably any other PCI passthrough devices before a reboot, may stop this from happening. Did not get to test streaming.
The reboot fix I mentioned in my previous post does indeed work. Also, I was able to test streaming. It was a little slow; probably a combination of high resolution and a junk graphics card in SteamOS doing the decoding. It was running at about 10fps, forgot to check the proper stats with F6.
Can you not just run the host machine on the integrated graphics? I plan to run 2 VMs on a headless linux system, and passthrough the ethernet ports to stream to other devices, so I won't even need a gui on the host OS.
streaming takes double toll on your setup as you need to copy stream whole time between the server and client, where same physical machine gets hammered twice. and you already split your machine in half
also, with kvm it depends also which driver you used for net card in VM. if cpu/board doesn't support VirtIO beside VTx it might just be other drivers perform better than default.
Performance wise, with the latest version of streaming they've added HW encoding for Nvidia cards, and will soon add it for AMD cards too, and most processors have a dedicated h.264 decoder. You can also overprvision CPUs, my experience with openstack has demonstrated that you can overprovision an Intel CPU 3:1 without issue, so a single windows guest shouldn't be too much of a stretch.
2 things,
passtrough VM is not what i questioned. implementation seems its done in a more or less most efficient way one can do it. i questioned streaming, because no matter how much there is hw enc/dec, you still need to send data from virtual machine and receive it on hypervisor. and that amount of data is not really small task, especially when you consider you already split machine in 2. well, depends on resolution, 1080p would kill it on amount
just try copying large file over fast network and watch utilization. now imagine that in this setup you're doing both and more since one machine is suffering some virtualization penalty
also, i forgot one other thing. bottleneck in games now is not gpu, it is cpu and since it was cut by virtualization, halving, streaming... games will never run as well as it would in wine. even when you run on 2 machines lag is noticeable.
main question was formed on occams razor principle. if you already have complete machine, isn't it easier and better if you simply connect it directly?
So far, my Windows VM has been able to run every game I've thrown at it without issue and at pretty much native speed. Streaming has been a mixed bag. Streaming at 1280x720 usually gives gives a steady 60fps. 1920x1080 generally gives around 30fps, and 2560x1440 between 10-20fps. I am not sure if the low speeds are a consequence of CPU overworking or bandwidth contraints (or something else entirely). I have been trying to minimize the amount of compression done on the stream, as the virtual network connection should be more than capable of dealing with the bandwidth needed for uncompressed video. The fact that graphically simple games like Risk of Rain run perfectly even at 2560x1440, while games like Skyrim chug, leads me to think it might the CPU stream processing bottlenecking the stream. I added a cheap Nvidia card to my rig, so hopefully I will get to test HW encoding on both sides to see how it works.
Generally speaking, I don't use the streaming. I switch inputs on my monitor and switch my keyboard over to the VM. Its pretty easy to do if you pass through a USB controller and buy a hub.
Edit: I don't think the virtualization penalty is as much as you think. The VirtIO drivers have performance that is pretty close to native at this point. I think you are correct about the CPU being the bottle neck here, but I think HW decode would help a bit with this (with VM graphics performance suffering some in place of the CPU). As for Occam's Razor, what fun is that? :)
hmmm, the occams razor argument response... hats off, sir. you couldn't make a better one ;) god only knows how many times i did something that didn't really make sense just for fun of it. in the end i could easily buy windows whenever i wanted, but i play those in wine... nah, i just can't stand windows too much, wine is still better option for me
my job is more or less coding and maintaining servers with shitload of VMs), so... i'm used to take birtualization from optimal side. never tried it for fun
what might help you on windows side (at least i didn't notice you mentioning installing virtio drivers on client. having virtio on hw still requires you installing them)
https://access.redhat.com/documentation/en-US/Red_Hat_Enterprise_Linux/5/html/Virtualization/chap-Virtualization-KVM_Para_virtualized_Drivers.html