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...