Turn your server into an iSCSI SAN with Microsoft iSCSI Software Target 3.3

Microsoft released Microsoft iSCSI Software Target 3.3, which turns your Windows Server 2008 R2 server into an iSCSI target.  This free component provides storage (disks) over a TCP/IP network to clients using an iSCSI initiator software, such as the Microsoft iSCSI Software Initiator Version 2.08 (also free) for Windows computers.  There's also a, iSCSI client inside the target package.
iSCSI targets provide centralized, software-based and hardware-independent iSCSI disk subsystems in storage area networks (SANs).

iSCSI Software Target software has been around for several years for Microsoft Windows Storage Server.  Now they've made it available for Windows Server 2008 R2. 

Here's how to use it:

• Download the Microsoft iSCSI Software Target 3.3 on your Windows Server 2008 R2 server, and double-click it to expand the package and run the installer page.
• Click iSCSI Software Target (x64) in the installer to run the installation wizard.
• Run the Microsoft iSCSI Software Target application in the Adminstrative Tools menu.

• Right-click iSCSI Targets and select Create iSCSI Target.
• Click Next and enter a name and description for the target (for example, VHDTarget1).  Then click Next.
• Enter the iSCSI Qualified Name (IQN) for the target.  The IQN is usually in the form, iqn.<year-month>.<server FQDN>:<target name>.  For example:

iqn.2011-06.server1.expta.com:VHDTarget1

• Supply a description, then click Next and Finish.
• Right-click Devices and select Create Virtual Disk.
• Click Next and enter the path for the new VHD, then click Next again.
• Enter a size for the new VHD in MB and click Next.
• Enter a description and click Next.
• On the Access screen, click Add and select the target name you created (i.e., VHDTarget1).
• Click Next and Finish.

• Right-click the virtual disk and select Disk Access > Mount Read/Write.

You can now connect your iSCSI clients to the new target.