To ensure precise timestamping of events and synchronization of the time between an ESXi host and the other components in the vSphere network, configure the time settings of the ESXi host manually or synchronize the time and date of the host with an NTP or PTP server.

Exact timestamping shows the precise sequence of events that occur in the vSphere network. Time synchronization between the components of the vSphere network can prevent authentication problems, backup issues, and incorrect logs.

To ensure that all components in your environment have the correct time, as a best practice you must use the same time synchronization mechanism across the board.