Folders in the Hierarchy

If your installation includes a vCenter Server system, you can create additional datacenters under the root folder. For every Datacenter object, the server automatically creates the following Folder objects:

• A folder for VirtualMachine, template, and VirtualApp objects.
• A folder for a ComputeResource hierarchy.
• A folder for Network, DistributedVirtualSwitch, and DistributedVirtualPortgroup objects.
• A folder for Datastore objects.

In a large deployment, the nested structure allows you to organize the objects in the datacenter into an easily manageable structure by using multiple folders and datacenters.

For a standalone ESXi system, only a single datacenter is supported, and the Folder managed entity does not support creating additional Folder objects or Datacenter objects.