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The tech guy told me the system is RAID 5: 3 - 250GB, 7,200rpm SATA drives that look like one 464GB drive. There is one hot spare.

7.2k RPM SATA drives in RAID 5E. Usually, it's better to just go with a RAID 10 especially since you're hosting multiple operating systems and a database. RAID 5 doesn't make much sense anymore especially with larger data arrays.

I have to imagine your IOPS are saturated with that layout. Why do you have 3 VM's by the way?