Vantage on VMware supports both local storage and shared storage (SAN or NAS). The difference between the two is that local storage provides higher performance while shared storage provides higher flexibility.
For performance and system up-time reasons, each Vantage system virtual disk should reside on a RAID-1 pair of physical disks. Common vSphere storage device configurations can use local storage or direct attached storage (for example, JBOD, RBOD).
If you are using external storage, such as a disk array, consider the performance and data redundancy implications. The preferred configuration for shared storage is one pDisk (VMDK) per LUN. TPA vnodes have three database system pdisks which will be deployed as separate VMware VMDK files.
Setting it to false may be useful when you have only a single large datastore. Determine the performance and data redundancy implications when using different RAID configurations, external versus internal storage.