Local storage
From The FluidVM Wiki
Local storage is the attached storage present on compute nodes. It is possible to use local storage for the storage of Virtual Servers. The other type of virtual machine storage in FluidVM is SAN Storage. Both SAN storage and local storage have the same interface in FluidVM. If you go to the Virtual Storage Manager pane present in Compute Nodes, you will be able to access it.
Xen and Local Storage
When using local storage for Xen based Virtual Servers, it is not possible to perform hot migration using FluidVM's HotMigrate technology. SAN storage needs to be used if you want to take advantage of HotMigrate.
OpenVZ and Local Storage
While you can use local storage for OpenVZ based virtual servers, HotMigrate will be slow, since the file system needs to be transferred to the destination node. If using SAN for OpenVZ storage, there is no file system to transfer and only the virtual server's context needs to be transferred. This is much faster that transferring the whole virtual server file system.

