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This all happened two weeks before I started, so I don't know the exact details. If it was set up the way I think it was, I'd say yes, the DC was in it's own VM and then a separate VM would've been used as a NAS. Of course being hardware RAID the whole host server went down when that card failed.
They probably didn't have a second DC set up due to the DEFCON 5 levels of "We can't work!"
They were ultimately planning on going to the cloud anyway from what I heard and that catastrophe just accelerated that plan ahead