OK, if you want decent RAID5 write performance then you'll need to spend at least £200 to get a card with hardware XOR support. RAID10 is easy to implement so only requires an add in card if you don't have onboard RAID support.
There are a few things which might be worth considering though
- How many VMs are you looking at running? If you're running multiple machines then is it worth considering a drive per machine (or two) to reduce I/O contention?
- What board are you using in the machine? This will determine what slots are available and hence what card is appropriate - there's no point in using a PCI slot if you need a high bandwidth solution for example
- Do you need a redundant array? What's your backup plan?