A virtual storage module operable to run in a virtual machine monitor may include a wait-queue operable to store incoming block-level data requests from one or more virtual machines. In-memory metadata may store information associated with data stored in local persistent storage that is local to a host computer hosting the virtual machines. The data stored in local persistent storage replicates a subset of data in one or more virtual disks provided to the virtual machines. The virtual disks are mapped to remote storage accessible via a network connecting the virtual machines and the remote storage. A cache handling logic may be operable to handle the block-level data requests by obtaining the information in the in-memory metadata and making I/O requests to the local persistent storage or the remote storage or combination of the local persistent storage and the remote storage to service the block-level data requests.