So here is what happened....during migration we selected HW version 7 but after migration it was 4. After migration nobody noticed it (sad). But when we upgraded HW version to 7 latency was reduced. Queue length though was very high but TSQL performance is ok now.
So why did the HW version change to 4? Our guess, there was an attempt to virtualize these servers 2 years back using P2V. But it failed and when they rolled back vmware tools were not removed properly....we can see vmware tools service(automatic but not started) on physical server but installation directory is missing. So when we migrated it automatically changed hardware version to 4. Weird conclusion but this is what I think. Or is it that when you migrate win2k, converter automatically sets hardware version to 4?
Any ideas anyone?