In one embodiment, a system for managing a virtualization environment comprises a plurality of host machines, one or more virtual disks comprising a plurality of storage devices, a virtualized file server (VFS) comprising a plurality of file server virtual machines (FSVMs), wherein each of the FSVMs is running on one of the host machines, wherein the VFS is configured to detect a failure of one of the FSVMs on a first one of the host machines, wherein the first host machine is located within a first block of host machines. The VFS may then identify a failover path to a second FSVM. For each storage resource associated with the first FSVM, the VFS may migrate the storage resource to the second FSVM.