When upgrading to vSphere 5, if you’re already using Update Manager (VUM) you should also upgrade Update Manager to version 5 as well. Some of the more notable updates to Update Manager include being able to upgrade directly to an ESXi image via ISO and the ability to upgrade virtual appliances, as well as the loss of the ability to update VMs.
Start off by opening the autorun application that was included with the vSphere 5 download, click on the “VMware vSphere Update Manager” and then click on “Install”
Select the preferred install language, and there should be a message regarding a previous install of Update Manager being already installed, click “OK” to that
Click “Next”, click “Next” to agree to the Patent Agreement, accept the EULA and click “Next”
Check mark the box to “Delete the old host upgrade files from the repository” to remove patches that may not be applicable to the new version of VUM, and select whether VUM should download the new updates automatically or not. Personally, I’m not going to be using any ESX3 hosts, so I didn’t select that option. After the install, I went in and deselected that patch repository.
Enter in the information for authentication to the vCenter Server
Verify the DSN for the VUM DB instance and choose to upgrade the Update Manager database
Configure the ports for VUM and click the “Install” button.
The Install takes a short amount of time and then a reboot is needed
Some of the new features, importing ESXi images:
Some new cluster settings, including parallel remediation for hosts in cluster, the migrating powered off and suspended virtual machines to other hosts in the cluster, if a host must enter maintenance mode, and PXE booted ESXi Host settings:
Some of the new Download Sources, including the repository for the virtual applications