Standard Switch Configuration:
To configure the ESXi portion of a port channel, the aggregated NICs need to be placed into a load balancing configuration of "Route based on IP hash". This can be done at a virtual switch level or at an individual portgroup level, however the only use case for modifying only certain portgroups would be if both standalone and port channeled NICs are on the same vSwitch, which is an unsupported configuration: Route Based on IP Hash
- Navigate to the host with the standard switch to modify, then select Virtual Switches from Configure -> Networking
- Before changing the setting at the virtual switch, ensure that every portgroup that will be using the port channel is set to inherit the configuration from the switch, and any portgroup that will not be using the port channel is set to Override
- Click the three dots next to each portgroup name, e.g. "VM Network", and select "Edit Settings"
- Under "Teaming and Failover", if the portgroup is expected to use the port channel confirm the "Override" checkbox is not selected:
- Repeat for the remaining portgroups
- Once all portgroups have been validated, click "Edit" next to the virtual Standard Switch that is being modified
- Under "Teaming and Failover", change the Load Balancing configuration to "Route Based on IP Hash"
- Ensure all of the adapters are listed as Active and are the physical NICs corresponding to the physical port channel configuration
- Note: All NICs on the vSwitch at this point should be configured to be in a port channel on the physical switch, and there should be no NICs in Standby or Unused
- Click "OK" to complete the change
Virtual Distributed Switch Configuration:
Note: If the physical network is configured with an EtherChannel (port channel) do not create a LAG within the virtual Distributed Switch. A LAG is only needed when the physical network is using LACP. Please see Configuring LACP on a vSphere Distributed Switch Port Group
- Click on the Network symbol within vSphere

- The portgroups on the virtual Distributed Switch need to be changed have the Load Balancing Policy set to Route based on IP hash
- To set this for all portgroups on a vDS, right click the virtual Distributed Switch and select the option Manage Distributed Port Groups

- Select the check box next to Teaming and Failover and click Next
- Select the check box next to the left of the Name column to select all portgroups on the virtual switch and click Next
- Click the drop down for the load balancing policy and select Route based on IP hash (red box in the example below) and click Next
- Note: When using Route base on IP Hash all uplinks on the virtual switch must be in the Active uplinks state (blue box in the example below)
- See Route Based on IP Hash for more information on this load balancing policy

- Click Finish to end the Wizard and apply the change to all selected portgroups.