So, normal upgrade procedure is install new version, start it, shut it down, delete alf_data and put previous version alf_data there, start Alfresco, and it recognizes as an older rev and does the upgrade. So, I _think_ you could do what you describe, as long as 1) the alf_data ISCSI target is mounted in the same place/structure as the new-version install, and 2) you don't mentioned how you have the mysql db setup… see upgrade procedure for that, but take care of that, think the VM approach should work.