You can configure DVD or CD devices to connect to client devices, host devices, or Datastore ISO files.

To install a guest operating system and its applications on a new virtual machine, you can connect the CD/DVD device to an ISO file that is stored on a datastore accessible to the host.

You can configure the virtual machine’s CD/DVD drive to connect to a physical CD or DVD device on the host so that you can install a guest operating system, VMware Tools, or other applications.

To install a guest operating system and its applications or other media on a virtual machine, you can connect the CD/DVD device to a physical DVD or CD device on the system from which you access the vSphere Web Client