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VMWARE has vmtools to enhance VM performance. Does KVM has the same tool to enhance its VM?

If so, how to install such tools? thanks for any input!

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Yes, vmware tools provide paravirtualization support to the guest operating system. The equivalent for KVM is virtio. Drivers are available for linux and windows: http://www.linux-kvm.org/page/Virtio

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There is no such thing at the moment.

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    ok...is the performance actually the same? I mean KVM meets this requirement through a different way from vmware tools? – zhoucengchao Nov 26 '12 at 7:08
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One of the big advantage of VMware is the comprehensive operation and maintenance applications (GUI-based). That's definitely a value-add of VMware tools but at high price (licenses).

Ubuntu w/ KVM seems to have better performance compared to VMware. The challenge here is more related to manageability. Command line provides as well a lot of possibilities but the VMware GUI's are more human readable.

Of course, it depends about the use case and the experience of your administrator but in a service provider environment, manageability is key of success.

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