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I got Vmware Fusion 4 when I bought my MAC Book Pro ( core i7 2.0Ghz Quad Core 6MB Cache, 4GB RAM and 500GB HDD). I installed Win7 first on Vmware and then later WinXp. In both case the Virtual Machine was slow, it lagged and even the host OS LION, started to lag.

I assigned 1.5GB to 700++MB RAM and also gave upto 4 cores, but performance was slow. Did some research online and found that Parallels 7 is alternate to vmware. But is parallels 7 better in performance compared to vmware fusion 4?

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You might also want to consider VirtualBox, which is free and currently almost up to the features of Parallels and VMWare. It is a little bit less polished though (e.g. the 'guest additions' which give e.g. better mouse integration don't install automatically). [I was a previous Parallels user, up to version 4, but have since switched to VirtualBox] – Rabarberski Oct 13 '11 at 7:23
This is a loaded question, and mileage will vary depending on the user and use case. In most review Parallels outperform VMWare 4, but those are still opinions and not facts. – BinaryMisfit Oct 13 '11 at 7:28
up vote 3 down vote accepted

Ars Technica recently did a rundown of the performance differences between Parallels 7 and VMware Fusion 4:

The general takeaway seemed to me to be that Parallels is delivering better performance outside some very particular uses.

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