IMPORTANT:To upgrade an OES VM paravirtualized guest to OES 2015 SP1, you must install using files on the network. Physical media upgrades and using ISO image files are not supported methods. OES 2015 SP1 cannot run as a paravirtualized guest on SLES 10 SP4 or earlier hosts.
Performing a down-server upgrade on a Xen VM guest running on a SLES 11/OES 2015 SP1 VM host is very much like upgrading a physical machine
Make sure you follow all of the applicable instructions and guidelines in Section 5.2, Planning for the Upgrade to OES 2015 SP1 and Section 5.3, Meeting the Upgrade Requirements.
In Virtual Machine Manager, shut down the OES VM guest that you are upgrading.
Click the Create a New Virtual Machine icon or right-click localhost (Xen) and choose New.
Click Forward.
Select I Need to Upgrade an Existing Operating System, then click Forward.
Select Novell Open Enterprise Server, then click Forward.
In the Managed Virtual Machines list, select the VM guest you are upgrading.
In the Network URL field, type the URL to your SLES 11 SP4 network-based installation source, then click Upgrade.
On the Welcome page, agree to the license and click Next.
For instructions on the rest of the upgrade process, go to Section 5.4.3, Selecting the Installation Mode Options and continue from there.