Methods and systems for integrated data management and block level storage management in a storage system having a controller with a multi-core processor. A hypervisor manages the multi-core processor such that at least one processor is used in a first virtual machine on which a block level storage management process is operable. The first virtual machine may also operate under the control of a real-time operating system. The hypervisor also defines a second virtual machine using one or more other processor cores and operates a data management application process optionally under control of a general purpose operating system. The optional general purpose operating system and the data management application process access storage devices by communicating through the hypervisor with the block level storage management process operable in the first virtual machine.