Please go through this links for upgrading VI3 to V-sphere. 
 
Ø  1st video It includes upgrading the virtual center, update manager, enterprise convertor
Ø  2nd video covers upgrading ESX server itself using update manager with an .iso image.
Ø  3rd  video covers upgrading the Vmware-tools and Virtual machine hardware upgrade on virtual machines manually and by using vmware update manger
Ø  4th  video covers v-sphere licenses
 
http://download3.vmware.com/vsphere/vsphere-migration-part1.html
 
http://download3.vmware.com/vsphere/vsphere-migration-part2.html
 
http://download3.vmware.com/vsphere/vsphere-migration-part3.html
 
http://download3.vmware.com/vsphere/vsphere-migration-part4.htm

Thanks ,

Amit

l

When I try to log in to my virtual center to verify my VM farm today, the virtual center show my ESX host had been disconnected from the virtual center by itself. The ESX host itself should be running in critical mode as production and had HA and DRS enable on the cluster. The 1st thing I try to verify is to ensure all my VM and the ESX host is still in production mode, and yes, all the VM is not been down and it still run as normal while it disconnected. Read more »

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