After storage disconnect and reconnect all the VMs remain paused

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I had a customer asking about this:

Whenever the storage connection of a host fails, the host status in RHEV-M
becomes 'non-operational' and the VMs will paused. Oncethe storage of hosts comes back up, the host status in RHEV-M is automatically changing to 'operational' state however, all the VMs in that host system remains in 'Paused' state.

Is it expected behavior?

So the answer is yes.

The Pause is not caused by RHEV Manager, but as a protective measure taken by the KVM hypervisor. On disk access error, the virtual machine will be paused to prevent data corruption. As soon as the virtual machine is taken out of pause mode, the write will be retried.

At the moment RHEV Manger does not automatically take the virtual machine out of pause mode.  The reason at the time was that in case of a storage error it's better to leave the administrator with the description if and when to release the virtual machines out of pause mode by 'running' the machine again (The machine will start from the point it was paused).

If anyone wished to automate this, it's easy to write a REST API script that will auto activate VMs in pause mode.