Sorry for the delay but I needed physical access to the host box.

I upgraded XenServer to 7.0 (fully patched) and the problem persists.

I tried with kernel 4.9-rc3 and the issue is still there.

I reverted to 4.4.0-45 and the issue disappears.

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https://bugs.launchpad.net/bugs/1637666

Title:
  Heavy system slowdown with 4.8.0 kernel under XenServer

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