Configuring Windows Server 2016 as iSCSI target

Adding file server and iSCSI target server roles

For configuring Windows Server 2016 as iSCSI target we can add file server and iSCSI target server roles using following steps:

Login into server as administrator
Start "Server Manager" from Start menu
Go to "Local Server"
Scroll down using scroll bar on right to "Roles and Features" at the bottom of right pane. Use the Tasks drop-down button on top right and choose "Add roles and features" option.
Click "Next" on Before you begin pop-up Window
Select "Role based or feature based installation" radio button and click next.
Select current server from server pool and click next. You can find current server by matching its hostname or IP address.
Expand "File and Storage Services" and then "File and iSCSI services". Select "iSCSI target Server". On pop-up for adding "File server" click "Add Features". Click "next" on "Select server roles" wizard window.
Leave "Features" as it is and click next
Click install
Click "Close" after feature installation is successful.

To create virtual disk and iSCSI target use following steps:

Login as administrator
Start "Server Manager"
Select "File and Storage Services"
Click on "iSCSI"
Start "New iSCSI Virtual Disk Wizard" from Tasks drop down menu.
Specify desired custom path where virtual disks should be created, eg C:\Virtual-Disks and click next
Specify name of virtual-disk and optional description and click next
Select "Dynamically expanding" unless you want otherwise. Give appropriate disk size, eg 1GB. Click next
In Assign iSCSI target, select "new iSCSI target" option.
Specify target name and optional description and click next.
In access servers specify iSCSI initiator names which can access this target. On Linux machines name is available at /etc/iscsi/initiatorname.iscsi file. On Windows use iscsicli command to obtain initiatorname, provided iscsi initiator service is running. On Server OS from Server Manager Dashboard one can use "Tools" -> iSCSI iniator to configure initiator.
Click "Add" and specify the iqn number. If the initator is a recent Windows 10, etc. Windows machine then the server can perhaps query the initiator name over network.

After specifying one or more desired iqn numbers click next
Optionally enable authentication in both directions
Finally click "Create" on confirmation window.
Click "Close" on the new virtual disk creation wizard.