Hmm… I don’t fully understand what you mean, but I’m guessing the following.
You have a virtual server, running SuSE, that now for some reason is unable to use the virtual CDROM as an installation source, so you have copied the entire contents of the SuSE CD (DVD?) to somewhere in the SuSE file system. And now you want to be able to use that place as an installation source. Correct so far?
What version of SuSE are we talking about?
Anyway, assuming this is all true and that you have copied the CD (DVD?) contents into the sub folder /susedist you should be able to add an installation repository with the command:
zypper ar /susedist suserepo
where “suserepo” is just an alias for the repository. Then you should be able to install software from that repository using YaST for instance. Assuming all the things I assumed are correct of course