Oversized VMs will generally be the bulk of the Reclaimable Capacity in your environment.

By default, a virtual machine is flagged oversized when the amount of CPU, Memory, or Disk Space demand is below 50% for the selected Data Range (time period).

For a production environment, it is recommended to use Stress to account for spikes and peaks setting is checked. This will ensure that VM peaks are taken into account when determining if a VM is oversized.

A common question that arises with oversized VMs is what is the right-sizing value based on what is shown in the VM optimization report. The right-sizing recommendations are calculated from Demand + HA + Buffers. Therefore, it is important to consider what buffers are appropriate for your environment to ensure accuracy in these reports.