VM storage policies are created and managed through the vSphere Web Client, as shown in the following screenshot:

VM storage policies contain a rule or a set of rules. These can be based on tags or on data services. Tag-based rules are created from tags that the administrator creates for storage capabilities and then manually assigns them to datastores. Data services based rules are created from capabilities that are discovered from a data service provider (for example, for a VASA provider on a VVOL-enabled array).

A rule set can be based on data services, as shown in the following screenshot:

VM storage policies can be assigned to a virtual machine or to individual virtual machine disks. The Manage VM Storage Policies dialog for a virtual machine is displayed in the following screenshot:

This is based on the requirements for the virtual machine. For example, a virtual machine running SQL may require different storage capabilities for the disks containing the OS, the logs, the tempDB, and the databases. Policies can be assigned to each virtual disc to ensure correct placement of the disks and ensuring compliance through the virtual machine's life cycle.