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Please do note that a cluster is chosen for vm allocation only when it meets the criteria of  (used capacity of cluster + reserved capacity of cluster + requested capacity for vm / (total capacity of cluster * over provisioning)) < disable threshold. And so it can be the case that individual hosts utilization is over the threshold. The formula is applied both both for RAM and CPU.  Default value of threshold = 0.85. The function of disable threshold is that capacity allowed for allocation shouldn't exceed the threshold. 


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