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While performing a P2V with SCVMM 2012 I got the following error message:

There is not enough disk space on the available volumes.
Maximum disk space on the most appropriate volume, accounting for the host resource utilization  (in megabytes): 103450
The virtual machine requirement (in megabytes): 744776
The maximum available space at the time of evaluation, after considering the virtual machine requirements (in megabytes): 103450
ID: 3501

I was confused a little after getting this error because I knew I had enough space on my Hyper-V cluster Disk’s, so what it looks like is that SCVMM want you to have enough local Disk space on one of your Hyper-V servers (local disk space and not some SAN storage connected to the cluster) before you can start P2V.

But you don’t need to worry about the error above because there is a simple workaround if you are definitely sure that you have free space on your storage. Go to below screen and press next after selecting system drive only (uncheck all the other disk’s).

After selecting above continue with wizard by pressing next till you reach last tab “Summary”. Once you are there click in the left side on “Volume configuration” and select all drives that you want to be in virtualised machine and then press “Summary” in the left side of the wizard and finally finish the wizard. That’s all you have to do if you get above error while converting Physical to Virtual using SCVMM 2012.

Best Regards,
Pouyan