"Guest OS recommended maximum" = 4GB RAM, this is VMWare recommendation. Sometimes, you can say default recommendation. As per VMWare help page, the value greater than this will not be utilized by the virutal machine effectively. However, you can set the memory how much you need. If Virtual machine needs that much amount of memory at the time of running, it uses.
Shan
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Mmm... replace "Standard Edition" with "Enterprise edition" and VMware recommends up to 64 Gb. If it is a matter of VM performance, it is not logic. If it is a matter of OS capabilities, it is not logic also.
If you look at "Edit Setting" window, you can see "Maximum Recommended for best performance", it must be greater than recommended for Guest OS. Really, no idea what logic behind of this. Lets see someone can explain to us,
Shan
If it can help: upgrading VM RAM from 4 Gb (max recommended) to 8 Gb greatly improves the performance of the VM.
By the way, the VM is a clone (VMware Convert) of an IBM machine with more than 10 Gb of RAM, running ORACLE + SAP. Response time was poor with only 4 Gb.