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vbrowncoat
VMware Employee
VMware Employee

(All of this information, and much more is available in Duncan Epping and Frank Denneman's awesome vSphere Clustering Deep Dive book)

Resource pools don't only take effect during contention. If a resource pool or VM is configured with a limit the available resources may be used up before the host or clusters resources are consumed. Using a limit can be a good way to play around with resource contention without overloading a host.

Contention will occur when resource demand exceeds available resources. This would be when CPU active and Memory active exceed available CPU and/or memory on the host (this would be less than 100% as the host requires certain resources to operate). The reservation and share resource allocation settings (on either the VM or the resource pool it is a part of) affect entitlement.

Does this answer your question?