After consolidation, redundant disks are removed, which improves virtual machine performance and saves storage space. This might happen, for example, if you delete a snapshot but its associated disk does not commit back to the base disk.
The Needs Consolidation column in the v Sphere Web Client shows the virtual machines to consolidate.
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The presence of redundant delta disks can adversely affect virtual machine performance.
You can combine such disks without violating a data dependency.
When a VM has snaphots present on the datastore but they don’t seem to be linked to the VM anymore, v Sphere 5 will detect this and report an error on the summary tab: “Virtual machine disks consolidation is needed”.If I right click on machine and go snapshot I see there snapshot manager, take a snapshot, revert to current snapshot and last is consolidate.