When using System Center 2012 Virtual Machine Manager (VMM 2012) to migrate a virtual machine between two standalone hosts, the operation fails with the following error:The host does not have access to sufficient storage of the requested classification for one or more virtual disks associated with virtual machine <VM_NAME>.
This can occur if the virtual machine on the source host is located on storage classified as Remote, and the target host does not also have storage classified as Remote (i.e. it only has access to storage classified as Local). Prior to VMM 2012 SP1, VMM does not support VM migrations from Remote storage to Local.
To work around this issue, migrate the storage of the virtual machine to the same source host's Local storage classification. After doing so, the VM migration between the standalone hosts should not be blocked.
This behavior does not apply to System Center 2012 Virtual Machine Manager Service Pack 1 (SP1) and later versions. A change was made in the placement wizard to remove the blocking error and allow the user to click the Next button to complete the migration.
for other considerations.