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Understanding capacity planner sizing recommendations

I've combed through tons of VCP documentation but can't find the answer.  Can someone tell me how capacity planner determines suggested VM CPU and memory sizing based off of the inventory and performance metrics?  I've ran a collection against a heavily utilized system and capacity planner has recommend a large reduction of CPU cores and increase in memory allocation.  Why does it suggest memory to be increased?  Since the server is at 98% memory utilization Is this due to overhead when running the server as a virtual instance?  If so what is the overhead calculation?

 

--Existing Hardware--

HP\Proliant BL460c G7

CPU Count = 12

CPU Speed = 3,067 Mhz

Memory Size = 98,304 MB

%CPU Usage = 2.8%

%RAM Usage = 98%

Page File % = .004%

Paging/Sec = 36.497

Queue per CPU per GHz = .021

File Sys Cache = 3,906.25 MB

 

--Target Hardware--

Cisco UCS B200 M4

Phys CPUs = 2

CPU Speed = 2600 MHz

Phys Core Count = 32

Memory Size = 524288 MB

 

--Suggested Virtual Machine size--

CPU Count = 1

CPU Speed = 700 Mhz

Memory Size = 120,832 MB

 

Thanks,

Glenn


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