When you use System Center 2012 Virtual Machine Manager (VMM 2012) to migrate a virtual machine (VM) between two stand-alone 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 that is classified as Remote, and if the target host does not also have storage that is classified as Remote (that is, if it has access only to storage that is classified as Local). In versions of VMM earlier than VMM 2012 SP1, VM migrations from Remote storage to Local storage are not supported.
To work around this issue, migrate the storage of the virtual machine to the same source host's Local storage classification. After you do this, the VM migration between the stand-alone hosts should not be blocked.
In System Center 2012 Virtual Machine Manager Service Pack 1 (SP1) and later versions, you will continue to see this error message. However a change was made in the placement wizard to remove the blocking condition and enable you to click the Next button to complete the migration anyway.
Article ID: 2823834 - Last Review: Feb 20, 2014 - Revision: 1
Microsoft System Center 2012 Virtual Machine Manager