You must have noticed this option certain times in vCloud environment. This is basically a new feature introduced in the vCloud Director 5.1 where the Allocation Pool can be leveraged to use the every chunk of resources, Memory for example, allocated to it.
Let me explain a little bit more with example,
Let's say, you have allocated 10 GB Memory to the Allocation Pool and you have 10 x 1 GB VMs that you want to power on. In this case you will not be able able to power on all the 10 VMs in the Org. This is because of the Memory overhead created by the vSphere that blocks certain amount of Memory. Due to this many times the Administrators create Allocation Pool with extra amount of Memory.
New way in Elastic,
With this option available, there is no need to over allocate Memory in the Allocation Pool, you can utilize all the Memory allocated to Allocation Pool. Now, with reference to above example, you can power on all 10 VMs.
This is because earlier, in Non-Elastic, the admission control was managed by vCenter and now it managed by the vCloud Director itself.
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