1. Dell Technologies White Paper: Dell PowerStore: Introduction to the Platform
Page 11, "Capacity" section: Defines the capacity terms. It states, "Usable capacity is the total capacity available for data storage after system overhead and data protection (RAID) are configured. This is the capacity available to the user before data reduction." This directly supports that the pre-reduction workload size (VM count Capacity per VM) corresponds to the Usable Capacity metric.
2. Dell Technologies White Paper: Dell PowerStore: Data Efficiencies
Page 5, "Terminology" section: Differentiates between Logical Size, Usable Capacity, and Physical Capacity. It clarifies that "Logical size is the amount of data that the host has written to a storage resource before data reduction." The calculation in the question determines this total logical size, which is provisioned from the system's Usable Capacity.