The primary driver for the scratch disk size is the amount of changed data that needs to be replicated. If you need to reduce the storage requirements for your scratch disk, you can:
1. Reduce the amount of time that passes between replication intervals. More frequent replications will contain smaller amounts of changed data.
2. Reduce the number of VMs that you replicate simultaneously. This will send less data through the scratch disk at any one time, allowing it to be smaller. Remember that the vzundo files are deleted after the replication completes.
3. When provisioning the scratch disk, select the Thin Provisioning option. Thin provisioning helps prevent wasted storage space by not allocating blocks until they are written by the VM.