Static service levels and application specific usage tags for storage policy based management of storage resources

Storage system characteristics are processed to generate a service level for a storage system that is one of a fixed number of service levels. Application specific usage tags describing application types the storage system is appropriate to support may also be generated. The service level and application specific usage tags are stored into a storage system capability profile and made available, together with any metadata needed to describe the application specific usage tags, to a system associated with a virtualization environment. A request to provision storage resources for a virtual machine is subsequently received, including a policy profile having a requested service level and one or more application specific usage tags describing the storage requirements of the virtual machine. If the policy profile matches the capability profile, storage resources are provisioned for the virtual machine from the storage system.