Convert a Machine : Select a Destination for the New Virtual Machine : Supported Destination Types

Supported Destination Types
Converter Standalone can create virtual machines compatible with VMware hosted and managed products. Converter Standalone can also create virtual appliances for Internet distribution.
Table 2 shows the destinations that Converter Standalone supports.
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Local .ovf or .ova file
Note
For hosted destinations that reside on SMB or NFS shares, you must use volume-based cloning and create 2GB not pre-allocated target disks.