How is raw capacity defined?

Raw capacity refers to the total physical storage available within a system or appliance before any formatting, file systems, or data management techniques are applied. This encompasses all the disks or storage components installed in the system, representing the maximum data it can physically hold. Selecting the option on physical space accurately aligns with this definition since raw capacity focuses specifically on the inherent storage capabilities without taking into account other factors such as usability, user access, or data compression.

In contrast, usable storage would involve formatting and potential overhead that limits the actual storage available for data. The number of users on the system relates to user access and does not define storage capacity, while the compressed size refers to data after compression has been applied, not raw physical storage capability.