Hi Bidwan
We're talking about the size the system will reach when in use by customers, over time.
Just an example, one of the SolMan's that I currently manage is 1.2 TB size wise.
Don't forget SAP HANA stored data in-memory so you need to be able to store that complete size of the data in-memory. In case of 1.2 TB instance, it will probably be factor four in terms of size reduction so that would be around 306 GB for a SAP HANA database for a SolMan 7.1 with a database that is currently 1.2 TB in size.
Kr
Tom