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CloudStack uses Guest CIDR for dhcp-range for the Guest VMs. The entire CIDR is used by CloudStack for assigning IPs to Guest VMs. IP Address Reservation will allow part of address space to be used fornon CloudStack hosts/physical servers also, by restricting the address space of CloudStack Guest VMs. Reservation can be configured using update Network API by specifying guestvmCidr as an additional parameter. Reservation will be applicable for Isolated Guest Networks including VPC. reservediprange in the response will return the IP range that can be used for non Cloudstack hosts. Tested manually the following scenarios: Applying reservation when there are running VMs inside the guest_vm_cidr. Applying reservation when there are running VMs outside the guest_vm_cidr.(not allowed) Applying reservation when external device like Netscaler is configured in the guest_cidr. Applying reservation in VPC tiers. Applying reservation outside the range of guest_cidr.(not allowed)