A tag is a label that you can apply to vCenter Server objects (such as datastores, VMs, and hosts) to simplify searches, allowing for a better sorting process. When a tag is created, it must be assigned to a category that groups related tags. A category also specifies whether you can assign one or multiple tags to an object. The creation and management of tags and categories are done through an intuitive configuration area, which can be reached by going to the menu, and then Tags & Custom Attributes, as follows:

For instance, you can use tags to classify your application type or the business department that is responsible for a VM.

To assign a tag, right-click on an object in the vCenter Inventory and select Tags & Custom Attributes | Assign Tag.