Abstract: A method (1000) of operation of a storage system includes: partitioning a first virtual disk volume by allocating a first portion, a first low performance storage capacity, and a first reserved capacity; establishing, based on a user policy register, a partition bias for the first virtual disk volume; and adjusting a capacity of the first portion and the first low performance storage capacity based on usage statistics, the partition bias, and limiting the capacity adjustment by a dynamic partitioning module.

Abstract: A method of operation of a storage system includes: establishing a first virtual disk volume including allocating a first portion and a first low performance storage capacity; generating a usage statistics for the first virtual disk volume; and calculating a first trend line for adjusting the first portion and the first low performance storage capacity based on the usage statistics.

Abstract: A method of operation of a storage system includes: accessing a storage tier manager coupled to a first tier storage and a second tier storage; identifying a low activity region in the first tier storage and a high activity region in the second tier storage; and exchanging a physical block region corresponding to the high activity region with the physical block region corresponding to the low activity region by the storage tier manager.

Abstract: A method of operation of a data storage system includes: enabling a system interface for receiving host commands; updating a mapping register for monitoring transaction records of a logical block address for the host commands including translating a host virtual block address to a physical address for storage devices; accessing by a storage processor, the mapping register for comparing the transaction records with a tiering policies register; and enabling a tiered storage engine for transferring host data blocks by the system interface and concurrently transferring between a tier zero, a tier one, or a tier two if the storage processor determines the transaction records exceed the tiering policies register.