Cloud Director space allocation

[MVanek]

Hi all!
I just need to shed some light into my maybe just misunderstanding of some cloud practice.
Lets say we have few VMs running on our on-premise VVF 8 HA Cluster that we want to replicate to cloud provided environment.
In this case its VCD.
VMs are replicated to Veeam Provider - Cloud Director within Thin-Provisioned policy configured on VDC.
Lets pick one of those VMs - VM1 120GB disk / 8GB RAM.
Used space of this VM is about 45GB.
When I replicate this machine to cloud provider, storage allocation from VDC Quota reports 173GB used...

Veeam says it has replicated 45GB of data.

When Veeam replicate VM to cloud, it creates empty VM within VDC with HDD, CPU and RAM as needed.
This means that allocation is calculated from Empty virtual disk 120GB, Initial snap space (used space 45GB) and 8GB swap space.
Provider is telling me that this is typical and common PAYG way to account storage quota within cloud workspace.

So I dont want to blame anyone for intentional mislead and confuse , since I have no experience with this type of provided service.
But from what I can see that this is not really PAYG scenario.
Pay as you go is right the opossite for me..

What confuses me is fact, that I have storage quota set for specific capacity and this capacity is allocated with empty disk space AND
actually used space....

Is this really common practice within Cloud Director??
Thanks for answers
Regards
Martin