A system and method for implementing storage management with threshold control is provided. A flexible storage manager associates storage devices having a similar performance characteristic into logical constructs called storage groups. Storage groups having the same performance characteristic from a plurality of storage systems are organized into storage pools. The flexible storage manager automatically provisions storage on a storage pool basis. Should a low threshold utilization be exceeded, the flexible storage manager performs a set of management policies to lower the utilization of a storage pool to the low threshold.