diff --git a/clusterctl/examples/vsphere/README.md b/clusterctl/examples/vsphere/README.md
index f0d3e71ccac2..5604946e362d 100644
--- a/clusterctl/examples/vsphere/README.md
+++ b/clusterctl/examples/vsphere/README.md
@@ -10,17 +10,14 @@ For convenience, a generation script which populates templates where possible.
 ```
 ./generate-yaml.sh
 ```
-2. Copy machines.yaml.template to machines.yaml and
-Manually edit ```terraformVariables``` for machines in machines.yaml
-```
-cp machines.yaml.template machines.yaml
-```
+2. To define the master machine, copy `machines.yaml.template` to `machines.yaml` and
+manually edit `machineVariables`.
 
-3. Copy cluster.yaml.template to cluster.yaml and
-Manually edit ```providerConfig``` for the cluster in cluster.yaml
-```
-cp cluster.yaml.template cluster.yaml
-```
+3. To define nodes, copy `machineset.yaml.template` to `machineset.yaml` and
+manually edit `machineVariables`. If needed, adjust `replicas` as well.
+
+4. Copy `cluster.yaml.template` to `cluster.yaml` and
+manually edit `providerConfig`.
 
 ## Manual Modification
 You may always manually curate files based on the examples provided.
diff --git a/clusterctl/examples/vsphere/machines.yaml.template b/clusterctl/examples/vsphere/machines.yaml.template
index 9a05eddd31c9..3c553ea7003c 100644
--- a/clusterctl/examples/vsphere/machines.yaml.template
+++ b/clusterctl/examples/vsphere/machines.yaml.template
@@ -2,7 +2,7 @@ items:
 - apiVersion: "cluster.k8s.io/v1alpha1"
   kind: Machine
   metadata:
-    generateName: tf-master-
+    generateName: vs-master-
     labels:
       set: master
   spec:
@@ -27,28 +27,3 @@ items:
       controlPlane: 1.10.1
     roles:
     - Master
-- apiVersion: "cluster.k8s.io/v1alpha1"
-  kind: Machine
-  metadata:
-    generateName: tf-node-
-  spec:
-    providerConfig:
-      value:
-        apiVersion: "vsphereproviderconfig/v1alpha1"
-        kind: "VsphereMachineProviderConfig"
-        vsphereMachine: "standard-node"
-        machineVariables:
-          datacenter: ""
-          datastore: ""
-          resource_pool: ""
-          network: ""
-          num_cpus: "2"
-          memory: "2048"
-          vm_template: ""
-          disk_label: ""
-          disk_size: ""
-          virtual_machine_domain: ""
-    versions:
-      kubelet: 1.10.1
-    roles:
-    - Node