VMWare New Licensing Model

September 19, 2011 / General Discussion

The new innovations in the EMC company (a subsidiary of VM) created the impression that VMware customers with the wishes of affordability will get the license at a lower price tag. The VMware licenses are expensive, they now needed more licenses for the same amount of hardware than before.

The present licensing model makes more sense than the older one. VMware’s rapid growth and increased profit ratio helps them to set a new affordable pricing structure for the cloud hosting provision. In 2010 revenue of VM grew by 31%, which clearly indicates a rise in its popularity.

VSphere 5 is still licensed per processor, complemented with a single right of use of virtualization based on virtual memory or Pooled vRAM instead of the right to use the processor core. Pooled vRAM is the total amount of main memory that is available to all virtual machines in the environment of cloud computing.

Each vSphere 5 CPU license allows the buyer to use a certain amount of VRAM and is free to distribute throughout the environment. Theoretically, a 12-core processor operated with a single enterprise license, if the virtual machine to make do with a total of 32 GB of RAM.

The Enterprise License Plus offers the largest pool of 48 GB of RAM. As we had expected the licenses to version 4 as per-CPU and CPU core are now combining the CPU core and vRAM in version 5 to determine the variable for budgeting. As a result, prices are lower per processor.