How does VMware licensing typically operate?

VMware licensing predominantly operates on a per CPU licensing model. This means that organizations are required to purchase licenses based on the number of physical CPUs in the server on which VMware products will be deployed. Each CPU in the host server typically requires its own license, allowing VMware to align licensing costs with the computing power being utilized.

This method of licensing is practical for data centers as it ensures that organizations pay for the resources they actually utilize. The per CPU model also facilitates scalability, as companies can add or remove licenses based on their evolving infrastructure needs.

In contrast, other licensing models mentioned—such as licensing based on VM count, total storage capacity, or a flat annual fee—do not represent the most common approach. These alternatives might apply in specific scenarios or different software solutions but are not representative of VMware's primary licensing strategy.