How does VMware licensing typically operate?

VMware licensing typically operates on a per CPU licensing model, which means that the licenses you need depend on the number of physical CPUs in the host servers that run VMware products. This model allows organizations to determine licensing costs based on their hardware setup, specifically how many CPUs are being utilized rather than the total number of virtual machines.

This approach can simplify license management and is aligned with the industry standards for virtualization, making it easier for companies to scale their virtual environments by purchasing additional licenses as they add more hosts. Licensing per CPU also helps VMware cater to a range of business sizes, allowing larger enterprises that may have many hosts with multiple CPUs to manage their licenses accordingly.

In contrast, other options like counting VMs or charging based on total storage capacity do not reflect VMware's licensing strategy, which is closely tied to physical server specifications. A flat annual fee for unlimited use does not align with the typical licensing practices observed in the industry, where usage and CPU count are significant factors in licensing costs.