Microsoft sets the virtual bar

Microsoft sets the virtual bar

Oct 11, 2005: Microsoft have taken a stand on virtual server technology by announcing changes to its virtualisation software licensing.

Virtualisation allows multiple operating systems, or multiple versions of operating systems run on a single server. Each OS behaves as a self-contained computer, and allows greater efficiency by reducing the number of servers needed.

Whilst details are still forthcoming, the changes will see Microsoft switch to licensing by instance of the software running, instead of charging per physical processor.

"Instead of licensing every inactive instance of a Windows Server System product, customers can now create and store an unlimited number of instances, including those for backup and recovery, and only pay for the maximum number of running instances at any given time." Said Brent Callinicos, corporate vice president for worldwide licensing and pricing at Microsoft.

The old pricing system was becoming messy with advances in technology piggybacking two or more processors on a single piece of silicone, forcing Microsoft to count multicore processors as a single processor in 2004 - Much to the dismay of some software vendors.

But rather than get bogged down, analysts have noted that Microsoft have stayed one step ahead of competitors by instigating a policy that demands an eventual response.

"Things like pricing and licensing get in the way of the adoption of technology." Said Andy Lees, corporate vice president of servers and tools marketing at Microsoft. "Customers want to know they're not heading down a cul de sac."

The use of virtual servers is expected to become more widespread so at the end of the day Microsoft may force other software makers and vendors to reassess their own licensing policies to stay competitive, effectively bypassing any dead end with more logical licensing.

The only potential spanner at this point is the fact that Microsoft has no way of monitoring the amount of virtual machines out there. So at least initially, the new licensing will operate on the honour system.

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