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Industry pundits, analysts, resellers and most importantly, software consumers have long argued that Software Licensing is needlessly complex and more recently, doesn’t meet their requirements for deployment in today’s dynamic, virtualized IT environments.  That said, ISVs have maintained that some degree of complexity is necessary to provide customers with scalable price points that correlate to the intended usage entitlement thus matching received value to price. The trick is finding the right balance, but the rapid adoption of virtualization technology has made it even more important to do so.

In the pre-virtualization / dynamic datacenter world, things were somewhat simpler. Software was typically installed on a particular piece of hardware and frequently would reside there until the hardware was decommissioned. Although this model didn’t necessarily optimize software and hardware utilization, it did make software asset management and purchasing decisions somewhat easier. Most ISVs built their pricing models and licensing grants around this static model. Things have changed.

In this paper, VMware will highlight key issues ISVs should consider when developing their virtualization licensing policies, industry best practices for licensing in today’s dynamic environments and the pros and cons of existing models.

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