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Microsoft Implements New Licensing Terms for Windows Server Virtualization

Microsoft has implemented a significant change in its licensing for Windows Server System products that are used in virtual machine environments.

New servers licensed with Windows Server 2003 R2 Datacenter Edition now have the license rights to run an unlimited number of virtualized Windows Server instances and can buy the product directly from Microsoft and reseller partners through Volume Licensing.

The change, which was effective Oct. 1, means that by licensing the server’s processors with Windows Server 2003 Datacenter Edition, users will be able to run Windows Server Standard Edition, Enterprise Edition, Datacenter Edition or a mix of the three editions without having to track the number of virtual machines or pay for additional Windows Server licenses, Microsoft said in a statement.

Microsoft first announced the move of its annual Worldwide Partner Conference in Boston earlier in 2006.

Before that, the company had said that licenses for Windows Server 2003 Datacenter Edition would allow customers to run as many as four virtual instances on one physical server at no additional cost and that it planned to only allow users the right to run an unlimited number of virtual instances on one physical server when the Datacenter Edition of Windows Server “Longhorn” shipped sometime in 2007.

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