This sounds impossible but when I read Gabe’s article correctly he brings back Microsoft OS licensing costs of about $800.000 (for 200 physical hosts) back to just $40.000 (for 200 virtual hosts). Of course this presents an ideal situation.

The situation Gabe describes:
– 200 physical hosts -> 200 virtual guests on 7 physical hosts
– virtualization solution can be any: MS, Citrix, VMware or other
– physical hosts contain 2 physical Quad Core CPU’s (8 cores total)

– consolidation ratio of 4 vm’s per core = 32 vm’s per physical host
– Windows Server 2008 Datacenter licensing with a price of $2.999 per CPU so $5.998 per physical host
– no physical extra capacity for redundancy
– storage solution that can handle this kind of traffic
– no CALs included (because of Datacenter edition)

Besides OS licensing Gabe also shows an example (same environment as above) of SCOM licensing costs that can be reduced with about 90% by choosing for the Microsoft Server Management Suite Enterprise (SMSE) instead of single SCOM licenses per Guest/Host.

Again, these are extreme situations but they do show that you can seriously cut back costs if you take a serious look at your MS licensing costs and options, so check it out!

Check out the full article of Gabrie van Zanten here :,289483,sid179_gci1357346_mem1,00.html

Check out the FAQ’s concerning W2K8 licensing here :