Does the Cloud 'Break' Virtualization Licensing? update from July 2009

The whole thing is a mess and no vendor seems to have got it completely right. The key issue is to strike a fair balance between the intellectual property rights of the vendor to be rewarded for their investment in development and support of the code and the customers need to operate in a flexible way that minimizes their operational costs. In the end market forces will prevail and we will see much more flexible approaches like server farm licensing for large scale applications like SharePoint, Oracle Databases, and SQL Server. Part of the problem is fair licensing is hard for the vendor to implement in the cloud.