Microsoft’s recent announcements concerning the Virtualization components of Windows 2008 Server seem to indicate a shift of position about the use and support of virtual machines.

When Vista first came out Microsoft had explicit conditions in the End User License Agreement against the use of anything other than Vista Enterprise in a virtual environment. Common sense has gradually changed their stance, but not for the reason you might think.

Microsoft can do anything it wants as there are no real competitors. Linux will never become mainstream. Open Office or Star Office are just not friendly enough for users to switch to. The current generation will not want to use Linux because the game support does not exist.

Microsoft is rubbing its hands together with glee about Virtualization. Do you know what the licensing requirements are if you want to use Vista in a virtual desktop environment? This is the hidden pot of gold for Microsoft.

If you want to run more than one Vista instance on one physical workstation or remotely on virtual servers you will need to have an Enterprise License. The Enterprise License requires the subscription scheme called Software Assurance paid annually to Microsoft. On top of this you will need to buy a Vista Enterprise Centralized Desktop (VECD) license which also requires Software Assurance.

With VECD you need as many licenses as you have physical computers or terminals. This even includes thin client devices. If you have thin client devices you also need to buy VECD with Software Assurance.

Are you saving any money yet?

VECD is a licensing requirement of Microsoft Vista if you want to utilize a Virtual Desktop Infrastructure (VDI) model of data centre based client operating systems. This model is becoming popular because virtual machines are being used to provide worker and client access to resources. They use remote access technology to connect to the virtual machines. IT staff can centrally manage the virtual machines.

The technology is becoming a popular alternative to traditional terminal service and Citrix server based computing.

The down side of Virtualization is the cost to implement. You still need licenses for your operating systems and with Vista you need even more licenses. You need good hardware if you want to move a lot of work to the Virtual Server Host.

The free offerings from Microsoft and VMware are a good start though. VMware Server and Esx3i and the new Microsoft Hyper-V are capable as long as you have decent hardware and don’t mind a little bit more work.

I would not move to a VDI environment unless you have really done your homework and the benefit of centralized management far outweighs the extra annual license costs you are going to incur.