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The the hidden cost of VDI – VECD

Did you know that if you deploy a VM with a Windows desktop OS on any virtualization server you are violating Microsoft licensing if you use your Volume Licensing key? Did you know that if you P2V a desktop OS that is using an OEM Windows License to a virtual server you are also in violation?

The only way Microsoft allows you to run virtual desktops on a virtual server is using an annual subscription license called Vista Enterprise Centralized Desktops (VECD), and VECD is only available if you buy Software Assurance. Microsoft announced VECD back in April 2007.

VMware published a .pdf that is a FAQ about VECD. Here’s some cut and pastes from the .pdf:

What is Windows Vista Enterprise Centralized Desktops (VECD) and how does it work in helping customers?

VECD enables customers to deploy and run Windows Vista Enterprise in virtual machines on server hardware. This will enable VMware VDI customers and prospects to host centralized virtual desktops on VMware Infrastructure 3 and access these using remote PCs and thin clients. VECD is available to Microsoft Software Assurance customers for an annual, per-device subscription fee. The fee varies based on whether your business is licensing PCs or thin clients to access the virtual desktop. The subscription fee amount is yet to be released from Microsoft.

What versions of Windows desktop operating system is this good for?

This mode of licensing applies to Windows Vista Enterprise with Software assurance. Of course, customers can use “downgrade rights” under their Software Assurance agreement to deploy any version of Windows Professional editions (Windows 2000 Professional, XP Professional, and Vista Enterprise) in
a virtual machine.

What about customers who aren’t under Microsoft Software Assurance program?

Customers not under Software Assurance can still buy Windows Vista Business, Vista Ultimate, or Windows XP at retail price (Fully packaged price) to run in a virtual machine. We encourage customers who do not want to purchase Software Assurance to work with their Microsoft licensing representative and/or their preferred OEM vendor to extend these product use rights to non Software Assurance customers.

All of the popular P2V tools will successfully convert workstations to VMs. Most of the time all you have to do is re-activate the OS and remove hardware and vendor specific applications and you are ready to use the virtual machine. There are probably a lot of VMs in use today that have been migrated this way. As of today Microsoft’s VECD unfortunately does not allow workstation P2V migrations and requires you buy new licenses and build new desktop VMs.

C’mon Microsoft. You already sold the license when the desktop was purchased. You sold (or will sell) the upgrade now that you released Vista. Why do you need to get a another cut from from companies migrating their desktops to VDI? Are you going to require my children to buy an inheritance license if I give them my computers when I die? I wouldn’t doubt it.

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  • Microsoft should really change the licensing or ease up. Especially with VDI and the licenses companies already bought. This makes a transition really expensive.
  • Well you are 1/2 correct on the above.

    If you dont have SA you can purchase VECD (not for SA) and it will give you the full license for Vista Enterprise (and downgrade rights to previous OS's). Granted its at a higher cost, but it comes with SA.
  • Jeff
    However. VECD is an ANNUAL purchase. It is non-perpetual.

    So at 375 a year (which Ingram is quoting) in a 4 year life span I would pay for at least 2 actual workstations with OEM.
  • Correct VECD is a non-perpetual subscription.

    $375/YEAR??? Are you kidding me? You might want to double check that price.

    VECD (for NON-SA customers) has an ERP of $120/year. Software Assurance (SA) customers have an ERP of about $23/year.

    The KEY differenences between VECD and OEM/FPP licensing is you get Volume Activation, SA (which includes upgrade/downgrade rights), and the number of instances you get in a virtual enviroment.

    There are way too many to list and it comes out about even with OEM vs. VECD licensing (and you get more with VECD).
  • Jeff,

    Good point.

    Chris,

    Thanks for keeping me and the vmetc readers straight with your expertise on VECD!
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