A Deeper Look Into VMware vSphere 5 Licensing PDF Print E-mail
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Written by Rynardt Spies   
Wednesday, 13 July 2011 21:11

Last night I posted an article where I showed my initial findings in regards to the changes in vSphere Licensing. In the post I showed just how much more VMware customers will have to fork out to upgrade their environments to vSphere 5. I also included some tables which showed the figures.

After looking into the licensing issue a little deeper, and after spending some time on the phone with my good friend Tom Howarth (from http://www.planetvm.net), I realized that the whole licensing thing isn’t as straight forward as my original post might have pointed out. I’m going to try and explain myself and Tom’s findings.

The first conversation I had with Tom this morning really turned into a session in which we had exchanged our feelings of disbelief and annoyance in regards to where the new licensing model would leave our customers. About half an hour to an hour after that conversation had finished, Tom gave me another call in which he said: “It’s not as bad as we had first thought”. I guess that is what really (indirectly) triggered this post.

Both Tom and I did some calculations on our own and came to the same conclusion. Although we are not entirely in favor of the new licensing model, it does seem to, in certain conditions, force you to stay with recommended best practice in regards to N+1.

I’m going to try and start off with some simple examples to illustrate just what the new licensing model would mean in terms of money.

Bear in mind that in vSphere 5, the licensing will be based on “pools” of resources which I understand is per “vCenter Server instance”. I assume that licenses can move around not only between clusters, but data centre objects as well. However, I could be wrong, so don’t quote me on that just yet.

For simplicity, I’m going to assume that we have a single vCenter server that manages a single cluster of ESXi hosts.

In my first example, I’m going to keep it real simple. In this example we have a single ESXi host being managed by a vCenter server. The ESX host has two 12-core CPUs and 64GB of RAM to start with. The calculation looks as follows:

vsphere5-lic-figure-01

In the table above, we see that it actually costs more to run vSphere 4 Enterprise than vSphere 5 Enterprise or Enterprise Plus. Also, notice that we require more vSphere 4 Standard and Enterprise licenses as what is required for vSphere 4 Enterprise Plus as well as all of the vSphere 5 Editions. This is because of the 6-core CPU limit on vSphere 4 Standard and Enterprise Editions.

Other than that, there’s not much else to say about the calculation above, so let’s double the memory in that host to a figure that I’m more likely to see more often in my customer environments.

vsphere5-lic-figure-02

Ok, the table above shows a little more about the penalty that will be paid in terms of vRAM TAX. Because there is now more than 96GB of RAM, an extra CPU license is required to legally make use of use of 100% of the physical memory.

However, as a single host is not very realistic, I’m going to up the ESXi hosts to 4. Let’s see what happens.

vsphere5-lic-figure-03

The table above shows 4 ESXi hosts. Although the licensing looks bad, keep in mind that we are planning to use 100% of the physical memory in the host, which is not a good idea in terms of HA and N+1. It is also very bad design practice.

So to get ourselves into a better position in regards to HA, let’s apply a rule that states we have to leave 25% headroom in terms of cluster wide memory.

vsphere5-lic-figure-04

As a result of applying a rule that states that we are only allowed to use 75% of the TOTAL cluster’s physical memory resources, the licensing seems to be more on target, with an equal license count between vSphere 4 and 5. Also, because of the CPU core limit in vSphere 4, notice that with the Enterprise license, vSphere 5 actually works out cheaper than vSphere 4.

Now here’s the trap. Let’s up the Target Physical memory Utilization figure to by 1% to 76% and see what happens.

vsphere5-lic-figure-05

As soon as we use 76% of the cluster wide physical memory resources, we are required to purchase another license. The biggest issue I have here is that VMware now contradicts itself in terms of features and licensing. For example, they would like to sell vSphere as the “clever” solution that will sort out resource contention with things like Resource Pools (Proportional Share-Based Algorithm) and Transparent Memory Page Sharing, but on the other hand, they tax you for using those features.

vsphere5-lic-figure-06

In the figure above, vSphere 5 is more expensive as we only have two CPU sockets in each host and are aiming to utilize 100% of the physical memory. As said before, this is a bad design!

vsphere5-lic-figure-07

The figure above shows that with the reduced Max physical memory utilization of 75%, vSphere 4 and vSphere 5 is on equal footing in regards to price. However, the catch is detailed in the graphs below:

vsphere5-lic-figure-08

The figure above starts to reveal the vRAM tax. Simply because we use 1% more than 75% of the physical memory, we now require an additional CPU license on vSphere 5

vsphere5-lic-figure-09

Now the figure above shows just how the vRAM tax is applied. The next figure will make it even clearer.

vsphere5-lic-figure-010

Ok, so we can clearly see that from the images above, based on 128GB of RAM per host, which I have to say, based on my experience, is an average amount of RAM for today’s blade systems, the penalty get’s heavier and heavier with every host you add to the environment.

Now, if you do end up in a situation where you need to purchase additional licenses, the only thing that can think of to cushion the blow a little would be to double the amount of physical processor packages in each host, if you have the empty sockets available to do so. Probably the worst thing I can think of is having a situation where you have more licenses than physical CPUs and still have empty CPU sockets. At least, by filling the empty CPU sockets, you’ll have the option of additional CPU resources.

vsphere5-lic-figure-011

Comments (22)
  • Andrew Storrs

    Now, if you do end up in a situation where you need to purchase additional licenses, the only thing that can think of to cushion the blow a little would be to double the amount of physical processor packages in each host, if you have the empty sockets available to do so.

    At first it sounds like a good idea, but then you'll realize you've just moved the licensing cost to other products: Microsoft Windows Server Datacenter or RHEL licenses and any other 3rd party management tools (Quest/Veeam/vKernel/etc) usually licensed per-socket.

  • Mr. X  - Regarding bottom graph

    Is there a way to show the red line in the last graph to avoid confusion? I realize it's identical to the green line.

  • Chris Wahl  - Empty Sockets?

    I don't think many customers are ordering servers (or blades) with empty sockets. That seems like an old school thing to do, right? :D

    Also, the B230 UCS blade is a popular 2 socket blade, and can house 256 GB of memory with 8 GB DIMMs (up to 512 GB of memory if using 16 GB DIMMs). I don't think I'd buy one with only 128 GB of memory (or anything less).

  • Rynardt Spies  - RE: Empty Sockets

    Thanks, interesting comment.

    Regarding the UCS blades and high volumes of physical memory that can be installed, I believe this is exactly the kind of thing VMware was thinking of when they came up with the licensing model.

    In the case were you are going to install 192GB, 256GB and 512GB RAM in each balde and only have two physical CPU packages, VMware will be laughing all the way to the bank.

    If you have 256 GB of RAM per blade and you wanted to allocate all of that memory to VMs, you will be required to purchase 6 vSphere 5 Enterprise Plus licenses where as in the past with vSphere 4, the license count would have been 2.

    I can't believe that VMware actually went for low vRAM allocation figures such as 24, 32 and 48GB per license! Insane!

    People can forget the hype about a VM with 1TB allocated memory, as it would be much more cost effective to run that server as a physical host. Allocating 1TB vRAM to a VM will require you to have 22 Enterprise Plus Licenses, and at a cost of almost $78,000.00 I can't see anyone being stupid enough to do that! VMware has shot itself in the foot here!

  • SNB  - yeah, but...

    You're sort of ignoring the distinction between Allocated memory (which VMWare charges for) and Utilized memory.

    It's not bad practice to _allocate_ 100%, or even more, of your physical memory to VMs. Between transparent page sharing, the memory balloon function, compression, etc., your Utilization might only be 65%.

    So I can over-allocate memory, while actually underutilizing it. But Vmware is now going to charge me for the former. THAT is the problem.

  • Rynardt Spies  - RE: yeah, but...

    I don't think it's fair to say "you're sort of ignoring the distinction between allocated memory and utilized memory"

    Yes in hind sight, I should have renamed all the fields to Allocated memory and not Utilized memory, but this post is all about vSphere licensing and licensing doesn't care about utilized memory, but it does care about allocated memory.

    And yes, in terms of HA and N+1, I do believe it's very bad practice to allocate 100% of physical memory in a cluster or host to VMs, even if it's not actually actively being used by the VMs. Then again, I probably don't deserve a VCAP-DCD badge for trying to keep to guidelines?? No?

    Anyway, thanks for the comment. I should really go back and change my field to Allocated Memory as I can see how my post could be confusing.

  • e1  - Configured RAM, Consumed RAM, and Active RAM

    Hi,
    This is not commenting on the license, but on the RAM.

    I agree with SNB that we can have vRAM = pRAM and we will be fine. A few reasons:
    1. Configured RAM is not normally the peak RAM. If the peak RAM is 13 GB, the app team might ask for 16 GB. Easier to manage too, as 16 is a "familiar" number. And it feels saver to have buffer too :-)
    2. Usage counter in vCenter is rather misleading. It is showing memory.consume counter, not memory.active. So it includes memory that _was_ active, but no longer. This is the reason why vCenter Ops will show RAM is fine while vCenter will complain RAM is high. Kit Colbert has good info at VMworld preso RAM.
    3. If we have 10 VM in host, normally they don't peak at the same time.
    4. TPS, Ballooning, Compression, etc.

    So the above 4 reasons are enough to cover for HA. Naturally, I'm not assuming a 2-node cluster here :-)

    Hope that helps
    e1

  • Danny McDaniel  - optimum memory configuration

    Isn't the optimum memory configuration for a modern system going to be either 96 or 192 GB so you can maintain 1333 Mhz bus speed??? What do the calculations look like for those memory sizes?

  • John Troyer  - Good start, but what about HA?

    Rynardt, good numbers as far as they go and as far as I can tell without going through your math.

    However, we really need to take real-world scenarios into account. For instance, here you aren't including extra room for HA. So if your cluster is 4 + 1 spare, then you can reduce all these numbers by 20%, since you now have an additional host in your vRAM pool.

  • Julian Wood  - Could you please publish your spreedsheet

    Thanks for the great calculations, Rynardt. Would you consider publishing your spreedsheet so we can plug in our own calculations.
    We're deploying what we're calling a "high performance" cluster for those VMs that need greater vCPU and huge amounts of RAM and it would be interesting to see what 144 or 196GB RAM conparisons look like.

  • Andreas  - That's small sized hosts

    128GB RAM would pretty much the minimum when setting up hosts now.

    I have customers who have 200GB+ memory in each host, just because their VMs need massive amounts of memory. Sure, those hosts may have 4 CPUs in them, but just using the Enterprise license (They don't need the extra features E+ grants them) they can utilize half of that memory. How can I explain (and justify) to them that VMware suddenly wants to double their license cost without giving them anything extra?

    Also, I'd like to see how VMware handles those customers with the automatic SnS upgrade. If they have an environment that is compliant with the VS4 licensing, will they upgrade those customers so that they are covered even with VS5?

    I agree with SNB, VMware charges for the allocation but not utilization, and in some cases you want to allocate more than you have (over commitment). You also state that is is a bad design and that HA gives you some overhead, but what if the customers isn't using HA (Say, it's an test environment with no uptime requirements) or that they want to test how their products (if they develop their own products) behave when memory is congested?

  • Andreas  - OUCH!

    Just found out from a customer that they need to buy an extra 20(!!) E+ licenses in order to cover their entire environment.

    They need 44 E+ licenses, that is an increase by almost 100% in order to cover their environment. They are now calling to a meeting where they will most likely replace VMware with Hyper-V, Xen or KVM.

    Shame on you, VMware!

  • Rynardt Spies  - RE: OUCH!

    Don't jump into conclusions without doing proper math.

    My examples cannot be applied to all environments as each and every environment will have different vRAM allocations and different actual active vRAM utilization.

    Make sure you aren't over allocating and allocating more vRAM to VMs than what is actually required by the application within the guest OS.

  • Andreas

    Those numbers were straight from the customer itself. They allocate 100% of the physical memory

    They have just purchased the following machines:

    4 socket with 512GB ram.

    VS4 = 4 licenses per machine
    VS5 = 11 licenses per machine

    Also, here are some real world examples from their environment:

    vRam Details

    Pooled vRam Capacity: 1152 GB
    Number of VMs Powered On: 236
    Current vRam usage: 1726 GB
    Percent vRam usage: 149%

    Number of VMs if all were Powered on: 288
    vRam usage if all VMs were Powered on: 2005 GB
    Percent vRam usage if all VMs were Powered on: 174%

    As you can see, VMware will make big bucks on that customer, should they decide to upgrade.

  • Rynardt Spies  - OUCH

    Yeah, you see. This is the problem right here VMware. So much for VMware's real world examples that states we run 5.7 VMs per physical CPU and an average of 3GB per VM.

    If you are going to allocate 1726GB to VMs and only have a pool of 1152GB, you will have to get 36 enterprise plus licenses. It's not just 11 per host, but 149% of 512MB per host could see you having to license at 16 enterprise plus licenses per host.

    On this license model, the CPU socket count is irrelevant!

  • R vd Wel

    Hi Rynardt,

    I've used your great post as inspiration for a calculation sheet for vSphere 4 vs 5.

    See: http://www.azlan.cc/1/post/2011/07/vsphere-4-vs-5-dynamic-license-calc ulator.html

    I've mentioned your blog as major inspiration.

    grtz
    Rob

  • AndyC

    Great article, your examples and calculation seem spot on to me and have to say, it re-inforces my view that VMWare have made a huge cock up.

    One of the worst things about all of this is VMWare's spin that this is for the benefit of the customers. Utter rubbish. It's about generating extra revenue, especially as processors are going to come with more and more cores per socket.

    It is a tax on vRAM, and taxes are used for two things, either changing behaviour or raising revenue. Nothing else.

  • Datto

    From a big picture standpoint, this new pricing model is VMware saying Hyper-V and XenServer aren't competitive in the large enterprise. They're probably right and after six months of customer grumbling this price model will help support their future stock price.

    Datto

  • fv

    Great post indeed.
    However I personally would redo all calculations with a more realistic scenario.
    Do you know what is the most popular CPU sold in the market? It is Intel X5600. That has typically 6 cores. The fact you used an AMD 12 core CPU is artificially describing a corner case: most customers (80%+) have 6 cores per socket. Try out your calculation with these knind of CPU and 128GB RAM and you will be have a better picture of reality.

  • wuffers  - Take the vSphere 5 migration survey!

    How do the new vRAM entitlements affect you?

    Please take 2 minutes of your time to fill out this vSphere 5 migration survey:
    [url]http://wuffers.net/2011/07/18/vsphere-5-migration-survey[/url]

    We need more data! Results will be posted in the main vSphere 5 licensing thread over at VMTN:
    [url]http://communities.vmware.com/thread/320877[/url]

    First round of results here: [url]http://communities.vmware.com/message/1795012#1795012[/url]

  • Anonymous

    Hi Rynardt,

    The discription is excellent and can be easily understood by any one. But I would like to add a note to your description that the licensing is still based on Per Processor.

    You should always meet the minimum licensing per processor along with the cap on the vRAM.

  • Dev Mgr

    I set up virtual environments for my customers for a living. I see a lot of my customers using 3 dual socket servers (Xeon 5600-series, so 6 cores per socket at most) with 48 to 96GB RAM and buying vSphere Essentials Plus (was ~US$3500 if memory serves (VMware took their vSphere4 pricing down)).

    It would be nice to see a pricing comparison for that type of setup.

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Last Updated on Sunday, 17 July 2011 19:05