...One problem with the VM approach however is that the software industry still hasn't quite figured out how to ease the licensing restrictions around using the software you buy on virtual machines. For example, if I have a copy of Windows Vista on one system and I want to de-commission that system and re-use my license in a virtual machine on a new system, it's not that simple. As Ed Bott points out, the rules for Vista have been modified to allow for this as long as the original version of Vista that you're moving was a retail version. If it's an OEM version, no can do. In fact, chances are you won't even have the DVDs that you'd need to do a clean install — only recovery media that works differently.

Some of the same confusion exists around application software. One fear software companies have is that people will use virtual machine technology to build little multi-user mainframes (sort of like Citrix) where anybody can use the built-in remote access technology to simply take control of a VM on a computer and run their software remotely, that way. If XYZ software company says it's OK for me to copy its software to as many VMs as I want, but only one one system, technically, I could let lots of users access that one system remotely and abuse the license.

Anyway, at some point, virtualization technologies and software licensing will come to loggerheads. This whiteboard video attempts to make that point.

Get your video on at:
http://blogs.zdnet.com/Berlind/?p=397&tag=nl.e539