So I am aware that a single Server 2012 license is good for a single physical install or two VM installations. What I'm curious about though is the combinations and how they identify themselves as virtual or physical. Scenario 1: If I use License A for a physical install, can I then use that license to run two more VMs using Hyper-V installed on License A's physical install or can I use it ONLY for the physical install? Scenario 2: If I use License A for a physical install, then install two VMs using License B, how does License B operating systems know they are virtual allowing the use of the key twice and can License B be used for two VMs running concurrently? Scenario 3: If I choose to use a "third party" VM software provider such as VMware's ESXi, will the operating systems properly identify themselves still as being virtual installations and allow two VMs to run, if running two concurrently is possible? I am currently planning a complete overhaul of a small network that has a single DC, exchange server, and file server hosting roughly 30 concurrent users. The current DC and exchange server are dual core machines that are overtaxed and eating into the page file for normal usage operations. The file server is a monster 12-core, 64GB RAM behemoth with 6 NICs that is doing nothing but file services for the local site. I am wanting to use VMs to utilize those resources but need to understand the VM licensing properly.