VMware vSphere 5.0 is an industry leading virtualisation platform for building cloud infrastructures. VMware vSphere accelerates the shift to cloud computing for existing data centres.

In addition, it also helps to underpin compatible public cloud offerings which are helping to pave the way for the industry’s only hybrid cloud model.

With the new release of VMware Vsphere 5.0 VMware is evolving the products licensing model to enable customers to move to a more cloud-like “pay for consumption” approach to IT.

These changes help to lay the foundation for a more modern IT cost model that is based on consumption and value rather than just components and capacity.

The new model continues to be based on processor licensing and eliminates the restrictive physical entitlements on CPU cores and physical RAM per server.

Why VMware vSphere 5.0?
VMware vSphere 5.0 has been introduced to accomplish two main objectives:

1. Free customers from restrictive entitlements which are hardware based

2. Align the vSphere licensing model with IT as a service

The reasons for the change from VMware 4.0 to VMware 5.0 was due to the recent significant improvements in hardware design which were causing hardware limits in VMware vSphere 4 software causing it to become out-dated.

In addition, processor manufacturers have released plans to introduce CPUs that will exceed 12 cores and new technologies such as hyperthreading that help increase processing power so an upgrade from VMware vSphere 4 to 5 was necessary to keep up with significant technological improvements.