Is software licensing for virtualization fair? http://bit.ly/UFvhH
It’s not a new issue, it’s just in the Cloud. Remember Sub-Capacity pricing challenges with Unix and Mid-range systems. The ability to assign (virtualize) CPU % cycles to specific Licensed product produced some similar challenges. This was not much fun after you added more CPU for other applications, but wanted to keep the allocation the same for your Legacy apps. The Vendor then Balked and wanted more license dollars because you now have bigger or more CPUs.
Hardware and network technologies always out-run the ability of software to efficiently exploit it. Current Cloud issues of Licensing, and Security are good examples of a low maturity level for Cloud computing. Just because we can move to the Cloud, should you?
Do your due diligence. Caveat Emptor.