But I am not sure service providers would like that. When management tools start running at the application layer, it can’t possibly tell a virtual machine from a real one. Hypervisers in VM environments shield OS from the hardware that renders detection of running applications almost impossible and most likely, it will misreport the amount of computing capacity consumed. Even the most diligent audit practices couldn’t capture the level of compliance / its breach, as evidenced by IBM’s withdrawal of its Tivoli License compliance Manager tool and suspension of its audit system, leaving the customers on their own – on an honor system instead. It questions the very survival of prevailing licensing practices and by extension revenue models of ISVs and App vendors.

So the burning question is, whether it is end of the line for licensing as we know it