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Software Licensing is a complex issue, particularly for server-class software, and virtualization has added new layers of complexity to it. The increasing use of virtualized environments has forced software vendors to adopt increasingly complex licensing models in order to stay competitive. These licensing models are largely beneficial to the end customer when fully understood and managed, but can be quite intricate. Most of them also require a sophisticated management of the underlying virtual environments, since a single node must often be looked at within the larger context of the entire host or cluster it is on and cannot be analyzed in isolation. In this sesssion, we will look at the licensing issues unique to virtual environments in general and then look at the specific example of how we modeled the IBM Sub-capacity License Counting within HP Asset Manager.