VM Consolidation & Licensing

We're trying to consolidate underutilized servers and we're looking at migrating towards either Oracle VM or VMware. I'm still trying to wrap my head around license savings (if there are any), so my question is:
Let's assume I have two physical servers, each running its own instance of Oracle 11g on its own dedicated operating system. Each machine has 8 AMD dual core processors.
So we do the math. Processors * Cores * Factor = # of licenses
8*2*.5 = 8 Licenses per box
16 total for both boxes
Now let's assume I eliminate one of the boxes. With the remaining box I install Oracle VM or VMware and I install two guest operating systems with each running its own instance of Oracle 11g.
Am I now paying for half of the licenses since I've consolidated them to an 8 license box?

user13261582 wrote:
Now let's assume I eliminate one of the boxes. With the remaining box I install Oracle VM or VMware and I install two guest operating systems with each running its own instance of Oracle 11g. Am I now paying for half of the licenses since I've consolidated them to an 8 license box?This is correct. You only pay for the physical cores in use, regardless of how many instances are running on those cores. This is true for Oracle VM, Enterprise Linux and Database, btw.
Keep in mind however that only Oracle VM is a certified virtualization platform for Oracle products and this advice is based on running on Oracle VM. If you chose to run on VMware, you should check with your Oracle licensing representative, as I have no idea what happens in that situation. :)

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dezutterm wrote:
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