VMware Relaxes Tools Distribution Policy

In yet another positive step forward, VMware has announced that it is once again relaxing its policies, this time centered on the distribution of their VMware Tools for Linux.

NOTICE: Effective immediately, VMware has modified its current policy with regard to VMware Tools as follows:

Subject to your compliance with the VMware Master END USER LICENSE AGREEMENT, the restriction in Section 3.5 of the VMWARE MASTER END USER LICENSE AGREEMENT prohibiting distribution of the VMware Tools to third parties is applicable only to the Windows version of VMware Tools and NOT to the Linux version of VMware Tools. You may distribute the Linux version of VMware Tools to third parties in object code format only and solely in conjunction with, and as part of, the Virtual Machine you create with the Software.

Unless otherwise modified herein, the remaining terms of the VMWARE MASTER END USER LICENSE AGREEMENT shall remain in full force and effect and in the event of a conflict, the terms in this notice shall control.

This policy change will also be reflected in the next release version of the VMWARE MASTER END USER LICENSE AGREEMENT.

The change makes it legal to redistribute the VMware Tools inside of a virtual appliance, as long as that virtual appliance is running a Linux operating system. The new policy doesn't go as far as allowing the redistribution of the VMware Tools for a Windows operating system, but there are bigger legal issues to overcome with redistributing a Windows operating system in a virtual appliance.

Is Microsoft missing the boat on this one? At every turn, it looks like VMware and other software manufacturers are praising virtual appliances for what they can do and what they offer. But with Microsoft's licensing restrictions that are set in place, it becomes impossible for anyone to build and distribute a virtual appliance that is created on top of a Microsoft operating system. Even beyond licensing and serial numbers, programs to help stop piracy such as Windows Activation and Windows Genuine Advantage will further hinder the creation of a Windows based virtual appliance.

If the demand for virtual appliances continues to grow in the market, Microsoft may have to rethink part of their licensing strategy if they want to continue to fight for operating system dominance as well as grow their percentage of the virtualization market share.

Posted by David Marshall on August 27, 2006 07:11 AM