SYSTEM CENTER IMPLEMENTATION & LICENSING Guide

Hi narayandas4one​,
happy to clarify. 

The key point is: “Server ML” is the System Center license. “System Center Standard” (or Datacenter) is simply the edition of the Server Management License, licensed by physical cores on the managed host. There is no separate extra ‘System Center Suite license’ for MECM/SCVMM/DPM/etc. The components are included in both editions.

1) Server ML vs “System Center Standard License”

• Server ML (Standard/Datacenter) = the actual System Center server license model (core-based). 
• Standard vs Datacenter mainly changes virtualization rights:
• Standard: when you license all physical cores on a host, you can manage up to 2 OSEs/VMs on that host (stack again for more). 
• Datacenter: when you license all physical cores, you can manage unlimited OSEs/VMs on that host.

Also remember the minimums: 8 cores per physical CPU and 16 cores per server (even if the host has less). 

2) Do you need extra licenses for “management servers” (MECM/SCVMM/DPM VMs)?

No special “extra” licenses just because they are management roles. They’re simply Windows Server VMs that are part of the OSE count on the hosts (and already covered if the host is licensed appropriately). 

Your example: 4 management servers on VMs (2 VMs per host)

If those 4 VMs run on 2 hosts, and each host runs exactly 2 VMs:

• With System Center Standard, you need to fully license each host’s physical cores once (because Standard covers 2 VMs per fully licensed host).
  So: 2 hosts = 2 “full core-coverages” (one per host).
  How many core packs that is depends on the host core count (e.g., 32 cores per host → license 32 cores on host #1 + 32 on host #2).

3) “120 managed VMs (each 8 cores)”  [how many Server MLs?]

With the normal System Center model, you do not license by VM cores. You license the physical host cores, and for Standard you “stack” based on how many VMs you run per host.

If we use your earlier environment numbers (30 hosts, 32 cores each, ~4 VMs per host = 120 VMs total):

• Standard edition: 4 VMs per host = 2 stacks (since each stack covers 2 VMs)
• Per host: license 32 cores × 2 stacks = 64 cores worth
• Total: 30 hosts × 64 cores = 1,920 cores of System Center Standard coverage
• Datacenter edition:
• Total: 30 hosts × 32 cores = 960 cores of System Center Datacenter coverage (unlimited VMs per host)

4) “Paper license” vs keys

System Center licensing is primarily a digital entitlement/contract right (not a “paper license” in practice). Product keys (if needed) are typically retrieved from your Volume Licensing/Microsoft admin portals depending on your agreement, but the key itself is not what enforces compliance.

If you confirm just these two items, I can restate the exact totals in your terms (packs/cores):

1. Number of physical hosts running the 120 VMs (still 30?)
2. Physical core count per host (still 32 cores each?)