Do I Need Another Windows License for A Virtual Machine

Do you need another license for a virtual machine? Read the post, you will know the answer. We also help you pick a proper license for your VM and guide you on how to install Windows on a VM.

By @Crystal Last Updated September 11, 2024
 

Reddit user: Do I need another Windows license for each virtual machine?

I am new to VMWare and I want to set up three separate VMs on a server. So I'm just wondering do I need to have a different license for each VM. Can I run Windows in a VM without a license?

- Question from reddit.com

Do I need another Windows license for a virtual machine?

In a virtual environment, when you create a new virtual machine and install Windows as the guest system, you may wonder “Do I need another Windows license for VMware or Hyper-V?”

The answer is YES. Each virtual machine running with the Windows system requires its license. Because Microsoft treats virtual machines as separate instances of an operating system, the number of licenses depends on the number of processors and processor cores.

If you use the same license of your PC for a virtual machine, it will state “This product key is being used on another PC”. For instance,  if you export a virtual machine or perform P2V conversion, Windows can recognize that the virtual hardware is different. So you need to activate another license for a virtual machine.

Note: If you are using a fully packaged product (FPP) of Windows (often called a "boxed copy") usually purchased from a retail store, the product key can be transferred to another computer. That means you can deactivate a license from one PC/VM and use the license on another computer/VM.

Windows licenses types: How to choose the proper license for VMs

Microsft provides a variety of Windows license types, including OEM licenses, retail licenses, and enterprise licenses. Types. The type of Windows license you need depends on the VM usage. Below are specific licenses and we list some differences between them to help you carefully consider license terms and compliance when you make a choice.

OEM (Original Equipment Manufacturer) license.

With an OEM license, Windows is tied directly to the hardware on which it was loaded by the manufacturer. An OEM license usually comes pre-installed on a new Windows computer from manufacturers.

Features

1. Tied to hardware: This license is locked to the specific device it was originally installed on and cannot be transferred to another computer or a virtual machine.

2. Lower cost: OEM licenses are usually less expensive than retail licenses because they are sold in bulk to manufacturers.

Use case:

 Ideal for users who purchase new hardware and don't plan on upgrading or transferring the OS to another machine. Thus, it is probably not suitable for most VM users.

Tip: If you use the Fusion Migrate Your PC feature to migrate an OEM-type system to a virtual machine, you might be required to purchase a second license/product key from Microsoft. If a second product key is required, you can get that through the Microsoft representative when you call Microsoft Support to activate the operating system now residing in the virtual machine.

Retail License

A retail license is purchased by individuals from Microsoft online or a real computer store.

Transferable Feature: A retail license can be transferred from one device to another, as long as it is only active on one Windows machine (physical and virtual) at a time.

► It is a bit more expensive than the retail license.

User case: If you don't need to equip many virtual machines and need the flexibility to move the OS to a new VM, a retail license can be the best choice for you.

Enterprise License

Enterprise licenses are designed for businesses and large organizations that need to manage multiple machines. Usually, these licenses are sold through volume licensing agreement

Features:

1. Enterprise licenses allow businesses to deploy the Windows operating system across multiple machines with a single, often discounted, purchase.

2. More advanced features. Enterprise editions of Windows (such as Windows 10/11 Enterprise) offer advanced features like BitLocker, AppLocker, and more comprehensive security tools, along with centralized management features like Group Policy and Active Directory integration.

Use case: If you are from a medium and large enterprise that may need to install many Windows virtual machines, enterprise licenses is more commended.

How to license a Windows 10/11 virtual machine

You can look through the Help and Support item on the Start menu, which enables you to find specific information about activation for the Windows 10/11 operating system. If you do not find any information, you do not have a legitimate Windows license. In this case, the only solution is to purchase another product key used for the Windows virtual machine.

This part covers the steps to add a Windows license to VMware ESXi and Workstation.

Note: Install VMware Tools in the virtual machine before you activate Windows. VMware Tools keeps track of the activation keys. Without VMware Tools installed, you must reactivate Windows each time you start up the virtual machine.

1. In VMware ESXi, after creating a virtual machine, you need to enter the license to active Windows .

Note: You can also add a Windows license for Hyper-V virtual machine following the official installation wizard.

2. In VMware Workstation, you can add a Windows product key when creating a new virtual machine.

If you want to install an operating system later, you can navigate to the main screen of VMware Workstation, then select Help >> Enter a License Key.

After adding a license for Windows VM, you can enjoy the benefits of the Windows operating system. However, you should know that there is no secure operating system. Especially for enterprises, the virtual machine holds precious files and important software. When its system crashes or other unpredictable disasters occur, your critical data can be loss or get permanently inaccessible. So, backup is so important for any size of business.

Important: Protect VM data securely with AOMEI Cyber Backup

To simplify the VM backup process, you can rely on AOMEI Cyber Backup - a free VM backup software. It offers a secure and easy way to centrally backup VMware and Hyper-V virtual machines to safe locations - local path, external drive, NAS drive, network share, etc. And quickly restore the virtualized environment.

With AOMEI Cyber Backup, you can benefit from the following features.

Perpetual Free: no time limit for AOMEI Cyber Backup Free Edition. Support Free ESXi: support both paid and free versions of VMware ESXi. Centralized & Easy to use: Batch backup for all or multiple VMs on an intuitive interface, so backup administrators can easily handle VM backup and restore. Automate VM Backup: Schedule VM backup with flexible backup strategies and run the backup tasks automatically, which reduces human errors and always protects VM data continuously. Point-in-time Recovery: Restore entire VM from any point without any complicated reinstallation and configuration. Minimal downtime: Offer hot backup to backup VM while running and fast data recovery speed to significantly reduce VM downtime, so it avoids financial loss due to business interruption.

Please hit the button below to download and use AOMEI Cyber Backup for free:

Download FreewareVMware ESXi & Hyper-V
Secure Download

*You can choose to install this VM backup software on either Windows or Linux system.

Free and secure backup of multiple virtual machines:

Step 1. Install and run AOMEI Cyber Backup on a Windows or Linux computer. Click Souce Device on the left window > Click VMware or Hyper-V > Then input the host information to add virtual machines. 

Tip: If you are using VMware and manage your VMs via vCenter, you can add VMware machines by entering vCenter information or a standalone ESXi host.

Step 2. Click Backup Task >> Create New Task.

Step 3. In the opened wizard, schedule VM backup as the following.

• Choose VMware ESXi backup or Hyper-V backup as the Backup Type.

• In Device Name section, select virtual machines on the host to back up simultaneously.

• In the Target section, according to the 3-2-1 backup rule, you can store VM backups in various places such as local destinations, network share, NAS device, thus greatly protecting your VM data.

Tip: You can also save backups on a Cloud storage. You can add an Amazon S3 storage and enable the Archive feature. Then backup files can be saved to the added storage.

• In the Schedule section, select full/incremental/differential backup methods and specify the backup frequency by date/week / month.

Step 4. Click the Start Backup button button to commit the backup task.

To perform data recovery, you can click the 3-dot icon and click Restore on the main screen without any complex configuration.

✍ While the Free Edition covers most of the VM backup needs, you can also upgrade to Premium Edition to enjoy: ✦ Batch VM Backup: Batch backup large numbers of VMs managed by vCenter Server or standalone ESXi hosts. ✦ Backup Cleanup: Configure retention policy to auto delete the old backup files and save storage space. ✦ Restore to new location: Easily make a clone of a virtual machine in the same or another datastore/host, without reinstalling or configuring a new VM.

Summary

Now you can have the answer to "Do I need another Windows license for a virtual machine". As with physical machines, virtual machines running any version of Windows require valid licenses. No matter you create a new VM or migrate PC to virtual machine, you will need another Windows license for the virtual machine.

After deploying your VM environment, don't forget to backup your virtual machines using AOMEI Cyber Backup to avoid data loss. As a robust enterprise backup solution, AOMEI Cyber Backup can also help you