The new innovations in the EMC company (subsidiary of VM) created the impression that VMware customers with the wishes of affordability will get the license at a lower price tag. The VMware licenses are expensive, they now needed more licenses for the same amount of hardware than before.
The present licensing model makes more sense than the older one. VMware’s rapid growth and increased profit ratio helps them to set new affordable pricing structure for the cloud hosting provision. In 2010 revenue of VM grew by 31%, which clearly indicates rise in its popularity.