Early servers, such as those running Windows Server 2000 or Windows Server NT, had a single processor and were licensed per server. To handle increasing workloads, companies simply bought more servers, generating higher licensing revenue for vendors like Microsoft.

However, hardware manufacturers began to install multiple CPUs in a single server, reducing the number of servers needed and therefore the number of licenses purchased. Software vendors responded by moving to per-processor licensing.

Subsequently, processor manufacturers introduced multi-core processors, which housed multiple cores (essentially individual processors) in a single chip. With up to 200 cores per processor possible, vendors again adjusted their licensing models, this time moving to per-core licensing to maintain revenue growth.

#Microsoft #Cloud #Procurement

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