[citation][nom]archange[/nom]Microsoft, like many others, apply "per user" licensing to their software in any client / server scenario. This is called CAL (Client Access License). Since the users of any given OnLive machine are basically countless, thought arises for upping license fees. As simple as that.The other licensing method in practice is "per processor". That would maybe help in this case, however being (a lot) more expensive.Anyway, my personal opinion is that current licenses are nothing else but schemes to rake in more money from customers. Thing is that they work pretty well for the corporations and nobody bothers contesting them. Hek, it;s THEIR software, even if it's on YOUR computer - right?[/citation]
This case is not a matter of CAL or Per Processor Licensing. That will be the case for the actual server infrastructure licenses needed to run this service. For someone to use Windows as a service through virtual desktop, they have to use VDA and VDI licenses, or have active Software Assurance as the article says. In both cases, the licenses are not perpetual and need renewal every 1(VDA/VDI) or 2 - 3 (SA) years.
My work involves a lot of consulting on Microsoft Licensing and I can honestly say that their system is chaotic... A lot of customers and sometimes MS themselves don't have a clear idea of what a certain customer has to pay for in a certain scenario. That said, OnLive is not any random customer... They should have consulted lisencing specialists from Microsoft before going through with this.
Microsoft had no reason to sue them right away. Their general view in cases like this is that the customer is "mislicensed" and just needs to comply.