The Microsoft licensing required for VDI is called VECD (Virtual Enterprise Centralized Desktop – formerly Vista Enterprise Centralized Desktop) and it replaces the need for either Windows 7 or Terminal Server (RDS). It is licensed only by physical end-point device and costs (list) $23 per PC or laptop per year if the organization has Software Assurance for the device (VECD for SA), or $110 per thin-client or zero-client device per year and per PC or laptop if not covered by Software Assurance (just VECD).
Additionally:
- Since VECD is licensed per device, multiple employees can use the same device without incurring extra licensing cost. This works out great for a training lab or for a factory floor where multiple users access a smaller number of devices.
- VECD includes home right use for primary users.
- A VECD license for a contractor accessing the VDI environment with her own device also applies to a replacement contractor as long as each only brings in one unique device.

Should I understand device as a Virtual Machines or the physical end-point device such as my laptop?
Posted by: Ande Leibovici | February 01, 2010 at 09:47 PM
Ande, thanks for bringing that up. It's by phsyical end-point device. I clarified in the post.
Posted by: Steve Kaplan | February 01, 2010 at 09:53 PM
How about VECD in SPLA? Any insight?
Posted by: Kimmo | February 02, 2010 at 06:12 PM
Kimmo, I know this article seems so simple that it's almost trivial, but it took me a long time to sort it out. I shudder at the thought of digging into SPLA...sorry.
Posted by: Steve Kaplan | February 02, 2010 at 06:25 PM
Thanks Steve, it's no prob. I asked our licensing partner. No reply as of yet. BTW, I thought the new licensing rules were due Q3...Confused.
Posted by: Kimmo | February 03, 2010 at 01:00 AM
As for SPLA - forget it...Micrsoft is screwing the service providers
July 2010 Official response
Q: Is VDI/VECD/MED-V available in SPLA or HVS?
A: No. Virtual Desktop Infrastructure (VDI) with Windows desktop OS is possible with Windows Vista Enterprise Centralized Desktop (VECD) under Microsoft’s internal-use Volume Licensing programs (such as Open, Select and EA) but it is not enabled or available under SPLA or HVS at this time.
Q: How can I enable my hosting partner to offer VDI services to SMB customers?
A: Since VDI with Windows desktop OS is not supported in SPLA/HVS, hosting partners can only offer Windows VDI deployments to their customers through an outsourcer arrangement under the end customer’s Volume Licensing agreement (if available) by having their end customers acquire their own perpetual licenses for VECD and allowing the service provider to manage those licenses on their behalf. In this scenario, it’s important to remember the following:
- Licenses belonging to the end customer cannot be shared among other customers of the service provider; this means that end customer owned licenses cannot be used in shared hosting environments (where more than one customer accesses a server). They can only be used in dedicated environments (where one server is dedicated to a particular end customer)
- The end customer must have a valid license for every server and server product they access (including access licenses such as CALs). For example, if the end customer accesses 2 servers that have Windows & SQL installed on them, they would need the appropriate number of Server and CAL licenses for each of those servers.
- No mixing/matching of server/CALs on a product-by-product basis. This means that end customer CALs for a particular product cannot be used to access servers deployed with that product and which are licensed by the service provider under SPLA. It also means that if an end customer has Servers/CALs for a particular product(s) and chooses to move to a hosted model with a service provider, they will need to acquire any additional licenses for that product(s) under their volume licensing agreement (i.e. if they increase the number of seats or require more servers for a built out for deployment or load balancing). It’s not ok for the service provider to acquire SALs under SPLA when the number of seats goes up for the end customer or when additional servers are required. This is because the licensing construct of internal use doesn’t match that of SPLA and therefore needs to be kept separate.
Q: Is there any possibility that VECD will be licensed under SPLA/HVS in the future?
A: We are currently working with the product groups to identify scenarios for VECD in SPLA and it’s possible this is something that may be added in the future though there is no commitment at this time
Posted by: Mark Hodges | July 06, 2010 at 05:23 PM
Thanks Mark for the great explanation.
Posted by: Steve Kaplan | July 06, 2010 at 07:29 PM