Microsoft updated its Virtual Server 2005 FAQ page to describe how Microsoft Operation Manager (MOM) 2005 and System Management Server (SMS) 2003 need to be licensed when working with virtual environments (both Microsoft and VMware):
Q. How many licenses will I need for Microsoft Operations Manager (MOM) 2005 to manage my physical servers and virtual machines?
A. MOM 2005 is licensed on a server-plus-device management license basis. A server license is required for each manager server. In addition, an Operations Management License (OML) is required for each managed device regardless of the number of virtual machines. For more information about MOM 2005 licensing, download this Microsoft Volume Licensing Brief: Licensing MOM 2005.
Q. How many licenses will I need for Systems Management Server (SMS) 2003 to manage my physical servers and virtual machines?
A. SMS 2003 is licensed on a server-plus-device management license basis. A server license is required for each primary site server (such as manager server). In addition, a Configuration Management License (CML); previously known as Client Access License (CAL), is required for each managed device regardless of the number of virtual machines. For more information about SMS 2003 licensing, download Microsoft Volume Licensing Brief: Licensing SMS 2003.