How are Processors, Cores and GHz related? How do they affect Licensing?

At Zettagrid for licensing purposes we define our Processors (or CPU?s) in terms of capacity or GHz.  The number of cores is unrelated to Ghz or Processors and has no effect on Microsoft licensing.  For licensing purposes a CPU is defined as 2GHz of capacity.  If you have up to 2GHz then and elect to license under a processor model you will require a single Processor license.  If you have 2.1 GHz, 2.4 GHz etc then for licensing purposes you require TWO processor licenses.  At Zettagrid we are able to cap the maximum amount of processor licenses required at TWO.  If for example you have a total of 10GHz CPU in your VM, rather than paying for FIVE processor licenses, due to our cap you only require TWO licenses.  If you have 10GHz and decide to split this into 2 VM?s of 5GHz each you require FOUR processor licenses in total rather than TWO.  This is because processor licensing is applied on a per VM basis.