VMware vCenter ESX host error “License assignment on the host fails”

licensingvmware-esxvmware-vcenter

We have a vCenter 4.0 Server with two ESX 4.0 hosts. We have a vCenter Server 4 Foundation license and a vSphere 4 Advanced 6CPU license. Licenses have been assigned to the server and hosts (each host has two CPUs leaving 2 unassigned on the vSphere license.)

The licenses are applied successfully via the vCenter license management interface, then moments later each host displays the following error on the Summary page:

Configuration Issues
License assignment on the host fails. Reasons: The license key can not be assigned.

Configuration Issues error message

What causes this error and how can it be resolved?

Best Answer

Have you checked the licenses on VMware's License Portal to make sure the keys you have are the license keys you believe they should be?

Are you making use of any critical features (e.g. Service console on a distributed Switch) that might be disabled if the restrictions associated with your actual license were applied? Is your whole environment operating under eval licenses a the moment?