If you have used VMware VI3 and vSphere 4, one thing you probably noticed right away is the difference in licensing. To much applause, vSphere no longer uses a FLEXlm license server.
While you transition from VI3 to vSphere you will still need to keep the license server around, though. Fortunately vCenter Server 4 is fully equipped to handle the task of pointing your ESX 3 hosts to the appropriate licensing source.
Behind the Scenes
The new architecture is a welcome change, but internally it was always very convenient to point to a central license server to quickly set up new VC and ESX systems. Take a look at this vCenter Server licensing report — pointing to one of the internal VMware servers with one million licenses of ESX Standard.

Are you going to miss FLEXlm? I’m not.
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Plus the awesome feature of being able to control licenses across linked vCenter installations via a single serial number! Can’t wait to get vSphere out of the lab and into our global environment for that reason alone.

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