Hi Jimbo,
Apart from the issues of OEM and VM's you obviously had these working initially so I have to assume these are Valid licenses even though you were running these as VM's.
Yes 100% above-board. Legally purchased from a well-known retail store, no funny business with this - there is too much on the line to try and steal a $130 license.
Note however converting a VM to run under ESXi even if it ran under vmware workstation previously WILL always cause re-activation --- the Virtual Bios in ESXi is SIGNIFICANTLY different to the Virtual Bios in vmware workstation / player.
There are about 30 of them (the VM's) running in a production environment. They were previously running on an older version of VMware (ESX 4). All Enterprise Plus VMware software and nothing similar to Player or Workstation.
Activation should work although it depends on the rigourousness with wich MS apply the rules.
It activates - it just asks for re-activation if you move it from one node to another which is even more generic and homogeneous than moving from one Workstation or Player to another since these are exactly identical nodes with identical Hyper-V running on bare-metal.
My concern is that you can only use an activation key so many times before you have to call... then you can only call so many times, etc...
I have Technet subscription (personally, I'm a "consultant" not an employee) and I have brought this issue up with MSFT however I asked here as well because sometimes MSFT can take a while... although I haven't posted this on the MSFT site (because "technically" some of the licenses aren't being applied properly - although purchased and legit, they aren't all 100% kosher but well within the "spirit of the user license").
If you basically just want to test out a load of configurations under ESXi what I would do in your case is to sign up to Technet and download (Legally) a copy of W7 Enterprise --this can be activated almost an unlimited number of times
Depending on your subscription type & status you usually get about 50 activations per OS before they block you... ask me how I know :devil:
However - if you call them up ahead of time and let them know what you are doing and tell them how many activations you need, they can extend it. As long as you communicate you are OK - this is one of those situations where it is ALWAYS better to ask permission first vs. beg for forgiveness later.
This however is a full production system so no MSDN keys.
In fact your scenario sounds like a perfect use for a technet subscription.
I'm currently doing this with W8 in development right now - although you can get the same version of W8 (free) from Microsoft right now so I have been using that for my VMs and software comparability testing.
I currently have about 75 W8 test VM's (and 60 Lion VMs :devil

that I'm in the process of migrating back and forth between an 8-node ESXi 5 Host to test failover.
If you need these on production machines then your company will have to buy a few W7 licenses -- note however that identical VM's can be cloned so providing you aren't running them concurrently only ONE activation will be needed.
Interesting... I just cloned one and ran it... It started out as "activated & genuine" but when I re-activated it (type "activate" in the start menu search bar) it came back as not activated. I assume this is because the other VM had hit the internet and now MSFT thinks its not genuine anymore??? I don't really understand how that process works.
Either way, thank you very much for your reply to my post - this is an issue that I hadn't anticipated. Cloning a VM and trying to run it on the same exact Host is an issue as is reverting to earlier snapshots (in some cases).
If your company can't afford 2 or 3 W7 licenses then I'd suggest --collect your salary and move on !!!! -- assuming that these W7 machines are being used to make money for the organisation.
I 100% agree!!!
Actually it's a bit funny... Since I'm an independent consultant I'm usually broke and I can't afford 2-3 licenses
Also - even funnier... we have two totally separate ISPs, networks, etc. at the company. One is "clean" where they run Lucid Server on local workstations and do most of the productive, profit-making work, etc. and the other we jokingly call our "internet" or "porn" ISP. Each person has a second (thin client) machine where they access these W7 instances so they can check email, browse the internet (watch porn... kidding), etc.
So not only can I not afford 2-3 W7 licenses... These things probably don't help the bottom line very much.
If these are purely "Lab type" machines -- i.e production - but used for testing software / configuration / hardware you might be able to hobble a deal with MS anyway.
MSFT has been very understanding and encouraging of this type of thing... Personally I think its so that they can phase out XP & Vista totally and force everyone onto W7 & W8... The more people they have working on W8 development and using W7 as the base platform the less XP & Vista they have out there...