Licensing Windows 2003 server on virtual machine

I have a Dell PowerEdge physical server license acquired at the time of purchase Windows Server 2003 Server Standard most exchange server 2003.
My question is whether the license of windows allows for fully virtualized operating system to be hosted as a guest virtual machine on the same Dell PowerEdge configuring the host with Linux + KVM.
I do not intend to stay in other hardware, I want to become a virtual machine on the same Dell PowerEdge servers.
Might say if possible.
informatronixAsked:
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PowerEdgeTechIT ConsultantCommented:
OEM software cannot be used in a virtual setting; OEM software must be run directly on the hardware for which it was originally licensed.  You would need a Retail or VL licensed copy to run virtually.
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dkumar82Commented:
Not understood your question but even if you want to install any OS as virtual - YES - License required.

Thats why company go for Volume license.
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PowerEdgeTechIT ConsultantCommented:
Although I had always heard OEM software was not licensed for virtual use, I found something from Dell that I believe changes my understanding:

http://i.dell.com/sites/content/business/solutions/whitepapers/en/Documents/virtual-machines-oem-media.pdf

Apparently, at least Dell OEM software, can be used virtually or physically:

The Windows® Server® 2003 OS was delivered with only one product key. The same product key could be used to activate the OS deployed on the physical systems as well as the guest OS deployed on the virtual machines.
Starting with Windows Server 2008, there are two product keys printed on the COA (Certificate Of Authenticity) sticker: the product key and the virtual key. The product key is used to activate the OS that is running on the physical system. If the OS is purchased from Dell as a preinstalled option, then as already mentioned, this key is not needed during the OS reinstallation. The virtual key is used to activate the guest OS installed on virtual machines on any hypervisor.
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Lee W, MVPTechnology and Business Process AdvisorCommented:
Be warned - Dell is not the license granting authority - presumably, they've talked to MS, but you would be much better off contacting MS with licensing questions:
DISCLAIMER: Licensing advice offered here is a "best effort" and based on the understanding of the respondents. Licenses can change and we may not be aware of these changes or may misunderstand them. Further, licenses can differ by country and/or region and what we understand to be true in our region could be false in your region. "they told me on Experts-Exchange" will not be a valid defense in a software audit.  All licensing questions should be confirmed with the appropriate licensing authority (the maker of the software/issuer of the license).  
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PowerEdgeTechIT ConsultantCommented:
Good point lee ... I assumed that was the case when I found it, but it was still an assumption that Dell has issued this based on an understanding they have with Microsoft.  Wouldn't hurt to contact MS about it.
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informatronixAuthor Commented:
I have the license that is installed with the purchase of the Dell machine, the only thing I want is virtualized on the same machine with KVM hypervisor, not pretend to have 2 instances, only 1 virtual Windows 2003 Server.

The steps would save the data only, we need to start with a new active directory with which could make a new installation from scratch on the virtual machine, using the license sticker on the host machine.

The license would follow located on the same computer, the difference is that now virtualized KVM hypervisor.

The location is in Spain.
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Greg HejlPrincipal ConsultantCommented:
I had a few OEM 2003 servers - ran P2V and they run fine as VM's
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PowerEdgeTechIT ConsultantCommented:
Sure you can (as in you are able to), but the question is one of licensing - are you allowed to?
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FarWestCommented:
What I understand specially about DELL servers, that when you select Server Configuration and Select the Software option, you are not Selecting OEM, the Pre-Installation is a service from DELL and had nothing to do with licencing, did you see something like "OEM" in software description, did you got a CD/DVD with printed Key if you got the media and the key seperitly then you are free to have it on VM
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PowerEdgeTechIT ConsultantCommented:
You might be able to purchase a standalone, retail version of the OS from Dell, but if it is preinstalled, it is definitely OEM.
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informatronixAuthor Commented:
These uncertainties are Microsoft licenses that make me worship Linux.
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FarWestCommented:
so it a question of faith ... lol
you are right, even the one who worked with Microsoft will get confused, and only Microsft lawyers are the one who are able to answer those type of questions, that is way the VL and VL Open licencing are there so Microsoft Sales Persons can understand it ... :)
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informatronixAuthor Commented:
In the event that the Dell comes pre-installed Server 2008, if I assume that I can virtualize even OEM.
But in my case a Dell server and Server 2003 OEM license, I guess not sure if it's legal, I think the question will be resolved with a call to Microsoft.
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PowerEdgeTechIT ConsultantCommented:
A call to Microsoft should get you a more secure answer, but given the article published by Dell, it would seem ok with both generations.
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informatronixAuthor Commented:
This question is very difficult to solve, a question of interpretation.
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