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This paper discusses about the virtual machine is a software implementation of a system (machine) that runs programs similar to a real machine. Virtualization has numerous benefits in proficient exercise of management sources, safety and further. Cloud computing broaden this idea to where the application executes anyplace in the cloud, a hosted amenity usually proffered through a third party. Though, these technologies pretense a trouble for the well set up copy protection policy identified as node locking, where a specified license would run just on single system, by machine parameters for instance the hard disk ID, Ethernet MAC address, and thus forth being exercised to exclusively recognize the certified system. The question is that these parameters could alter pro a legal client in a virtual environment after a while, as their virtual environment executes on dissimilar hardware since directed through the virtualization software. The exercise of virtualization as well as cloud computing is increasing swiftly. By considerate how these structures effort with the constraints they inflict, ISVs could still safe their applications by a policy appropriate to their licensing states, or certainly enlarge the acquiring alternatives for their consumers through adding up a cloud friendly custom based licensing model. There are several probable states ISVs would countenance in protecting their software in virtual environments. ISVs might as well desire to think other alternatives, counting by the ledge life mechanism, and directory locking.
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