what does it mean by 3 hosts ? does it mean i can have only 3 virtual machines ?
thanks
It means you can install VMware vSphere ESXi on 3 physical servers and run many virtual machines on them.
Means that you can install vSphere ESXi on up 3 hosts (physical machine) and each physical machine can be up to 2 physical processors and there is no limit of how many VM you will create on this hosts (physical machines).
^^ This is exactly right. I just purchased my licenses and made sure to verify this. 1 host = 1 physical machine with 2 processors. Unlimited VMs.