I have got a dual xeon processor server and it is licensed to two cpus. When I create a vmachine it limits the number of cores to 4 only. Shouldn't they be 8 maximum?
No the maximum number of virtual CPUs you can assign to a VM in VI-3 is 4 - check out http://www.vmware.com/pdf/vi3_35/esx_3/r35u2/vi3_35_25_u2_config_max.pdf
Also best practice is to assign a single vCPU unless you absolutely need to -
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To use 8 vCPU you need VS4.
Anyway, as written above, use alway the minimum necessary CPU.
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