No logical processors do not count as a pCPU when it comes to ratio. pCPU to vCPU ratio is done via physical cores. if you look at a host summery you will see it will have next to CPU cores will have something like 8 CPUs x 2.6 GHz for example not 16 logical ones it has.
When using VMware vCenter Operations manger you can set vCPU to pCPU capacity limits etc and all of those ratio metrics are using Physical Cores.
ESXi does not treat hyper threaded core like normal cores it will intelligently use them when CPU scheduling if it will not impact performance.
That is what I had supposed prior to reading the article on zdnet. For extra credit could you tell me where in Operations Manager I would find that?
Haha sure, from the vsphere ui navigate to a cluster or host select Operations Tab -> all metrics. Look for density and it will be under there in a pCPU to vCPU metric. you will have to change the time line to something greater than 24 hours to see the data points.
If you want to set a vCPU to pCPU capacity limit, click on configuration up on the top right select the profile(s) you have setup or use. and under "usage calculation" you can enter the ration you would like. Obviously these same ration metrics are available in the custom ui also.
Hope it helps
Not sure what the deal was, I went back in and graphs are present.
To anyone who is still looking for the answer as to whether logical processors constitute as pCPU's when determining the vCPU to pCPU ratios, the definite answer is yes.
See Scott D. Lowe's document here: https://communities.vmware.com/servlet/JiveServlet/previewBody/21181-102-1-28328/vsphere-oversubscription-best-practices…
Which also confirms with this zdnet article: http://www.zdnet.com/virtual-cpus-the-overprovisioning-penalty-of-vcpu-to-pcpu-ratios-4010025185/
From an empirical stance, I would agree this is correct as well. We are able to easily get an 8:1 ratio without any ready time or heavy "workloads." I have been monitoring this since the original post and have not had any issues and having great density results.