A virtual machine fails to power on, fails to leave suspend mode, or fails to migrate with VMotion and the following message is displayed in the vmware.log file for the virtual machine:
This product has expired. Be sure that your host machine's date and time are set correctly.
There is a more recent version available at the VMware web site: http://www.vmware.com/info?id=4.
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Module License Power on failed.
Currently running virtual machines will continue to run but will not be able to perform migration with VMotion, suspend or power on virtual machines.
Resolution:
An issue with ESX/ESXi 3.5 Update 2 causes the product license to expire on August 12, 2008. VMware engineering has isolated the root cause of this issue and will reissue the various upgrade media including the ESX 3.5 Update 2 ISO, ESXi 3.5 Update 2 ISO, ESX 3.5 Update 2 upgrade tar and zip files by noon, PST on August 13. These will be available from the page: http://www.vmware.com/download/vi. Until then, VMware advises against upgrading to ESX/ESXi 3.5 Update 2.
The Update patch bundles will be released separately later in the week.
This KB article will be updated as soon as more information is available, check back frequently for updates and additions.