[raymann]

I am about to purchase a Dell R720, duel socket xeon E5-2620, 32GB RAM, 2 2TB raid1 hard drives.

I plan on moving my 03 exchange environment to exchange 2010 on VMWare ESXi 5.0. I will also virtualize my 03 DC and 03 app server.

I am not clear on what VMWare licensing I will need to purchase. I believe I just need ESXi 5 and vsphere client. Are there any fees associated with these?

[Virtual]

There is if you want to go for HA or vCenter and other features otherwise I believe it is free. You'll need to register it to receive the free license. Will you P2V the existing servers? Providing you don't keep the physical servers active, I believe they will count as the Windows licenses. However, it depends whether the Windows server licenses came with the hardware, so worth verifying with Microsoft licensing to get something in writing.