Some embodiments of an entitlement model have been presented. In one embodiment, a centralized server distributes copies of an operating system from a software vendor to a set of virtual guests of a virtual host running on a physical computing machine. The centralized server and the physical computing machine are coupled to each other within an internal network of a customer of the software vendor, whereas the centralized server has access to the software vendor external to the internal network of the customer. The centralized server may interact with a hypervisor of the physical computing machine to determine what type of license of the operating system the virtual host has and a number of copies of the operating system requested by the virtual guests.