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We are using Linux box on Esxi 5.0 server to take VMDK backups of all windows servers on that EXSi 5.0; we are using VMware native API to do that; but after the trail period of 60 days, these API's seems to to not work with the Free license key, even though the servers are functioning correctly. Is this by design from VMware? Is there an alternative way to make the Linux box take the backup of windows servers without using Vmware API?

Please do let me know if any additional questions or any clarifications required.

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This is by design. You can't use the backup/restore APIs without the proper licensing. You can use something like GhettoVCB to get by, but for real production use, you should license ESXi.

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