Amazon AWS licensing - dedicated host

Hello everyone,

We are looking to transition to AWS, from our existing data centre. Due to some constraints, we must go with the dedicated host (M4 instance, physical host dedicated to us).

M4 dedicated host has a capacity for 22 VMs, each at 2 cores and 8 GB of RAM.

My question is: which Red Hat license is the most optimal for us?

Bear in mind that: we don't care about hypervisor OS (that's AWS's problem). We only need to license up to 22 VMs.

Right off the bat, I would like to go with "Red Hat Enterprise Linux for Virtual Datacenters" . At $2,500/year and for 22 VMs, this works out to $113 per VM per year. Clearly, very attractive.

However, I don't know if RHEL for virtual Datacentres legally can be ran on AWS (even though we legally own that dedicated host).

Can someone please comment on this?

If the above is a no go, it looks like I would need 11 of these licenses: "RH00004 Red Hat Enterprise Linux Server, Standard (Physical or Virtual Nodes)" -- each one is good for 2 VMs, right? Each one costs $800/year.

So we're looking at $8,800/year for full capacity M4 server.

Are my thoughts correct?

I'm hoping that Virtual Datacentres is available for AWS dedicated hosts.