Methods and systems assist data center customer to plan virtual data center (“VDC”) configurations, create purchase recommendations to achieve either an expansion or contraction of a VDC, and optimize the data center cost. Methods generate recommendations on lower cost combinations of virtual machine (“VM”) guest OS licenses, server computer hardware and VM software to optimize the costs are generated, generate data center customer plans for additional VMs with Quest OS for a projected period of time, provide recommendations on lower cost combination of guest OS licenses, server hardware, and VM software to optimize the cost. Methods also report any underutilized licensed servers and provide recommendations for cost savings when volume licenses can be replaced by instance based software licenses. Methods may generate VM placement recommendations to data center customers while the customers attempt to manually migrate VMs to different server computers.