A friend is exploring two options for a DR site, one option is to purchase two virtual servers at a monthly cost of 100k and  while the other is to purchase one hardware server@ an initial cost of 400k,VM Licence & rack space at a monthly cost of 65K.

Questions;
 What are the Microsoft licensing implication of either of the strategies?
 What would be your preferred choice?
 In the long run is it worth purchasing a Virtual server or a hardware server?