Oracle distinguishes hard partitioning, which can limit licensable cores, from soft partitioning, which in Oracle's view cannot. Oracle's partitioning policy does not recognise VMware, Hyper V or KVM as hard partitioning. From that position Oracle argues you must license every physical host the software could be moved to, which in a modern cluster with vMotion can mean the entire estate.
The critical point for buyers is that this argument rests on a policy paper, not on the signed agreement. The policy document is not the contract, and contract language beats policy. Cluster wide claims are frequently overstated, and the defensible scope depends on your architecture, your configuration, and what can actually be demonstrated rather than on Oracle's default assumption that everything is licensable everywhere.
Oracle's own collection scripts can overcount across virtualization layers, so the output is reviewed before submission rather than handed over as found. The white paper walks through each of these points with worked numbers and gives you the evidence file template to build your own defensible position.