Figured I would blog this...These are not my words, I just copied from Veeam's official release. Let me know in the comments what you think...
As a longtime Premier Technology Alliance Partner and supporter of VMware's product strategy, Veeam Software takes great pride in creating innovative software products that enhance the customer value of VMware ESX, ESXi, and ESXi Free. One such example is support for the free edition of VMware ESXi in Veeam Backup and Replication.
Recently, VMware requested that Veeam Software discontinue support for ESXi Free in Veeam Backup and Replication in order to comply with VMware’s updated licensing policy. In light of VMware's request, and our close technical partnership, Veeam Backup and Replication will no longer support ESXi Free. We will still continue to offer support for ESXi Free to existing Veeam customers who purchased Backup & Replication prior to version 3.1.
For small or branch office environments, Veeam advises its new customers to buy VMware vSphere Essentials and the Veeam Essentials bundle (announced today). This combination costs exactly the same amount of money as purchasing 6 sockets of Veeam Backup at regular list price for use with free ESXi, but it is actually better, because with Veeam Essentials at its special discounted price, customers also get Veeam Monitor and Veeam Reporter.Veeam and Free ESXi - it's official now,