Currently I have a Hyper-v VPS with 2 (vCPU) processor. I would like to install SQL Server Express 2012 that has a limitation of 1 Socket or 4 Cores, whichever the lesser.
My Question: Are vCPU's counted as a single core, or as sockets? or something completely different?
Hyper-V presents one socket with multiple cores.
You can verify this with a tool such as CPU-Z. Here's a screenshot I took of a 2-vCPU Hyper-V guest I have:
For what it's worth, VMWare ESXi permits you to choose your mix of sockets/cores vCPUs.
I am not a lawyer, so stop reading now
Installing SQL Express on a machine that violates the license simply means (as far as I can tell) that the SQL instance will not utilise the extra power of the server. For example, it's limited to x gigs of ram, but if you install it in a server with 256Gb of RAM, it will just neglect to use the rest.