Meaning, lets say I have 4 physical servers that are all compatible with vSphere Hypervisor (free version)
Could I install vsphere and run 4 separate instances (on 4 separate physical servers) without violating the licensing terms. Is this different for commercial purposes vs home use.
Hi Toki,
Welcome to VMware Communities 
You can run multiple free hypervisors in a single site and it will not violate any license terms. The more servers you run, the harder it is to manage them individually. That is when you will need a vCenter and then you come to realize that free hypervisors can only work standalone and cannot be managed by a vCenter. That is when you will have to buy a commercial license.
A free hypervisor is free and does not matter where you use it. It comes with its own limitations, and if you learn to live with it you don't have to worry about license violations. Most of the people fail there because they would need features that only a commercial license can offer.
Hope i answered your question.
