dell generation 12 servers (such as the r720) include the idrac7. previous generations required a hardware addition to add a drac to a server. now apparently all the necessary hardware is included by default. the catch is that you have to purchase a license for idrac enterprise features. the enterprise features include the use of virtual media and virtual console…basically the main features that everyone has come to expect from a drac.

i haven’t figured out all the details yet, but essentially it seems that you purchase a license from dell for the enterprise features and you can keep track of your licenses from a license management portal at: http://www.dell.com/support/retail/lkm

lots of idrac7 information here:
http://www.dell.com/Learn/us/en/04/help-me-choose/hmc-idrac7-12g?c=us&l=en&s=bsd

update 4/9/2013:
i’ve actually been through this process now. the good news is that if you purchased the idrac enterprise edition from dell when your ordered the server then there’s nothing special you need to do. if you messed up and didn’t include the enterprise features then you’ll get an idrac with express features only.

if you want to upgrade your idrac express to an enterprise feature set then you must purchase the licenses.
then check here: https://www.dell.com/support/licensing (same login as dell premier)
if you have unassigned licenses then all you have to do is assign them to server service tags and then download the license and upload it via the idrac itself. an annoying aspect here is that the idrac express feature set does not allow the use of the dedicated drac nic, so you’ll have to assign one of the LOM (LAN on motherboard) ports to the drac…at least temporarily to perform this step.

if you don’t see any unassigned licenses, then send an email to digital_fulfillment_alert@dell.com with the server service tags (you also might need to provide a dell order number).