CCUs, Nodes and Cores

Is there a license cost implication if we upgrade the hardware on CM host node to a larger sized machine ? I mean , move from 1 to 2 CPUs ?

Possibly.

Adding an additional CPU, may have license cost implications.

A node (such as your CM host) can have upto 16 CCUs.  
A CCU is the total number of CPU cores / 6.

So if the cores are reported across all installed CPUs in a node as 96 or less then no core based variable cost would be incurred.

Note:  Generally you take the total cores / memory across the whole cluster as part of the calculation so this provides some flexibility when adding a CPU to a single server.

What is meant by "total capacity usage of the product?"

This is stated in the Pricing FAQs and Updates for Cloudera Base on premises:

"The monetization updates to Cloudera Base on premises and Cloudera Streaming more accurately and fairly price based on total capacity usage of the product."

@moekraft For specific pricing and capacity questions like this, your best option is to contact your Cloudera Account Manager directly, as they can give you an accurate answer tailored to your contract and hardware setup.