Windows Server

Core licenses are sold in packs of two (each pack contains two licenses), and packs of 16 (each pack contains 16 licenses).

• When licensing is based on physical cores, each processor needs to be licensed with a minimum of eight core licenses. Each physical server, including single-processor servers, needs to be licensed with a minimum of 16 core licenses. One core license must be assigned for each physical core on the server. Additional cores can then be licensed in increments of two or 16.
• When licensing by virtual machine, one license must be assigned for each virtual core allocated to the virtual machine, subject to a minimum of eight licenses per virtual machine. Licensing by virtual machine requires subscription licenses or licenses with Software Assurance.

The Azure Hybrid Benefit lets you redeploying your on-premises Windows Server subscription licenses or licenses with Software Assurance to Azure. Rather than paying the full price for a new Windows Server virtual machine, the Azure Hybrid Benefit will apply a discount to the base compute rate.

Each set of 16 Windows Server core licenses with Software Assurance entitles you to use Windows Server on Microsoft Azure on up to 16 virtual cores allocated across two or fewer Azure virtual machines. Each additional set of eight entitles use on up to eight virtual cores and one Base Instance. In other words, once a minimum initial allocation of 16 eligible licenses is made, you can add virtual cores (up to eight) to an existing or new virtual machine with incremental sets of eight eligible licenses. Each incremental set of eight licenses must be allocated to a single virtual machine.

With Azure Hybrid Benefit, you can move or add incremental workloads into Azure and pay non-Windows (Linux) pricing. With Datacenter Edition licensing, you get these lower-cost instances in Azure while maintaining existing on-premises deployments. This is referred to as dual use rights. Standard Edition licensing provides lower-cost instances in Azure, but does not provide dual use rights.

Use of Windows Server on Azure is subject to Azure Services in the Product Terms site. This means access to base Windows Server functionality on Azure does not require base Windows Server CALs, and you can leverage the Azure hosting clause to host your own customer solutions.

Two new sets of rights were introduced in October 2022 for customers with subscription licenses or licenses with active Software Assurance. These are the Flexible Virtualization Benefit and the option to license Windows Server Datacenter and Standard by virtual machine.

• The Flexible Virtualization Benefit is an extension of Outsourcing Software Management rights. It allows you to deploy eligible licenses to any Authorized Outsourcers’ servers (shared or dedicated). This benefit applies broadly across software products. Previously, the only option to deploy your Windows Server licenses in third party data centers was to use Authorized Outsourcers’ dedicated servers.
• When you license Windows Server by virtual machine, as an alternative to fully licensing a server based on physical cores, you need only a number of licenses equal to the virtual cores allocated to your virtual machine (subject to a minimum of eight per virtual machine). You can also move licenses between servers within the same Server Farm at any time as needed.

Licensing by virtual machine and deploying to an Authorized Outsourcer’s shared servers may be a cost-effective option for moving your workloads to the cloud.