Windows Server - Azure Hybrid Benefit

General

The costs for a virtual Windows server in Azure are made up of two components: the calculation costs (compute) and the license costs for Windows Server.

The costs for the calculation part can be influenced by reservations or by adjusting the dimensions.

The costs of the Windows Server licenses can be influenced by the use of the Azure Hybrid Benefit. Under the Azure Hybrid Benefit for Windows Server, you may use proprietary licenses with active Software Assurance (SA) in Azure.

The following rules apply for this:

• Only own licenses with active Software Assurance may be used;
• Licenses are deployed in sets of 8 core licenses;
• Each set of 8 licenses covers up to 8 virtual cores of a Virtual Machine in Azure. If the VM has more than 8 virtual cores, more sets of 8 licenses must be assigned;
• You may deploy Windows Server Standard licenses in Azure or on premise. Not in both environments at the same time;
• You may deploy Windows Server Datacenter licenses in Azure and on premise. These licenses can therefore be used simultaneously for a local Data Center and for Azure VMs;
• You may use Windows Server Standard licenses to cover with Datacenter installations. On premise this is not allowed, in Azure it is;
• Instead of Windows Server licenses, you may also use CIS (Core Infrastructure Suite) licenses according to exactly the same rules. CIS licenses are a combination of Windows Server and System Center.

Azure Dedicated Host

Physical servers can also be purchased in Azure, on which unlimited virtualization is allowed. In that case, there are no license costs for the individual Windows VMs. This can be more economical, depending on the number of physical cores in the host(s) and the number of virtual cores in the VMs.

You may use Windows Server in any number of Instances on an Azure Dedicated Host in Azure, provided Windows Server Datacenter Licenses with SA are allocates to all of the Physical Cores on that Azure server.

Migration to Azure

You may not assign Windows Server Standard licenses to the Azure Hybrid Benefit and assign the same licenses to on premise servers simultaneously, except on a one-time basis for a period of no more than 180 days to migrate the same workloads to Azure. Upon completion of the migration to Azure or 180 days after the start of the migration, whichever comes first, the licenses are deemed to be “assigned to Azure”.

Calculation Example

Windows Server VM in Azure, 2 virtual cores:

• Pay in Azure: € 796,32 per year
• Own licenses from Enterprise Agreement Subscription level A (8 cores): € 204 per year

Windows Server VM in Azure, 8 virtual cores

• Pay in Azure: € 3.185,28 per year
• Own licenses from Enterprise Agreement Subscription level A (8 cores): € 204 per year