Azure Hybrid Benefit for Windows Server (2023)

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The Azure Hybrid Benefit is a cost-effective benefit that allows you to use your on-premises licenses with Software Assurance (SA) in the cloud. This article focuses on the benefits of licensing Windows Server with SA: Cost savings for Windows Server Virtual Machines (VMs) on Azure, Azure Stack HCI, and Azure Kubernetes Service (AKS) hybrid deployment options.

For more Azure Hybrid Benefits (such as SQL Server), seeAzure Hybrid Benefit.

What qualifies you for the Azure Hybrid Benefit?

To qualify for Azure Hybrid Benefit for Windows Server, you must have Windows Server on-premises base licenses with active Software Assurance. Software Assurance is only available under a commercial license agreement. For more information on Volume Licensing and the agreements under which it is available, seeMicrosoft Software Assurance. For more information about Windows Server Core licenses, seeLicensing of Windows Server Products.

Important

Workloads leveraging the Azure Hybrid Benefit can only run during the Software Assurance term. When the Software Assurance term expires, you must renew your Software Assurance agreement, disable the Hybrid Benefit feature, or deprovision workloads that use the Azure Hybrid Benefit.

What is included in the Azure Hybrid Benefit?

Customers with Windows Server Software Assurance can leverage the Azure Hybrid Benefit to further reduce costs in the cloud and across data centers and edge locations.

The Azure Hybrid Benefit includes the following cost savings:

  • Windows Server virtual machines in Azure:The Windows Server license is covered by the Azure Hybrid Benefit, so you only pay the base rate for the VM compute. The base computer rate is the same as the Linux rate for virtual machines.

  • Azure Stack-HCI:Azure Stack HCI host fee and Windows Server subscription fee do not apply to Azure Hybrid Benefit. That means unlimited virtualization rights are provided at no additional cost. You continue to pay other costs related to Azure Stack HCI (e.g. customer-managed hardware, Azure services and workloads).

  • AKS:Run AKS on Windows Server and Azure Stack HCI at no additional cost. You continue to pay for the underlying hosting infrastructure and all Windows container licenses unless you are also eligible for the Azure Hybrid Benefit for Azure Stack HCI. With the Azure Hybrid Benefit for Azure Stack HCI, you can waive the Azure Stack HCI host and Windows Server subscription fees.

Azure Hybrid Benefit for Windows Server (1)

Azure Hybrid Benefit pricing

To evaluate your potential cost savings, you can use these resources:

  • Windows virtual machines in Azure: Windows virtual machine pricing. Use oAzure Hybrid Benefits Savings Calculatorto calculate cost savings or compare prices for Windows VMs with and without Azure Hybrid Benefit.

  • Azure Stack-HCI: Azure Stack HCI pricing.

  • Azure Kubernetes Service (AKS): AKS pricing for Azure Stack HCI.

Get Azure Hybrid Benefit for Windows virtual machines on Azure

Follow the instructions in this section to get and keep Azure Hybrid Benefit for your Windows VMs in Azure.

License Requirements

To qualify for the Azure Hybrid Benefit for Windows virtual machines on Azure, you must meet the following license requirements.

License Types

  • Windows Server Standard with active Software Assurance, or
  • Windows Server Datacenter with active Software Assurance or
  • A qualifying Cloud Solution Provider (CSP) subscription

Number of Licenses

  • The minimum license set of 16 cores, either Windows Server Datacenter or Windows Server Standard Edition, entitles use of up to 16 virtual cores allocated in 2 or fewer virtual machines.

  • Each additional set of 8 core licenses entitles the use of up to 8 virtual cores in 1 virtual machine.

  • License Stacking - To run a virtual machine with more than 16 cores, you can stack licenses. For example, with two 16-core license packs, you can run a virtual machine with up to 32 cores. Each virtual machine, regardless of its size, must be licensed with at least 8 cores. You can stack more core licenses up to the required number.

Rights of Use

  • Windows Server Standard-Edition:Licenses must be used locally or on Azure, but not simultaneously. The only exception is one-time, up to 180 days, to allow you to migrate the same workloads to Azure.

  • Windows Server Datacenter-Edition:Licenses enable simultaneous use on-premises and in Azure. Dual-use rights do not apply to assigned licensesUnlimited virtualization rights, under.

unlimited virtualization

Unrestricted virtualization rights refer to the right to use any number of Windows Server virtual machines on a host.

  • Windows Server Datacenter-Edition:You can use any number of Windows Server VMs on an Azure Dedicated Host by assigning active SA Windows Server Datacenter licenses to all available physical cores on that Azure server.

  • Windows Server Standard-Edition:Unlimited virtualization rights are not available.

How to apply Azure Hybrid Benefit for Windows VMs to Azure

For information about deploying Windows Server VMs on Azure with the Azure Hybrid Benefit, seeExplore the Azure Hybrid Benefit for Windows virtual machines. One way to enable Azure Hybrid Benefit for a Windows Server VM is to check the box belowlicenseduring VM creation as shown below.

Azure Hybrid Benefit for Windows Server (2)

How to stay compliant

If you apply Azure Hybrid Benefit to your Windows Server VMs, verify the number of qualifying licenses and Software Assurance coverage period before activating this benefit. Use the guidelines above to ensure you deploy the correct number of Windows Server virtual machines with this benefit.

If you're already running Windows Server VMs with Azure Hybrid Benefit, take inventory to determine how many units you're running and compare that number to your Software Assurance licenses. You can contact Microsoft's licensing specialist to validate your Software Assurance license.

To view and count all virtual machines deployed with Azure Hybrid Benefit in an Azure subscription,List all virtual machines and virtual machine scale setsUse the steps inExplore the Azure Hybrid Benefit for Windows virtual machines.

You can also check your Microsoft Azure bill to see how many VMs you're running with Azure Hybrid Benefit for Windows Server. For number of instances with benefit, seeAdditional information:

"{"ImageType":"WindowsServerBYOL","ServiceType":"Standard_A1","VMName":"","UsageType":"ComputeHR"}"

Billing is not real-time. Please allow a few hours after activating a Windows Server virtual machine with Azure Hybrid Benefit before the virtual machine appears on your invoice.

To get a full picture of where your license stands, take inventory of each of your Azure subscriptions. Confirm that you are fully licensed for Windows Server VMs running on Azure Hybrid Benefit. You do not need to take any further action.

Conduct regular inventory to ensure you are taking advantage of the holiday benefits to which you are entitled. Regular inventory can help you reduce costs and ensure you always have enough licenses to cover Windows Server VMs deployed with Azure Hybrid Benefit.

If you do not have enough qualifying Windows Server licenses for your provisioned virtual machines, you have three options:

  • Purchase additional Windows Server licenses covered by Software Assurance through a commercial license agreement.
  • Turn off Azure Hybrid Benefit for some of your VMs and buy them at regular Azure hourly rates.
  • Unmap some virtual machines.

Use

Microsoft reserves the right to audit customers at any time to verify eligibility for Azure Hybrid Benefit.

Get the Azure Hybrid Benefit for Azure Stack HCI

Use the instructions in this section to get Azure Hybrid Benefit for your Azure Stack HCI infrastructure.

License Requirements

To qualify for the Azure Hybrid Benefit for Azure Stack HCI, you must meet the following license requirements.

License Types

  • Windows Server Datacenter only with active Software Assurance

Number of Licenses

  • Each Windows Server base license entitles you to use 1 physical core of Azure Stack HCI. You must allocate enough core licenses to all physical cores on the servers in the Azure Stack HCI cluster.

unlimited virtualization

  • You can use any number of Windows Server VMs in the Azure Stack HCI cluster if you allocate enough core licenses to all physical cores on the servers in the Azure Stack HCI cluster.

Rights of Use

  • Licenses must be used either on-premises or on Azure Stack HCI, but not both. You have 180 days of concurrent licenses to migrate your servers.

How to apply the Azure Hybrid Benefit for Azure Stack HCI

You can learn how to implement Azure Hybrid Benefit for Azure Stack HCI by following the steps inAzure Stack HCI billing and payment. One method is to enable the benefit of thesettingsAzure Stack HCI feature dashboard as shown below.

Azure Hybrid Benefit for Windows Server (3)

Get the Azure Hybrid Benefit for AKS

Follow the instructions in this section to retrieve itAzure Hybrid Benefit for AKS.

License Requirements

To qualify for the Azure Hybrid Benefit for AKS, you must meet the following license requirements.

qualified hosts

  • Windows Server 2019 or later (Datacenter or Standard), or similar
  • Azure Stack-HCI

License Types

  • Windows Server Standard with active Software Assurance, or
  • Windows Server Datacenter with active Software Assurance or
  • A qualifying Cloud Solution Provider (CSP) subscription

Number of Licenses

  • Each Windows Server Core license entitles you to use 1 AKS vCore.

Rights of Use

  • The Azure Hybrid Benefit for AKS is additive. Core licenses used for Azure Hybrid Benefit for AKS can be used concurrently with on-premises Windows Server licenses as well as Azure Hybrid Benefit for other workloads in this article.

How to apply the Azure Hybrid Benefit for AKS

To get started with the Azure Hybrid Benefit for AKS, seeAzure Hybrid Benefit for AKS.

FAQ: Azure Hybrid Benefit

Which regions are eligible for Azure Hybrid Benefit?

Azure Hybrid Benefit is available in all Azure regions and sovereign clouds.

What happens to my benefits when my Software Assurance expires?

To take advantage of these benefits, your Software Assurance or subscriptions must be active. If you don't want to renew your Software Assurance coverage after it expires, you must remove your benefits from your features in the Azure portal.

What is software warranty?

Software Assurance offers other benefits to maximize your IT investments. Software Assurance is only available through Volume Licensing and is purchased when you purchase or renew a Volume Licensing agreement. It is included in some contracts and an optional purchase in others. Software Assurance benefits include rights to new product versions, support, license mobility rights, and a unique set of technologies and services.

For volume licensing information, seeMicrosoft Licenses. For more information on the benefits of Software Assurance and how each benefit can meet your business needs, visitBenefits of Software Assurance.

How can customers get Software Assurance?

You can purchase Software Assurance through Volume Licensing. Your Software Assurance benefits will be activated atVolume Licensing Service Center (VLSC). If your organization has a Microsoft Products and Services Agreement (MPSA), theBusiness centeris your goal to easily manage your Software Assurance benefits.

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