Azure Hybrid Benefit for Windows Server

Overview
You can enable great savings in Azure with Windows Server Software Assurance by using Azure
Hybrid Benefit for Windows Server.

Azure Hybrid Benefit for Windows Server allows you to use your on-premises Windows Server
licenses and run Windows virtual machines in Microsoft Azure at a reduced cost (i.e. at Linux
rates). You can use your licenses for Windows Server 2008 R2, Windows Server 2012, Windows
Server 2012 R2, and Windows Server 2016. The Azure Hybrid Benefit for Windows Server is
applicable to Windows Server Standard and Datacenter editions as well as other versions
obtained via custom images.

With Azure Hybrid Benefit for Windows Server, you can save 40 percent or more 1 on Windows
Server virtual machines by paying only the base compute 2 rates—adding value to your Software
Assurance investments. The benefit is available across all Azure regions.

To qualify for the benefit, use your active Software Assurance (SA) or subscription licenses,
including your Enterprise Agreement subscription, Server and Cloud Enrollment subscription, or
Open Value subscription) for your Windows Server licenses.

For each Windows Server 2-processor license with active SA or subscription and each set of 16
Windows Server core licenses with SA or subscription, you can run Windows Server on Azure on
up to 16 virtual cores across up to two Azure base instances. Each additional set of 8 core
licenses with SA or subscription entitles you to use up to 8 virtual cores and one base instance.

1
Savings vary by instance type, region etc.
2
Base compute equals Linux rates.
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License with SA/Subscription Virtual machines and How they can be used
cores granted

Windows Server Datacenter Up to two virtual machines Run virtual machines both on
(16 cores or a 2-proc L) and up to 16 cores premises and in Azure

Windows Server Standard Up to two virtual machines Run virtual machines either
(16 cores or a 2-proc L) and up to 16 cores on premises or in Azure 3

You can run virtual machines in Azure using Azure Hybrid Benefit for Windows Server only
during your SA or subscription term. When approaching SA or subscription expiration, you have
an option to either renew your SA or subscription or convert your virtual machines to be billed
at standard Windows Server rates.

Examples of savings using Azure Hybrid Benefit for Windows Server:

Use the following table to better understand the benefit. The green column shows the number
of same-type virtual machines and the blue row shows the core density of each virtual machine.
The yellow cells show the number of 2-processor licenses (or sets of 16 cores) that you will need
to spin up a certain number of virtual machines of a certain core density.

3
90-day license reassignment rule applies.
Azure Hybrid Benefit for Windows Server page 3

Windows Server SA and subscription requirements

Azure Hybrid Benefit for Windows Server also provides you the flexibility to run configurations
based on your needs as well as combine virtual machines of different types.

Example configurations for several licensing positions

Azure Hybrid Benefit for Windows Server page 4

How to maintain compliance

Customers that want to apply Azure Hybrid Benefit for Windows Server to their Windows Server
virtual machines in Azure need to verify the number of eligible licenses and respective coverage
period of customer SA or subscription before any deployment of Azure Hybrid Benefit for
Windows Server virtual machines and apply the guidelines above to deploy the correct number
of virtual machines with the benefit.

If you already have Azure Hybrid Benefit for Windows Server instances running, you will need to
perform an inventory of how many units you are running, and check against the licenses you
have. You must account for all virtual machines in all subscriptions to cross check against
Windows Server licenses.

To see and count all virtual machines deployed with Azure Hybrid Benefit for Windows Server in
a subscription, you can do one of the following:

1. Run the following PowerShell command from your subscription:

PowerShellCopy

$vms = Get-AzureRMVM

foreach ($vm in $vms) {"VM Name: " + $vm.Name, " Azure Hybrid Benefit for Windows Server: "+
$vm.LicenseType}

2. Review your bill to determine how many virtual machines with Azure Hybrid Benefit for
Windows Server you are running. The information about the number of instances with
the benefit appears under ‘Additional Info:’

"{"ImageType":"WindowsServerBYOL","ServiceType":"Standard_A1","VMName":"","Usag

eType":"ComputeHR"}"

Billing does not apply in real time—expect a few hours delay after you’ve spun up a virtual
machine using the Azure Hybrid Benefit for Windows Server before the benefit shows on the bill.

You can then populate the results in the Azure Hybrid Benefit for Windows Server SA Count Tool
available online to get to the number of Windows Server licenses covered with SA or
subscriptions that you are required to have.

After you have confirmed that you are fully licensed for the number of Azure Hybrid Benefit for
Windows Server instances you are running, there is no need for any further action. If you
discovered that there is room for spinning up additional Azure Hybrid Benefit for Windows
Azure Hybrid Benefit for Windows Server page 5

Server instances, you may want to optimize costs further by switching to running instances with
the benefit versus the full cost.

If you discovered that you do not have enough eligible Windows Server licenses for your
planned deployment or for the instances you have already deployed, you need to purchase
Windows Server on-premises licenses covered with Software Assurance through one of the
channels listed below to qualify for the benefit. You can buy core licenses in increments of 8
cores to qualify for each additional Azure Hybrid Benefit for Windows Server virtual machine.

Windows Server Software Assurance and/or subscriptions are available for purchase through the
following Microsoft licensing channels:

Channel Open OVS Select/ MPSA EA/EAS

Select Plus

Typical size (number 5-250 5-250 >250 >250 >500

of devices)

SA / Subscription Optional Included Optional Optional Included

Software Assurance offers far more than cost savings on cloud deployment with the Azure
Hybrid Benefit for Windows Server. Software Assurance also offers a range of deployment and
management benefits, including new product version rights and planning services, as well as
training, support, and specialized benefits, including the following:

• Reducing costs with rights to new software releases and cost-efficient upgrades.
• Helping you achieve improved operational efficiency through access to unique
technologies and licensing rights,
• Providing increased security for running an instance of the software on a ‘cold’ server for
disaster recovery purposes,
• Enabling an ability to deploy and operate Nano Server in production. 4

If you are using Azure Hybrid Benefit, you must renew SA or subscriptions when approaching
your end-of-coverage date to maintain compliance and use the benefit correctly.

• If your company’s licensing position does not reflect the number of Azure Hybrid Benefit
for Windows Server virtual machines you are running in Azure and you do not plan on

4
To learn more, visit Microsoft Software Assurance website at www.microsoft.com/softwareassurance
Azure Hybrid Benefit for Windows Server page 6

purchasing additional licenses, you need to immediately switch virtual machines using
Azure Hybrid Benefit for Windows Server to full-cost Windows Server virtual machines.
• Microsoft reserves the right to audit customers at any time to verify eligibility for Azure
Hybrid Benefit.

To identify the right Windows Server edition for your purposes, consider that a Datacenter
Edition might be a better choice for companies of all sizes. The following table summarizes how
Windows Server editions work for different customer use cases.

Standard Edition Datacenter Edition

Small and medium-sized businesses that Companies of all sizes that have demanding
need advanced features, support for IT workloads, require advanced storage,
distributed office locations and require a virtualization and application development
flexible way to virtualize their environment

• Unlimited users/devices, based on • Unlimited users/devices, based on

CALs CALs
• 2 virtual machines • Unlimited virtual machines
• 2 Hyper-V containers* • Unlimited Hyper-V containers
• Unlimited Windows Server containers • Unlimited Windows Server containers
• Storage features including Storage
Replica and Storage Spaces Direct
• New networking stack
• Shielded Virtual Machines and Host
*One physical or one virtual + Hyper-V Guardian Service

Note: Remember that you can run a Datacenter Edition license under Azure
Hybrid Benefit for Windows Server instances in Azure and also run it on
premises simultaneously. Standard edition licenses, however, will have to be
decommissioned if used in Azure, which means that you will need to uninstall
the on-premises instances to ensure Azure Hybrid Benefit for Windows Server
is used correctly.

Deployment guidance
Microsoft offers pre-built gallery images for all customers and enables partners to perform
deployments on customers’ behalf.
Azure Hybrid Benefit for Windows Server page 7

Find instructions for all available deployment options, including the following:

• Detailed video highlighting the new deployment experience utilizing pre-built gallery
images.
• Detailed instructions on uploading a custom-built virtual machine.
• Detailed instructions on migrating existing virtual machines with Azure Site Recovery
using PowerShell.

Learn more about Azure Hybrid Benefit for Windows Server.

Copyright © 2017 Microsoft, Inc. All rights reserved. This document is for informational purposes only. Microsoft makes no
warranties, express or implied, with respect to the information presented here.