Windows Server 2025 Licensing Guide

Contents
Introduction......................................................................................................................................................................2
Product overview ............................................................................................................................................................2
Edition overview and comparison ............................................................................................................................3
Server licensing and feature overview ....................................................................................................................4
Virtualization rights.................................................................................................................................................... 5
Determining the required number of core licenses...........................................................................................6
Minimum requirements for Standard and Datacenter editions (licensed based on physical
cores) ............................................................................................................................................................................... 6
Licensing requirements of additional OSEs for Standard edition ............................................................. 7
Server access licensing overview ..............................................................................................................................8
Structure and application of access licenses .................................................................................................... 9
Requirements for internal users – Client Access License (CAL) ............................................................... 10
Requirements for external users – Client Access License (CAL) and/or External Connector
license (EC) ................................................................................................................................................................... 11
Use of Client Access Licenses (CALs) or External Connectors (ECs) ....................................................... 12
Software Assurance benefits .................................................................................................................................... 12
Disaster recovery rights .......................................................................................................................................... 13
Original equipment manufacturer (OEM) licenses – enrollment into Software Assurance ........... 14
How to buy Windows Server licenses ................................................................................................................... 15
Commercial Licensing ............................................................................................................................................. 15
Server and Cloud Enrollment (SCE) .................................................................................................................... 15
Windows Server pay-as-you-go enabled by Azure Arc ............................................................................. 16

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Windows Server 2025 Licensing Guide

Channel availability .................................................................................................................................................. 16

Availability through Commercial Licensing programs .................................................................................... 17
Volume Activation ........................................................................................................................................................ 17
Downgrade rights ........................................................................................................................................................ 18
Planning for Windows Server 2025........................................................................................................................ 19
Frequently asked licensing questions (FAQ) ..................................................................................................... 20
Licensing definitions................................................................................................................................................... 29
For more information ................................................................................................................................................. 31

Introduction
This guide can help Microsoft Commercial Licensing customers (Volume Licensing) understand
how Windows Server 2025 is licensed through Microsoft Commercial Licensing programs. This
guide is for informational purposes and does not supersede or replace any documentation
covering Windows Server 2025 licensing.

Specific license terms for Windows Server 2025 are defined in the Microsoft Commercial
Licensing Product Terms, the Microsoft Commercial Licensing agreement under which it was
acquired, and/or its original equipment manufacturer (OEM) or Retail Software License Terms.
This licensing guide is not a legal use rights document. Program specifications and business
rules are subject to change.

For complete details and information on licensing, refer to the Product Terms for Commercial
Licensing use rights, or the Microsoft License Terms for OEM and retail. Additional information
about Windows Server 2025, including the latest version of this guide, is available on the
Microsoft Licensing Resources and Documents site, Windows Server page.

Product overview
Windows Server 2025 is the cloud-ready operating system customers can use to securely run
their workloads, enable new hybrid cloud scenarios, and modernize their applications to meet
evolving business requirements. It brings customers advanced security and resiliency, hybrid
cloud agility, and a future-ready, high-performance infrastructure.

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Windows Server 2025 Licensing Guide

Advanced multi-layered security Customers can take advantage of multi-layer security

with Secured-core server and secured connectivity. Secured-core server means our hardware
partners have provided hardware, firmware, and drivers to help customers harden the security of
their critical systems. It allows IT and SecOps teams to apply comprehensive security broadly in
their environment with Secured-core server’s advanced protection and preventive defense
across hardware, firmware, and virtualization layers.

Hybrid capabilities with Azure Customers choosing a hybrid and multicloud approach to
digitally transform their businesses can now take advantage of cloud services with on-premises
Windows Server 2025 by connecting with Azure Arc, and Hotpatching is available for on-
premises Windows Server 2025 when connected to Azure Arc. Additionally, Windows Server
2025 customers can take advantage of the File Server enhancements. SMB Compression
improves application file transfer by compressing data while in transit over a network. Finally,
Windows Admin Center, a tool loved by admins, brings modern server management experience
with a new event viewer and gateway proxy support for Azure connected scenarios.

Flexible application platform Customers who upgrade to Windows Server 2025 can take
advantage of scalability improvements such as support for 48TB of memory and 2,048 logical
cores running on 64 physical sockets for those demanding Tier1 applications. In this release,
customers can also take advantage of advancements to Windows containers. For example,
Windows Server 2025 improves application compatibility of Windows containers, includes
HostProcess containers for node configuration, supports IPv6 and dual-stack, and enables
consistent network policy implementation with Calico.

Edition overview and comparison

The Windows Server 2025 product is streamlined and simple, making it easy for customers to
choose the edition that is right for their needs. Choose from three primary editions of Windows
Server, based on organization size as well as virtualization and datacenter requirements:

Datacenter edition is ideal for highly virtualized and software-defined datacenter environments.

Standard edition is ideal for customers with low density or non-virtualized environments.

Essentials edition is a cloud-connected first server, ideal for small businesses with up to 25
users and 50 devices. Windows Server 2025 Essentials edition is available to purchase from
OEMs only.

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Windows Server 2025 Licensing Guide

A Windows Server 2025 Standard and Datacenter edition comparison can be viewed here:
Windows Server 2025 Licensing & Pricing | Microsoft

Server licensing and feature overview

Windows Server 2025 Datacenter and Windows Server 2025 Standard are licensed under a core-
based license model. For both Datacenter and Standard, the number of core licenses required
depends on whether a customer is licensing based on the physical cores on the server or by
virtual machine. The option to license Windows Server by virtual machine was added in October
2022 and is available to customers with subscription licenses or licenses with active Software
Assurance only.

• When licensing based on the physical cores on the server, the number of core licenses
required equals the number of physical cores on the licensed server, subject to a
minimum of 8 core licenses per physical processor and a minimum of 16 core licenses per
server.
• When licensing by virtual machine, the number of core licenses required equals the
number of virtual cores in the virtual operating system environment (i.e., virtual machine),
subject to a minimum of 8 core licenses per virtual machine.

Core licenses are sold in 2-packs and 16-packs. For complete details and information on
licensing, refer to the Product Terms. To learn more about core licensing see the Introduction to
Microsoft Core Licensing licensing brief.

Attribute Datacenter Standard Essentials

Licensing model Per Core/CAL1 Per Core/CAL1 OEM only2

License type Core license Core license Server license

OSEs/Hyper-V
Unlimited/One3 Two4/One3 One5
containers

Windows Server
Unlimited Unlimited
containers
1When licensing based on physical cores on the server, all physical cores on the server must be licensed, subject to a minimum of 8
core licenses per physical processor and a minimum of 16 core licenses per server. When licensing by virtual machine, the number
of core licenses required equals the number of virtual cores in the virtual operating system environment, subject to a minimum of 8
core licenses per virtual machine and 16 core licenses per customer. Licensing by virtual machine requires subscription licenses or
licenses with active Software Assurance.

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Windows Server 2025 Licensing Guide

2Windows Server Essentials edition server is for small businesses with up to 25 users and 50 devices. A server license covers up to
10 cores and 1 VM on single-socket servers. Windows Server Essentials is available through our OEM Server Hardware partners
only.
3When licensed by virtual machine, both Windows Server Standard and Windows Server Datacenter use of Windows Server in one
virtual OSE on the licensed server. Licensing by virtual machine requires subscription licenses or licenses with active Software
Assurance.
4When licensed based on the physical cores on the server, Windows Server Standard permits use of the server software in the
physical OSE on the licensed server (in addition to two virtual OSEs), if the physical OSE is used solely to host and manage the
virtual OSEs
.5Windows Server Essentials edition permits use of one running instance of the server software in the physical OSE on the licensed
server (in addition to one virtual OSE), if the physical OSE is used solely to host and manage the virtual OSE.

Virtualization rights
Datacenter edition
Licensing based on physical cores
As shown in the table above, when licensed based on the physical cores on a server, Windows
Server Datacenter provides rights to use any number of operating system environments
(physical or virtual OSEs) or Windows Server Containers with Hyper-V isolation as well as any
number of Windows Server containers without Hyper-V isolation on that server.

Licensing by virtual machine

When licensed by virtual machine, Windows Server Datacenter provides rights to use the
software in either one virtual OSE, one Windows Server container with Hyper-V isolation or any
number of Windows Server containers without Hyper-V isolation in one virtual OSE.

Standard edition
Licensing based on physical cores
When licensed based on the physical cores on a server, Windows Server Standard provides
rights to use two operating system environments (physical or virtual OSEs) or Windows Server
Containers with Hyper-V isolation and unlimited Windows Server Containers without Hyper-V
isolation on that server. When licensed based on physical cores, Standard edition also permits
use of the server software in the physical OSE on the licensed server (in addition to two virtual
OSEs), if the physical OSE is used solely to host and manage the virtual OSEs.

Licensing by virtual machine

As with Datacenter, when licensed by virtual machine, Windows Server Standard provides rights
to use the software in either one virtual OSE, one Windows Server Container with Hyper-V
isolation or any number of Windows Server Containers without Hyper-V isolation in one virtual
OSE.

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Windows Server 2025 Licensing Guide

For example, a 2-processor server with 8 cores per processor requires 16 core licenses (for
example, one 16-pack of core licenses or eight 2-packs of core licenses) and gives rights to two
OSEs (physical or virtual) or two Windows Server Containers with Hyper-V isolation. In the case
of this example, for each additional two OSEs or two Windows Server Containers with Hyper-V
isolation the customer wishes to use, an additional 16 core licenses must be assigned to the
server. Alternatively, the customer could license additional OSEs or containers by virtual
machine.

Essentials edition
Each server license provides rights to use one running instance of the server software in either a
physical OSE or virtual OSE on the licensed server.

Determining the required number of core

licenses
Server software licensing for Windows Server 2025 Standard and Datacenter requires core
licenses. Customers may choose between licensing based on physical cores or licensing by
virtual machine. Licensing by virtual machine is available only under subscription licenses or
licenses with active Software Assurance. For each server licensed based on physical cores, the
number of core licenses required equals the number of physical cores on the licensed server,
subject to a minimum of 8 core licenses per physical processor and a minimum of 16 core
licenses per server. For each server licensed by virtual machine, the number of core licenses
required equals the number of virtual cores in a virtual operating system environment, subject to
a minimum of 8 core licenses per virtual machine and a minimum of 16 core licenses per
customer. Core licenses are sold in 2-packs and 16-packs. For complete details on server
licensing, refer to the Product Terms.

Minimum requirements for Standard and Datacenter editions

(licensed based on physical cores)
The table below provides examples for various server configurations, and the minimum number
of core licenses required.

Standard: When all cores on the server are licensed (subject to a minimum of 8 core licenses per
physical processor and a minimum of 16 core licenses per server), Standard has rights to use two

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Windows Server 2025 Licensing Guide

OSEs or two Windows Server containers with Hyper-V isolation and unlimited Windows Server
containers without Hyper-V isolation.

Datacenter: When all cores on the server are licensed (subject to a minimum of 8 core licenses
per physical processor and a minimum of 16 core licenses per server), Datacenter edition has
rights to use unlimited OSEs, Windows Server containers with Hyper-V isolation and Windows
Server containers without Hyper-V isolation.

Server licensing 1- 1- 2- 2- 4- 4-
processor processor processor processor processor processor
server server server server server server

Required Required Required Required Required Required

Windows Server
# # # # # #
Standard &
cores 2-pack cores 2-pack cores 2-pack
Datacenter
licenses1 SKUs2 licenses1 SKUs2 licenses1 SKUs2

2 cores per
16 8 16 8 32 16
processor

4 cores per
16 8 16 8 32 16
processor

6 cores per
16 8 16 8 32 16
processor

8 cores per
16 8 16 8 32 16
processor

10 cores per
16 8 20 10 40 20
processor
1Core licenses are sold in 2-packs as well as optional 16-packs (for convenience).
2Eight 2-packs and one 16-pack are priced the same and provide equivalent use rights.

Licensing requirements of additional OSEs for Standard

edition
When licensed based on physical cores, Windows Server Standard has rights to use two
operating system environments (OSEs) or two Windows Server containers with Hyper-V isolation
and unlimited Windows Server containers without Hyper-V isolation (licenses equal to the
physical cores on the server are assigned (subject to a minimum of 8 core licenses per physical
processor and a minimum of 16 core licenses per server). Once a server is licensed, customers

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Windows Server 2025 Licensing Guide

may wish to license the server for additional OSEs or Hyper-V containers. This practice is often
referred to as “stacking” and is allowed with Standard edition.

The table below provides examples of “stacking” scenarios for various server configurations, the
minimum number of licenses required, and the resulting number of OSEs or Hyper-V containers
provided. As a rule, for each additional set of two OSEs or two Hyper-V containers the customer
wishes to use, the server must be relicensed for the same number of core licenses. Note that
Datacenter edition has rights to unlimited virtualization so “stacking” therefore is not required.
Also, as an alternative to fully relicensing based on physical cores, customers with subscription
licenses or licenses with active Software Assurance can license additional OSEs by virtual
machine.

”Stacking” 1-proc 1-proc 2-proc 2-proc 4-proc 4-proc

Standard server server server server server server
with 16 with 16 with 16 with 16 with 32 with 32
cores cores cores cores cores cores

Required Required Required Required Required Required

OSEs or
# # # # # #
Hyper-V
cores 2-pack cores 2-pack cores 2-pack
containers
licenses1 SKUs2 licenses1 SKUs2 licenses1 SKUs2

2 per server 16 8 16 8 32 16

4 per server 32 16 32 16 64 32

6 per server 48 24 48 24 96 48

8 per server 64 32 64 32 128 64

10 per server 80 40 80 40 160 80

1Core licenses are sold in 2-packs as well as optional 16-packs (for convenience).
2Eight
2-packs and one 16-pack are priced the same and provide equivalent use rights. However, point counts may vary, so MPSA
and Open Volume customers should assess which pack sizes work best for them.

Server access licensing overview

Whether Windows Server is licensed based on physical cores or by virtual machine, server
software access requires access licenses. Access licenses include Client Access Licenses (CALs)
and External Connectors. Both CALs and External Connectors have Base and Additive licenses.

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Windows Server 2025 Licensing Guide

Generally, CALs, whether Base or Additive, can be User or Device. For complete details on server
access licensing, refer to the Product Terms.

Structure and application of access licenses

Product Class Category Type

Windows Server Client Access License Base Per user or device

Windows Server
Remote Desktop Client Access License Additive Per user or device
Services

Windows Server
Active Directory
Client Access License Additive Per user or device
Rights Management
Services

Microsoft Identity
Client Access License Additive Per user
Manager User

Windows Server External Connector Base Per server*

Windows Server
Remote Desktop External Connector Additive Per server*
Services

Windows Server
Active Directory
External Connector Additive Per server*
Rights Management
Services

Microsoft Identity
External Connector Additive Per server*
Manager User
*Each physical server accessed requires an External Connector.

CALs are required for users that are either the customer’s or its affiliates’ employees, or its or its
affiliates’ onsite contractors or onsite agents. CALs or, alternatively, External Connectors are
required for users that are not either the customer’s or its affiliates’ employees, or its or its
affiliates’ onsite contractors or onsite agents.

CALs: Each user or device that accesses licensed servers requires a Windows Server CAL (Base
CAL). Each user or device that accesses advanced functionality on the licensed server requires

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Windows Server 2025 Licensing Guide

the CAL associated with that functionality (Additive CAL). Additive CALs must be licensed in
addition to the corresponding Base CALs for access to advanced functionality.

External Connectors: External access to licensed servers requires CALs (Base CALs) for each
accessing user or device or, alternatively, a Windows Server External Connector license (Base EC)
for each server that is accessed. External access to advanced functionality on licensed servers
requires the CAL associated with that functionality (Additive CAL) for each accessing user or
device or, alternatively, the External Connector license associated with that functionality
(Additive EC) for each server accessed. Additive External Connector Licenses must be assigned in
addition to the corresponding Base access license(s) for access to advanced functionality on the
licensed server.

Access provided: Windows Server 2025 CALs and External Connectors licenses permit access to
Windows Server 2025 server software and prior versions of Windows Server software. To learn
more about server access licenses, see the Microsoft server Base and Additive Client Access
Licenses Overview Licensing brief.

Each user CAL permits one user, using any device, to access instances of the server software on
their licensed servers. Each device CAL permits one device, used by any user, to access instances
of the server software on their licensed servers. External Connector licenses permit external user
access to instances of the server software on the licensed servers. Customers may use a
combination of User and Device CALs, and External Connector licenses as required. To learn
more about indirect-access licensing, see the Multiplexing - Overview Licensing brief.

Requirements for internal users – Client Access License (CAL)

For users that are either the customer’s or its affiliates’ employees, or its or its affiliates’ onsite
contractors or onsite agents:

Access License Category Datacenter Standard Essentials

Windows Server Base CAL1 CAL1 n/a

Windows Server Remote

Additive CAL2,3 CAL2,3 n/a4
Desktop Services

Windows Server Active

Directory Rights Additive CAL2 CAL2 CAL5
Management Services

Microsoft Identity
Additive CAL2,6 CAL2,6 n/a
Manager

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Windows Server 2025 Licensing Guide

1Required for every user or device accessing the licensed server.

2Required (in addition to Base CAL) for every user or device accessing the advanced functionality.
3Also required (in addition to Base CAL) for use of Windows Server to host a graphical user interface.
4Not required for Remote Web Access feature of the Essentials edition. Only the RD Gateway role service is installed and
configured, other RDS role services including RD Session Host are not supported.
5Required for each User Account through which a user directly or indirectly accesses the advanced functionality.
6Also required (in addition to Base CAL) for any person for whom the software issues or manages identity information.

Requirements for external users – Client Access License (CAL)

and/or External Connector license (EC)
For users that are not either customer’s or its affiliates’ employees, or its or its affiliates’ onsite
contractors or onsite agents:

Access License Category Datacenter Standard

Windows Server Base CAL1 / EC7 CAL1 / EC7

Windows Server Remote

Additive CAL2,3 / EC8,3 CAL2,3 / EC8,3
Desktop Services

Windows Server Active

Directory Rights Additive CAL2 / EC8 CAL2 / EC8
Management Services

Microsoft Identity
Additive CAL2,6 / EC8,9 CAL2,6 / EC8.9
Manager
1Required for every user or device accessing the licensed server.
2Required for every user or device accessing the licensed server, if the advanced functionality is accessed.
3Also required for use of Windows Server to host a graphical user interface.
4Not required for Remote Web Access feature of the Essentials edition. Only the RD Gateway role service is installed and
configured, other RDS role services including RD Session Host are not supported.
5Required for each user account through which a user directly or indirectly accesses the advanced functionality.
6Also required for any person for whom the software issues or manages identity information.
7Required for each physical server (any number of OSEs) that is accessed.
8Required for each physical server (any number of OSEs) that is accessed, if the advanced functionality is accessed.
9Also required for any external user for whom the software issues or manages identity information (in absence of CALs).

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Windows Server 2025 Licensing Guide

Use of Client Access Licenses (CALs) or External Connectors

(ECs)
CALs and ECs permit access to instances of the server software on licensed servers. CALs and ECs
permit access to the same version, or earlier versions, of the server software. All server software
access requires CALs, ECs, or CAL Equivalent licenses. CAL equivalent licenses include User
Subscription Licenses (SLs) corresponding to the base or advanced functionality. Examples
include the Core CAL, the Microsoft 365 E3/E5 User SL, and individual service SLs, such as Azure
Information Protection P1 User SL and Azure Active Directory Premium User SL. For more
information about which CAL equivalent licenses correspond to Windows Server, see the
Product Terms.

Windows Windows Windows

Server 2025 Server 2022 Server 2019

2025 CAL/EC Yes Yes Yes

2022 CAL/EC No Yes Yes

2019 CAL/EC No No Yes

CALs and ECs are not required:

• For access by another licensed server (for example, one licensed server accessing another
licensed server).
• To access server software running a web workload (such as content served within an
Internet web solution on a publicly available website) or high-performance computing
(HPC) workload (such as server software used to run a cluster node, in conjunction with
other software on a cluster node, for the purposes of supporting the clustered HPC
applications).
• For access in a physical OSE used solely for hosting and managing virtual OSEs (for
example, if 2022 is used in a physical OSE as the hypervisor, but all virtual OSEs are 2019,
only 2019 CALs or ECs are required).

Software Assurance benefits

Microsoft Commercial Licensing customers with active Software Assurance get more out of their
Microsoft software and services investments with access to a unique set of technologies,

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Windows Server 2025 Licensing Guide

services, and license rights to help use Microsoft products efficiently. Here is a list of just a few
of the benefits that customers can receive with Software Assurance for Windows Server:

New version rights: Upgrade each product license covered by active Software Assurance to the
most recent version when available.

Step-up licenses: Customers with active Software Assurance can migrate from a lower- to
higher-level edition of certain products (for example, from Windows Server 2025 Standard to
Windows Server 2025 Datacenter). Note that the Step-up license option is not available through
the Open License.

Back-up for disaster recovery: Provides additional instances for servers used as offline (“cold”)
backups, to help customers recover in case of a catastrophic event. See below for additional
details.

Azure Hybrid Benefit for Windows Server: Customer may upload and use their own Windows
Server images on Microsoft Azure through Azure Virtual Machines (“Base Instances”) and pay
only for the cost of service utilization of the Base Instances. To learn more see here.

Flexible Virtualization Benefit: Expands your outsourcing options for software to include
Authorized Outsourcers’ shared servers. This benefit is available broadly for software products
under your subscription licenses and licenses with Software Assurance. For more information,
see the Flexible Virtualization Benefit Licensing guide.

Disaster recovery rights

For each instance of eligible server software that a customer runs in a physical or virtual OSE on
a licensed server, they may temporarily run a backup instance in a physical or virtual OSE on
either (a) servers dedicated to disaster recovery and to the customer’s use, or (b) for instances of
eligible software other than Windows Server, on Microsoft Azure Services, provided that the
backup instance is managed by Azure Site Recovery to Azure. The license terms for the software
and the following limitations apply to the customer’s use of the backup instance.

The backup instance can run only during the following exception periods:

• For brief periods of disaster recovery testing within one week every 90 days.
• During a disaster, while the production server being recovered is down.
• Around the time of a disaster, for a brief period, to assist in the transfer between the
primary production server and the disaster recovery server.

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Windows Server 2025 Licensing Guide

To use the software under disaster recovery rights, the customer must comply with the following
terms:

• The OSE on the disaster recovery server must not be running at any other times except as
above.
• The OSE on the disaster recovery server may not be in the same cluster as the production
server.
• Other than backup instances running on Microsoft Azure Services, a Windows Server
license is not required for the disaster recovery server if the Hyper-V role within Windows
Server is used to replicate virtual OSEs from the production server at a primary site to a
disaster recovery server.
• The disaster recovery server may be used only to run hardware virtualization software
(such as Hyper-V), provide hardware virtualization services, run software agents to
manage the hardware virtualization software, serve as a destination for replication,
receive replicated virtual OSEs, test failover, and/or await failover of the virtual OSEs.
• Run disaster recovery workloads as described above.
• The disaster recovery server may not be used as a production server.
• Use of the software backup instance should comply with the license terms for the
software.
• Once the disaster recovery process is complete and the production server is recovered,
the backup instance must not be running at any other times except those times allowed
here.
• Maintain Software Assurance coverage for all CALs, External Connector licenses, and
Server Management Licenses to access the backup instance, gain access to servers with
active ESU coverage, and manage the OSEs where the software runs.
• The customer’s right to run the backup instances ends when their Software Assurance
coverage ends.

Specific Software Assurance benefit eligibility can vary by Commercial Licensing program (such
as an Enterprise Agreement or Open Value Agreement) and product, as well as the number of
qualifying licenses that are enrolled in Software Assurance. Visit Software Assurance for more
information.

Original equipment manufacturer (OEM) licenses – enrollment

into Software Assurance
Software Assurance is available for the latest version (determined by the most recent version
available on the Commercial Licensing Service Center) of the software: Windows Server 2025.

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Windows Server 2025 Licensing Guide

Customers must acquire Software Assurance within 90 days of purchase (see the Product Terms,
Software Assurance section for details). If a customer acquires Software Assurance for an OEM
license, their use of the software becomes subject to the Microsoft Product Terms for that
product and the terms and conditions or their organization’s Commercial Licensing agreement.

How to buy Windows Server licenses

Windows Server software licenses are sold through channels designed to meet the unique needs
of customers. These sales channels include online retailers offering full packaged product (FPP)
licenses of Windows Server software, original equipment manufacturers (OEMs) offering pre-
installed licenses with their hardware systems, as well as Licensing Solutions Partners (LSPs) and
Enterprise Software Advisors (ESAs) offering Windows Server software through Microsoft
Commercial Licensing programs for end-customer organizations.

Commercial Licensing
For organizations with as few as five users, Microsoft offers licensing programs to help reduce
administrative overhead and software management costs, while enabling product licensing on
an ongoing basis at a considerable discount. The various licensing options enable customers to
choose the program that works best for their management and operational needs.

Comprehensive programs that offer Software Assurance as a fixed benefit: Open Value (OV),
Open Value Subscription (OVS), Enterprise Agreement, Enterprise Agreement subscription,
Server and Cloud Enrollment (SCE).

Transactional programs: Microsoft Customer Agreement and the Microsoft Products and
Services Agreement (MPSA). Windows Server is not available through the Microsoft Independent
Software Vendor (ISV) Royalty Licensing Program.

Microsoft also offers programs that can meet the specific needs of organizations that partner
with Microsoft to provide additional software and services, such as the Microsoft Services
Provider License Agreement (SPLA).

Server and Cloud Enrollment (SCE)

The Server and Cloud Enrollment is an enrollment under the Microsoft Enterprise Agreement
that enables highly committed customers to standardize broadly on one or more key server and
cloud technologies from Microsoft. In exchange for making an installed base-wide commitment
to one or more components of the Server and Cloud Enrollment, customers receive the best

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Windows Server 2025 Licensing Guide

pricing and terms, plus other benefits, including cloud-optimized licensing options and
simplified license management.

Windows Server pay-as-you-go enabled by Azure Arc

A new cloud billing option for Windows Server customers, providing pay-as-you-go flexibility
across on-premises and cloud environments.

Pay as you go allows customers without unlimited virtualization the option to scale up with
additional virtual machines to meet capacity bursts or temporary needs, or to deploy more
servers as needed. Customers can connect to Azure Arc and transact directly in the portal.

To learn more about how to use pay-as-you-go for Windows Server 2025, please see Configure
Windows Server Pay-as-you-go with Azure Arc | Microsoft Learn and Windows Server 2025
Licensing & Pricing | Microsoft.

Channel availability
This table below shows the primary channel availability for Windows Server 2025 software
licenses. Every edition may not be available in all channels or licensing programs in all regions.
For details about Microsoft Licensing Programs, visit the Licensing Resources and Documents
site, Programs page.

Windows EA/EAS/S FPP/ES

MPSA MCA SPLA OV/OVS OEM
Server 2025 CE D

Datacenter
● ● ● ● ● ●
edition

Standard
● ● ● ● ● ●
edition

Essentials
●
edition
EA/EAS/SCE = Enterprise Agreement, Enterprise Subscription Agreement, and Server and Cloud Enrollment

MPSA = Microsoft Products and Services Agreement

MCA = Microsoft Customer Agreement

SPLA = Services Provider License Agreement

OV/OVS = Open Value/Open Value Subscription Licensing Program

FPP/ESD = Full Package Product and Electronic Software Download

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Windows Server 2025 Licensing Guide

OEM = original equipment manufacturer

Availability through Commercial Licensing

programs
Licenses for Windows Server editions are available in the following Microsoft Commercial
Licensing programs.

OV/OV EA/EA OVS-

OL1 S/S+2 MPSA3 EES7 MCA8
S4 S5 ES6

Datacenter
● ● ● ● ● ● ● ●
Edition

Standard
● ● ● ● ● ● ● ●
Edition
1OL = Open License (The Open License program was retired December 31, 2021. New licenses are no longer available as of
January 1, 2022.
2S/S+ = Select and Select Plus
3MPSA = Microsoft Products and Services Agreement
4OV/OVS = Open Value and Open Value Subscription
5EA/EAS = Enterprise Agreement and Enterprise Subscription Agreement
6OVS-ES = Open Value Subscription – Education Solutions
7EES = Enrollment for Education Solutions
8MCA = Microsoft Customer Agreement

Volume Activation
Volume Activation is a set of technologies and tools designed to automate the product
activation process for systems that are deployed under a Microsoft Commercial Licensing
agreement. Windows Server 2025 includes technologies designed to simplify the task of
configuring the distribution and management of an organization’s volume software licenses. For
more information, visit Volume Activation Overview.

The Volume Activation Services server role: Volume Activation Services is a server role in
Windows Server (2012 or later editions) that enables a customer to automate and simplify the
issuance and management of Microsoft software volume licenses for a variety of scenarios and

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Windows Server 2025 Licensing Guide

environments. With Volume Activation Services, customers can install and configure the Key
Management Service (KMS) and enable Active Directory-based Activation.

Key Management Service (KMS): KMS is a role service that allows organizations to activate
systems within their network from a server where a KMS host has been installed. With KMS, IT
pros can complete activations on their local network, eliminating the need for individual
computers to connect to Microsoft for product activation. KMS does not require a dedicated
system, and it can be cohosted on a system that provides other services. By default, volume
editions of Windows client and server operating systems connect to a system that hosts the KMS
service to request activation. No action is required from the user.

Active Directory-based activation: Active Directory-based activation is a role service that

allows the customer to use Active Directory Domain Services (Active Directory DS) to store
activation objects, which can further simplify the task of maintaining volume activation services
for a network. With Active Directory-based activation, no additional host server is needed, and
activation requests are processed during computer startup.

Any computers running Windows Server 2016 (or later editions) with a Generic Volume License
Key (GVLK) that are connected to the domain will activate automatically and transparently. They
will stay activated as long as they remain members of the domain and maintain periodic contact
with a domain controller. Activation takes place after the licensing service starts. When this
service starts, the computer running Windows Server 2016 (or later editions) contacts Active
Directory DS automatically, receives the activation object, and activates without user
intervention.

Downgrade rights
Windows Server is streamlined and simple, making it easy for customers to choose the edition
that is right for their needs. Choose from three primary editions of Windows Server, based on
organization size as well as virtualization and datacenter requirements. Customers can also
choose to deploy earlier versions of the same edition or lower editions in place of what they are
licensed for. These are referred to as “downgrade rights” and “down edition rights.” When
invoking downgrade rights or down edition rights, the license terms of the version and edition
acquired still govern use of the software.

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Windows Server 2025 Licensing Guide

Licensed edition Down editions Versions1 Use rights2

Windows Server
2022 or earlier 2025
Datacenter

Windows Server Windows Server

2022 or earlier 2025
2025 Datacenter Standard

Windows Server
2022 or earlier 2025
Essentials

Windows Server
2022 or earlier 2025
Windows Server Standard
2025 Standard Windows Server
2022 or earlier 2025
Essentials
1Customers may downgrade to any other version as long as they have the appropriate media and keys.
2All use rights are still governed by the licensed edition.

Planning for Windows Server 2025

When planning to deploy Windows Server 2025, either through upgrades or new licenses,
remember the following:

Select the edition of Windows Server 2025 based on virtualization needs and edition features:

Datacenter edition for highly virtualized and software-defined datacenter environments

Standard edition for low-density or non-virtualized environments

Renewing Software Assurance is the best way to protect investments and provide access to new
versions, Deployment Planning Services, and technical assistance

Core CAL and Enterprise CAL Suites will continue to be the most cost-effective way to purchase
Windows Server CALs to access workloads running on Windows Server 2025 Standard and
Datacenter editions.

The Microsoft Core Infrastructure Suite (CIS) will continue to offer the best value for private
cloud and datacenter management pricing.

Prices and pricing levels vary. Microsoft does not determine pricing or payment terms for
licenses acquired through resellers. Microsoft reaches customers at sales offices, support centers,

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Windows Server 2025 Licensing Guide

and technology centers around the world. For specific pricing, connect with a Microsoft reseller
at a sales office.

Frequently asked licensing questions (FAQ)

For complete details and information on licensing, refer to the Product Terms for Commercial
Licensing use rights, or the Microsoft License Terms for other channels.

1. How are Windows Server Standard and Datacenter editions licensed?

Windows Server Datacenter edition and Windows Server Standard edition are core-based
license models. Customers may license based on physical cores or by virtual machine. The
option to license by virtual machine is available for customers with subscription licenses or
licenses with active Software Assurance only. For both Standard and Datacenter editions,
when licensing based on physical cores, the minimum number of core licenses required
equals the number of physical cores on the licensed server, subject to a minimum of 8 core
licenses per physical processor and a minimum of 16 core licenses per server. Alternatively,
when licensing either edition by virtual machine, the number of licenses required equals the
number of virtual cores allocated to the virtual machine, subject to a minimum of eight
licenses per virtual machine. Core licenses are sold in 2-packs as well as optional 16-packs
(for convenience). Eight 2-packs and one 16-pack are priced the same and provide equivalent
use rights. However, point counts may vary, so MPSA and Open Volume customers should
assess which pack sizes work best for them. Whether licensing Datacenter or Standard and
whether licensing based on physical cores or by virtual machine, all user and device access to
Windows Server software also requires access licenses.

2. Do the minimum licensing requirements apply to all servers?

Yes. When licensing based on physical cores, regardless of the number of physical processors
or physical cores on a server, the number of core licenses required equals the number of
physical cores on the licensed server, subject to a minimum of 8 core licenses per physical
processor and a minimum of 16 core licenses per server. When licensing by virtual machine,
the number of licenses required equals the number of virtual cores allocated to the virtual
machine, subject to a minimum of eight licenses per virtual machine. The option to license by
virtual machine is available for customers with subscription licenses or licenses with active
Software Assurance only.

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Windows Server 2025 Licensing Guide

3. Do I have to license all cores on the server, even if they are disabled?
Yes, when licensing based on physical cores. All physical cores on all physical processors on a
server must be sufficiently licensed, even if they have been disabled.

4. Can I split my Windows Server core license packs across multiple servers?
Yes. Core licenses are sold in 2-packs, as well as optional 16-packs (for convenience), and
each individual license may be assigned to a separate physical server.

5. Can I assign a Windows Server license to a virtual machine?

You have the option to license by virtual machine (under subscription licenses or licenses
with active Software Assurance), but licenses are still assigned to the physical server.
However, when you license by virtual machine, you also have the right to move licenses to
another server in the same server farm at any time. This allows you to move the licenses with
the virtual machine as you need to.

6. Can I mix Windows Server Datacenter and Standard licenses on the same server?
Not when licensing based on physical cores. All physical cores on a given server must be
licensed with the same version and edition. The customer can run different editions or older
versions of Windows Server software as guests within virtual OSEs, but they are not allowed
to assign licenses of different versions or editions to the same physical server to license the
physical cores on the server. If you are licensing by virtual machine, you would be permitted
to have a mix of server versions or editions on the physical server, as long as each virtual
machine was appropriately licensed based on the version and edition of software it is
running. The option to license by virtual machine is available for customers with subscription
licenses or licenses with active Software Assurance only.

7. Are CALs required for access to Windows Server Standard and Datacenter editions?
Yes, server software access for Windows Server Standard and Datacenter editions requires
access licenses. Server software access for Windows Server Standard and Datacenter editions
requires either Client Access Licenses (CALs) or External Connectors (ECs) whether licensing
the server based on physical cores or by virtual machine. Each user or device that accesses
the licensed servers requires a Windows Server CAL. External access to the licensed server
requires a CAL for each user or device or, alternatively, a Windows Server EC. Customers may
use a combination of user and device CALs and External Connector licenses as required.

8. Which Access Licenses do I use to access Windows Server?

Windows Server Client Access Licenses (CALs) and External Connectors permit access to the
same version (or earlier versions) of Windows Server server software. Each user or device that

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Windows Server 2025 Licensing Guide

accesses the licensed servers requires a Windows Server CAL. External access to the licensed
server requires CALs for each accessing user or device or, alternatively, a Windows Server
External Connector. Customers may use a combination of user and device CALs and External
Connector licenses as required.

CALs: Each user or device that accesses licensed servers requires a Windows Server CAL
(Base CAL). Each user or device that accesses advanced functionality on the licensed server
requires the associated CAL (Additive CAL). Additive CALs must be licensed in addition to the
corresponding Base CALs for access to advanced functionality.

External Connectors: External access to licensed servers requires CALs (Base CALs) for each
accessing user or device or, alternatively, a Windows Server External Connector (Base EC) for
each server that is accessed. External access to advanced functionality on licensed servers
requires the associated CAL (Additive CAL) for each accessing user or device or, alternatively,
the associated External Connector (Additive EC) for each server accessed. Additive External
Connectors must be licensed in addition to the corresponding Base External Connectors for
access to advanced functionality on the licensed server.

9. Are there any exceptions to the CAL and External Connector requirements?
Yes, CALs and External Connectors are not required for access by another licensed server, to
access server software running a web workload or HPC Workload, or to access in a physical
OSE used solely for hosting and managing virtual OSEs.

10. What is the difference between Base and Additive access licenses?
Base access licenses provide access for Windows Server Standard and Datacenter editions.
Windows Server CAL and Windows Server External Connector licenses are Base access
licenses. Additive access licenses provide access to advanced server functionality and are
available as CALs and External Connector licenses. CALs and External Connector licenses for
Windows Server Remote Desktop Services, Windows Server Active Directory Rights
Management Services, and Microsoft Identity Manager are all Additive access licenses.
Additive access licenses must be acquired in addition to the corresponding Base access
licenses for access to advanced server functionality.

11. Do I still need a separate CAL to access advanced server functionality for Windows
Server?
Yes. The licensing requirements for access to advanced server functionality have not changed
with Windows Server. Advanced server functionality requires Additive access licenses, which
are available as CALs and External Connector. Windows Server Remote Desktop Services,

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Windows Server 2025 Licensing Guide

Windows Server Active Directory Rights Management Services, and Microsoft Identity
Manager all require Additive access licenses. Additive access licenses must be licensed in
addition to the corresponding Base access licenses. Base access licenses provide access for
Windows Server Standard and Datacenter editions. Windows Server CAL and Windows Server
External Connector licenses are Base access licenses. Additive CALs must be licensed in
addition to the corresponding Base CALs for access to advanced functionality on the licensed
server.

12. What is the difference between Windows Server Standard and Datacenter editions?
As with prior versions, Windows Server Standard and Datacenter editions include the core
functionality of Windows Server and offer different virtualization rights when licensing based
on physical cores.

13. What are some of the features available in Windows Server Datacenter and Standard
editions?
There are a variety of new features in Windows Server Datacenter and Standard editions. For
a comparison, see here.

14. What are the virtualization rights for Windows Server Standard and Datacenter
editions?
This depends on whether you license based on physical cores or by virtual machine. When
you license based on physical cores, Standard edition has rights to use two OSEs or two
Windows Server Containers with Hyper-V isolation and unlimited Windows Server Containers
without Hyper-V isolation. This requires licenses for all physical cores on the server (subject
to a minimum of 8 core licenses per physical processor and a minimum of 16 core licenses
per server). Datacenter edition when licensed based on physical cores has rights to use
unlimited OSEs and both types of Windows Server containers. As with Standard, this requires
licenses for all physical cores on the server (subject to a minimum of 8 core licenses per
physical processor and a minimum of 16 core licenses per server). If you license by virtual
machine, each edition permits use in a single virtual machine. You may license by virtual
machine under subscription licenses or licenses with active Software Assurance only, and
each virtual machine must be allocated a number of core licenses equal to its virtual core
count, subject to a minimum of eight licenses per virtual machine.

15. Are Windows Server Containers with Hyper-V isolation and Windows Server containers
without Hyper-V isolation OSEs?
Yes. Both container types meet the definition of OSE: all or part of an operating system
instance, or all or part of a virtual (or otherwise emulated) operating system instance which

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Windows Server 2025 Licensing Guide

enables separate machine identity (primary computer name or similar unique identifier) or
separate administrative rights, and instances of applications, if any, configured to run on the
operating system instance or parts identified above. A physical hardware system can have
one physical OSE and/or one or more virtual OSEs.

16. If I have a server licensed for Windows Server Standard, how can I increase my
virtualization rights?
With the Windows Server Standard edition licensing model, the customer can expand the
virtualization capacity of their licensed server in three ways (note: for MPSA customers,
“stepping up” is done with transition licenses):

1. Purchase Step-Up licenses for Datacenter edition. “Stepping up” from Standard edition
licenses to Datacenter edition licenses gives rights to run unlimited Operating System
Environments (OSEs) or Hyper-V containers on the licensed server. To use this benefit, the
underlying Standard licenses must have Software Assurance.

For example, a 2-processor server with 10 cores per processor requires 20 core licenses with
Software Assurance for Standard edition and has rights to two OSEs or Hyper-V containers.
To “step up” to Datacenter, purchase 20 (in other words, ten 2-packs of core licenses or one
16-pack and two 2-packs of core licenses) Software Assurance Step-Up licenses for
Datacenter and assign them to the server.

2. Purchase additional licenses to fully relicense the server based on physical cores for Standard
edition. Assigning additional licenses to the same physical server gives rights to run
additional OSEs or Hyper-V containers on the licensed server. The server must have the
correct number of licenses assigned to it to ensure coverage of all OSEs or Windows Server
containers with Hyper-V isolation running at any given time.

For example, a 2-processor server with 8 cores per processor requires 16 core licenses for
Standard edition and has rights to two OSEs or two Hyper-V containers. For each additional
two OSEs or two Hyper-V containers the customer wishes to use, an additional 16 core
licenses (in other words, eight 2-packs of core licenses or one 16-pack of core licenses) must
be assigned to the server.

“Stacking” Standard Edition licenses on a 2-processor server with 8 cores per processor

OSEs or Hyper-V Required # core Required # 2-pack

containers licenses1 SKUs2

2 per server 16 8

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Windows Server 2025 Licensing Guide

4 per server 32 16

6 per server 48 24

8 per server 64 32
1Core licenses are sold in 2-packs as well as optional 16-packs (for convenience).
2Eight
2-packs and one 16-pack are priced the same and provide equivalent use rights. However, point counts may vary, so MPSA
and Open Volume customers should assess which pack sizes work best for them.

3. License additional virtual machine capacity by virtual machine. This option is available for
customers with subscription licenses or licenses with Software Assurance only. It requires a
number of licenses equal to the virtual cores allocated to the virtual machine, subject to a
minimum of eight licenses per virtual machine.
4. For Windows Server 2025 customers when you connect to Azure Arc you can also opt to
scale up with additional VMs through the new Windows Server pay-as-you-go option. To
learn more about activating pay-as-you-go access this documentation.

17. How do I determine whether Standard or Datacenter edition is more economical?

The number of core licenses required depends on the number of physical cores on the
server, as well as the number of Operating System Environments (OSEs) or Windows Server
Containers with Hyper-V isolation that you will be running.

For a server with 13 or more OSEs or Windows Server Containers with Hyper-V isolation,
Datacenter edition is recommended:

1. Datacenter core licenses: For each server, the number of core licenses required equals the
number of physical cores on the licensed server, subject to a minimum of 8 core licenses per
physical processor and a minimum of 16 core licenses per server. Core licenses are sold in 2-
packs as well as optional 16-packs (for convenience). Eight 2-packs and one 16-pack are
priced the same and provide equivalent use rights. However, point counts may vary, so MPSA
and Open Volume customers should assess which pack sizes work best for them.

2. Datacenter OSEs: When all physical cores on the server are licensed, Datacenter provides
rights to use unlimited Operating System Environments (OSEs) or Windows Server Containers
with Hyper-V isolation and unlimited Windows Server Containers without Hyper-V isolation
on the licensed server.

For a server with fewer than 13 OSEs or Hyper-V containers, Standard edition is
recommended:

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Windows Server 2025 Licensing Guide

1. Standard core licenses: For each server, the number of core licenses required equals the
number of physical cores on the licensed server, subject to a minimum of 8 core licenses per
physical processor and a minimum of 16 core licenses per server. Core licenses are sold in 2-
packs as well as optional 16-packs (for convenience). Eight 2-packs and one 16-pack are
priced the same and provide equivalent use rights. However, point counts may vary, so MPSA
and Open Volume customers should assess which pack sizes work best for them.

2. Standard OSEs: When all physical cores on the server are licensed, Standard edition provides
rights to use two Operating System Environments (OSEs) or Windows Server Containers with
Hyper-V isolation and unlimited Windows Server Containers without Hyper-V isolation on
the licensed server. For each additional two OSEs or two Windows Server Containers with
Hyper-V isolation the customer wishes to use, an equivalent number of additional core
licenses must be assigned to the server as specified in C, above.
1Suggested Retail Price (MSRP). Pricing is shown in USD and may vary from country to country.
2Licensesare sold in 2-packs as well as optional 16-packs (for convenience). Eight 2-packs and one 16-pack are priced the same and
provide equivalent use rights. However, point counts may vary, so MPSA and Open Value customers should assess which pack sizes
work best for them.

18. If I want to use the software from an earlier Windows Server version or edition, what
are my options?
If the customer has licenses for the latest version of Windows Server Datacenter edition, they
have the right to downgrade software bits to any prior version or lower edition. If the
customer has licenses for the latest version of Windows Server Standard edition, they have
the right to downgrade the software to use any prior version of Enterprise, Standard, or
Essentials editions.

The ability to downgrade does not change the licensing or support terms under which a
customer can use the product; the rights for purchased product (in other words, terms for
the licensed version of Windows Server) apply. This means that core-based licensing and use
rights apply to the version the customer downgrades to and that the virtualization rights do
not change. Below are a few examples.

Downgraded version or
Licensed edition Licensing rights that apply
edition

Datacenter 2025 Datacenter 2022 Datacenter 2025

Standard 2025 Standard 2022 Standard 2025

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Windows Server 2025 Licensing Guide

19. Can Windows Server licenses be moved between my on-premises servers and Azure?
Yes. Customers can deploy on-premises images in Azure using the Azure Hybrid Benefit. See
question 23 for more information about the Azure Hybrid Benefit for Windows Server.

20. Can Windows Server licensed under Core Infrastructure Server (CIS) Suite be used in
Azure?
Yes, customers can use Windows Server licensed within CIS on Microsoft Azure under the
Azure Hybrid Benefit. Additionally, Server and Cloud Enrollment (SCE) customers can
leverage their SCE Management Rights to use System Center to manage such virtual
machines running on Azure under the Azure Hybrid Benefit.

21. Can Windows Server images be used in Azure under the Azure Hybrid Benefit for
Windows Server?
Yes. Under the Microsoft Azure Hybrid Benefit for Windows Server, customers with Windows
Server licenses covered with Software Assurance may upload and use their own Windows
Server images on Microsoft Azure through Azure Virtual Machines (“Base Instances”).
Customers pay only for the cost of service utilization of the Base Instances.

Each Windows Server processor license with Software Assurance, and each set of 16 Windows
Server core licenses with Software Assurance, entitles customers to use Windows Server on
Microsoft Azure on up to 16 virtual cores allocated across two or fewer Azure Base Instances.
Each additional set of 8 core licenses with Software Assurance entitles use on up to 8 virtual
cores and one Base Instance.

Azure Hybrid Benefit provides additive rights to deploy and use the software when exercised
in connection with Datacenter licenses. Azure Hybrid Benefit provides alternative rights when
exercised in connection with Standard Licenses. When Windows Server Standard licenses are
used under Azure Hybrid Benefit, they are deemed “assigned to Azure” and are subject to
license reassignment limitations.

22. Can System Center license be used for managing Windows Server virtual machines
running on Azure?
Yes. Under the License Mobility through Software Assurance benefit, customers can assign
their System Center licenses to manage a Windows Server instance running on Azure.

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Windows Server 2025 Licensing Guide

23. Can System Center licensed under Core Infrastructure Server (CIS) Suite be used in
Azure?
No. System Center software licensed under CIS Suite may not be used in Azure. System
Center does not offer License Mobility as a component product within the CIS Suite product.
Server and Cloud Enrollment customers should refer to question 26.

24. Can SCE customers use System Center licensed under Core Infrastructure Server (CIS)
Suite in Azure?
Yes. Server and Cloud Enrollment (SCE) customers are eligible to use System Center software
licensed under CIS Suite to manage their qualifying virtual OSEs running within Microsoft
Azure. Eligibility requires that the customer meet enrollment coverage requirements and be
licensed for and using CIS Suite to manage OSEs in their own data centers. Each CIS Suite
processor license covered by the customer’s SCE, and each set of 16 CIS Suite core licenses
covered by the customer’s SCE, entitles the customer to manage up to 10 qualifying virtual
OSEs running within Microsoft Azure. For additional details, refer to the CIS product entry in
the Product Terms (Server and Cloud Enrollment (SCE) - Right to manage OSEs on Microsoft
Azure under CIS Suite Licenses).

25. Are CALs or External Connectors required for Windows Server instances running on
Azure?
Base access licenses (CALs and External Connectors) are not required for use of Windows
Server on Microsoft Azure. Remote Desktop Services (RDS) CALs, however, are required when
using corresponding functionality. RDS User CAL and User SL have Extended Rights to use its
RDS User CALs and User SLs with Windows Server software running in OSEs dedicated to its
internal use on either Microsoft Azure Platform Services or the shared servers of a License
Mobility through Software Assurance Partner for which it has completed and submitted the
License Mobility Validation form. Customers may also cover access by third parties, as
permitted under the OST, or as permitted under Software Assurance Self-Hosting rights
using Subscription Access Licenses (SALs) acquired under a Services Provider License
Agreement.

26. Are there any changes to the licensing model for Windows Server Essentials?
No. Windows Server Essentials will continue to cover a single server with up to two physical
processors. It does not require Windows Server CALs, but is limited to 25 user accounts.
However, Windows Server 2025 Essentials is only available through OEM licensing.

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Windows Server 2025 Licensing Guide

27. Am I permitted to move Windows Server licenses to other cloud providers’

environments?
A: Yes.Windows Server subscription licenses or licenses with active Software Assurance
allocated by virtual machine based on license minimums may be moved to Authorized
Outsourcers’ clouds (on shared or dedicated servers). An Authorized Outsourcer is generally
any cloud provider who is not a Listed Provider or using a Listed Provider for data center
services. For more information about Authorized Outsourcers, refer to the Product Terms.

28. What is the new pay-as-you-go option for Windows Server 2025?
Pay as you go is a new option for Windows Server customers that do not have unlimited
virtualization but need a way to scale up and add additional machines quickly and
conveniently. It is available for Windows Server 2025 only and you must be Azure Arc-
enabled to use the pay-as-you-go option. Example use cases are scale-up to meet temporary
burst capacity requirements, and avoiding up-front licensing costs for shorter-term needs.

29. What does the pay-as-you-go option for Windows Server 2025 cost?
$33.58 USD per CPU core / month; or $.046 USD / hour. These prices are in US dollars and
are subject to change.

Licensing definitions
License means the right to download, access, install, and use a product.

Physical processor means a processor in a physical hardware system.

Physical core means a core in a physical processor.

Server means a physical hardware system capable of running server software.

Licensed server means a single server, dedicated to customer use, to which a license is
assigned. For purposes of this definition, a hardware partition or blade is considered to be a
separate server.

Operating system environment (OSE) means all or part of an operating system instance, or all
or part of a virtual (or otherwise emulated) operating system instance which enables separate
machine identity (primary computer name or similar unique identifier) or separate administrative
rights, and instances of applications, if any, configured to run on the operating system instance
or parts identified above. A physical hardware system can have one physical OSE and/or one or
more virtual OSEs.

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Windows Server 2025 Licensing Guide

Physical OSE means an OSE that is configured to run directly on a physical hardware system.
The operating system instance used to run hardware virtualization software or to provide
hardware virtualization services is considered part of the physical OSE.

Virtual OSE means an OSE that is configured to run on a virtual hardware system.

Hyper-V container is a feature of Windows Server that utilizes a virtual operating system
environment. Each Hyper-V container is considered to be one virtual OSE.

Windows Server container is a feature of Windows Server software.

Client Access License (CAL) means client access license, which may be assigned by user or
device, as appropriate. A user CAL allows access to corresponding version of the server software
or earlier versions of the server software from any device by one user. A device CAL allows
access to corresponding versions of the server software or earlier versions of the server software
from one device by any user. CALs allow access to server software running on a customer’s
licensed servers only.

External Connector licenses means a license assigned to a server dedicated to customer’s use
that permits access to the corresponding version of the server software or earlier versions of the
server software by external users.

External users means users that are not (a) employees of Customer or its Affiliates, (b)
contractors or agents that typically work for Customer or its Affiliates for more than 30 hours on
average per week, or (c) contractors or agents that typically work onsite for Customer or its
Affiliates on each working day.

Web workload (also referred to as “Internet web solutions”) are publicly available web pages,
websites, web applications, web services, and/or POP3 mail serving. For clarity, access to
content, information, and applications served by the software within an Internet web solution is
not limited to a customer’s or its affiliates’ employees. Software in Internet web solutions is used
to run:

• Web server software (for example, Microsoft Internet Information Services), and
management or security agents (for example, the System Center Operations Manager
agent);
• Database engine software (for example, Microsoft SQL Server) solely to support Internet
web solutions; or
• The Domain Name System (DNS) service to provide resolution of Internet names to IP
addresses as long as that is not the sole function of that instance of the software.

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Windows Server 2025 Licensing Guide

High-performance computing (HPC) workload means a workload where the server software
is used to run a cluster node and is used in conjunction with other software as necessary to
permit security, storage, performance enhancement and systems management on a cluster node
for the purpose of supporting the clustered HPC applications.

Cluster node means a device that is dedicated to running clustered HPC applications or
providing job scheduling services for clustered HPC applications.

Clustered HPC application means a high-performance computing application that solves, in

parallel, complex computational problems, or a set of closely related computational problems.
clustered HPC applications divide a computationally complex problem into a set of jobs and
tasks which are coordinated by a job scheduler, such as provided by Microsoft HPC Pack, or
similar HPC middleware, which distributes these in parallel across one or more computers
operating within an HPC cluster.

Authorized Outsourcer means any third party service provider that is not a Listed Provider and
is not using Listed Provider as a Data Center Provider as part of the outsourcing service.

Listed Providers include entities identified by Microsoft at http://aka.ms/listedproviders.

Microsoft may identify additional Listed Providers at http://aka.ms/listedproviders from time to
time; however, if Customer is using an outsourcer at the time its Authorized Outsourcer status is
terminated, then Customer may temporarily continue to use the same entity in its former
Authorized Outsourcer capacity for one year from the date of that change in status.

For more information

Windows Server Licensing Resources:
https://www.microsoft.com/licensing/docs/view/Windows-Server

Microsoft Licensing Resources and Documents: https://www.microsoft.com/licensing/docs

Microsoft Commercial Licensing: www.microsoft.com/licensing

Microsoft License Advisor: mla.microsoft.com/default.aspx

Microsoft M365 admin center:

https://admin.microsoft.com/adminportal/home#/subscriptions/vlnew

Activation: https://learn.microsoft.com/en-us/windows-server/get-started/kms-client-
activation-keys

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Windows Server 2025 Licensing Guide

© 2025 Microsoft Corporation. All rights reserved. This document is for informational purposes only. MICROSOFT
MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS DOCUMENT. This information is provided to help guide
your authorized use of products you license; it is not your agreement. Your use of products licensed under your
volume license agreement is governed by the terms and conditions of that agreement. In the case of any conflict
between this information and your agreement, the terms and conditions of your agreement control. Prices for
licenses acquired through Microsoft resellers are determined by the reseller.

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