https://azure.microsoft.com/en-us/pricing/hybrid-benefit/
Azure Hybrid Benefit
The Azure Hybrid Benefit is a licensing benefit provided by Microsoft to customers with eligible on-premises licenses, such as Windows Server and SQL Server, that allows them to utilize their existing licenses to obtain discounted rates on certain Azure services. The benefit is designed to help organizations leverage their on-premises investments and accelerate their cloud migration by reducing the cost of running workloads in the Azure cloud.
Here’s how the Azure Hybrid Benefit works for different products:
Windows Server: Customers with active Software Assurance coverage for Windows Server licenses can use the Azure Hybrid Benefit to run Windows Server virtual machines (VMs) in Azure at reduced rates. With the Azure Hybrid Benefit, customers can pay only the base compute rate for VMs, without the need to pay separately for Windows Server licensing. This can result in significant cost savings for organizations running Windows Server workloads in Azure.
SQL Server: Customers with active Software Assurance coverage for SQL Server licenses can use the Azure Hybrid Benefit to run SQL Server databases in Azure at discounted rates. With the Azure Hybrid Benefit, customers can choose between two deployment options:
License Included: Customers can pay for SQL Server usage in Azure, with the cost of SQL Server licensing included in the Azure pricing. This option is suitable for organizations without existing SQL Server licenses or those looking for a simplified billing model.
Bring Your Own License (BYOL): Customers can use their existing SQL Server licenses in Azure, paying only the base compute rate for VMs running SQL Server workloads. This option allows organizations to maximize their existing investments in SQL Server licenses while benefiting from the scalability and flexibility of Azure.
With Azure Hybrid Benefit, organizations can optimize their cloud spending, simplify license management, and accelerate their cloud adoption journey. It’s important for organizations to review the eligibility criteria and licensing terms associated with the Azure Hybrid Benefit to ensure compliance and maximize the value of their investments in Microsoft products and services.
You can get an overview of Azure Hybrid Benefit, and a benefit calculator here:
https://azure.microsoft.com/en-us/pricing/hybrid-benefit/
Licensing Windows Server with the Azure Hybrid Benefit
The Azure Hybrid Benefit allows a customer to use their licenses to license the software part of virtual machines in Azure.
Eligible Licenses for Azure Hybrid Benefit
Eligible licenses for the Azure Hybrid Benefit are: Windows Server Standard or Datacenter Core
licenses acquired as Software Subscriptions or as licenses with active Software Assurance Licensing rules:
- License all the virtual cores with a minimum of 8 Core licenses per virtual machine
- Assign further licenses for additional cores in a VM
- No CALs or External Connector licenses are required
- Possible to use Standard licenses with Datacenter edition virtual machines