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Azure Hybrid Benefit is a cost-saving benefit that enables you to use your on-premises licenses with Software Assurance (SA) in the cloud. This article focuses on benefits for Windows Server licenses with SA: cost savings for Windows Server virtual machines (VMs) in Azure, Azure Stack HCI, and Azure Kubernetes Service (AKS) hybrid deployment options.
For other Azure hybrid benefits (for example, SQL Server), see Azure Hybrid Benefit.
What qualifies you for Azure Hybrid Benefit?
To qualify for Azure Hybrid Benefit for Windows Server, you need on-premises core licenses for Windows Server with active Software Assurance. Software Assurance is only available as part of a commercial licensing agreement. To learn more about volume licensing and which agreements it's available with, see Microsoft Software Assurance. To learn more about Windows Server core licenses, see Windows Server product licensing.
Important
Workloads using Azure Hybrid Benefit can run only during the Software Assurance term. When the Software Assurance term approaches expiration, you must either renew your agreement with Software Assurance, disable the hybrid benefit functionality, or de-provision those workloads that are using Azure Hybrid Benefit.
What's included in Azure Hybrid Benefit?
Customers with Windows Server Software Assurance can use Azure Hybrid Benefit to further reduce costs in the cloud and in datacenter and edge locations.
Azure Hybrid Benefit includes the following cost savings:
Windows Server VMs on Azure: The license for Windows Server is covered by Azure Hybrid Benefit, so you only need to pay for the base compute rate of the virtual machine. The base compute rate is equal to the Linux rate for virtual machines.
Azure Stack HCI: The Azure Stack HCI host fee and Windows Server subscription fee are waived with Azure Hybrid Benefit. That is, unlimited virtualization rights are provided at no extra cost. You still pay other costs associated with Azure Stack HCI (for example, customer-managed hardware, Azure services, and workloads).
AKS: Run AKS on Windows Server and Azure Stack HCI at no extra cost. You'll still pay for the underlying host infrastructure and any licenses for Windows containers unless you're also eligible for Azure Hybrid Benefit for Azure Stack HCI. With Azure Hybrid Benefit for Azure Stack HCI, you can waive fees for the Azure Stack HCI host and Windows Server subscription.
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Pricing for Azure Hybrid Benefit
To evaluate your potential cost savings, you can use these resources:
Windows VMs on Azure: Windows Virtual Machine Pricing. Use the Azure Hybrid Benefit Savings Calculator to estimate cost savings, or compare Windows VM pricing with and without Azure Hybrid Benefit.
Azure Stack HCI: Azure Stack HCI pricing.
Azure Kubernetes Service (AKS): AKS on Azure Stack HCI pricing.
Getting Azure Hybrid Benefit for Windows VMs in Azure
Follow the guidance in this section to get and maintain Azure Hybrid Benefit for your Windows VMs in Azure.
Licensing prerequisites
To qualify for Azure Hybrid Benefit for Windows VMs in Azure, you must meet the following licensing prerequisites.
Types of license
- Windows Server Standard with active Software Assurance, or
- Windows Server Datacenter with active Software Assurance, or
- An eligible Cloud Solution Provider (CSP) subscription
Number of licenses
The minimum set of 16-core licenses, either Windows Server Datacenter or Windows Server Standard edition, entitles use on up to 16 virtual cores allocated across 2 or fewer virtual machines.
Each additional set of 8-core licenses entitles use on up to 8 virtual cores on 1 virtual machine.
Stacking licenses: 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 a minimum of 8 cores. You can then stack more core licenses on top, up to the number that you need.
Use rights
Windows Server Standard edition: Licenses must be used either on-premises or in Azure, but not at the same time. The only exception is on a onetime basis, for up to 180 days, to allow you to migrate the same workloads to Azure.
Windows Server Datacenter edition: Licenses allow simultaneous usage on-premises and in Azure. Dual Use Rights don't apply for licenses allocated for Unlimited Virtualization Rights, below.
Unlimited virtualization
Unlimited Virtualization Rights refers to the right to use any number of Windows Server VMs on a host.
Windows Server Datacenter edition: You can use any number of Windows Server VMs on an Azure dedicated host if you allocate Windows Server Datacenter licenses with active SA for all the available physical cores on that Azure server.
Windows Server Standard edition: Unlimited Virtualization Rights aren't available.
How to apply Azure Hybrid Benefit for Windows VMs in Azure
To learn how to deploy Windows Server VMs in Azure with Azure Hybrid Benefit, follow the steps in Explore Azure Hybrid Benefit for Windows VMs. One way to activate Azure Hybrid Benefit for a Windows Server VM is to check the box under Licensing during VM creation, as shown below.
How to maintain compliance
If you apply Azure Hybrid Benefit to your Windows Server VMs, verify the number of eligible licenses and the Software Assurance coverage period before you activate this benefit. Use the guidelines above to make sure you deploy the correct number of Windows Server VMs with this benefit.
If you already have Windows Server VMs running with Azure Hybrid Benefit, perform an inventory to see how many units you're running, and check this number against your Software Assurance licenses. You can contact your Microsoft licensing specialist to validate your Software Assurance licensing position.
To see and count all VMs that are deployed with Azure Hybrid Benefit in an Azure subscription, list all VMs and virtual machine scale sets using the steps in Explore Azure Hybrid Benefit for Windows VMs.
You can also look at your Microsoft Azure bill to determine how many VMs with Azure Hybrid Benefit for Windows Server you are running. You'll find information about the number of instances with the benefit under Additional Info:
"{"ImageType":"WindowsServerBYOL","ServiceType":"Standard_A1","VMName":"","UsageType":"ComputeHR"}"Billing isn't applied in real time. Expect a delay of several hours after you activate a Windows Server VM with Azure Hybrid Benefit before the VM shows on your bill.
To get a comprehensive view of your licensing position, perform an inventory in each of your Azure subscriptions. Confirm that you're fully licensed for the Windows Server VMs running with Azure Hybrid Benefit. You don't need to take any further action.
Perform an inventory regularly to make sure you're using any license benefits that you're entitled to. Regular inventories can help you reduce costs and make sure that you always have enough licenses to cover the Windows Server VMs you've deployed with Azure Hybrid Benefit.
If you don't have enough eligible Windows Server licenses for your deployed VMs, you have three choices:
- Purchase extra Windows Server licenses covered by Software Assurance through a commercial licensing agreement.
- Disable Azure Hybrid Benefit for some of your VMs, and purchase them at regular Azure hourly rates.
- Deallocate some VMs.
Note
Microsoft reserves the right to audit customers at any time to verify eligibility for Azure Hybrid Benefit utilization.
Getting Azure Hybrid Benefit for Azure Stack HCI
Use the guidance in this section to get Azure Hybrid Benefit for your Azure Stack HCI infrastructure.
Licensing prerequisites
To qualify for Azure Hybrid Benefit for Azure Stack HCI, you must meet the following licensing prerequisites.
Types of license
- Windows Server Datacenter with active Software Assurance only
Number of licenses
- Each Windows Server core license entitles use on 1 physical core of Azure Stack HCI. You'll need to allocate enough core licenses for all physical cores on servers in the Azure Stack HCI cluster.
Unlimited virtualization
- You can use any number of Windows Server VMs on the Azure Stack HCI cluster if you allocate enough core licenses for all physical cores on servers in the Azure Stack HCI cluster.
Use rights
- Licenses must be used either on-premises or on Azure Stack HCI, but not on both. You'll have 180 days of concurrent licensing to migrate your servers.
How to apply Azure Hybrid Benefit for Azure Stack HCI
You can learn how to deploy Azure Hybrid Benefit for Azure Stack HCI by following the steps in Azure Stack HCI billing and payment. One method is to activate the benefit from the Configuration pane of the Azure Stack HCI resource, as shown below.
Getting Azure Hybrid Benefit for AKS
Follow the guidance in this section to get Azure Hybrid Benefit for AKS.
Licensing prerequisites
To qualify for Azure Hybrid Benefit for AKS, you must meet the following licensing prerequisites.
Eligible hosts
- Windows Server 2019 or later (Datacenter or Standard), or
- Azure Stack HCI
Types of license
- Windows Server Standard with active Software Assurance, or
- Windows Server Datacenter with active Software Assurance, or
- An eligible Cloud Solution Provider (CSP) subscription
Number of licenses
- Each Windows Server core license entitles use on 1 virtual core of AKS.
Use rights
- Azure Hybrid Benefit for AKS is additive. Core licenses used for Azure Hybrid Benefit for AKS can be used at the same time with on-premises Windows Server licensing, as well as Azure Hybrid Benefit for other workloads in this article.
How to apply Azure Hybrid Benefit for AKS
To get started with Azure Hybrid Benefit for AKS, see Azure Hybrid Benefit for AKS.
FAQ: Azure Hybrid Benefit
Which regions are eligible for Azure Hybrid Benefit?
Azure Hybrid Benefit is available across all Azure regions and sovereign clouds.
What happens to my benefits if my Software Assurance expires?
To use these benefits, your Software Assurance or subscriptions must be active. If you choose not to renew your Software Assurance when it expires, you'll need to remove your benefits from your resources in the Azure portal.
What is Software Assurance?
Software Assurance provides other benefits to maximize your IT investments. Software Assurance is only available through volume licensing and is purchased when you buy or renew a Volume Licensing agreement. It's included with some agreements and is an optional purchase with others. Software Assurance benefits include new product version rights, support, license mobility rights, and a unique set of technologies and services.
For information about volume licensing, see Microsoft Licensing. To learn more about Software Assurance benefits, and how each benefit can help meet your business needs, see Software Assurance benefits.
How can customers get Software Assurance?
You can purchase Software Assurance through Volume Licensing. Your Software Assurance benefits are activated in the Volume Licensing Service Center (VLSC). If your organization has a Microsoft Products and Services Agreement (MPSA), the Business Center is your destination for easy management of your Software Assurance benefits.
FAQs
What are Azure hybrid use benefits for Windows Server? ›
Azure Hybrid Benefit helps you get more value from your Windows Server licenses and save up to 40 percent* on virtual machines. Each two-processor license or each set of 16-core licenses, either Datacenter or Standard editions, are entitled to two instances of up to 8 cores, or one instance of up to 16 cores.
Which products does the Azure Hybrid benefit apply to choose two answers? ›Azure Hybrid Benefit is applicable only to Windows Server Standard and Datacenter editions, SQL Server Enterprise Core and Standard Core, and Azure SQL Database. The benefit does not apply to SQL Server licensed under the server/CAL license model.
What is Azure hybrid benefit for Windows Server and SQL Server? ›Azure Hybrid Benefit allows you to exchange your existing licenses for discounted rates on Azure SQL Database and Azure SQL Managed Instance. You can save up to 30 percent or more on SQL Database and SQL Managed Instance by using your Software Assurance-enabled SQL Server licenses on Azure.
How do I qualify for Azure hybrid benefit? ›To qualify for Azure Hybrid Benefit for Windows Server, you need on-premises core licenses for Windows Server with active Software Assurance. Software Assurance is only available as part of a commercial licensing agreement.
What are the benefits of a Windows Server? ›Windows Server features benefit from small businesses to large corporations; it generates energy consumption savings and licensing thanks to virtualization, and improves response times due to a central administration through which practically all servers can be managed in the data center.
What is Windows hybrid benefit? ›For customers with Software Assurance, Azure Hybrid Benefit for Windows Server allows you to use your on-premises Windows Server licenses and run Windows virtual machines on Azure at a reduced cost. You can use Azure Hybrid Benefit for Windows Server to deploy new virtual machines with Windows OS.
Which of the following are key advantages of a hybrid cloud in Microsoft Azure? ›A hybrid cloud platform gives organisations many advantages—such as greater flexibility, more deployment options, security, compliance and getting more value from their existing infrastructure.
What are the two most significant benefits of implementing a hybrid cloud solution? ›- Better support for a remote workforce. ...
- Reduced costs. ...
- Improved scalability and control. ...
- Increased agility and innovation. ...
- Business continuity. ...
- Improved security and risk management. ...
- Hardware costs.
Joining your devices to Azure AD through either method accelerates your digital transformation. It enables more functionality provided by Microsoft 365. You'll have better experiences, and you'll have greater security for your data.
What is pay as you go with Azure hybrid benefit for SQL Server? ›Azure Hybrid Benefit (AHB) for SQL Server allows you to use on-premises licenses to run SQL Server on Azure Virtual Machines. If you have Software Assurance, you can use AHB when deploying a new SQL VM or activate SQL Server AHB for an existing SQL VM with a pay as you go (PAYG) license.
What is a key benefit of using Azure SQL Database compared to using SQL Server on-premises? ›
Azure SQL allows you to benefit from almost unlimited cloud scalability and has high availability out of the box. If you also need full control over the operating system or compatibility with on-premises workloads such as SQL Server Reporting Services you can run SQL Server on an Azure VM.
What is the difference between Azure AD and Windows Server ad? ›AD vs Azure AD Summary
AD is great at managing traditional on-premise infrastructure and applications. Azure AD is great at managing user access to cloud applications. You can use both together, or if you want to have a purely cloud based environment you can just use Azure AD.
Windows Server licenses are not eligible for License Mobility through Software Assurance, but customers licensing Windows Server with Software Assurance can utilise the Azure Hybrid Benefit for a cheaper per-minute cost when running a Windows Virtual Machine.
Can you run Windows Server Standard in Azure? ›Yes you can if you have software assurance, The license type is Windows_Server.
How do I activate hybrid benefit in Azure? ›To enable the Azure Hybrid Benefit, select Actions > Configuration Management > Enable Azure Hybrid Benefit. To clear the Azure Hybrid Benefit, select Actions > Configuration Management > Disable Azure Hybrid Benefit.
What are the benefits of using Windows Server 2022? ›Windows Server 2022 ensures faster and secure connectivity because it enables TLS 1.3 by default. This configuration protects your organization from attacks by safeguarding HTTPS connections. On the other hand, the 2022 release comes with DNS over HTTPS (DoH) and Secure DNS.
What are the benefits of Windows Server 2022? ›Windows Server 2022 uses TCP HyStart++ to reduce packet loss during connection start-up (especially in high-speed networks) and RACK to reduce Retransmit TimeOuts (RTO). These features are enabled in the transport stack by default and provide a smoother network data flow with better performance at high speeds.
What are the advantages of Windows Server 2022? ›- Advanced Multi-Layered Security. It is a key factor that customers have at the top of their mind. ...
- Hybrid Capabilities paired with Azure. ...
- A platform with Flexible Application.
The primary benefit of a hybrid cloud is agility. The need to adapt and change direction quickly is a core principle of a digital business. Your enterprise might want (or need) to combine public clouds, private clouds, and on-premises resources to gain the agility it needs for a competitive advantage.
What is Hybrid mode Windows? ›Hybrid sleep - a combination of sleep and hibernate. It puts any open documents and programs in memory and on your hard disk and then puts your computer into a low-power state. So that you can quickly resume your work. If a power failure occurs, Windows can restore your work from your hard disk drive.
What are 3 advantages of Windows? ›
- Ease of use. Users familiar with earlier versions of Windows will probably also find the more modern ones easy to work with. ...
- Available software. ...
- Backwards compatibility. ...
- Support for new hardware. ...
- Plug & Play. ...
- Games. ...
- Compatibility with MS driven websites.
Azure Hybrid Benefit is a licensing benefit that helps you to significantly reduce the costs of running your workloads in the cloud. It works by letting you use your on-premises Software Assurance-enabled Windows Server and SQL Server licenses on Azure.
What is Azure hybrid benefit for VM? ›Azure Hybrid Benefit is a licensing benefit that helps you do more with less, reducing the costs of running your workloads. It works by letting you use Software Assurance-enabled Windows Server and SQL Server licenses, and RedHat and SUSE Linux subscriptions on virtual machines in Azure.
What are the advantages of hybrid layout? ›A benefit to this type of layout is an increase in product quality. With this type of layout, it is easy to locate the source of a potential problem with the products. If the products from one particular workstation keeps coming up faulty, then that workstation can be singled out for troubleshooting.
Which are the most common uses of hybrid clouds in Azure? ›- Application development.
- AI.
- Data and analytics.
- Hybrid cloud and infrastructure.
- Internet of Things. Connect, monitor, and control devices with secure, scalable, and open edge-to-cloud solutions.
- Security and governance.
Hybrid clouds allow businesses to move part of their IT infrastructure to the cloud and keep some applications on-premises. Disaster recovery — the hybrid model helps organizations replicate their on-premises workloads and back up data to the cloud.
What are the key elements of a hybrid multi cloud strategy? ›Hybrid multi-cloud is not a product or software service. It is an approach to cloud computing that includes a combination of private cloud, public cloud and/or on-premise environment. The combination may include infrastructure, virtualization, bare-metal servers and/or containers.
Can I join a Windows Server to Azure AD? ›Please note that Azure AD Join supports Windows 10, Windows 11 but Windows Server operating systems is not supported. Please review supported devices or below documentation for list of supported operating systems.
What are the limitations of hybrid Azure AD join? ›Hybrid Azure AD join isn't supported for Windows Server running the Domain Controller (DC) role. Hybrid Azure AD join isn't supported on Windows down-level devices when using credential roaming or user profile roaming or mandatory profile. Server Core OS doesn't support any type of device registration.
How do I join Azure AD to Windows 10 hybrid? ›In Connect to Azure AD, enter the credentials of a Global Administrator for your Azure AD tenant. In Device options, select Configure Hybrid Azure AD join, and then select Next. In Device operating systems, select the operating systems that devices in your Active Directory environment use, and then select Next.
Is there a free SQL Server on Azure? ›
You can create a free version of Azure SQL Database using PowerShell. You can have only one free Azure SQL Server database per region, it reverts to Standard Edition after 365 days.
Would the company pay less when it comes to an Azure reservation than the pay as you go pricing? ›Significantly reduce costs—up to 72 percent1 compared to pay-as-you-go pricing—with one-year or three-year terms for Windows and Linux virtual machines (VMs). You'll also save up to 80 percent2 when you combine the cost savings gained from Azure Reserved VM Instances with the added value of Azure Hybrid Benefit.
Do Microsoft employees get discounts on Azure? ›Yes, as an FTE, you are eligible for a 100% discount.
What is the difference between Azure SQL Database and on-premises Microsoft SQL Server? ›Azure SQL Database is a cloud-based service, while SQL Server is an on-premises software. Azure SQL Database is also a managed service, meaning that Microsoft manages the infrastructure and security for you. This can simplify administration and reduce costs.
Which of the following is a key benefit of using Azure? ›Easy disaster recovery and backup
Microsoft Azure enables users to backup virtual machines, SQL workload and on-premises VMware to streamline the data recovery and backup processes. Microsoft has built-in disaster recovery tools to help users keep their crucial applications running while lessening the downtime.
Unfortunately, the short answer to that question is no. Azure AD is not a replacement for Active Directory. AAD was originally intended to connect users with Microsoft 365 services, providing a simpler alternative to ADFS for SSO.
Is Windows Server the same as Active Directory? ›Active Directory (AD) is Microsoft's proprietary directory service. It runs on Windows Server and enables administrators to manage permissions and access to network resources.
Is Windows Server an Active Directory? ›The main Active Directory service is Active Directory Domain Services (AD DS), which is part of the Windows Server operating system. The servers that run AD DS are called domain controllers (DCs).
What is Azure hybrid benefit for windows server Standard? ›Azure Hybrid Benefit helps you get more value from your Windows Server licenses and save up to 40 percent* on virtual machines. Each two-processor license or each set of 16-core licenses, either Datacenter or Standard editions, are entitled to two instances of up to 8 cores, or one instance of up to 16 cores.
Is Windows Server 2022 available on Azure? ›Access to Azure networking features
The QUIC client is built into Windows 11, so end users won't see any difference, but their connection will be in a TLS 1.3-encrypted tunnel over UDP port 443 rather than TCP 445. The QUIC server is only available in Windows Server 2022 Azure Edition.
Can I install windows server on Azure? ›
Azure literally runs on Windows Server, so it's easy to move workloads to Microsoft's cloud platform and use existing skills, familiar tools, and established procedures. You'll still have one place to go to for support, and even your Windows Server licenses can be leveraged in Azure.
Which Windows Server feature S is are not supported on Azure? ›The following significant features are not supported: BitLocker Drive Encryption (on the operating system hard disk, may be used on data disks) Internet Storage Name Server. Multipath I/O.
How to setup Windows Server in Azure? ›- Sign in to Azure. Sign in to the Azure portal at https://portal.azure.com.
- Create virtual machine. Enter virtual machines in the search. ...
- Connect to virtual machine. ...
- Install web server. ...
- View the IIS welcome page. ...
- Clean up resources. ...
- Next steps.
The following windows server roles are not supported on Azure virtual machines: Dynamic Host Configuration Protocol Server. Hyper-V. Remote Access (Direct Access)
Which products are eligible for the Azure hybrid benefit? ›Azure Hybrid Benefit is applicable only to Windows Server Standard and Datacenter editions, SQL Server Enterprise Core and Standard Core, and Azure SQL Database. The benefit does not apply to SQL Server licensed under the server/CAL license model.
What are the two most significant benefits of implementing a hybrid? ›- Better support for a remote workforce. ...
- Reduced costs. ...
- Improved scalability and control. ...
- Increased agility and innovation. ...
- Business continuity. ...
- Improved security and risk management. ...
- Hardware costs.
With fewer employees in the office, companies will need less physical space. Thus, the hybrid model reduces the cost of both real estate and office supplies. It also saves money for employees by cutting down on commuting costs.
What are the pros and cons of hybrid work model? ›- Improved work-life balance. ...
- Increased productivity. ...
- The chance to collaborate. ...
- Increased employee retention and access to wider talent pools. ...
- Lower costs. ...
- It can feel isolating for some people. ...
- Managing Health and Safety responsibilities can be more of a challenge.
Hybrid cloud refers to a combination of at least 2 computing environments that share information with one another and run a uniform series of applications for a business or enterprise. Those environments may include: At least 1 private cloud and at least 1 public cloud. 2 or more private clouds. 2 or more public clouds.
What is the key to a successful hybrid strategy? ›Some key success factors for the implementation of hybrid strategies are innovative strength, close orientation towards customer needs, and organizational learning.
What makes hybrid work successful? ›
Successful hybrid leaders ensure that all employees are considered for projects and promotions, and keep track of all employees to ensure no one is left behind. These leaders also recognize the unfairness often felt by those employees whose roles don't permit them to work from anywhere.
What are the two key characteristics of a hybrid organization? ›Shared ownership. Goal incongruence and different institutional logics in the same organisation.
Can I join a windows server to Azure AD? ›Please note that Azure AD Join supports Windows 10, Windows 11 but Windows Server operating systems is not supported. Please review supported devices or below documentation for list of supported operating systems.
Is windows server free on Azure? ›Creating a free Azure account. You can use all of these services for free for 12 months, within the free service limits for the particular service. For instance, you get 750 hours of Windows Virtual Machine for free.
Does Azure replace windows server? ›Unfortunately, the short answer to that question is no. Azure AD is not a replacement for Active Directory. AAD was originally intended to connect users with Microsoft 365 services, providing a simpler alternative to ADFS for SSO.