Windows Server SA Discounts Azure

A new benefit of Software Assurance (SA) coverage on Windows Server Datacenter and Standard edition licenses is preferential pricing for Azure virtual machines (VMs). This benefit, referred to by Microsoft as the Azure Hybrid Use Benefit (Azure HUB), could substantially reduce Azure fees in some scenarios. However, customers should not count on this benefit when budgeting for the long term.

Old Rule for Windows Server Pricing in Azure

The fee to run Windows Server—based VMs on multitenant hardware at Azure data centers has two underlying components. The first is a rental fee for use of the hardware, often called the “compute-only” or Linux rate. The second is a Windows Server license fee. This intellectual property—related charge can be as high as 45% of the overall Azure VM fee, depending on the specifications of the virtual hardware available to the VM.

For some Microsoft server application products, such as SQL Server, organizations can reduce Azure fees by reassigning existing on-premises licenses that are covered by SA to cover use of the server application within the Azure VMs. This use right, called “License Mobility through SA,” has never been offered for Windows Server server licenses.