Licensing Windows for Virtual Desktops

[Sept. 7, 2015 note: A more recent version of this report, updated to reflect licensing changes, can be found at www.directionsonmicrosoft.com/licensing/secured/2015/09/licensing-server-based-desktops-licensing-windows-virtual-desktops/a>.]

Many organizations provide server-based desktops by installing and running a Windows OS in virtual machines (VMs) on servers. While such server-based desktops can reduce operating costs and improve security, they tend to be a top area for scrutiny during a software license compliance check. Two options for licensing the Windows client OS for server-based desktops—Per-Device and Per-User—have differing rules and, therefore, different advantages. A third option implements server-based desktops using Windows Server VMs and leverages Windows Server Datacenter edition. A mix of the three options may be needed to maintain compliance while minimizing licensing costs.

When VMs are used to provide server-based desktops, the right to run and access the Windows OS running in the VM must be correctly licensed. Although this report primarily focuses on licensing the Windows client OS (Windows 7 and later) running in VMs for server-based desktops, it also describes the option of leveraging the licensing rules for the Windows Server 2012 or later Datacenter edition to run Windows Server instead of the Windows client OS in the VM. The rules presented here apply only to systems on-premises or on hardware at a service provider dedicated to a single tenant organization.