Updated: July 15, 2020 (December 21, 2015)

  Analyst Report

Windows Server 2016 to Be Licensed by Core

My Atlas / Analyst Reports

3,324 wordsTime to read: 17 min
Rob Horwitz by
Rob Horwitz

Rob Horwitz analyzes and writes about Microsoft licensing programs and product licensing rules. He also trains organizations on best Microsoft... more

Expected in the third quarter of 2016, Windows Server 2016 will license servers based on cores rather than processors, use technical features to differentiate between Datacenter and Standard editions, and introduce a new Software Assurance (SA) benefit related to Azure. Over time these changes will likely increase server licensing costs, in part by shifting purchases to Datacenter edition, as well as impact hardware specifications and equipment upgrade schedules, the timing of new license purchases, and SA renewal decisions. While the significance of each change may vary by customer, most will find at least one change relevant to their situation.

Servers Licensed by Cores

Windows Server requires purchase of both client-side and server-side licenses. Client-side licenses—called Client Access Licenses (CALs)—provide the right for users or end-user devices to access servers, and server-side licenses provide the right to run the software on a physical server. With Windows Server 2016, nothing changes with respect to client-side licensing (such as CAL requirements, types, and pricing), but server-side licensing will change dramatically, moving from a processor- to a core-based licensing model.

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