Applying Licenses with SA to Hosted Workloads

Most licenses for Microsoft server applications can be applied to workloads running on a service provider’s multitenant servers, including Microsoft’s own Azure, under a use right known as License Mobility through Software Assurance (SA). By reassigning traditional on-premises licenses to the workloads at the hoster, customers can avoid certain service provider software subscription (rental) fees. However, the licensing cost, flexibility, and compliance implications of the “rent vs. own” licensing alternatives can differ markedly depending on workload characteristics. Customers interested in moving workloads to the cloud will need to evaluate the alternatives based on their own unique usage scenarios.

Moving Licenses to Cloud Service Providers

Longstanding Microsoft policy allows volume licensing customers to move licenses for server applications from on-premises servers to servers located at a third-party service provider, as long as the servers at the hoster are used exclusively by the customer owning the licenses. However, dedicated hardware arrangements are significantly more expensive for service providers to deploy and operate than multitenant scenarios, which allow physical server hardware to be shared by many customers simultaneously.