Updated: September 8, 2025 (February 10, 2024)

  Analyst Report

How to Track Azure Hybrid Benefit Use Rights for SQL Server

My Atlas / Analyst Reports

2,937 wordsTime to read: 15 min
Rob Sanfilippo by
Rob Sanfilippo

Before joining Directions on Microsoft, Rob worked at Microsoft for 14 years where he designed technologies for Microsoft products and... more

  • Customers are responsible for ensuring they have the proper licenses to keep their Azure Hybrid Benefit for SQL Server usage compliant.
  • Microsoft could tighten enforcement of Azure Hybrid Benefit rules soon, leading to unexpected costs for customers who are out of compliance and making tracking of use rights more important.
  • Significant custom configuration and other work is typically required to effectively track use of the Azure Hybrid Benefit.

Azure Hybrid Benefit (AHB) enables customers to apply on-premises Windows Server and SQL Server licenses with Software Assurance (SA) to certain Azure workloads and avoid Azure charges for the OS and SQL Server, respectively.

This report covers tracking AHB for SQL Server licenses used with Azure SQL Server–based (Azure SQL) offerings. A separate report covers tracking Windows Server licenses. Mentions of AHB in this report all refer to the AHB for SQL Server.

Compliance Enforcement Could Ramp Up Soon

It is the responsibility of customers to configure the Azure VMs that benefit from on-premises licenses and to track AHB usage to ensure license compliance. Microsoft licensing audits could find customers liable (and responsible for back-charges) for using AHB without possessing the required on-premises licenses (with SA) even if the licenses were later purchased for reconciliation.

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