Summary
This guide covers BizTalk Server licensing for hosting providers and their clients. It explains SPLA and BYOL models, licensing calculations, and compliance requirements.
TL/DR or Quick reference if you are busy
BizTalk Server licensed per VM requires one core license per virtual core with a minimum of four licenses per virtual machine. This rule is the same for SPLA and BYOL.
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BizTalk Server Enterprise may also be licensed at the physical host level. It allows running unlimited virtual machines and containers. You must assign one core license per physical core with a minimum of 4 core licenses per physical CPU.
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The above should cover 99% of your queries. Now, let’s dive deeper.
What is BizTalk Server
Microsoft BizTalk Server is an enterprise integration platform that helps businesses connect disparate systems, automate business processes, and manage business-to-business communications.
BizTalk Server is available in several editions, each designed for different business scenarios:
BizTalk Server Enterprise Edition: Designed for customers with enterprise-level requirements for high volume, reliability, and availability. Consider implementing a BizTalk solution using the Enterprise edition of BizTalk Server if you will be adding a significant number of trading partners, will need to use host clustering, or will need to scale out to multiple computers running BizTalk Server in the BizTalk group.
BizTalk Server Standard Edition: Designed for businesses with moderate volume and deployment scale requirements.
BizTalk Server Branch Edition: Specialty version designed for hub and spoke deployment scenarios including RFID. Branch Edition may only be installed on servers at the endpoint of your internal network (or edge of your organisation). The server cannot act as the central node in a “hub and spoke” networking model, centralise enterprise-wide communications, or automate business processes across divisions, business units, or branch offices. Branch Edition requires BizTalk Server Enterprise Edition to be installed as the central node in the hub-and-spoke architecture.
Standard and Branch editions do not support clustering or multi-server groups.
How to license BizTalk Server on hosting
There are two options to license BizTalk Server when you run it in a service provider environment:
Pay-as-you-go (PAYG) or SPLA licensing is when an end client rents a BizTalk Server with a SPLA license. The license cost is included in the service cost, and the provider takes care of the license.
Bring-your-own-license (BYOL) is when the provider provides a BizTalk Server but allows the end client to bring their existing licenses. In this case, the client must ensure that it has enough licenses and that the licenses are eligible for BYOL.
🖐 Get independent support for complex Microsoft licensing. Learn more: Microsoft Licensing Services for Providers.
Pay-As-You-Go licensing of BizTalk Server on hosting
Service Provider License Agreement (SPLA) is a licensing programme designed by Microsoft for service providers to host Microsoft software. The SPLA programme enables service providers to license Microsoft products on a monthly basis, allowing them to offer software services to their customers without having to make a long-term commitment.
Benefits:
No long-term commitment. The billing period is one calendar month.
It’s the best option for elastic workloads.
The provider takes care of the license.
Drawbacks:
No price protection. Prices usually go up once a year.
You may have a better price on your volume licenses.
Costs:
BizTalk Server Enterprise is roughly four to four and a half times more expensive than BizTalk Server Standard licensed per core.
License costs are comparable to one-year CSP licenses and the Level A price list in an Enterprise Agreement.
Bring Your Own License for BizTalk Server
You may take your licenses and assign them to hosted BizTalk Server instances if:
You have licenses with Software Assurance or subscription licenses via any programme,
The provider allows bringing your own licenses. Some providers may refuse this option.
BYOL requirements vary by provider type
Provider Type | BYOL Allowed |
|---|---|
AWS, Google, Alibaba, Azure | Yes, via License Mobility (requires Software Assurance) |
Authorised Outsourcers (all others) | Yes, any Volume Licensing or CSP licenses |
The provider also does not have to be a CSP-Hoster. This requirement makes no difference for BYOL.
Benefits:
It’s cheaper. If you have licenses you no longer need on-premises, you are most probably paying less for Software Assurance or subscription compared to SPLA costs. That is especially true for government entities and large enterprises.
Licenses on long-term subscriptions or purchased via Enterprise Agreement have price protections from their respective agreements.
Drawbacks:
Elasticity is cheaper via Pay-As-You-Go. The solution is to use mixed licensing: BYOL for consistent needs plus SPLA, for example when you have seasonal requirements,
You have to take care of the licenses.
There’s the added burden of providing license evidence to the service provider every time you renew your subscription or SA.
Costs:
The cost ratio between BizTalk Server Enterprise and BizTalk Server Standard licensed per core is roughly 4-4.5:1. This is true for all kinds of licenses: new licenses with Software Assurance, SA renewal, or subscription licenses.
Renewing Software Assurance is about 30-40% cheaper than acquiring new subscription licenses. Before you cancel Software Assurance on unnecessary on-premises licenses, see if you may reuse them on hosting or in the Cloud.
BizTalk Server licensing models
BizTalk Server has only one licensing model.
BizTalk Server uses per-core licensing only - there is no user/device licensing model.
Enterprise | Standard | Branch | |
|---|---|---|---|
Per core per virtual machine | Yes | Yes | Yes |
Per core at the host level (unlimited virtualisation) | Yes | No | No |
May be used on a networked cluster | Yes | No | No |
IMPORTANT: For BYOL, all licenses require active Software Assurance or subscription.
What BizTalk Server licensing model to choose
Please note that these recommendations are for SPLA and BYOL licensing, so it is implied that you have Software Assurance or subscription licenses as required by Flexible Virtualisation Benefit.
Per-core is the only licensing model available for BizTalk Server (there is no user/device licensing for BizTalk).
Per-core licensing has sub-scenarios:
Per-core licensing of individual virtual machines
is the most popular and convenient option.
Licensing BizTalk Server per core at the host level
for “Unlimited Virtualisation” (Enterprise only). Host-level licensing works best on hosts dedicated to BizTalk Server and requires you to run a significant number of BizTalk Server virtual machines to achieve any economic benefit. In reality, it’s rarely beneficial. Do your maths first.
Licensing BizTalk Server per core at the physical CPU level
without virtualisation is required when you do not virtualise BizTalk Server.
How to determine the number of licenses needed
License calculation depends on your BizTalk Server deployment.
To determine the number of licenses needed for BizTalk Server, you must identify the following:
The edition of BizTalk Server,
Deployment model:
In a virtual machine: The number of virtual cores,
When licensing at the host level:
The number of processors,
The number of cores per processor,
When you have all the above information, here is how you calculate the required licenses.
BizTalk Server licensed per VM requires one core license per virtual core with a minimum of four licenses per virtual machine. This rule is the same for SPLA and BYOL.
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BizTalk Server licensed per core at the physical host level. You must assign one core license per physical core with a minimum of 4 core licenses per physical CPU.
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Avoid paying double!
BizTalk Server core licenses are sold in 2-core packs. Do not forget to divide the number of required core licenses by two when you place an order.
Do not pay for disaster recovery BizTalk Server instances
You do not have to pay for disaster recovery instances. However, the rules are a little complicated, and you must comply fully and unconditionally:
The disaster recovery server can only run during specific exception periods, such as during brief periods of disaster recovery testing within one week every 90 days or when the production server being recovered is down.
It can also run briefly around the time of a disaster to assist in the transfer between the primary production server and the disaster recovery server.
The disaster recovery server cannot be in the same cluster as the production server.
Edition-specific restrictions
Standard and Branch editions have usage restrictions.
BizTalk Server Standard and Branch editions: |
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Cannot be used on networked clusters or in OSEs that are part of networked clusters |
No clustering support whatsoever |
BizTalk Server Branch additional restrictions: |
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Can only be used at network endpoints (edge of organisation) |
Cannot act as central node in hub-and-spoke networking |
Cannot centralise enterprise-wide communications |
Cannot automate business processes across divisions, business units, or branch offices |
Essentially designed for branch office scenarios only |
Host Integration Server rights
When you license BizTalk Server, you also get rights to use Host Integration Server (HIS) under the same core licenses:
HIS server software can be used under BizTalk Server core licenses
HIS Additional Software (e.g., HIS Client) can only be used with licensed HIS server software
Rights are determined by which BizTalk Server edition license you assign to the server
If using BizTalk Server Branch Edition, HIS is limited to branch office deployments only
License Reporting and Management
When using SPLA licenses, providers must accurately report BizTalk Server licenses on a monthly basis following the standard reporting process.
In the case of BYOL, CSP-Hosters must verify license eligibility and report it to Microsoft using License Validation forms.
Accurate license reporting helps ensure compliance with the licensing requirements of BizTalk Server in SPLA and can help avoid potential legal or financial penalties.
Common mistakes that you should avoid when reporting BizTalk Server licenses in SPLA:
Reporting incorrect license types or editions,
Forgetting the minimum of 4 core licenses per VM or per physical CPU.
To ensure accurate reporting, compliance with licensing requirements and effective cost management, we recommend maintaining a detailed inventory of all the licenses and software used and taking regular data snapshots. Having a good dedicated SPLA tool helps.
It is also essential to keep track of changes in the licensing models and act accordingly.
🖐 Ensure compliance and reduce risk in hosting models. Learn more: SPLA and CSP-Hoster Audit Defense.
Frequently asked questions
What are the licensing options for BizTalk Server in a hosting environment?
BizTalk Server can be licensed through either the Pay-As-You-Go (PAYG) or the Bring-Your-Own-License (BYOL) model. Under PAYG, the end-client rents a BizTalk Server with a SPLA license, whilst under BYOL, the provider provides the BizTalk Server, and the client brings their existing licenses.
What is the difference between SPLA and BYOL licensing for BizTalk Server?
SPLA is a monthly subscription model where the end-client rents a BizTalk Server with a license from the provider, whilst BYOL is when the provider provides a BizTalk Server, but the end-client brings their own licenses.
Can I use my existing licenses with a hosting provider?
Yes, if you have licenses with Software Assurance or subscription licenses via any programme, you may use them with a hosting provider that allows BYOL.
How do I avoid overpaying for BizTalk Server licenses?
You can avoid overpaying by choosing a suitable licensing model, using mixed licensing (BYOL and SPLA) for constant and seasonal needs, and taking advantage of disaster recovery rights.
What are the different editions of BizTalk Server?
BizTalk Server is available in three editions: Standard (basic integration), Enterprise (full features with clustering and unlimited virtualisation), and Branch (restricted to edge/branch office use only).
What are the licensing options for BizTalk Server Enterprise?
BizTalk Server Enterprise can be licensed per virtual machine core or at the physical host level for unlimited virtualisation. It also supports clustering.
What is the minimum number of core licenses required for a BizTalk Server virtual machine?
A virtual machine requires a minimum of four core licenses.
Can BizTalk Server Standard use clustering?
No, BizTalk Server Standard and Branch editions cannot use clustering or networked clusters. Only Enterprise edition supports clustering.
What are the usage restrictions for BizTalk Server Branch?
Branch edition can only be used at network endpoints (edge of organisation), cannot act as a central hub, and cannot automate processes across divisions or business units. It’s designed specifically for branch office scenarios.
What are Host Integration Server rights with BizTalk Server?
When you license BizTalk Server, you get rights to use Host Integration Server under the same core licenses, with usage rights determined by your BizTalk Server edition.
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