Summary
When choosing Microsoft SPLA licensing for your service provider business, it's essential to understand the difference between dedicated and shared hardware. The type of hardware affects your licensing options.
Dedicated Hardware
Dedicated hardware means hardware that serves workloads for only one end customer. All virtual machines on that hardware must belong to the same client. A dedicated virtual machine does not equate to dedicated hosting.
The terms "co-location" and "private cloud" usually refer to dedicated infrastructure.
Shared Hardware
Shared, multi-tenant hardware hosts workloads for multiple end customers. It is often referred to as "public cloud."
Why it matters
Different SPLA licensing rules apply to dedicated and multi-tenant hardware.
Ownership Isn't Key
An end client may own or rent dedicated hardware. Ownership of the server doesn't matter from the Microsoft licensing standpoint. If a server serves one end customer, it is dedicated to that end customer.
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