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Licensing NON-PRODUCTION virtual machines

There is an issue with interpreting Microsoft Licensing rules for non-production virtual machines. Those that are used by your IT people for DevOps and testing.

What if they are deployed in the same cluster with production virtual machines? Does it create a licensing issue? Is it compliant? Is it expensive to do so?

It's not that simple and open to interpretation. However, please let me help you avoid the confusion and clarify the rules.

What is a Production Environment in the first place? Let's dive in!