Summary
Understand the differences between many Windows Server licensing scenarios in the Cloud. We compare Azure, AWS, Google, and "regular" providers.
Note: new sections are being added to this article. Please bookmark and revisit this page.
Windows Server Core license requirements
There are the following differences in Core license requirements in the Cloud:
Licensing Windows Server | Core license requirements | References |
|---|---|---|
Azure Pay-As-You-Go | N/A - provided by Azure. | |
Azure Hybrid Benefit | At least eight core licenses per virtual machine. | |
Pay-As-You-Go from any provider except Azure | N/A - provided as a part of the service. | |
BYOL to dedicated hosts on Listed Providers: Amazon, Google, Alibaba, and Microsoft | At least eight core licenses per CPU and at least 16 core licenses per host. Available only to licenses originally purchased on agreements signed before October 01, 2019 – Read below. | |
BYOL to shared and dedicated hosting on all providers except Amazon, Google, Alibaba, and Microsoft | Physical hosts: at least eight core licenses per CPU, and at least 16 core licenses per host. Per VM: at least eight core licenses per virtual machine. Software Assurance or subscription required. | |
BYOL on CSP-Hosters | See above; no exceptions | See above |
“License Included” from CSP-Hosters | See above; no exceptions | See above |
Dedicated Hosts on Amazon, Google, Alibaba, and Microsoft Azure
When may you assign Windows Server licenses to dedicated hosts on Amazon, Google, Alibaba, and Microsoft Azure?
You may only assign Windows Server licenses to dedicated hosts on Amazon, Google, Alibaba, and Microsoft Azure when:
The licences are perpetual and
The licenses were bought on an agreement signed before October 01, 2019.
What is a "dedicated host"?
It means that you rent a piece of hardware, and everything that runs on it is yours. The other name is "single-tenant". VMware solutions on big Cloud platforms are always dedicated.
Does Software Assurance renewal or Enterprise Agreement renewal affect BYOL for Windows Server?
It does not. Even if you renewed Software Assurance after October 01, 2019, the only thing that matters is the original purchase date on the perpetual license or the date of signing of your Enterprise Agreement.
October 01, 2019, and Windows Server BYOL: Explained
October 01, 2019, is the date when Microsoft updated its Product Terms, limiting the right to Bring Your Own Licenses to so-called "Listed Providers" only to the products that have License Mobility through Software Assurance.
Windows Server does not have License Mobility through Software Assurance rights.
Listed Providers are AWS, GCP, Alibaba Cloud, and Azure.
Here's the fun part: you won't find mentions of October 01, 2019, in Product Terms. So, how does it work?
Here's how: there's a concept of "applicable Product Terms", i.e. what terms apply to your agreement and licenses.
When you purchase a license via an Enterprise Agreement, the applicable Product Terms are the ones from the agreement's effective date: when you signed it.
The only case when you have to accept the new Product Terms is when you upgrade the product to a new version released after the agreement's effective date. In our case, if you upgrade to Windows Server 2022 or later, you must accept its new terms.
If you signed or renewed your EA before October 01, 2019, the updated Product Terms did not apply to your Windows Server licenses regardless of when you paid for them, even if you paid for them at last true-up, up to September 30, 2022.
Since we are well past September 30, 2022, it's safe to assume that you renewed your agreement again, at least once. Rest assured, licenses originally purchased before or during the term that included October 01, 2019, retain the BYOL rights from before that date and may be used on Listed Providers.
If you bought your license online, in retail, or under any other form of agreement: CSP, MPSA, etc, check your agreement and find what Product Terms apply to you.
If a license is perpetual without Software Assurance, it's simple: it must have been bought before October 01, 2019.
In any case, make sure you keep your eligible running versions equal to or below Windows Server 2019.
Do I need Software Assurance to assign Windows Server licenses to dedicated hosts on Amazon, Google, Alibaba, and Microsoft Azure?
No, you don't.
Windows Server Cross-Edition rights
Microsoft Product Terms and SPUR permit running Windows Server Standard instances under Windows Server Datacenter licences.
Normally, the opposite is not permitted. However, there are two exceptions when Windows Server Standard licenses may be assigned to Windows Server Datacenter machines in the Cloud:
In Azure via Azure Hybrid Benefit,
In a CSP-Hoster environment, in a "License Included" scenario only, i.e. when the CSP-Hoster provides a license with the virtual machine.
Windows Server Client Access License requirements
There are the following differences between the Windows Server CAL requirements in the Cloud:
Licensing Windows Server | Are CALs required? | References |
|---|---|---|
Azure Pay-As-You-Go | No | |
Azure Hybrid Benefit | No. Licenses brought to Azure via AHUB substitute Pay-As-You-Go licenses and do not introduce CAL requirements. | |
Pay-As-You-Go from any provider except Azure | No. That is because providers use SPLA licensing, which does not require CALs (SALs) for core Windows Server functionality. | |
BYOL to dedicated hosts on Listed Providers: Amazon, Google, Alibaba, and Microsoft | Yes. Volume licensing terms apply. | |
BYOL to shared and dedicated hosting on all providers except Amazon, Google, Alibaba, and Microsoft (also see CSP-Hoster exceptions below) | Yes. Volume licensing terms apply. | Windows Server licensing terms |
BYOL on CSP-Hosters | Yes | See above |
“License Included” from CSP-Hosters | No | See above plus Outsourcing on Cloud Solution Provider-Hosters |
RDS CAL requirements
RDS CALs are always required.