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Azure Arc pricing

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Azure Arc is a bridge that extends the Azure platform to help you build applications and services with the flexibility to run across datacenters, at the edge, and in multicloud environments.

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Prices are estimates only and are not intended as actual price quotes. Actual pricing may vary depending on the type of agreement entered with Microsoft, date of purchase, and the currency exchange rate. Prices are calculated based on US dollars and converted using London closing spot rates that are captured in the two business days prior to the last business day of the previous month end. If the two business days prior to the end of the month fall on a bank holiday in major markets, the rate setting day is generally the day immediately preceding the two business days. This rate applies to all transactions during the upcoming month. Sign in to the Azure pricing calculator to see pricing based on your current program/offer with Microsoft. Contact an Azure sales specialist for more information on pricing or to request a price quote. See frequently asked questions about Azure pricing.

Azure Arc-enabled data services

Azure Arc-enabled data services allow customers to run Azure SQL Managed Instance (generally available) and Azure PostgreSQL (still in public preview) databases on-premises and in multicloud environments on infrastructure of their choice. Customers would gain Azure innovations and cloud benefits, including a cloud billing model that helps to manage costs efficiently. In addition, SQL Server customers can use Azure Hybrid Benefit to adopt Azure Arc-enabled SQL Managed Instance without the need to pay for SQL license again.

Customers can find two service tiers – General Purpose and Business Critical, to support their data workloads based on different performance, high-availability, and disaster recovery requirements. Customers can also choose to run their Arc-enabled data services in various connectivity modes and get billing automatically set up if there is no direct connection to Azure.

Find out more from Documentations on different services tier, billing set up if not directly connected, and minimum system environment.

Services Price per unit Notes
SQL Managed Instance (GA) – General Purpose Tier License included PAYG
1 year RI
3 year RI
1 vCore / Month
SQL Managed Instance (GA) – General Purpose Tier Azure Hybrid Benefit* PAYG
1 year RI
3 year RI
1 vCore / Month
SQL Managed Instance (GA) – Business Critical License included PAYG**
1 year RI
3 year RI
1 vCore / Month
SQL Managed Instance (GA) – Business Critical Azure Hybrid Benefit* PAYG**
1 year RI
3 year RI
1 vCore / Month
PostgreSQL (preview) No additional charge. In the current preview phase, Azure Arc enabled PostgreSQL is offered at no additional cost.
Azure Machine Learning (GA) No additional charge. There is no added surcharge for running Machine Learning workloads on Arc-enabled Kubernetes.

*Excluding Amazon Web Services, VMware on Amazon Web Services, Google Cloud Platform, and Alibaba Cloud.

**Customers on Pay-as-you-go will be charged based on the actual hours used in the month. Rates shown are maximum monthly rates.

For detailed information on this pricing, download the Licensing Guide.

Extended Security Updates enabled by Azure Arc

Microsoft provides Extended Security Updates enabled by Azure Arc for Windows Server 2012/R2 and SQL Server 2012/2014. With Azure Arc, organizations will be able to purchase and seamlessly deploy Extended Security Updates in on-premises or multicloud environments, right from the Azure portal. Extended Security Updates enabled by Azure Arc also gives more flexibility with a pay-as-you-go subscription model.

For Windows Server 2012/R2

Extended Security Updates Datacenter Monthly Rate Standard Monthly Rate
Windows Server 2012 16 Core $- $-
Windows Server 2012 8 Core $- $-
Windows Server 2012 2 Core $- $-

For SQL Server 2012

Extended Security Updates Enterprise Monthly Rate Standard Monthly Rate
SQL Server 2012 2 Core $- $-

For SQL Server 2014

Extended Security Updates Enterprise Monthly Rate Standard Monthly Rate
SQL Server 2014 2 Core $- $-

Extended Security Updates will be available for free for customers on Azure, which includes workloads running on Azure Virtual Machines, Azure Dedicated Host, Azure VMWare Solutions, Nutanix Cloud Clusters on Azure, and Azure Stack Hub/Edge/HCI. Learn more about your options.

For customers who sign up after the end of support dates (October 10, 2023, Year 1 for Windows Server 2012/R2, July 11, 2023, Year 2 for SQL Server 2012, July 9, 2024, Year 1 for SQL Server 2014), you will receive a one-time bill-back charge from the start of the Extended Security Updates year to your actual start date.

Questions? Check out some Frequently Asked Questions.

Azure Arc-enabled SQL Server

If you have an existing SQL Server license, you can also unlock Azure manageability and security with Azure Arc. See the complete set of features* available for customers with existing SQL Server licenses including different SQL Server licenses set billing options.
Manage SQL Server license and billing options - Azure Arc-enabled SQL Server | Microsoft Learn

*Some features may require SA.

For customers without an active SQL Server license:

For organizations who want to leverage a consumption-based model we now offer pay-as-you-go licensing for SQL Server, enabled by Azure Arc for versions 2014 and up. Pay by the hour for spikes and ad-hoc usage and eliminate the need for full upfront licensing costs.

Pay-as-you-go Monthly Rate Hourly Rate
Standard Edition $- $-
Enterprise Edition $- $-

Pricing calculator for pay-as-you-go Azure Arc-enabled SQL Server available: here. View traditional SQL Server licensing options here.

Feature breakdown and licensing details for Azure Arc-enabled SQL Server available here.

For all Azure Arc-enabled SQL Server customers:

Additional services including, Microsoft Defender for Cloud*, Microsoft Purview and Azure Log Analytics are available for additional costs. These additional services are available for customers with existing SQL Server licenses who activate Azure Arc or for customers who leverage the pay-as-you-go licensing option for SQL Server.

*Customers can benefit from discounted pricing for Microsoft Defender when consumed through Azure Arc.

Questions? Check out some Frequently Asked Questions around getting started with Azure Arc-enabled SQL Server: here.

Azure Arc-enabled servers

Add-on Azure management services (Azure Update Manager, Azure Policy guest configuration, Azure Monitor, Microsoft Defender for Cloud etc.) are charged for Azure Arc enabled servers when enabled.

Azure Update Manager

Azure Update Manager is a unified service to help manage and govern updates for all your machines. Monitor Windows and Linux update compliance across your deployments in Azure, on-premises, and on other cloud platforms from a single dashboard. For more information refer to the documentation.

  • Azure Update Manager is available at no extra charge for managing Azure VMs and Arc-enabled Azure Stack HCI VMs. For Arc-enabled servers, it is charged at a daily prorated value which amounts to $5/server/month (assuming 31 days of connected usage). Learn more

Guest configuration feature of Azure Policy

Azure Policy's guest configuration feature provides compliance and configuration management of operating systems. Guest configuration can be used as a standalone platform or at-scale orchestrated by Azure Policy. Examples of compliance and configuration management include password policies, encryption protocols, administrative access, or validation of operational standards such as certificate expiration and network connectivity.

For more information about configuration assignments view the following docs page:

Billing is based on the number of servers registered with the service that have one or more guest configurations assigned to them. Billing is pro-rated hourly. Offline machines, such as machines that are disconnected or powered-off for the entire hour, are not billed.

Azure Arc resources managed by guest configuration are excluded from billing in the following scenarios.

Azure Automation

  • Guest configuration assignments are not billed if the machine is already managed by the state configuration or change tracking features offered by Azure Automation.

Microsoft Defender for Cloud

  • Azure Policy assignment of the Azure Security Benchmark initiative creates configuration assignment.
  • Azure Policy assignment of a built-in policy initiative in the "Regulatory Compliance" category creates configuration assignment.
  • Azure Policy assignment of a custom policy initiative created in Microsoft Defender for Cloud creates configuration assignment.

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Additional resources

Azure Arc

Learn more about Azure Arc features and capabilities.

Pricing calculator

Estimate your expected monthly costs for using any combination of Azure products.


Review the Service Level Agreement for Azure Arc.


Review technical tutorials, videos, and more Azure Arc resources.

  • Azure Policy has different capabilities. Azure Policy guest configuration is charged in a per-server basis at $6/month on servers outside of Azure connected through Azure Arc. You can use any number of policies on that server.

    Any other type Azure Policy that does not rely on guest configuration is offered at no additional cost, including VM extensions to enable services like Azure Monitor and Azure Security Center, or policies for auto tagging.

  • Azure Arc enabled Kubernetes is now Generally Available. See updated pricing details above.
  • We will update pricing details for Azure Arc enabled data services at General Availability.
  • To find the price of a specific service you can go to its page and click on the pricing tab.

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