Skip Navigation

Azure Hybrid Benefit

Bring Windows Server and SQL Server on-premises licenses with Software Assurance to Azure

  • Migrate your workloads to Azure, the best cloud for Windows Server and SQL Server
  • AWS is 5 times more expensive than Azure for Windows Server and SQL Server*
  • Apply savings across Azure Virtual Machines, Azure SQL Database PaaS services, and Azure Dedicated Host
Call sales 0-800-026-0797

AWS is 5 times more expensive than Azure for Windows Server and SQL Server

Achieve the lowest cost of ownership when you combine the Azure Hybrid Benefit, reservation pricing, and extended security updates.

  • Receive free extended security updates when you migrate your Windows Server and SQL Server 2008 and 2008 R2 workloads to Azure virtual machines.
  • Save when you prepay your compute capacity on a one- or three-year term with reservation pricing, which not only improves budget forecasting but also provides flexibility to exchange or cancel should business needs change.
Learn more

Azure Hybrid Benefit Savings Calculator

  1. Windows Server VMs
  2. SQL Server VMs
  3. SQL Database

Enter the number of core licenses you own that are covered with active Software Assurance or Windows Server Subscriptions

Enter planned Azure deployment of Windows Virtual Machines

Learn more about Windows Server instances
Eligible Virtual Machines based on instance size selection
Learn more about eligibility

Enter the number of SQL Server license cores with Software Assurance

Enter planned Azure deployment of SQL Server Instances

Save up to 85% by combining the Windows Server and SQL Server Licenses you already own

Eligible Virtual Machines with SQL Server Enterprise edition based on your Instance selection

Enter the number of SQL Server license cores with Software Assurance

Enter planned Azure deployment of SQL Server Instances

Eligible number of Managed Instance General Purpose instances based on your Instance selection

Monthly Estimates

Without Azure Hybrid Benefit per month
With Azure Hybrid Benefit per month
Savings across eligible Virtual Machines per month Savings across eligible databases per month
(% savings)

Annual Estimates

Your estimated annual savings on Azure across all virtual machines Your estimated annual savings on Azure across all databases

Eligible number of virtual machines is 0. You need at least cores in licenses with Software Assurance to be eligible for at least 1 virtual machine of your instance size selection.

Please enter more than zero hours per month

Sorry, the selected Windows Virtual Machine instance is not available in the selected region. Please make another selection.

Total licenses must be greater than zero

Sorry, the selected SQL Server instance is not available in the selected region. Please make another selection.

Eligible number of virtual machines is 0. You need at least cores in licenses with Software Assurance to be eligible for at least 1 virtual machine of your instance size selection.

Sorry, the selected SQL Database instance is not available in the selected region. Please make another selection.

Eligible number of SQL Database instances is 0. You need at least cores in licenses with Software Assurance to be eligible for at least 1 SQL Database.

Activate your Azure Hybrid Benefit

Windows Server VMs:

Learn how to deploy new VMs with Azure Hybrid Benefit for Windows Server here

SQL Database:

Learn more on how to apply Azure Hybrid Benefit to Azure SQL Database PaaS services here.

New to Azure? Create a Free Account

FAQ

Windows Server virtual machines

  • The Azure Hybrid Benefit is a pricing benefit for customers who have licenses with Software Assurance, which helps maximize the value of existing on-premises Windows Server and/or SQL Server license investments when migrating to Azure. Eligible customers can save up to 40%* on Azure Virtual Machines (infrastructure as a service, or IaaS), and save up to 55% on Azure SQL Database (platform as a service, or PaaS) and SQL Server on Azure Virtual Machines (IaaS) with Azure Hybrid Benefit, which increases to up to 80% when combined with Azure Reserved Instances.

    * Actual savings may vary based on region, instance type, or usage.

  • The base compute rate is equal to the Linux rate for virtual machines.

  • Azure Hybrid Benefit is available to customers who own eligible SQL Server and/or Windows Server licenses with active Software Assurance or the equivalent qualifying subscription licenses.

    • Windows Server Datacenter edition with Software Assurance
    • Windows Server Standard Edition with Software Assurance
    • SQL Server Enterprise Core with Software Assurance
    • SQL Server Standard Core with Software Assurance

    The offer is available in all Azure cloud regions.

    Customers eligible for Azure Hybrid Benefit can use this benefit in Azure Dedicated Host (more details in Windows Server and SQL Server sections).

  • Azure Hybrid Benefit helps you get more value from your Windows Server licenses and save up to 40 percent* on virtual machines.

    Each 2-processor license or each set of 16-core licenses, Datacenter or Standard Editions, are entitled to two instances of up to 8 cores, or one instance of up to 16 cores. Datacenter Edition licenses allow for simultaneous usage both on-premises and in Azure. Standard Edition licenses must be used either on-premises or in Azure, although customers get 180 days of concurrent use rights while they are migrating their servers.

    * Actual savings may vary based on region, instance type, or usage.

  • Azure Hybrid Benefit for Windows Server on Azure Dedicated Host can be used in three ways:

    • Standard edition: Customers with Windows Server Standard edition are entitled to 2 instances, similar to how Azure Hybrid Benefit applies to Windows Server on Azure Virtual Machines on shared servers. Each 2-processor license or each set of 16-core licenses are entitled to two instances of up to 8 cores, or one instance of up to 16 cores. The Azure Hybrid Benefit for Standard Edition licenses must be used either on-premises or in Azure although customers get 180 days of concurrent use rights while they are migrating their servers.
    • Datacenter edition for VMs: Customers with Windows Server Datacenter edition can apply their Azure Hybrid Benefit either to individual VMs or to the entire host. When licensing individual VMs, each 2-processor license or each set of 16-core licenses is entitled to two instances of up to 8 cores, or one instance of up to 16 cores on Azure Dedicated Host services. When allocated to Azure Dedicated Host services by VM, Datacenter Edition licenses also allow for simultaneous usage both on-premises.
    • Datacenter edition for physical host: Customers with Windows Server Datacenter edition have unlimited virtualization rights when they fully license all of the cores on the physical host, but unlike when they license by VM, simultaneous usage on-premises is not allowed after a 180 days migration period.
    • Learn more about Azure Dedicated Host.

  • Yes, you can. The "retroactive tagging" feature enables you to tag your existing VMs to enjoy this benefit. You can find more about how to convert existing VMs on Azure to use Azure Hybrid Benefit for Windows Server

SQL Server (Virtual Machines and SQL Database)

  • Azure Hybrid Benefit for SQL Server is an Azure-based benefit that enables customers to use SQL Server licenses with Software Assurance or qualifying subscription licenses to pay a reduced rate (“base rate”) on SQL Database vCore-based options, such as Managed Instance, vCore-based Single Database, and vCore-based Elastic Pool; on SQL Server in Azure Virtual Machines (including, but not limited to, Azure Dedicated Host); and on SQL Server Integration Services.

    Note: You can apply the Azure Hybrid Benefit even with an active SKU, but the base rate will apply from the time you select the benefit in the portal. No credit will be issued retroactively.

    The Azure Hybrid Benefit for SQL Server provides:

    • The ability to move your licenses to a fully managed PaaS product. Azure is the only cloud that provides this ability. Amazon Web Services Relational Database Service (RDS) is not eligible for bring-your-own-license (BYOL) and must be offered as “license-included.”
    • Four cores in the cloud for every one core on-premises for Enterprise edition customers in the General Purpose or Hyperscale service tiers.
    • 180 days of dual-use rights to apply to current deployment (on-premises or on third-party cloud) and in Azure to allow for data migration.

    For a hosted solution with maximum savings, combine the Azure Hybrid Benefit for SQL Server with the Azure Hybrid Benefit for Windows Server.

  • Read the full FAQs to learn how the Azure Hybrid Benefit can be applied to Azure SQL Database and Azure Virtual Machines.

  • The virtualization benefit available with Azure Hybrid Benefit for SQL Server applies to highly virtualized workloads on-premises. The benefit is only available for Azure SQL Database. With it, you can convert one core of SQL Server Enterprise edition with active Software Assurance to receive up to four vCores of SQL Database General Purpose service tier or SQL Database Hyperscale service tier at the reduced rate. This makes moving virtualized applications to vCore-based SQL Database options highly cost-effective. For example, if you have four core licenses of SQL Server Enterprise edition, you can receive up to 16 vCores of SQL Database General Purpose at the reduced base rate.

  • The primary difference in the Azure Hybrid Benefit for SQL Server between Azure Virtual Machines and Azure SQL Database is that the virtualization benefit is only available on Azure SQL database. Use this benefit when migrating from SQL Server Enterprise edition on-premises to Azure SQL Database General Purpose or Hyperscale service tiers. To learn more about the differences between SQL Server in Azure Virtual Machines vs. Azure SQL Database, read the documentation.

  • Your licenses must be used either on-premises or in the cloud; however, you have a 180-day grace period during which you can use licenses both on-premises and in the cloud to facilitate migration.

  • No. The Azure Hybrid Benefit cannot be applied retroactively.

  • To use the Azure Hybrid Benefit for SQL Server, you need active Software Assurance. If your Software Assurance expires and you don’t renew it, you’ll be moved to the License-Included pricing of the respective service tier. This depends on the implementation of license and SA validation.

  • The Azure Hybrid Benefit for SQL Server is available to customers with either of the following:

    • SQL Server Enterprise Core with Software Assurance or qualifying subscription licenses
    • SQL Server Standard Core with Software Assurance or qualifying subscription licenses

    If you don’t have Software Assurance, you can purchase it with new licenses at list prices or with qualifying subscription licenses.

  • The Azure Hybrid Benefit for SQL Server gives you more value from your SQL Server licenses and savings of up to 55 percent on SSIS. You can apply the benefit to SQL Server Enterprise Core and Standard Core licenses covered with Software Assurance or qualifying subscription licenses, and use your SQL Server licenses to run SQL Server SSIS packages on Azure at a lower base rate.

  • This hybrid benefit is only available for use with:

    • vCore-based service tiers of Azure SQL Database: Managed Instance, Single Database and Elastic Pool
    • SQL Server in Azure Virtual Machines
    • SQL Server Integration Services (SSIS)

  • Customers eligible for Azure Hybrid Benefit can use this benefit in Azure Dedicated Host under the same terms and conditions. Additionally, Software Assurance customers with SQL Server Enterprise edition who license the Azure Dedicated Host at the host level have unlimited virtualization rights. For customers migrating existing workloads to Azure Dedicated Host, there are 180 days of concurrent use rights.

    Learn more about Azure Dedicated Host.

  • Benefits for SQL Server and Windows Server can be used together when you use SQL Server in Azure Virtual Machines.

    Applying Azure Hybrid Benefit differs for each of the three SQL Server on Azure Virtual Machine deployment options:

    1. SQL Server on Azure Virtual Machine Pay-as-you-go (“PAYG”) or BYOL (Bring Your Own License) images from Azure Marketplace
      1. Option A: in the Azure Portal, select the checkboxes for Azure Hybrid Benefit for Windows Server and Azure Hybrid Benefit for SQL Server either during provisioning or for an existing VM
      2. Option B: use the Resource Provider to activate Azure Hybrid Benefit for SQL Server. Then use apply Azure Hybrid Benefit for Windows Server using the PowerShell instructions
    2. Self-installations of SQL Server on Azure Virtual Machines
      1. Use the Resource Provider to activate Azure Hybrid Benefit. Then use apply Azure Hybrid Benefit for Windows Server using the PowerShell instructions.

    In Azure SQL Database, you only need to use the Azure Hybrid Benefit for SQL Server. You can activate the benefit via the Azure portal by affirming that you have sufficient active licenses with Software Assurance or qualifying subscription licenses.

Additional resources

Full FAQ

Review frequently asked questions on the Azure Hybrid Benefit

Datasheet

Download a summary on the Azure Hybrid Benefit

Windows Server on Azure

Learn why customers are choosing Azure for Windows workloads

Documentation

Review technical tutorials and more resources

*Calculations based on scenarios running 744 hours/month for 12 months at 3-year Reserved Instances or Reserved Capacity. Prices as of 10/24/2018, subject to change. Azure Windows VM calculations based on one D2V3 Azure VM in US West 2 region at the SUSE Linux Enterprise Basic rate. AWS calculations based on one m5.Large VM in US West (Oregon) using Windows Server pay-as-you-go rate for Reserved Instances under Standard 3-year term, all upfront payment. SQL Server calculations based on 8 vCore Azure SQL Database Managed Instance Business Critical in US West 2 running at Azure Hybrid Benefit rate. AWS calculations based on RDS for SQL EE for db.r4.2xlarge on US West (Oregon) in a multi AZ deployment for Reserved Instances under Standard 3-year term, all upfront payment. Extended security updates cost used for AWS is based on Windows Server Standard open NL ERP pricing in USD. Actual savings may vary based on region, instance size, and performance tier. Savings exclude Software Assurance costs, which may vary based on Volume Licensing agreement. Contact your sales representative for details.