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Azure

Azure Hybrid Benefit

Migrate to Azure, maximize your savings, and modernize your environment.
Overview

Embrace migration at a faster pace

Reduce infrastructure costs and accelerate cloud adoption.
  • Allocate more budget towards innovation and competitive differentiation with cost savings from Azure Hybrid Benefit. With free Extended Security Updates (ESU), SQL Server customers can save an average of 76% compared to the leading cloud provider,1 and save up to 76% versus pay-as-you-go pricing with Azure Hybrid Benefit for Linux.2
  • Benefit from 180 days of migration time for Windows and SQL Server, allowing you to run workloads on-premises and in Azure simultaneously. Ensure continuous operation and avoid downtime by migrating your Red Hat Enterprise Linux (RHEL) and SUSE Linux Enterprise Server (SLES) workloads to Azure without the need for redeployment.
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  • Seize this Azure discount for RHEL and SLES customers with active subscriptions. Azure Hybrid Benefit is also applicable to Azure Local, Azure Kubernetes Services, and Azure Dedicated Host at no cost.
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Pricing calculator

Discover your savings with Azure Hybrid Benefit

Estimate your savings for specific Azure resources with the pricing calculator, or get a broader understanding of Azure Hybrid Benefit cost savings by operating system.
Customer stories

Discover how customer save costs with Azure pricing offers

FAQ

Frequently asked questions

  • Azure Hybrid Benefit is an Azure offer that helps organizations reduce expenses during their migration to the cloud. By providing Azure discounts on Windows and SQL Server licenses, as well as Linux subscriptions, Hybrid Benefit supports infrastructure modernization and a cloud-first strategy. You can combine Azure Hybrid Benefit with other strategic pricing offerings, such as Azure Reserved VM Instance, to save up to 80%* more than the standard pay-as-you-go rate for Windows Server.

    *Actual savings may vary based on region, instance type, or usage.
  • SQL Server and Windows Server core licenses with active Software Assurance or qualifying subscription core licenses have Azure Hybrid Benefit eligibility in Azure, including: Windows Server Datacenter edition, Windows Server Standard edition, SQL Server Enterprise edition, SQL Server Standard edition. If you don't have Software Assurance, please work with your Microsoft account team or a Cloud Service Provider partner. The offer is available in all Azure regions.
  • You can combine Azure Hybrid Benefit for SQL Server and Windows Server when you use SQL Server with Azure Virtual Machines and Azure Dedicated Host. The process of applying Azure Hybrid Benefit for SQL Server on Azure Virtual Machines depends on the deployment option.
  • Yes. However, to protect data and applications during the end-of-support transition, we recommend adding a subscription for extended security updates. Learn more.
  • With the Azure Hybrid Benefit discount, Windows Server customers can save up to 80%* more than the standard pay-as-you-go rate.

    To qualify for Azure Hybrid Benefit for Windows Server, you need on-premises core licenses for Windows Server with active Software Assurance or qualifying subscription licenses. Software Assurance and qualifying subscription licenses are only available as part of certain commercial licensing agreements. To learn more about commercial licensing, see Microsoft Licensing.

    *Actual savings may vary based on region, instance type, or usage.
  • Azure solutions that can attest for Azure Hybrid Benefit include Microsoft Azure SQL, Azure SQL Managed Instance, Azure Kubernetes Service, Azure Dedicated Host, Azure Local, Azure VMs, and Azure VMWare Solution.
  • Azure Hybrid Benefit can be used in a few ways:
    • Windows Server Standard edition: A set of eight-core licenses entitles you to run an instance of up to eight cores. You’ll also get 180 days of migration allowance to use your licenses on-premises and in Azure while migrating servers.
    • Windows Server Datacenter edition for VMs: Choose to apply your Azure Hybrid Benefit to individual virtual machines or to the entire host.
       
    Learn more about Azure Dedicated Host.

  • SQL Server customers can save up to 85%* versus the pay-as-you-go rate.

    Azure Hybrid Benefit is applicable to these products and services for SQL Server on Azure:
    • vCPU-based service tiers of Azure SQL Database (excluding serverless)
    • Azure SQL Managed Instance
    • SQL Server in Azure Virtual Machines
    • SQL Server Integration Services
    • Azure Arc–enabled SQL Managed Instance
    For more details, go to Azure Hybrid Benefit - Azure SQL Database & SQL Managed Instance on Microsoft Learn.

    *Actual savings may vary based on region, instance type, or usage.
  • It applies to highly virtualized workloads on-premises and is only available for Azure SQL Database (General Purpose and Hyperscale service tiers, excluding serverless), Azure SQL Managed Instance (General Purpose service tier), SQL Server Standard Virtual Machines, Azure Data Factory, and SQL Server Integration Services (Standard). You can convert one core of SQL Server Enterprise edition with Software Assurance to receive up to four vCores or four vCPUs.
  • No, your licenses must be used either on-premises or in the cloud, but you'll have 180 days of migration allowance to use your licenses on-premises and in Azure while migrating servers.
  • To use Azure Hybrid Benefit for Windows and SQL Server, your Software Assurance or subscriptions must be active. If you choose not to renew your Software Assurance when it expires, you'll need to remove your Azure Hybrid Benefit selections from your resources in the Azure portal.
  • Azure Hybrid Benefit for SQL Server gives you more value from your SQL Server licenses and savings of up to 55%* on SQL Server Integration Services. You can apply the benefit to SQL Server Enterprise edition and SQL Server Standard edition core licenses covered by active Software Assurance or qualifying subscriptions and use your SQL Server licenses to run SQL Server Integration Services packages on Azure at a lower base rate.

    *Actual savings may vary based on region, instance type, or usage.
  • If you're eligible for Azure Hybrid Benefit, you can apply it to Azure Dedicated Host under the same terms and conditions as individual virtual machines. Additionally, if you have Software Assurance with SQL Server Enterprise edition and then license Azure Dedicated Host at the host level, you'll get unlimited virtualization rights. Learn more about Azure Dedicated Host.
  • The Azure Hybrid Benefit applies to Linux subscriptions, allowing customers to run Red Hat Enterprise Linux (RHEL) or SUSE Linux Enterprise Server (SLES) licenses on Azure.
  • No, you can't. Trying to enter a license type that incorrectly matches the distribution running on your virtual machine will not update any billing metadata. But if you accidentally enter the wrong license type, updating your virtual machine again to the correct license type will still enable Azure Hybrid Benefit.
  1. [1]
    The 76% savings is based on one standard D2s v3 Azure VM with RHEL or SLES subscription in the East US region running at a pay-as-you-go rate vs a reduced rate for a 3-year Reserved Instance. Based on Azure pricing as of October 2022. Prices subject to change. Actual savings may vary based on location, instance type, or usage.
  2. [2]
    Based on comparisons with AWS equivalent VM types and prices plans, when applying WS and SQL Server licenses with AHB and free ESUs. Calculated using sample VMs such as StandardB2ms, StandardD2sv3, and StandardD4s_v3 across various regions, including US West (Oregon), Frankfurt, and Paris. Based on on-demand pricing and include License and SA, and ESU costs. Actual savings may vary depending on the region, instance size, compute family, and customer agreement. Prices are as of March 2026 and are subject to change.
  3. [3]
    Based on comparisons with AWS equivalent VM types and price plans, when applying the AHB to WS Server licenses. Calculated using sample VMs such as StandardB2ms, StandardD2sv3, and StandardD4s_v3 across various regions, including US West (Oregon), Frankfurt, and Paris. Based on on-demand pricing and include License and Software Assurance costs. Savings may vary depending on the region, instance size, compute family, and customer agreement. Prices are as of Sept 2024 and are subject to change.
  4. [4]
    The Total Economic Impact™ Of Microsoft Azure Solutions That Enhance Cost Efficiency: Accelerating Cloud Migration and AI Adoption With Azure Solutions, a Forrester Consulting study commissioned by Microsoft, June 2025.

    To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed eight decision-makers with experience using the evaluated Azure solutions. For the purposes of this study, Forrester aggregated the interviewees’ experiences and combined the results into a single composite organization, a global enterprise with $1 billion in annual revenue that is migrating to the cloud to modernize and innovate with AI. It has an annual Azure spend of $12.5 million, which grows 5% year-over-year.