Who is Eligible for Azure Hybrid Benefit?
Licence Requirements
- Valid Windows Server licences with active Software Assurance or qualifying subscription coverage. (Microsoft documentation on Azure Hybrid Benefit for Windows Server)
- Windows Server Datacenter or Standard edition licences.
- Licences purchased through Microsoft Volume Licensing programmes or eligible CSP subscriptions.
Software Assurance Requirements
- Active Software Assurance coverage (or qualifying subscription) on your Windows Server licences. (Learn about Software Assurance)
- Continuous coverage is required to maintain benefits.
- Benefits cease if the Software Assurance or subscription licence expires.
Licence Mobility
- Ability to use licences both on-premises and in Azure. (Explore Azure Hybrid Benefit for Windows VMs)
- 180-day rule for licence reassignment during migration.
- Flexibility to move workloads between environments.
Core Licensing Rules
- Minimum of 8 cores per virtual machine must be licensed.
- Core licences must be purchased in packs of 2.
Additional Eligibility Considerations
Beyond the basic requirements, Azure Hybrid Benefit eligibility includes several extended considerations to help you maximise your existing investments. Please ensure you meet the following criteria:
- Eligible Windows Server licences must be acquired via recognised commercial programmes such as Microsoft Volume Licensing, Enterprise Agreements, or Cloud Solution Provider (CSP) subscriptions.
- Active Software Assurance or a qualifying subscription is required for all Windows Server licences used to claim the benefit.
- For Windows Server Standard, the benefit permits use either on-premises or in Azure (not concurrently), except for a one-off migration period of up to 180 days.
- Windows Server Datacenter edition allows simultaneous usage on-premises and in Azure, offering enhanced flexibility.
- All physical cores must be fully licensed – a minimum of 8 cores per virtual machine and 16 cores per server, with licences purchased in packs of 2.
- Eligibility extends to deployments on Azure Kubernetes Service (AKS), Azure Local, and Azure Stack HCI, subject to specific core and usage rules.
- The benefit remains active only as long as your Software Assurance or subscription coverage is current.
Deployment Scenarios and Best Practices
- Optimise cost savings by using Azure Hybrid Benefit for long-running, always-on workloads.
- Combine Azure Hybrid Benefit with Azure Reserved Instances or Azure Savings Plans to secure further discounts. (Learn about Reserved Instances)
- For Windows Server Standard, plan for the 180-day migration window when transitioning workloads from on-premises to Azure.
- Regularly review your licence inventory to ensure compliance and to fine-tune cost optimisation.