Licensing Windows Server

Starting from October 2022, there are two methods available for licensing Windows Server:

1.Licensing based on Physical Cores on a Server:

• When opting for licensing based on physical cores, customers are required to obtain licenses for all the physical cores on the server where the software will be running.
• The licensed server must have a minimum of 16 core licenses, with a minimum of eight core licenses per physical processor.
• The higher of the two minimum requirements determines the minimum number of licenses that any server running the software must possess.
• Datacenter edition: With the necessary number of licenses assigned to a server, customers can utilize the software in the physical Operating System Environment (OSE) and an unlimited number of virtual machines on that licensed server.
• Standard edition: With the required licenses assigned to a server, customers can run the software in up to two OSEs (physical or virtual) on the licensed server. If the customer runs the software in two virtual machines, they are also allowed to use the software in the physical OSE as long as it is solely used for hosting and managing the virtual machines.
• Customers can employ Windows Server Containers with either edition. Windows Server Datacenter terms permit the use of any number of Windows Server Containers with or without Hyper-V isolation on servers licensed based on physical cores. Windows Server Standard terms allow the use of two Windows Server containers with Hyper-V isolation and an unlimited number of Windows Server containers without Hyper-V isolation on servers licensed based on physical cores.
• If customers wish to use additional virtual machines or Windows Server Containers with Hyper-V isolation on a server licensed for Windows Server Standard, they can fully relicense the server based on physical cores, which permits the use of two additional virtual machines or Windows Server Containers with Hyper-V isolation. This practice is often referred to as "stacking." Alternatively, customers with active Software Assurance on their Standard licenses may choose to purchase Step Up licenses to Datacenter edition or explore licensing by virtual machine.

2. Licensing by Individual Virtual Machine:

Theoretically a very attractive option, unfortunately the SA or subscription requirements make it economically unviable:

• • • Licensing by virtual machine is an option for customers who have licenses with Software Assurance or who have subscription licenses.
    • All virtual cores in a virtual machine must be licensed, with a minimum of 8 Core licenses assigned to a virtual machine.
    • Server with two virtual machunes must has 16 Core licenses assigned to it since there are two virtual machines, each requiring 8 Core licenses.
    • CALs are required for users or devices and those CALs must also have active SA or be subscription licenses. 

Customers choosing this licensing model do not have rights to run Windows Server in the physical Operating System Environment

Client Access Licenses:

• Alongside licensing the server with core licenses using either of the options mentioned above (based on physical cores or by virtual machine), accessing the server also requires a Client Access License (CAL).
• CALs are available as device CALs or user CALs, and each device or user must be licensed to directly or indirectly access the server (e.g., multiplexing).
• CALs are not necessary for accessing the server from another licensed server, a server running a Web Workload or HPC Workload, or for accessing a physical OSE used exclusively for hosting and managing Virtual OSEs.

Essentials edition:

Windows Server 2022 Essentials is only available through OEM licensing.

We still offer previous versions of Windows Server Essentials (2016 & 2019):

• Licensed with a single Server license
• Restricted to 25 user accounts and 50 devices
• Supported as a Long-Term Servicing Channel release
• Limits:
  • Maximum number of 64-bit sockets: 2 sockets
  • Maximum number of CPU cores: No limit
  • Maximum RAM:  64 GB
  • Can be used as virtualization guest: Yes; one instance of the physical operating system environment and one instance of a virtual operating system environment on the licensed server.

Customers should review the official licensing documentation and consult with a Microsoft licensing specialist to ensure compliance and determine the most suitable licensing approach for their specific requirements.

Additional materials from Microsft:

Windows Server 2022 on-prem licensing

Licensing Windows Server by virtual machine

Windows Server 2019 on-prem licensing