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Windows Licensing

Understanding Microsoft Windows Server Licensing in the Cloud

This document outlines the licensing requirements for Microsoft Windows Server in a cloud environment and explains how the associated costs are calculated and billed to the customer.

Microsoft SPLA Licensing Terms

Microsoft's Service Provider License Agreement (SPLA) defines how Windows Server licenses are managed in hosted environments. According to these terms:

  • Licenses Are Based on Monthly Usage: Regardless of the billing model (hourly or monthly) for the server itself, the Windows Server license must be paid in full for each calendar month in which it is active.
  • No Prorated Licensing Costs: SPLA licensing does not allow partial or prorated payments based on the duration of server usage within a month. Even if a server is only used for a few hours or days, the entire month's license cost applies.

Impact on Customer Billing

This policy affects the customer's billing as follows:

  1. Billing for the Windows License:

    • A full monthly charge for the Windows Server license will be applied as long as the server exists and runs Windows Server, regardless of actual usage time within the month.
    • The license fee is separate from the server's compute costs, which may be billed hourly or monthly depending on your chosen billing model.

  2. Server Billing Models:

    • Hourly Billing: If you opt for hourly billing of the server, compute charges will reflect the actual time the server was active, but the Windows license charge will still apply for the full month.
    • Monthly Billing: Both compute and license charges will align on a monthly basis, with the license cost reflecting the SPLA requirement for the full calendar month.

Example Scenarios

  1. Scenario 1: Server runs for 10 hours in a month.

    • Compute costs: Calculated based on 10 hours of usage.
    • Windows license cost: Full monthly charge applies.

  2. Scenario 2: Server is active for the entire month.

    • Compute costs: Calculated for the entire month.
    • Windows license cost: Full monthly charge applies.

  3. Scenario 3: Server is deleted after 2 days.

    • Compute costs: Calculated for 2 days of usage.
    • Windows license cost: Full monthly charge applies.

Rationale Behind SPLA Policy

The SPLA licensing model ensures compliance with Microsoft's terms for hosting providers and guarantees consistent access to software updates and support. This model is designed to provide predictable costs for software licenses while adhering to Microsoft's licensing policies.

Customer Considerations

When deploying Windows-based servers in the cloud, customers should consider the following:

  • Optimize Usage: Plan workloads to maximize usage of the server within the month, ensuring the full license cost delivers value.
  • Understand Licensing Costs: Factor in the Windows license fee when budgeting for cloud server deployments.
  • Alternative Options: For workloads with intermittent usage, consider non-Windows operating systems or licensing models better suited to short-term usage.

For further clarification or assistance with planning your deployment, please contact our support team.