Microsoft’s Azure Hybrid Benefit for Windows Server offers customers significant value, except under one scenario. Customers who have Windows Server Datacenter core licenses covered with active Software Assurance who no longer have on-premises workloads to assign the licenses to but would like to utilize the Azure Hybrid Benefit for Windows Server on multitenant Azure. Under this scenario customers are overpaying 500% for their Azure VMs.
How can this be? The answer is simple, Windows Server Datacenter and Windows Server Standard have the exact same Azure Hybrid Benefit when running on multitenant Azure when dual use rights are not required. Yet, Windows Server Datacenter costs over 500% more to maintain active Software Assurance compared to Windows Server Standard.
Please see the below image explaining the Windows Server Azure Hybrid Benefit by Windows Server edition, the scenario in question is highlighted in yellow.
It is important to note that System Center Server Datacenter provides ten (10) managed Azure VMs where System Center Server Standard only provides two (2) managed Azure VMs under License Mobility through Software Assurance. Thus, Microsoft has established the value for System Center Server Datacenter at five (5) times the value of System Center Server Standard.
The current Azure Hybrid Benefit for Windows Server which allows Windows Server Datacenter to license Azure Dedicated Hosts and receive unlimited Azure VMs when Windows Server Datacenter core licenses are running only on Azure. Thus, Microsoft has established special Azure Hybrid Benefit rights for Windows Server Datacenter when dual use rights are not needed.
Based on the above two paragraphs, Microsoft should add a special Azure Hybrid Benefit for Windows Server Datacenter when running on multitenant Azure when the indefinite dual use right is not needed. The new right should allow customers to run five (5) Azure vCPU for each Windows Server Datacenter core license covered with active Software Assurance.
Microsoft could benefit from our proposal by driving increased Azure revenue. Thus, a win for the customer and Microsoft!