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SQL Server 2025 Standard Edition – Licensing Question

Konstantinos Sotiropoulos 0 Reputation points
2026-03-27T10:51:16.89+00:00

Dear Microsoft Licensing Team,

I am writing to request clarification on a specific SQL Server 2025 licensing scenario before making a purchase decision.

Our infrastructure is as follows:

• 1 physical server with 32 physical cores.

• 3 Virtual Machines running on that server, each with 8 virtual cores.

• Each VM runs one instance of SQL Server.

• All 3 VMs will remain on this single physical server.

Our intended licensing approach:

We intend to purchase SQL Server 2025 Standard Edition perpetual licenses (without Software Assurance) covering all 32 physical cores of the server, using the Per Core licensing model based on physical cores.

Our specific question:

Does SQL Server 2025 Standard Edition, licensed by physical cores (all 32 cores of the physical server, without Software Assurance), legally permit running SQL Server instances inside Virtual Machines hosted on that licensed physical server?

Context for the question:

We are aware that SQL Server 2022 explicitly restricted VM-level licensing to customers with active Software Assurance or subscription licenses. However, we note that the SQL Server 2025 Standard Edition license terms describe two separate options under Section 2(b): (i) Physical Cores on Server and (ii) Individual Virtual OSE, without the explicit SA-only restriction on VM usage that appeared in the SQL Server 2022 Licensing Guide.

We would appreciate a written confirmation on whether our intended approach - physical core licensing of the full server without SA - is compliant for running SQL Server 2025 Standard inside VMs on that server.

Thank you in advance for your assistance.

Windows for business | Windows Client for IT Pros | Devices and deployment | Licensing and activation
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  1. Marcin Policht 90,725 Reputation points MVP Volunteer Moderator
    2026-03-27T11:11:59.0633333+00:00

    AFAIK, your proposed approach is not compliant without Software Assurance.

    Licensing all 32 physical cores of the host with SQL Server Standard Edition (per core, without Software Assurance) gives you the right to run SQL Server in one Operating System Environment (OSE), either physical or virtual. It does not grant unlimited or multiple virtual OSE rights. To run SQL Server in multiple VMs under the Per Core model without Software Assurance, each VM must be licensed individually based on the number of virtual cores assigned to that VM, subject to the minimum core licensing rules.

    In your scenario, you have three VMs each with 8 virtual cores. Without Software Assurance, you would need to license each VM separately for 8 cores (with a minimum of 4 cores per VM, which you already exceed). Simply licensing all 32 physical cores of the host does not cover multiple VMs.

    The ability to license the entire physical server and run SQL Server in any number of VMs on that server is a benefit that applies only when all physical cores are licensed and those licenses are covered by active Software Assurance (or when using subscription licensing). This distinction has been consistent across recent versions, even if the wording in newer Product Terms separates physical and virtual licensing options more clearly.

    Effectively, your intended approach, which involves licensing all 32 physical cores without Software Assurance and running three separate SQL Server instances in three VMs on that host is not compliant. To be compliant, you should either license each VM individually by virtual cores or add Software Assurance to the full set of physical core licenses.

    More at https://www.microsoft.com/licensing/terms/productoffering/SQLServer

    If the above response helps answer your question, remember to "Accept Answer" so that others in the community facing similar issues can easily find the solution. Your contribution is highly appreciated.

    hth

    Marcin

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