Dear Michael,
Thank you for your question regarding CAL requirements for your Azure Windows Server VM setup. The licensing terms for Azure VMs can indeed be a bit confusing, so let me clarify the situation.
For Azure Windows Server VMs, Microsoft includes the necessary server licenses as part of the VM cost, which covers the operating system itself. However, when it comes to CALs, the situation differs. If your users are connecting directly to the Windows Server (for example, via RDP for administrative purposes or to access applications running on the server), then each user or device accessing the server typically requires a CAL. This is a standard Windows Server licensing requirement and applies even in Azure.
Since you mentioned that only one user will be connected at a time, you would need at least one User CAL (or Device CAL, depending on your licensing model). Azure does not include these CALs as part of the VM cost—they must be purchased separately. The official Microsoft licensing documentation confirms this, and you can find more details in the Microsoft Product Terms or the Azure Windows Server licensing FAQ.
If you are using RDP strictly for administrative access (and not for running applications), you might be able to leverage the two free "Administrative Use" RDP connections that Windows Server allows without additional CALs. However, if end users are accessing an application hosted on the VM, a CAL would still be required.
For definitive confirmation, I recommend reviewing the Microsoft Product Terms document or consulting with your Microsoft licensing specialist or reseller to ensure compliance.
Let me know if you need further assistance or specific references from Microsoft’s official documentation.
Best regards,
Alex
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