Clarification on Azure Virtual Machine Pricing and Windows Licensing

Niket Kumar Singh 195 Reputation points

Hello Community,

I'm trying to understand how Azure virtual machine pricing works, particularly regarding Windows licensing. I noticed that when I select different VM sizes in the Azure pricing calculator, the cost for the Windows license seems to vary. Can someone please clarify how the pricing for Windows licenses is determined for Azure virtual machines?

Specifically, I'd like to know:

  1. How is the cost of the Windows license calculated for Azure virtual machines?
  2. Does the cost of the Windows license vary based on the size or specifications of the VM?
  3. Are there any factors other than VM size that affect the cost of the Windows license on Azure?
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Any insights or resources to help me better understand this would be greatly appreciated. Thank you!

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An Azure platform as a service offer that is used to deploy web and cloud applications.
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Azure Virtual Machines
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An Azure service that is used to provision Windows and Linux virtual machines.
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Windows Server
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A family of Microsoft server operating systems that support enterprise-level management, data storage, applications, and communications.
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Windows Licensing
Windows Licensing
Windows: A family of Microsoft operating systems that run across personal computers, tablets, laptops, phones, internet of things devices, self-contained mixed reality headsets, large collaboration screens, and other devices.Licensing: Rules, regulations, and restrictions that define how software can be used and distributed.
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Accepted answer
  1. Anveshreddy Nimmala 2,705 Reputation points Microsoft Vendor

    Hello Niket Kumar Singh,

    Welcome to microsoft Q&A, Thankyou for posting your query here.

    The cost of the Windows license for Azure virtual machines is calculated based on the size of the VM and the number of cores that are used.

    The cost of the license is included in the hourly price of the VM.

    Therefore, the cost of the Windows license does vary based on the size and specifications of the VM.

    Apart from the VM size, there are no other factors that affect the cost of the Windows license on Azure.

    If you use Azure Hybrid Benefit i.e. you have your own windows license brought externally and using to create VM in azure then the windows licensing cost does not vary depending on the size of the VM

    If an answer has been helpful, please consider accepting the answer to help increase visibility of this question for other members of the Microsoft Q&A community. If not, please let us know what is still needed in the comments so the question can be answered. Thank you for helping to improve Microsoft Q&A!


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