Clarification for new Windows Server 2025 pay-as-you-go licensing model

Question

I can not find any clear information how to license virtual machines in this new licensing model .

If I need only one virtual machine with Windows Server 2025 (small one with 2 vCPU and 16GB vRAM) on this new licensing model it will be necessary to license only those virtual CPUs or should I check how many CPUs and COREs have real physical server?

In fact I do not know physical infrastructure and I do not have any Microsoft licenses for it.

Just need to add one simple VM and want to correctly license (preferably using this new pay-as-you-go licensing model).

Answer 1

Hello A. User,

Thank you for posting in Microsoft Community forum.

Here is general guidance on how the new pay‐as‐you‐go model for Windows Server typically works. (Please double‐check with an official Microsoft licensing representative or your reseller before making any decisions.)

1. License‐included versus BYOL:
    • In many cloud scenarios—especially when you use the built‐in “license‑included” option—the Windows Server licensing costs are bundled into the hourly or monthly rate for the virtual machine.
    • In those cases, you pay for what you use (for example, based on the number of virtual cores or “vCPUs” allocated to your VM) without worrying about the physical host’s CPU or core counts.
2. Licensing by vCPU (or vCore):
    • With the new pay‑as‑you‑go model in many cloud services (like on Microsoft Azure), the pricing is typically determined by the number of vCPUs (or vCores) allocated to your VM rather than the underlying physical hardware.
    • For a VM with 2 vCPUs, you’d generally be paying for those two vCPUs (sometimes subject to a minimum number of cores per license even if your VM has fewer, so be sure to check the “minimum charge” details).
3. No need to know the physical infrastructure details:
    • If you’re opting for the license‑included model, you generally do not need to know the details of the physical server hosting the VM. The pricing and licensing “abstract away” the underlying hardware, so you’re only concerned with the resources you allocate to your VM.
4. Windows Server 2025 Considerations:
    • Microsoft periodically updates its licensing policies. You mentioned Windows Server 2025—assuming it follows the trends set by its predecessors (such as Windows Server 2022), the pay‑as‑you‑go model should let you simply “attach” a licensed VM (via the cloud provider’s offering) without having to think about physical cores.
    • However, check for any new minimums or core counts per license that might be specified for Windows Server 2025. Sometimes, even with license‑included options, there could be a minimum number of licensed cores per VM instance (for example, a minimum of 2 or 4 cores per VM even if you assign 2 vCPUs).

If you’re using a specific cloud provider (for instance, Azure), check their pricing and licensing FAQs, as they often have detailed explanations on how the licensing is “built‑in” to the service.

I hope the information above is helpful.

If you have any question or concern, please feel free to let us know.

Best Regards,
Daisy Zhou