Licensing required to add a vm to Windows Server 2019 Standard

Question

I have a client that has one physical server. This server has a 16-core CPU and is running Windows Server 2019 Standard OEM. At the time that I built the server, I ordered an OEM license with media. They have two virtual machines on this host. Now they want to add another virtual machine. I'm their CSP and I want to properly license them to add this new virtual machine. My CSP partner is saying that I have to by 32-cores of Server 2022 Standard on an Open Value EA. The cost is outrageous just to add a single virtual machine. Does anyone know about this article?

https://learn.microsoft.com/en-us/partner-center/customers/csp-on-premises-software

What is the proper way to add licensing to allow for a third virtual machine on Server Standard? I wouldn't mind upgrading to 2022 if needed. Thank you in advance.

Answer 1

Hello 360VisionIT,

thank you for posting on the Microsoft Community Forums.

Licensing for Windows Server, especially when dealing with virtual machines (VMs), can be quite complex due to the various rules and requirements Microsoft has in place. Let's break down your situation and the options available for licensing additional VMs.

Current Setup:

• Physical Server: 16-core CPU, running Windows Server 2019 Standard OEM.
• Existing Licenses: OEM License for Windows Server 2019 Standard.
• Current VMs: Two VMs.

Windows Server 2019 Standard Licensing:

1. Standard Edition Licensing: Covers up to 2 VMs per licensed server.
2. Core-Based Licensing: Minimum licensing requirements for Standard Edition is based on 16 cores.

Adding a Third VM:

To add a third VM on Windows Server 2019 Standard, you essentially need to license the server for an additional pair of VMs. This involves purchasing licenses for an additional 16 cores (even though physically you already have them) because each set of 16-core licenses allows for running 2 VMs.

Options to License for a Third VM:

1. Purchase Additional 16-Core License for Windows Server 2019 Standard: This enables you to run up to 4 VMs on the same server. You remain on the same version, and potentially it could be more cost-effective than upgrading the entire server to a new version.
2. Upgrade to Windows Server 2022 Standard:
   • Core Purchasing: Your partner mentioned buying a 32-core license under an Open Value EA, which is likely to be due to the new licensing rules or bundles they offer.
   • Costs: Licensing Windows Server 2022 could indeed be more expensive, especially under an Enterprise Agreement (EA).

The link you provided is related to CSP on-premises software. As a CSP, you have various licensing options, and you can review the details outlined in that article or specific partner resources available from Microsoft. The document you referred to will help you understand the specific details about offering on-premises software under the CSP program, including how to report and manage licenses.

Recommendations:

1. Evaluate Costs: Compare the cost of purchasing an additional 16-core license for Windows Server 2019 Standard versus upgrading to a 32-core Windows Server 2022 Standard license.
2. Consult with Your CSP Partner: Given the complexity and potential costs involved, get a detailed quote and clarification from your CSP partner. They might offer alternative licensing models or volume discounts.
3. Consider Future Needs: If you foresee further expansion or more VMs in the future, it might be worth investing in the more recent version (Server 2022) despite the higher upfront cost.

Ultimately, carefully weighing the costs and benefits of each approach in consultation with your CSP partner and considering future scalability will help you make the most informed decision for your client.

Hope it helps

Best regards,

Lei