Azure VM Licensing Costs for Windows Client OS

Question

Azure VM Licensing Costs for Windows Client OS

$@chin 380

How licensing costs work for Azure Virtual Machines running Windows client operating systems such as Windows 10, Windows 11 Pro, Windows 11 Enterprise, Windows 11 Enterprise multi-session, or Windows 11 Enterprise multi-session, version 24H2 + Microsoft 365 Apps ?

While deploying a client machine, encountered a licensing prompt stating:

“I confirm I have an eligible Windows 10/11 license with multi-tenant hosting rights.”

I had to check this box in order to proceed with the deployment.

This raises the following questions:

Is the licensing cost for client operating systems included in the Azure compute cost or is it expected that we bring our own eligible license ?

If we don't have a license with multi-tenant hosting rights, would there be an additional cost reflected in the Azure billing ?

if it is BYOL, but still we tick that option but customer doesn't have any license, would it casue any issue bcz still inside the system it show machine is licensed ?

Additionally,I would like to understand if there would be any cost differences among the following virtual machine configurations, assuming all are the same VM size (D4as_v4) and same os disk size and type:

VM1: Windows Server 2025 Datacenter: Azure Edition – x64 Gen2

VM2: Windows 11 Enterprise multi-session, version 24H2 + Microsoft 365 Apps – x64 Gen2

VM3: Windows 11 Pro, version 24H2 – x64 Gen2

Would the licensing cost differ across these machines or would they be billed the same under Azure pricing ?

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Answer 1

Manu Philip 20,661 MVP Volunteer Moderator

Hi $@chin

Windows Server which has the OS included in the VM cost (per vCPU) in Azure infrastructure billing, and Windows 10/11 licenses must be purchased separately. Windows 10/11 OS licenses are not available as part of the VM price in Azure. You could use an Enterprise E3/E5 license for deploying Windows 10/11 on Azure however if this is for personal, development, or test purposes, you can use Windows client images in Azure which may be more accessible for individual use through a Visual Studio subscription.

I hope, the additional questions are also cleared from the above details

Let's know for any further queries

Hope this helps.

--please don't forget to upvote and Accept as answer if the reply is helpful--

kobulloc-MSFT 26,861 Reputation points Microsoft Employee Moderator

2025-07-21T17:53:34.2733333+00:00
Hello, @$@chin !

Adding to what @Manu Philip has said:

Windows 10 or11 (for Production): You must have a qualifying subscription license (Bring Your Own License/BYOB) in order to use Windows 11 images in Azure for any production workload. For additional information, please check out the VM Windows 11 image page.

Windows 10 or 11 (for Testing): You can use Windows 10 Enterprise (x64) or Windows 11 Enterprise (x64) in Azure for dev/test scenarios provided you have an appropriate Visual Studio (formerly MSDN) subscription. For additional information, please check out the VM Windows client images page.

Windows 11 (for Students and Free Trial accounts): These accounts are enabled to deploy Windows 11 images for development or testing purposes (reference: see note at top of page).

Windows Server: OS cost is included in the price of the VM (as you can see below under "OS (Windows)" in the Azure pricing calculator). Commercial customers can use qualifying on-premises licenses to get Windows VMs on Azure at a reduced cost using the Azure Hybrid Benefit.

To directly answer your questions:

Is the licensing cost for client operating systems included in the Azure compute cost or is it expected that we bring our own eligible license ?
Windows 10/11 for production requires you bring your own qualifying license for Azure, testing requires that you have the correct offer/Visual Studio subscription and use the correct client image, students and free trial accounts are enabled to use Windows 11 for free, and Windows Server has the cost included with a discount available for those who qualify for Azure Hybrid Benefit.

If we don't have a license with multi-tenant hosting rights, would there be an additional cost reflected in the Azure billing?
You must have a qualifying multi-tenant hosting license to use Windows 11 images in Azure for any production workload. Unlike Windows Server, you must Bring Your Own License (BYOL) for Windows 10/11.

If it is BYOL, but still we tick that option but customer doesn't have any license, would it cause any issue because still inside the system it show machine is licensed?
Yes, this would be a violation of the licensing terms as well of as the Azure Terms of Service. An audit would result in potential penalties and actions taken against your account.

Additionally, I would like to understand if there would be any cost differences among the following virtual machine configurations, assuming all are the same VM size (D4as_v4) and same os disk size and type.
You can refer to the Azure Pricing Calculator for cost questions. License costs have been covered extensively above and differ depending on your scenario but license costs are separate from hardware/infrastructure costs.
$@chin 380 Reputation points

2025-07-21T18:44:16.34+00:00

How does licensing work with an Azure Plan subscription ? For example, if I have an Azure Plan and deploy a Windows 10 or Windows 11 virtual machine, does the subscription include the necessary license, or would I need to bring my own or purchase it separately ?
kobulloc-MSFT 26,861 Reputation points Microsoft Employee Moderator

2025-07-21T18:52:02.0766667+00:00
Hello, @$@chin ! For all Azure subscriptions (including Azure plan), a Windows 10/11 VM must have a qualifying license entitlement (except as noted above for dev/test/trial/student scenarios):

Microsoft 365 E3, E5, A3, A5, F3, Business Premium, Student Use Benefit

Windows Enterprise E3, E5

Windows VDA E3, E5

Windows Education A3, A5