Azure Hybrid Benefit - Azure SQL Database & SQL Managed Instance

Applies to: Azure SQL Database Azure SQL Managed Instance

Azure Hybrid Benefit allows you to exchange your existing licenses for discounted rates on Azure SQL Database and Azure SQL Managed Instance. You can save up to 30 percent or more on SQL Database and SQL Managed Instance by using your Software Assurance-enabled SQL Server licenses on Azure. The Azure Hybrid Benefit page has a calculator to help determine savings.

Changing to Azure Hybrid Benefit does not require any downtime.

Overview

Diagram of vCore pricing structure for SQL Database. 'License Included' pricing is made up of base compute and SQL license components. Azure Hybrid Benefit pricing is made up of base compute and software assurance components.

With Azure Hybrid Benefit, you pay only for the underlying Azure infrastructure by using your existing SQL Server license for the SQL Server database engine itself (Base Compute pricing). If you do not use Azure Hybrid Benefit, you pay for both the underlying infrastructure and the SQL Server license (License-Included pricing).

For Azure SQL Database, Azure Hybrid Benefit is only available when using the provisioned compute tier of the vCore-based purchasing model. Azure Hybrid Benefit doesn't apply to DTU-based purchasing models or the serverless compute tier.

Enable Azure Hybrid Benefit

Azure SQL Database

You can choose or change your licensing model for Azure SQL Database using the Azure portal or the API of your choice.

You can only apply the Azure Hybrid licensing model when you choose a vCore-based purchasing model and the provisioned compute tier for your Azure SQL Database. Azure Hybrid Benefit isn't available for service tiers under the DTU-based purchasing model or for the serverless compute tier.

Portal

To set or update the license type using the Azure portal:

• For new databases, during creation, select Configure database on the Basics tab and select the option to Save money.
• For existing databases, select Compute + storage in the Settings menu and select the option to Save money.

If you don't see the Save money option in the Azure portal, verify that you selected a service tier using the vCore-based purchasing model and the provisioned compute tier.

PowerShell

To set or update the license type using PowerShell:

• New-AzSqlDatabase with the -LicenseType parameter
• Set-AzSqlDatabase with the -LicenseType parameter

Azure CLI

To set or update the license type using the Azure CLI:

• az sql db create with the --license-type parameter

REST API

To set or update the license type using the REST API:

• Create or update with the properties.licenseType parameter
• Update with the properties.licenseType parameter

Azure SQL Managed Instance

You can choose or change your licensing model for Azure SQL Managed Instance using the Azure portal or the API of your choice.

Portal

To set or update the license type using the Azure portal:

• For new managed instances, during creation, select Configure Managed Instance on the Basics tab and select the option for Azure Hybrid Benefit.
• For existing managed instances, select Compute + storage in the Settings menu and select the option for Azure Hybrid Benefit.

PowerShell

To set or update the license type using PowerShell:

• New-AzSqlInstance with the -LicenseType parameter
• Set-AzSqlInstance with the -LicenseType parameter

Azure CLI

To set or update the license type using the Azure CLI:

• az sql mi create with the --license-type parameter
• az sql mi update with the --license-type parameter

REST API

To set or update the license type using the REST API:

• Create or update with the properties.licenseType parameter
• Update with the properties.licenseType parameter

Frequently asked questions

Are there dual-use rights with Azure Hybrid Benefit for SQL Server?

You have 180 days of dual use rights of the license to ensure migrations are running seamlessly. After that 180-day period, you can only use the SQL Server license on Azure. You no longer have dual use rights on-premises and on Azure.

How does Azure Hybrid Benefit for SQL Server differ from license mobility?

We offer license mobility benefits to SQL Server customers with Software Assurance. License mobility allows reassignment of their licenses to a partner's shared servers. You can use this benefit on Azure IaaS and AWS EC2.

Azure Hybrid Benefit for SQL Server differs from license mobility in two key areas:

• It provides economic benefits for moving highly virtualized workloads to Azure. SQL Server Enterprise Edition customers can get four cores in Azure in the General Purpose SKU for every core they own on-premises for highly virtualized applications. License mobility doesn't allow any special cost benefits for moving virtualized workloads to the cloud.
• It provides for a PaaS destination on Azure (SQL Managed Instance) that's highly compatible with SQL Server.

What are the specific rights of the Azure Hybrid Benefit for SQL Server?

SQL Database and SQL Managed Instance customers have the following rights associated with Azure Hybrid Benefit for SQL Server:

License footprint	What does Azure Hybrid Benefit for SQL Server get you?
SQL Server Enterprise Edition core customers with SA	Can pay base rate on General Purpose or Business Critical SKU One core on-premises = Four vCores in General Purpose SKU One core on-premises = One vCore in Business Critical SKU
SQL Server Standard Edition core customers with SA	Can pay base rate on General Purpose or Business Critical SKU One core on-premises = One vCore in General Purpose SKU Four cores on-premises = One vCore in Business Critical SKU

Next steps

• For help with choosing an Azure SQL deployment option, see Service comparison.
• For a comparison of SQL Database and SQL Managed Instance features, see Features of SQL Database and SQL Managed Instance.