Azure Hybrid Benefit is a licensing benefit that reduces the costs of workloads in the cloud significantly by bringing on-premises Windows Server and SQL Server licenses with Linux subscriptions to Azure. In simple words, it is a bring-your-own license model for SQL and Windows Server where customers can utilize their existing licenses which can save up to 70% costs. Factors like VM vs. License Inventory, VM size, and even VM run-time can affect the cost savings.

Eligibility Criteria: To get eligible for running Azure VM’s at Linux pricings, one must own Windows Server or SQL Server licenses with Software Assurance. In this way, you will only be charged hourly for compute of a virtual machine instead of paying the hourly cost of SQL Server too. For those who do not have these licenses, new licenses with Software Assurances or in subscription models can be bought to leverage Hybrid Benefit cost savings. The eligible licenses include Windows Server Datacenter, Windows Server Standard, SQL Server Enterprise Core, SQL Server Standard Core, and Azure SQL Database. If you have any of these, it is time to reap the extra cost-saving benefits now!

Applying Hybrid Benefits (HB) to Virtual Machines (VMs): To achieve the lowest cost of ownership, Virtual Machines need to be deployed from Azure image. During this process, Hybrid Benefits are not applied by default but can be selected. If HBs are not applied to VM creation, customers are given the liberty to select these benefits either by the script at any point or directly from the Azure portal. It encourages customers who do not own SQL or Windows Server licenses with SA to consider purchasing these eligible subscription-based licenses. While the customers do end up saving significantly in the long term, the actual savings are determined by various other factors.

Expanded rights for Microsoft SQL Server: To let organizations address more scenarios, Azure expanded the rights for Microsoft SQL Server. From providing access to a broader pool of SQL Server services to advanced Enterprise licenses, Azure HB can help you reduce costs further.

Now, the Azure HB covers SQL Server Enterprise Virtual Machines and Azure Data Factory SQL Server Integration Service Enterprise edition under the same eligible Standard edition licenses.

or Enterprise edition licenses, SQL Server Standard Virtual Machines and Azure Data Factory SQL Server Integration Services Standard edition can be covered by Azure HB too.