Core-Based Windows Server Licensing

Core-Based Windows Server Licensing Explained

• Core-Based Licensing: Requires licenses for all physical server cores.
• Minimum Requirement: 16 core licenses per server, even if it has fewer cores.
• Core Packs: Licenses are sold in packs of two.
• Suitable For: Both physical and virtualized environments, with scalability for modern multi-core servers.

What is Core-Based Server Licensing?

Core-Based Server Licensing is an important framework that allows businesses to license server software based on the number of processor cores in the server.

Microsoft frequently uses this model for server software like SQL and Windows. It ensures companies pay for their computing power, promoting flexibility and scalability in physical and virtual environments.

The main idea behind core-based licensing is simple: the more powerful the server, the more licenses you need.

This means licensing costs are proportional to the server’s capacity, providing a fair pricing structure for small and large organizations.

Why Core-Based Licensing Matters

In today’s technology landscape, servers can vary dramatically in performance and capacity.

Core-based licensing allows software vendors to ensure that the cost reflects the value of powerful servers.

Here are some key benefits of core-based server licensing:

• Scalability: Businesses can scale server resources and adjust licenses accordingly, maintaining compliance as their infrastructure grows.
• Flexibility: Core-based licensing works in both on-premises and cloud environments, making it suitable for hybrid setups.
• Fair Pricing: The cost is proportional to the server’s computing capacity, meaning larger organizations with powerful servers pay more, while smaller setups incur lower costs.

How Core-Based Server Licensing Works

To understand how core-based licensing works, it’s crucial to break down the components involved:

• Physical Cores: The number of cores in each physical processor is the foundation for calculating the license.
• Sockets/Processors: Servers can have multiple processors (sockets), each with multiple cores.
• Minimum Licensing Requirements: For some products, Microsoft has a minimum licensing rule (e.g., each processor must be licensed for at least 8 cores, and each server must have a minimum of 16 core licenses).

Example Calculation:

Imagine you have a server with two processors, and each processor has ten cores:

• Total Cores: 2 processors × 10 cores = 20 cores.
• If you’re licensing Windows Server 2022, you need 1 core license per core, totaling 20 core licenses.
• Due to Microsoft’s minimum requirement of 16 cores per server, if your server had fewer than 16 cores, you would still need to license 16 cores.

Licensing Scenarios

To further illustrate core-based licensing, let’s explore a few common scenarios:

Licensing a Physical Server

A company has a physical server with four processors, each containing 6 cores:

• Total Number of Cores: 4 processors × 6 cores = 24 cores.
• The company must purchase 24 core licenses to be compliant.

Virtual Environments

Licensing in a virtual environment can be slightly more complex. If you’re running virtual machines (VMs) on a physical host, you have two options:

• License the Physical Cores: You can license all physical cores on the host machine, allowing you to run unlimited VMs.
  • Example: A server with 16 cores running 4 VMs would need 16 core licenses.
• License Per Virtual Core: Alternatively, you can license each virtual machine based on the number of virtual cores assigned.
  • Example: If each of your 4 VMs has four virtual cores, you need 16 core licenses.

Key Products Using Core-Based Licensing

Several Microsoft products use core-based licensing, including:

• Microsoft SQL Server: SQL Server uses core-based licensing to account for the database server’s processing power.
  • Example: A SQL Server instance running on a server with eight cores would require eight core licenses.
• Windows Server: Standard and Datacenter editions of Windows Server use core-based licensing.
  • Example: To run a Windows Server Standard edition on a server with 12 cores, you need 12 core licenses (subject to Microsoft’s minimum core requirements).

Core-Based Licensing in Hybrid Environments

With the rise of cloud computing, many businesses are moving to hybrid environments, mixing on-premises infrastructure with cloud solutions like Microsoft Azure. Core-based licensing is flexible enough to handle these scenarios effectively.

• Azure Hybrid Benefit: Microsoft offers the Azure Hybrid Benefit, allowing customers to use existing on-premises licenses with Software Assurance to save on Azure costs.
  • Example: If you have licensed 16 cores of Windows Server on-premises, you can apply those licenses to equivalent virtual machines running in Azure, reducing cloud costs.

Benefits of Core-Based Licensing

Core-based licensing offers several benefits that make it a popular choice for businesses:

• Optimized for Modern Hardware: As server hardware becomes more powerful, with increasing cores, core-based licensing ensures that the cost scales with the server’s capabilities.
• Cloud and On-Premises Flexibility: Core-based licensing is ideal for hybrid environments, allowing businesses to seamlessly move workloads between on-premises servers and the cloud.
• Cost Management: By understanding core requirements, businesses can optimize costs by licensing only what they need.

Licensing Tips for Cost Optimization

• Consolidate Workloads: Reduce the number of servers by consolidating workloads onto fewer, more powerful servers. This can reduce the number of core licenses required.
• Leverage Hybrid Benefits: If you’re using Azure, use the Azure Hybrid Benefit to reduce costs.
• Regular Audits: Conduct licensing audits to ensure compliance and avoid over- or under-licensing.

Core-Based Server Licensing FAQs

What is Core-Based Server Licensing?
Core-based server licensing is a model in which licenses are assigned based on the number of physical or virtual cores in the server, requiring a specific number of core licenses per server.

How many core licenses are required per server?
Each physical processor needs at least eight core licenses, and each server requires at least 16.

Do virtual servers require Core-Based Server licenses?
Yes, virtual machines require Core-Based Server licenses, and each virtual machine must be licensed based on its assigned virtual cores.

Is Core-Based Server Licensing Scalable?
This model allows businesses to license additional cores as they expand their server environments, making it suitable for growing needs.

Are there minimum core license requirements?
Yes, every server requires a minimum of 16 core licenses, even if the server has fewer than 16 cores.

How does Core-Based Server licensing apply to multi-processor servers?
Each processor in a multi-processor server must be licensed with at least eight core licenses, regardless of its number of cores.

Can I reassign Core-Based Server licenses?
Core licenses can be reassigned to other servers after a minimum period of 90 days unless there is a hardware failure.

How does licensing work in virtualized environments?
Each virtual machine must have its own set of core licenses based on the number of virtual cores allocated to it.

Is there a difference between licensing for physical and virtual cores?
Physical cores require direct licenses, while virtual cores in virtual machines also need separate licensing for each virtual core.

How do I calculate the total number of core licenses needed?
Multiply the number of cores per processor by the total processors in the server. Ensure a minimum of 16 core licenses for each server.

What happens if the server has more than 16 cores?
For servers with more than 16 cores, you must license all physical cores present in the server. Each core needs a license.

Does Core-Based Server licensing include client access?
No, client access licenses (CALs) are required separately to allow users or devices to connect to the server.

Can I license fewer than 16 cores on a server?
No, the minimum licensing requirement is 16 core licenses per server, regardless of the number of cores.

What is the difference between per-core and per-processor licensing?
Per-core licensing requires licenses for each core, while per-processor licensing only requires licenses per physical processor, regardless of core count.

Do all servers require Core-Based Server licensing?
No, this depends on the server product. Some products use alternative licensing models such as per-user or per-device.