Save Money on Deployment & Migration with Azure Hybrid Benefit

Microsoft

Jun 03, 2025

At the heart of this post is Kairos IMS, an innovative Impact Management System designed to empower human-serving nonprofits and social impact organizations. Co-developed by the Urban League of Broward County and our trusted technology partner, Impactful, Kairos IMS reduces administrative burdens, enhances holistic care, and enables organizations to leverage data for increased agility and seamless service delivery. In this blog series, we’ll take a closer look at the powerful technologies that fuel Kairos IMS, from Azure services to security frameworks, offering insight into how modern infrastructure supports mission-driven impact. Click here to learn more.

Kairos IMS - Impact Management System

Understand the process of claiming the Azure Hybrid Benefit. Reduce expenses and deploy at a lower cost. This guide will provide information on how to utilize the benefit effectively.

How Nonprofits Can Utilize the Azure Hybrid Benefit

Nonprofits often face the challenge of operating within tight financial constraints while striving to maximize impact. Balancing essential expenditures with critical investments can become even more complex when considering the adoption or expansion of cloud services. This is where the Azure Hybrid Benefit becomes a significant change, offering nonprofits an exceptional opportunity to optimize their IT budgets without compromising on scalability or performance.

By leveraging this benefit, organizations can use their existing licenses for Microsoft software, such as Windows Server and SQL Server, to significantly reduce costs when deploying or migrating workloads to Azure. This not only streamline operations but also unlocks advanced technical capabilities, empowering nonprofits to focus their resources on driving their mission forward. In the following sections, we will delve into the step-by-step process for qualifying and claiming the Azure Hybrid Benefit, along with practical insights on maximizing its potential for nonprofit initiatives.

Products & Services eligible for Azure Benefit

Windows Server Standard (with active Software Assurance or valid subscription)
Windows Server Datacenter (with active Software Assurance or valid subscription)
SQL Server (leveraging existing licenses)
Virtual Machines (require at least 8 core licenses for Standard or Datacenter per VM)
Processor Licenses (equivalent to 16 core licenses)

Did You Know?

You can save up to 80% with Azure Hybrid Benefit on your workload.
You will need to Deploy VMS from Azure Marketplace with the Windows Server images provided.
You can convert a virtual machine using Azure Hybrid benefit to Pay-as-you-go for windows servers.
If you need to learn more about Software Assurance and Volume Licensing Services Center, please see the following link: microsoft.com/Licensing/servicecenter/default.aspx.

How To Qualify

Software Assurance is a comprehensive Volume Licensing program. Software Assurance is only available through Volume Licensing and is purchased when you buy or renew a Volume Licensing agreement. This is one of the requirements unless you have an active subscription or Windows Server Standard or Windows Server Datacenter. To qualify for the Azure Hybrid Benefit please see the following:

Azure

License
- Windows Server Standard license or subscription with active Software Assurance.
- Windows Server Datacenter license or subscription with Software Assurance.
- You will need at least 8 core licenses for either Standard or Datacenter per VM.
- Processor Licenses are the same as 16 core licenses.
- With Azure Hybrid Benefit Windows Server and SQL Server customers can save up to 85% over standard pay-as-you go pricing.
- Use Azure Hybrid Benefit in Azure SQL platform as a service (PaaS) environment.
- SQL Server 1 to 4 vCPUs exchange:
  - For every 1 core of SQL Server Enterprise Edition, you get 4 vCPUs of SQL Managed Instance or Azure SQL Database general purpose, or 4 vCPUs of SQL Server Standard edition on Azure VMs.
  - Get 180 days of dual-use rights between on-premises and Azure.

Usage Rights
- Windows Server Standard:
  - Used either On-premises or in Azure (Hybrid)
  - You cannot use both at the same time unless you are going to migrate your workloads to Azure. You can keep On-Premises for up to 180 days before you need to migrate to Azure.
- Windows Server Datacenter:
  - You can simultaneously use Datacenter on both On-premises and in Azure indefinitely with VM licensing.
  - Dedicated Host licenses let you use them both on-premises and in Azure, but only for 180 days after they are assigned to Azure.

Unlimited Virtualization
- This means the right to use any number of Windows Server VMs on a host
- Windows Server Standard:
  - Unlimited number of VMs hosted Azure with active Software Assurance or subscription for all physical core types.
  - Windows Server Datacenter:
    - Not available

Azure Local

Licenses
- Windows Server Datacenter with Enterprise Agreement (EA) with active Software Assurance or Cloud Solution Provider (CSP) subscription
- One license of Windows Server core license is equivalent to one physical core or Azure Local on servers in the Azure Local cluster.

Use Rights
- License can only be used On-premises or on Azure local. Otherwise, you have 180 days to migrate your servers.
Unlimited Virtualization
- Unlimited number of Windows Server can be deployed on the Azure Local cluster. Remember that each core license equals a physical core on the local cluster.

Azure Kubernetes Service (AKS)

License
- You will need at least Windows Server 2019 or later or Azure Local
- Must have one type of License or Subscription
- Windows Server Standard with Software Assurance or subscription.
- Windows Server Datacenter with Active Assurance
Use Rights
- It can be used both on On-premises or in Azure.
Unlimited Virtualization
- No: Only on Azure Local or Azure

Azure Hybrid Cost Savings

Organizations can achieve cost savings by leveraging the Azure Hybrid benefit, which allows them to reduce infrastructure expenses while hosting workloads on Azure.

Windows Server VMs: Windows Server licenses are covered. You pay the base rate for the virtual machine.
Azure Local: Fees are waived on Windows Server subscriptions and Azure Local host with unlimited virtualization rights. You pay for Azure local hardware, Azure services and workloads.
Azure Kubernetes Service (AKS): Azure Kubernetes clusters that run on both Azure Local and Windows Server free. However,

Careful planning is essential when considering the migration of servers to the cloud. Without a well-thought-out strategy, organizations risk encountering unexpected costs, operational disruptions, and underutilized resources. Price estimations play a pivotal role in this process, allowing nonprofits and other entities to evaluate the total cost of ownership and make informed decisions. Accurate cost forecasting ensures that migration aligns with budgetary constraints while maximizing the value of cloud investments. By comparing pricing options and analyzing potential savings, organizations can identify the most sustainable path forward, ensuring that financial resources are directed toward impactful initiatives rather than unforeseen expenses.

Reasons to Consider

Cost efficiency: Optimize your budget by reducing hardware maintenance and operational costs.
Scalability: Adapt IT infrastructure to meet changing demands without overprovisioning.
Enhanced performance: Leverage advanced cloud technologies for better speed and reliability.
Security improvements: Benefit from the robust security measures provided by cloud platforms.
Focus on mission: Redirect saved resources toward achieving organizational goals.

DISCLAIMER: All Azure-related cost estimations are approximate and intended for guidance only. Actual costs may vary depending on regional availability, selected services, and additional features. Users are encouraged to review specific pricing details to ensure alignment with their needs and budgets.

Price Estimation & Calculator Portals

Azure Hybrid Benefit Savings Calculator: Azure Hybrid Benefit - Hybrid Cost Calculator | Microsoft Azure
Azure Windows Virtual Machines Pricing: Pricing - Windows Virtual Machines | Microsoft Azure
Azure Kubernetes Services (AKS) Pricing: Azure Kubernetes Service on Azure Local pricing | Microsoft Azure
Azure Local Pricing: Azure Local Pricing | Microsoft Azure

Limitations

Must have Software Assurance for Windows Server Standard or Windows Server Datacenter or you will need a subscription.
If your Software Assurance or subscription expires you will need to renew your agreement before you can be eligible.
Workloads can be deprovisioned without active subscription or Software insurance.

Conclusion

We have thoroughly discussed the initiation of Azure Hybrid Benefits. Additionally, we explored how it can provide financial savings during migration to Azure, utilize Azure locally, and select between on-premises or Azure workloads. Organizations can reduce their costs by up to 80%. By staying informed and proactive regarding subscription renewals and deployment options, they can ensure seamless operations and cost-effective solutions tailored to their requirements. It is advisable to delve deeper into these tools and advantages to maximize technological investments.