Tools / Benefits Explainer

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Software Assurance vs CSP Subscription Benefits Explainer

The same Microsoft product comes three ways: a perpetual license without Software Assurance, a volume license with Software Assurance, or a CSP software subscription. Each channel carries a different set of benefits — New Version Rights, Azure Hybrid Benefit, License Mobility, Flexible Virtualization, disaster recovery, Extended Security Updates and more. Pick a product, read which benefits apply in each channel, and open any row for what it does, how it works and why you may need it. The license included in an Azure pay-as-you-go image is the fourth column, because that is the other way people end up licensed without noticing.

Product

Per core, 16-core minimum per server. Two OSEs per set of licenses.

Perpetual, no SA0of 10 included, 1 partly

VL + SA9of 10 included

CSP subscription8of 10 included, 1 partly

Azure PAYG2of 10 included, 1 partly

Perpetual, no SA	VL + SA	CSP subscription	Azure PAYG
Not included	Included	Included	Included
Not included	Included	Included	Not applicable
Not included	Not included	Included	Not applicable
Not included	Included	Included	Not applicable
Not included	Included	Included	Not applicable
Not included	Included	Included	Included
Not included	Included	Not included	Not applicable
Not included	Included	Partly	Not applicable
Partly	Included	Included	Partly
Not included	Included	Included	Not applicable

Included the benefit applies in that channelPartly applies with a condition, read the rowNot includedNot applicable the benefit has no meaning for this product or channel* a product-specific note is in the row

Retired benefits people still ask about (4)

Microsoft Desktop Optimization Pack (MDOP). Retired on April 14, 2026: end of extended support for all MDOP components; replaced by Intune, Configuration Manager and features built into Windows 11 Enterprise. A set of desktop management tools (App-V, UE-V, MBAM, AGPM, DaRT) that Software Assurance customers in the Systems pool could download.
Training Vouchers. Retired on February 1, 2021: no replacement benefit; Microsoft points customers to Microsoft Learn and partner-led training. Vouchers for instructor-led technical training, allocated by the number of qualifying Software Assurance licenses.
Planning Services (Deployment Planning Services). Retired on February 1, 2021: replaced in practice by FastTrack for eligible cloud subscriptions and by partner engagements. Days of partner-led deployment planning engagements, allocated by Software Assurance spend.
24x7 Problem Resolution Support. Retired on February 1, 2023: replaced by Microsoft Unified Support, pay-per-incident support and cloud support plans. A pool of support incidents for break-fix cases, allocated by Software Assurance spend.

The channels

Four ways to hold the same license, and what each one is.

Perpetual license without Software Assurance

How you buy it

Preinstalled by an OEM, bought at retail (full packaged product), bought as CSP perpetual software, or bought through a volume licensing program as a license-only line without Software Assurance.

What you own

A permanent right to run the version and edition you bought. Nothing is added when a new version ships, and nothing is taken away when the version leaves support, apart from updates.

Worth knowing

Software Assurance can be attached to OEM and retail licenses only for the products the Product Terms list as eligible, and only within 90 days of purchase.
CSP perpetual software is license-only. Software Assurance cannot be attached in CSP, and the April 1, 2026 changes to CSP subscriptions did not apply to perpetual CSP licenses.
Downgrade rights and reimaging rights exist for most volume and OEM server licenses, so this column is not a blanket no.

Volume licensing with Software Assurance

How you buy it

Open Value, Enterprise Agreement (including Enterprise Subscription), MPSA or Select Plus, with Software Assurance coverage attached to the license for the agreement term (three years in an Enterprise Agreement or Open Value).

What you own

A perpetual license plus a time-limited set of use rights and services. Versions released during coverage stay yours after coverage ends; most other rights end with the coverage.

Worth knowing

The Product Terms state that Software Assurance Benefits are not available to Microsoft Customer Agreement (CSP) customers.
Benefits are allocated by product pool (Applications, Systems, Server) and the Product Terms warn that they can change or be discontinued without notice.
Server and Cloud Enrollment specifics are out of scope for this explainer.

CSP software subscription

How you buy it

One-year or three-year subscription licenses for on-premises server software (Windows Server, SQL Server, System Center and selected others) sold by a Cloud Solution Provider under the Microsoft Customer Agreement. Windows Enterprise E3/E5 per user and Visual Studio subscriptions are the client and developer equivalents.

What you own

The right to run the software for the term only. When the subscription ends you must stop using it; there is no perpetual fallback version.

Worth knowing

The Product Terms grant subscription licenses, during the term, rights equivalent to those of Software Assurance customers: new versions, Azure Hybrid Benefit, Flexible Virtualization, Disaster Recovery and Extended Security Updates.
Microsoft's notice to partners of March 17, 2026: on April 1, 2026 the Product Terms for Windows Server and SQL Server subscriptions bought under the Microsoft Customer Agreement were updated to make those subscriptions eligible for license mobility rights and to give subscriptions bought through CSP the same benefits as Software Assurance provides in the volume licensing programs.
Step-Up licenses and spread payments are features of volume licensing agreements and do not exist in CSP.
Not every product is sold as a CSP software subscription. Office LTSC, Exchange Server and SharePoint Server are license-only (perpetual) in CSP.

License included with Azure pay-as-you-go

How you buy it

You deploy a Windows Server or SQL Server image from Azure and the license is metered into the hourly rate of the virtual machine. There is no license document and no term.

What you own

Nothing once the virtual machine is gone. The license exists only while the meter runs, and only in Azure.

Worth knowing

Azure Hybrid Benefit is the opposite path: it turns the Windows or SQL meter off because you bring a Software Assurance or subscription license.
Microsoft's Windows Server licensing page says a pay-as-you-go subscription does not require Windows Server CALs, while RDS CALs are still required.
Extended Security Updates for Windows Server 2012/2012 R2 and SQL Server 2012/2014 are delivered at no extra charge to Azure virtual machines, with or without Software Assurance.

How to read the matrix

Pick the product. The rows change: a CAL has fewer benefits than a server, and a retired benefit never appears in the matrix.
Read across: Included, Partly (a condition applies — open the row), Not included, or Not applicable when the benefit has no meaning for that product or channel.
Open a row for what it does, how it works, why you may need it, the product-specific note (marked *) and the sources with the date each was read.
Copy link keeps the product and the open row in the URL, so a colleague opens the same view.

What this page does not do

It carries no prices. Subscription and software prices are on their own catalog pages: CSP software and volume licensing.
It does not decide for you. Which channel is cheaper over three years depends on the product, the term and whether you will still run that version in year four; the calculators below do the arithmetic.
It is not the Product Terms. The rows summarize Microsoft’s wording as read on the dates shown; the Product Terms are republished monthly and win in any conflict.

Related calculators: Windows Server · SQL Server · CALs · Extended Security Updates · Visual Studio

Every benefit, explained

What each benefit does, how it works, and why you may need it.

The channel defaults below apply to most products; the matrix above shows the exceptions per product. 14 current benefits, 4 retired ones kept for the record.

New Version Rights

What it does

You may move to any new version of the product that Microsoft releases while your coverage or subscription is active.

How it works

With Software Assurance the upgrade becomes a perpetual right: versions released during coverage can be deployed after coverage ends, later versions cannot. With a CSP subscription you may use new versions released during the term, but the right ends with the subscription. In Azure pay-as-you-go you choose the image, so the latest version is available without a separate right.

Why you may need it

A perpetual license is frozen at one version. Without this right, a new version means buying the product again, and products such as Exchange Server SE and SharePoint Server SE cannot run at all without active coverage.

By channel (default for most products)

Perpetual, no SA: Not includedVL + SA: IncludedCSP subscription: IncludedAzure PAYG: Included

Product notes

Exchange Server Subscription Edition: Exchange Server SE is not sold as a CSP software subscription; the Product Terms accept subscription licenses or licenses with active Software Assurance. Ask your partner which subscription licenses qualify.
SharePoint Server Subscription Edition: SharePoint Server SE is not sold as a CSP software subscription; see the Exchange Server note.
Windows 11 Pro: Windows 11 Pro has no software subscription of its own. The upgrade path is Windows Enterprise per device or per user.

Sources

Microsoft Product Terms: Software Assurance Benefits (read 2026-10-16) · Microsoft Product Terms: Server Subscriptions for Azure (CSP software subscriptions) (read 2026-10-16) · Microsoft Product Terms: Exchange Server (read 2026-10-16) · Microsoft Product Terms: SharePoint Server (read 2026-10-16)

Azure Hybrid Benefit

What it does

Lets you apply Windows Server and SQL Server licenses that carry Software Assurance or a subscription to Azure, so the Azure meter charges only the base compute rate instead of the license-included rate.

How it works

You switch the benefit on for the virtual machine, Azure SQL resource or Azure Local cluster and attest that you hold eligible licenses. Each set of 16 Windows Server core licenses covers up to 16 virtual cores on no more than two virtual machines; Windows Server Datacenter includes dual-use rights (on-premises and Azure at the same time), Standard does not. SQL Server Enterprise per core licenses can also cover Standard workloads in Azure. The Azure FAQ allows 180 days of simultaneous use while migrating.

Why you may need it

Without it, every Windows or SQL virtual machine in Azure is billed with a license you already own. It is also the route for keeping Windows Server 2012 and SQL Server 2012/2014 workloads patched in Azure.

By channel (default for most products)

Perpetual, no SA: Not includedVL + SA: IncludedCSP subscription: IncludedAzure PAYG: Not applicable

Product notes

Windows Server Standard: Standard licenses move to Azure; they do not keep running on-premises at the same time once the 180-day migration window closes.
Windows Server Datacenter: Datacenter licenses may run on-premises and in Azure concurrently under the benefit.
SQL Server Standard: Applies to per core licenses. Server/CAL licenses with Software Assurance use License Mobility to reach Azure instead.
SQL Server Enterprise: Enterprise per core licenses may cover Standard edition in Azure at a ratio the Azure terms define; check the Azure Hybrid Benefit eligibility table in the Product Terms.

Sources

Microsoft: Windows Server licensing (read 2026-10-16) · Microsoft licensing guidance: SQL Server (read 2026-10-16) · Azure Hybrid Benefit FAQ (read 2026-10-16) · Microsoft Product Terms: Server Subscriptions for Azure (CSP software subscriptions) (read 2026-10-16)

License Mobility through Software Assurance

What it does

Lets you move eligible server application licenses (SQL Server, Exchange Server, SharePoint Server, System Center and others) onto the shared hardware of an Authorized Mobility Partner, including the Listed Providers (Amazon, Google, Alibaba) and Azure.

How it works

The partner must hold a Services Provider License Agreement and be on Microsoft's mobility partner list. Within 10 days of deployment you complete the License Mobility Verification form and give it to your reseller, who submits it to Microsoft; Microsoft confirms the result to you and the partner. Licenses moved to a partner cannot come back, or move to another partner, within 90 days. Under Software Assurance, Windows Server is not an eligible product; since April 1, 2026, Windows Server and SQL Server subscriptions bought under the Microsoft Customer Agreement carry license mobility rights (Microsoft's partner notice of March 17, 2026).

Why you may need it

It is the only way to bring your own SQL Server or Exchange licenses to AWS, Google Cloud or Alibaba, because the Flexible Virtualization Benefit excludes those Listed Providers. For Windows Server it exists only on the CSP subscription.

By channel (default for most products)

Perpetual, no SA: Not includedVL + SA: IncludedCSP subscription: PartlyAzure PAYG: Not applicable

Product notes

Windows Server Standard: Software Assurance does not make Windows Server a License Mobility product: with a perpetual license, Azure is reached through Azure Hybrid Benefit and other hosters through the Flexible Virtualization Benefit. The CSP subscription is different: since April 1, 2026, Windows Server subscriptions under the Microsoft Customer Agreement carry license mobility rights (Microsoft's partner notice of March 17, 2026).
Windows Server Datacenter: Software Assurance does not make Windows Server a License Mobility product: with a perpetual license, Azure is reached through Azure Hybrid Benefit and other hosters through the Flexible Virtualization Benefit. The CSP subscription is different: since April 1, 2026, Windows Server subscriptions under the Microsoft Customer Agreement carry license mobility rights (Microsoft's partner notice of March 17, 2026).
SQL Server Standard: Since April 1, 2026, SQL Server subscriptions under the Microsoft Customer Agreement carry license mobility rights, per Microsoft's partner notice of March 17, 2026. Unlimited virtualization does not apply under License Mobility.
SQL Server Enterprise: Since April 1, 2026, SQL Server subscriptions under the Microsoft Customer Agreement carry license mobility rights, per Microsoft's partner notice of March 17, 2026. Unlimited virtualization does not apply under License Mobility.
Exchange Server Subscription Edition: Server licenses only; CALs are not moved. The CSP column is partial because Exchange is not sold as a CSP software subscription.
SharePoint Server Subscription Edition: Server licenses only; CALs are not moved. The CSP column is partial because SharePoint is not sold as a CSP software subscription.
System Center (Standard, Datacenter): Eligible with Software Assurance. Microsoft's April 1, 2026 notice names Windows Server and SQL Server subscriptions, not System Center; check the Product Terms for the subscription.
RDS CAL: Microsoft's April 1, 2026 notice names Windows Server and SQL Server subscriptions; licensing partners list the RDS CAL subscription with them. Check the Product Terms for your CAL.

Sources

Microsoft: License Mobility through Software Assurance (read 2026-10-16) · Microsoft Product Terms: Software Assurance Benefits (read 2026-10-16) · Microsoft AI Cloud Partner Program, "Windows Server and SQL Server subscription update" (partner notice emailed March 17, 2026; Partner Center announcements, March 2026) (read 2026-10-16) · Microsoft, "License Mobility for Windows Server and SQL Server Subscriptions FAQ" (March 2026, hosted by Licensing School) (read 2026-10-16) · Licensing School: Software Subscriptions and License Mobility (April 8, 2026) (read 2026-10-16) · Schneider: Windows Server and SQL Server License Mobility rights in CSP (read 2026-10-16)

Flexible Virtualization Benefit

What it does

Lets you run your own licensed software on any hoster's infrastructure, dedicated or shared, as long as the hoster is not a Listed Provider (Alibaba, Amazon, Google, Microsoft) and does not use a Listed Provider's data center.

How it works

It is written into the Outsourcing Software Management clause of the Universal License Terms: customers with subscription licenses or licenses with active Software Assurance, including CALs, may use the software on devices, including shared servers, under the day-to-day management of an Authorized Outsourcer. No form is required. It took effect on October 1, 2022 and replaced the earlier rule under which outsourcing was limited to hardware fully dedicated to one customer. A companion rule lets the same customers consume solutions built by a Cloud Solution Provider-Hoster. Perpetual licenses without Software Assurance keep the dedicated-hardware outsourcing right only.

Why you may need it

Most managed service providers and regional clouds run shared hardware. Without this benefit a perpetual license without Software Assurance may only be outsourced to dedicated hardware.

By channel (default for most products)

Perpetual, no SA: Not includedVL + SA: IncludedCSP subscription: IncludedAzure PAYG: Not applicable

Product notes

Windows Server Standard: Since October 1, 2022 subscription or Software Assurance customers may also license Windows Server by virtual machine, which is what makes shared hosting practical.
Windows Enterprise (E3/E5): Microsoft 365 E3/E5/F3 users no longer need a VDA add-on to run Windows 10/11 on an outsourcer's servers, except at Listed Providers.
RDS CAL: RDS CALs with active Software Assurance are also what Azure Virtual Desktop requires for Windows Server session hosts.

Sources

Microsoft Product Terms: Universal License Terms for all software (read 2026-10-16) · Microsoft Licensing News: Easily bring your licenses to the cloud (October 3, 2022) (read 2026-10-16) · Microsoft licensing guidance: Windows Server 2025 (read 2026-10-16) · Azure Virtual Desktop pricing: licensing requirements (read 2026-10-16)

Disaster Recovery rights (cold backups)

What it does

Lets you keep a backup instance of a licensed server product on a separate disaster recovery server, or in Azure through Azure Site Recovery, without a second license.

How it works

The backup instance may run only for brief disaster recovery testing (within one week every 90 days), during a disaster while production is down, and briefly around a disaster to transfer the workload. The DR server may not be a production server or sit in the same cluster. Software Assurance must also cover the CALs and management licenses involved, and the right ends when coverage ends. Windows Server backups in Azure may use Azure Hybrid Benefit.

Why you may need it

A warm standby of SQL Server, Exchange or System Center would otherwise need its own full license even if it never serves users.

By channel (default for most products)

Perpetual, no SA: Not includedVL + SA: IncludedCSP subscription: IncludedAzure PAYG: Not applicable

Product notes

Windows Server CAL: CALs are not backed up; they must carry Software Assurance or a subscription for the server rights to apply.
SQL Server Standard: SQL Server also has the separate fail-over rights listed below, which allow a continuously running passive replica.

Sources

Microsoft Product Terms: Software Assurance Benefits (read 2026-10-16) · Microsoft licensing guidance: Windows Server 2025 (read 2026-10-16) · Microsoft Product Terms: Server Subscriptions for Azure (CSP software subscriptions) (read 2026-10-16)

SQL Server fail-over rights (passive secondaries)

What it does

For each licensed SQL Server OSE you may run up to three passive replicas without licensing them: one for high availability in a separate OSE, one for disaster recovery in a separate OSE, and one for disaster recovery in Azure.

How it works

A passive replica is one that serves no SQL Server data to clients and runs no active workload; read-only reporting or backups from the replica make it a licensed workload. The replica may not need more licenses than the primary. Microsoft's guidance states that licenses without Software Assurance or non-subscription licenses do not include disaster recovery or high availability rights. Under License Mobility, one passive instance per OSE is allowed on the partner's shared servers.

Why you may need it

Always On availability groups and failover clusters are the normal way to run SQL Server; without this right every secondary node needs full licensing.

By channel (default for most products)

Perpetual, no SA: Not applicableVL + SA: Not applicableCSP subscription: Not applicableAzure PAYG: Not applicable

Product notes

SQL Server Standard: A licensing consultancy reported that the fail-over section disappeared from the SQL Server Product Terms published on November 18, 2025 and reappeared in December 2025; read the current text before relying on it.
SQL Server CAL: CALs are not affected, but under the Server/CAL model the CALs must stay covered.

Sources

Microsoft licensing guidance: SQL Server (read 2026-10-16) · Microsoft Product Terms: Software Assurance Benefits (read 2026-10-16)

Extended Security Updates (ESU)

What it does

Security updates for up to three years after a product leaves extended support, for example Windows Server 2012/2012 R2, SQL Server 2012/2014/2016 and Windows Server 2016.

How it works

On-premises or at a hoster, ESU is bought in yearly increments for licenses with Software Assurance or equivalent subscription licenses; years two and three require the previous year, and at least one month of coverage must remain when each ESU year starts. Azure Arc offers a pay-as-you-go ESU subscription to eligible Software Assurance customers. In Azure (virtual machines, Dedicated Host, Azure VMware Solution and the Azure Stack portfolio) ESU is delivered at no extra charge for three years, whether or not you hold Software Assurance. CALs and External Connectors need no ESU but must stay covered.

Why you may need it

An old SQL Server or Windows Server that cannot be migrated in time still needs patches; this is the only supported way to get them.

By channel (default for most products)

Perpetual, no SA: Not includedVL + SA: IncludedCSP subscription: IncludedAzure PAYG: Included

Product notes

Windows 11 Pro: Windows 10 ESU is sold per device in volume licensing and CSP and may be assigned to any device; the Product Terms do not tie it to Software Assurance. Devices using Windows 10 on Azure Virtual Desktop or Windows 365 need no ESU license.
Windows Server Standard: Windows Server 2012/2012 R2 ESU ends on October 13, 2026; Windows Server 2016 ESU starts on January 12, 2027.
SQL Server Standard: SQL Server 2014 ESU ends on July 12, 2027; SQL Server 2016 ESU started on July 14, 2026.
Windows Server CAL: ESU coverage is not required (nor available) for CALs or External Connector licenses, but they must keep active Software Assurance or a subscription.

Sources

Microsoft Product Terms: Software Assurance Benefits (read 2026-10-16) · Microsoft: Extended Security Updates for Windows Server and SQL Server (read 2026-10-16) · Microsoft Learn: Extended Security Updates FAQ (read 2026-10-16) · Microsoft Product Terms: Windows Desktop Operating System (read 2026-10-16)

Step-Up licenses

What it does

Lets you move a license with active Software Assurance to a higher edition (Windows Server Standard to Datacenter, SQL Server Standard to Enterprise, Office Standard to Professional Plus, Visual Studio Professional to Enterprise, System Center Standard to Datacenter) without buying the higher edition outright.

How it works

The Step-Up license must be bought under the same volume licensing agreement and enrollment as the Software Assurance on the qualifying license, and you must keep the qualifying license. The perpetual rights of the Step-Up replace the underlying license. Availability of a given Step-Up SKU changes; confirm with your reseller. CSP has no Step-Up; you change the subscription at renewal instead.

Why you may need it

Workloads grow. Without Step-Up, moving from Standard to Datacenter or Enterprise means paying for the full edition a second time.

By channel (default for most products)

Perpetual, no SA: Not includedVL + SA: IncludedCSP subscription: Not includedAzure PAYG: Not applicable

Product notes

Exchange Server Subscription Edition: Exchange Server Standard to Enterprise Step-Ups have existed in earlier versions; check the current Product Terms and price list for Subscription Edition.
System Center (Standard, Datacenter): Step-Up SKUs for System Center Standard to Datacenter have existed; confirm availability for the 2025 version with your reseller.

Sources

Microsoft Product Terms: Software Assurance Benefits (read 2026-10-16) · Microsoft: Step-up Licenses list (February 2021) (read 2026-10-16) · Microsoft Product Terms: Visual Studio Subscriptions (read 2026-10-16)

Spread payments

What it does

Lets you pay for licenses and Software Assurance in three annual payments across the agreement term instead of one up-front payment.

How it works

Microsoft's Enterprise Agreement page describes the option to make three annual payments instead of one up-front payment; Open Value has the same three-payment structure built in. Orders placed later in the term and true-ups are generally invoiced in full. CSP subscriptions are billed by the partner on the schedule Microsoft's catalog allows for the SKU, so ask your partner what applies to a three-year software subscription; Azure pay-as-you-go is billed monthly on consumption.

Why you may need it

It matters for cash flow when you buy many licenses at once, which is usually the moment you also commit to Software Assurance.

By channel (default for most products)

Perpetual, no SA: Not includedVL + SA: IncludedCSP subscription: PartlyAzure PAYG: Not applicable

Sources

Microsoft: Enterprise Agreement (read 2026-10-16) · Microsoft (archive): Understanding Open Value item descriptions and pricing, part 1 (read 2026-10-16)

Downgrade and reimaging rights

What it does

Lets you run an earlier version or a lower edition in place of the one you licensed, and reimage OEM or retail devices with volume licensing media.

How it works

The Universal License Terms allow prior versions, other platform versions and permitted lower editions for any licensed copy, with the licensed version's use rights still governing. Microsoft's guidance adds that all server and system software bought through commercial licensing includes downgrade rights, that most OEM server versions do too, that OEM Windows Pro carries limited downgrade rights, and that retail application licenses generally do not. Reimaging with volume media requires the same product, version, edition, components and language. In Azure you may deploy any older image Microsoft still publishes; there is no license to downgrade.

Why you may need it

Many line-of-business applications are certified only on an older SQL Server or Windows Server version, and a standard desktop image is easier to maintain than per-OEM recovery media.

By channel (default for most products)

Perpetual, no SA: PartlyVL + SA: IncludedCSP subscription: PartlyAzure PAYG: Partly

Product notes

Windows Enterprise (E3/E5): The CSP Product Terms state that upgrade subscription licenses do not include rights to run a prior version, a different language or platform version, or a lower edition.
Windows 11 Pro: A device bought with Windows 11 Pro has limited downgrade rights (for example to Windows 10 Pro); the OEM is not obliged to supply the older media.
Windows Server Datacenter: Datacenter 2025 may be used as Datacenter, Standard or Essentials of 2022 or earlier; Standard 2025 as Standard or Essentials.
Windows Server Standard: Server software bought through commercial licensing includes downgrade rights; since April 1, 2026 Microsoft states that Windows Server subscriptions under the Microsoft Customer Agreement carry the same benefits as Software Assurance.
SQL Server Standard: Server software bought through commercial licensing includes downgrade rights; since April 1, 2026 Microsoft states that SQL Server subscriptions under the Microsoft Customer Agreement carry the same benefits as Software Assurance.

Sources

Microsoft Product Terms: Universal License Terms for all software (read 2026-10-16) · Microsoft: Downgrade Rights licensing guidance (May 2025) (read 2026-10-16) · Microsoft licensing guidance: Reimaging rights (read 2026-10-16) · Microsoft licensing guidance: Windows Server 2025 (read 2026-10-16) · Microsoft Product Terms: Windows Desktop Operating System (Microsoft Customer Agreement view) (read 2026-10-16) · Microsoft AI Cloud Partner Program, "Windows Server and SQL Server subscription update" (partner notice emailed March 17, 2026; Partner Center announcements, March 2026) (read 2026-10-16)

Unlimited virtualization

What it does

Run any number of virtual machines or containers on a fully licensed physical server: Windows Server Datacenter and System Center Datacenter by edition, SQL Server Enterprise per core only with Software Assurance or a subscription.

How it works

For Windows Server Datacenter the right comes with the edition under physical core licensing and does not need Software Assurance; Microsoft's licensing page notes it does not apply to the pay-as-you-go subscription. For SQL Server Enterprise all physical cores must be licensed per core with active Software Assurance or a subscription, and the right does not apply under License Mobility.

Why you may need it

Dense virtualization hosts would otherwise need a license for every virtual machine.

By channel (default for most products)

Perpetual, no SA: Not applicableVL + SA: Not applicableCSP subscription: Not applicableAzure PAYG: Not applicable

Product notes

Windows Server Standard: Standard covers two OSEs per set of core licenses; add licenses in sets for more.
System Center (Standard, Datacenter): System Center Datacenter manages unlimited OSEs on a licensed host; Standard manages two. Software Assurance is not the deciding factor.

Sources

Microsoft: Windows Server licensing (read 2026-10-16) · Microsoft licensing guidance: SQL Server (read 2026-10-16) · Microsoft: System Center licensing (read 2026-10-16)

License Windows Server by virtual machine

What it does

Lets you license Windows Server for the virtual cores a virtual machine uses (minimum eight per VM) instead of all physical cores of the host.

How it works

Introduced on October 1, 2022. The Product Terms make it available for subscription licenses or licenses with active Software Assurance only. A CSP Standard subscription assigned per virtual OSE may even run Datacenter images as guests when activated through existing Datacenter infrastructure or a Cloud Solution Provider-Hoster.

Why you may need it

It is what makes Windows Server practical on a hoster's shared cluster or on a large host you only partly use.

By channel (default for most products)

Perpetual, no SA: Not applicableVL + SA: Not applicableCSP subscription: Not applicableAzure PAYG: Not applicable

Product notes

SQL Server Standard: SQL Server has always allowed per core licensing of individual virtual machines (four-core minimum) without Software Assurance; coverage is needed for License Mobility within a server farm.

Sources

Microsoft Product Terms: Windows Server (Microsoft Customer Agreement view) (read 2026-10-16) · Microsoft licensing guidance: Windows Server 2025 (read 2026-10-16) · Microsoft Licensing News: Easily bring your licenses to the cloud (October 3, 2022) (read 2026-10-16) · Microsoft Product Terms: SQL Server (read 2026-10-16)

Windows Enterprise per user and Virtual Desktop Access

What it does

Lets a licensed user run Windows Enterprise on their devices and access Windows desktops in virtual machines (on your servers, in Azure, at an outsourcer or on Azure Virtual Desktop) instead of licensing each device.

How it works

Windows Enterprise per user and Windows VDA per user are sold as Software Assurance in volume licensing or as Windows Enterprise E3/E5 and Windows VDA E3 subscriptions in CSP. The user must be the primary user of a device running a Qualifying OS (Windows 10/11 Pro or Enterprise). Each licensed user may access up to four instances on Azure virtual machines or servers, plus Azure Virtual Desktop. Since October 1, 2022 Microsoft 365 F3/E3/E5 users no longer need a VDA add-on to virtualize Windows at an outsourcer that is not a Listed Provider.

Why you may need it

VDI, thin clients, Azure Virtual Desktop and bring-your-own-device all need a user-based Windows license; a per-device Pro license does not cover them.

By channel (default for most products)

Perpetual, no SA: Not applicableVL + SA: Not applicableCSP subscription: Not applicableAzure PAYG: Not applicable

Product notes

Windows 11 Pro: Windows 11 Pro is the Qualifying OS; by itself it grants local use only.
Windows Enterprise (E3/E5): The Product Terms for CSP say Software Assurance Benefits do not apply, but the per user subscription itself carries the virtualization rights described here.
RDS CAL: Azure Virtual Desktop on Windows Server session hosts requires an RDS CAL with active Software Assurance or an RDS User subscription license.

Sources

Microsoft Product Terms: Windows Desktop Operating System (read 2026-10-16) · Microsoft Product Terms: Windows Desktop Operating System (Microsoft Customer Agreement view) (read 2026-10-16) · Microsoft Licensing News: Easily bring your licenses to the cloud (October 3, 2022) (read 2026-10-16) · Azure Virtual Desktop pricing: licensing requirements (read 2026-10-16)

Workplace Discount Program (formerly Home Use Program)

What it does

Gives employees of an eligible organization a discount on Microsoft 365 Family and Personal subscriptions, and optionally on Visio and Project, for home use.

How it works

An administrator enables the benefit in the Microsoft 365 admin center under volume licensing benefits; employees verify their work email on Microsoft's program site. Eligibility rests on Software Assurance for the Office applications pool or a qualifying Microsoft 365 or Office 365 subscription. Perpetual Office suites left the program on July 1, 2019; the program was renamed in July 2022.

Why you may need it

It is a staff perk rather than a licensing right, and it is the last remaining Applications-pool benefit of this kind.

By channel (default for most products)

Perpetual, no SA: Not applicableVL + SA: Not applicableCSP subscription: Not applicableAzure PAYG: Not applicable

Product notes

Office LTSC / Office Professional Plus: The CSP column is partial because Microsoft 365 cloud subscriptions qualify while there is no Office software subscription.

Sources

Microsoft Product Terms: Software Assurance Benefits (read 2026-10-16) · Microsoft Workplace Discount Program (formerly Home Use Program) (read 2026-10-16) · Microsoft Learn: Software Assurance FAQ (read 2026-10-16) · Schneider: Microsoft Home Use Program renamed to Workplace Discount Program (read 2026-10-16)

Retired benefits

Microsoft Desktop Optimization Pack (MDOP) Retired on April 14, 2026

Retired on April 14, 2026: end of extended support for all MDOP components; replaced by Intune, Configuration Manager and features built into Windows 11 Enterprise.

What it did

A set of desktop management tools (App-V, UE-V, MBAM, AGPM, DaRT) that Software Assurance customers in the Systems pool could download.

Sources

Microsoft Learn lifecycle announcement: MDOP support extended (read 2026-10-16) · Microsoft Support: Microsoft Desktop Optimization Pack (MDOP) support extended (read 2026-10-16) · Microsoft Product Terms: Software Assurance Benefits (read 2026-10-16)

Training Vouchers Retired on February 1, 2021

Retired on February 1, 2021: no replacement benefit; Microsoft points customers to Microsoft Learn and partner-led training.

What it did

Vouchers for instructor-led technical training, allocated by the number of qualifying Software Assurance licenses.

Sources

Microsoft Product Terms: Software Assurance Benefits (read 2026-10-16) · Microsoft Learn: Software Assurance FAQ (read 2026-10-16)

Planning Services (Deployment Planning Services) Retired on February 1, 2021

Retired on February 1, 2021: replaced in practice by FastTrack for eligible cloud subscriptions and by partner engagements.

What it did

Days of partner-led deployment planning engagements, allocated by Software Assurance spend.

Sources

Microsoft Product Terms: Software Assurance Benefits (read 2026-10-16) · Microsoft Learn: Software Assurance FAQ (read 2026-10-16)

24x7 Problem Resolution Support Retired on February 1, 2023

Retired on February 1, 2023: replaced by Microsoft Unified Support, pay-per-incident support and cloud support plans.

What it did

A pool of support incidents for break-fix cases, allocated by Software Assurance spend.

Sources

Microsoft Learn: Software Assurance FAQ (read 2026-10-16) · Microsoft Product Terms: Software Assurance Benefits (read 2026-10-16)

Sources

Every page these answers were read from, and when.

Microsoft’s Product Terms, licensing guidance and its March 17, 2026 notice to partners on the April 1, 2026 change to Windows Server and SQL Server subscriptions; licensing partners only for scope Microsoft’s notice does not name (RDS CAL and System Center subscriptions), and those rows say so. Data set reviewed 2026-10-16; 18 benefits, 34 sources.

Source	Read
Azure Hybrid Benefit FAQ	2026-10-16
Azure Virtual Desktop pricing: licensing requirements	2026-10-16
Licensing School: Software Subscriptions and License Mobility (April 8, 2026)	2026-10-16
Microsoft (archive): Understanding Open Value item descriptions and pricing, part 1	2026-10-16
Microsoft AI Cloud Partner Program, "Windows Server and SQL Server subscription update" (partner notice emailed March 17, 2026; Partner Center announcements, March 2026)	2026-10-16
Microsoft Learn lifecycle announcement: MDOP support extended	2026-10-16
Microsoft Learn: Extended Security Updates FAQ	2026-10-16
Microsoft Learn: Software Assurance FAQ	2026-10-16
Microsoft licensing guidance: Reimaging rights	2026-10-16
Microsoft licensing guidance: SQL Server	2026-10-16
Microsoft licensing guidance: Windows Server 2025	2026-10-16
Microsoft Licensing News: Easily bring your licenses to the cloud (October 3, 2022)	2026-10-16
Microsoft Product Terms: Exchange Server	2026-10-16
Microsoft Product Terms: Server Subscriptions for Azure (CSP software subscriptions)	2026-10-16
Microsoft Product Terms: SharePoint Server	2026-10-16
Microsoft Product Terms: Software Assurance Benefits	2026-10-16
Microsoft Product Terms: SQL Server	2026-10-16
Microsoft Product Terms: Universal License Terms for all software	2026-10-16
Microsoft Product Terms: Visual Studio Subscriptions	2026-10-16
Microsoft Product Terms: Windows Desktop Operating System	2026-10-16
Microsoft Product Terms: Windows Desktop Operating System (Microsoft Customer Agreement view)	2026-10-16
Microsoft Product Terms: Windows Server (Microsoft Customer Agreement view)	2026-10-16
Microsoft Support: Microsoft Desktop Optimization Pack (MDOP) support extended	2026-10-16
Microsoft Workplace Discount Program (formerly Home Use Program)	2026-10-16
Microsoft, "License Mobility for Windows Server and SQL Server Subscriptions FAQ" (March 2026, hosted by Licensing School)	2026-10-16
Microsoft: Downgrade Rights licensing guidance (May 2025)	2026-10-16
Microsoft: Enterprise Agreement	2026-10-16
Microsoft: Extended Security Updates for Windows Server and SQL Server	2026-10-16
Microsoft: License Mobility through Software Assurance	2026-10-16
Microsoft: Step-up Licenses list (February 2021)	2026-10-16
Microsoft: System Center licensing	2026-10-16
Microsoft: Windows Server licensing	2026-10-16
Schneider: Microsoft Home Use Program renamed to Workplace Discount Program	2026-10-16
Schneider: Windows Server and SQL Server License Mobility rights in CSP	2026-10-16

Questions people ask

Software Assurance and subscriptions, answered without the folklore.

Is a CSP software subscription the same as Software Assurance?

No, but it carries most of the same use rights for as long as the subscription runs. The Product Terms grant subscription licenses the rights of Software Assurance customers for new versions, Azure Hybrid Benefit, the Flexible Virtualization Benefit, disaster recovery and Extended Security Updates, and Microsoft told partners on March 17, 2026 that from April 1, 2026 Windows Server and SQL Server subscriptions bought under the Microsoft Customer Agreement are eligible for license mobility rights and carry the same benefits as Software Assurance does in the volume licensing programs. What a subscription never gives you is a perpetual license: when the term ends, the right to run the software ends with it. Step-Up licenses and spread payments are features of volume licensing agreements and do not exist in CSP.

What do I keep when Software Assurance expires?

The perpetual license itself, at the latest version released while coverage was active. Everything else in the benefit list ends with the coverage: Azure Hybrid Benefit, License Mobility, the Flexible Virtualization Benefit, disaster recovery rights, Step-Up eligibility and, for Windows Server and SQL Server, licensing by virtual machine. Exchange Server Subscription Edition and SharePoint Server Subscription Edition are the exception in the other direction: without active coverage or a subscription they may not run at all.

Can I add Software Assurance to a perpetual license I already own?

Only in volume licensing, and only for the products and windows the Product Terms allow: Software Assurance can be attached to an OEM or retail license within 90 days of purchase for eligible products, and a volume license bought without coverage can usually add it only in the same purchase. CSP perpetual software cannot take Software Assurance at all; the upgrade path there is a CSP software subscription or a volume licensing agreement.

Which benefit lets me run my licenses on AWS or Google Cloud?

License Mobility through Software Assurance, for eligible server applications such as SQL Server, Exchange Server, SharePoint Server and System Center. It needs active Software Assurance or an eligible subscription and a verification form filed within 10 days. Windows Server is not eligible for License Mobility; it reaches Azure through Azure Hybrid Benefit and other hosters through the Flexible Virtualization Benefit, which excludes the Listed Providers (Alibaba, Amazon, Google and Microsoft).

Do I need Software Assurance for Extended Security Updates?

For ESU bought through volume licensing, yes: the keys are sold only to customers with Software Assurance or a server subscription. Through Azure Arc the ESU meter is billed to your Azure subscription and does not require Software Assurance, and servers running in Azure virtual machines receive ESU for the older programs at no extra charge. The ESU Cost Calculator on this site prices the three paths side by side.

Where do these answers come from, and how current are they?

Every benefit on this page lists the Microsoft Product Terms page, licensing guidance or announcement it was read from, with the date it was read. The data set was last reviewed on 2026-10-16. Where Microsoft's wording was unclear or partners' reports disagreed, the row says so and points to the Product Terms rather than guessing. The Product Terms change monthly; for a purchase decision, read the current text or ask us to.

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