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How It Works
When a company runs software like SQL Server or Windows Server in the cloud, it typically pays for a new license bundled into the VM price. License Mobility changes that. If a company holds active Microsoft Software Assurance coverage on qualifying licenses, it can bring those existing licenses to Azure instead of purchasing new ones through the cloud provider. The customer registers the license use with Microsoft, designates the Azure VMs consuming that license, and avoids paying the per-hour software component that would otherwise appear on their Azure bill. This is an on-premises-to-cloud portability benefit, not a discount program. It converts a future cloud software cost into a cost already paid.
Why It Matters for Cloud Cost
The software license component of a VM’s hourly rate is often a significant portion of total compute cost, particularly for SQL Server workloads. Without License Mobility, organizations migrating to Azure from on-premises environments pay twice: once for licenses they already own and once again through the cloud metered rate. License Mobility eliminates that duplication. For engineering and finance teams building a migration business case, the ability to attribute existing license value to Azure workloads can shift the ROI calculation materially. It works alongside Azure Hybrid Benefit, which extends a similar bring-your-own-license model specifically to Windows Server and SQL Server.
Usage AI reduces Azure VM and compute costs through Azure Savings Plans backed by Guaranteed Buyback, delivering commitment-layer savings that work alongside the license-layer savings License Mobility provides.