Licensing Brief

October 2022

Introduction to Microsoft Core licensing models

This brief applies to all Microsoft Licensing programs.

Contents
Summary ...................................................................................................................................................................................................................... 2
Definitions ................................................................................................................................................................................................................... 2
Introduction to Per Core Licensing ................................................................................................................................................................... 4
Per Core licensing model.............................................................................................................................................................................. 4
Per Core/CAL licensing model .................................................................................................................................................................... 5
Management Servers licensing model .................................................................................................................................................... 6
Server software products that apply Per Core licensing ........................................................................................................................... 7
SQL Server .............................................................................................................................................................................................................. 7
SQL Server licensing options for highly virtualized environments ............................................................................................... 9
BizTalk Server......................................................................................................................................................................................................... 9
Per Core license model.................................................................................................................................................................................. 9
BizTalk Server licensing options for highly virtualized environments .......................................................................................10
Windows Server ..................................................................................................................................................................................................10
Minimum core license requirements for Standard and Datacenter Editions ........................................................................11
Licensing requirements for adding virtual machines for Standard Edition when licensing by physical core ..........11
System Center .....................................................................................................................................................................................................12
Minimum core license requirements for Standard and Datacenter Editions ........................................................................12
Additional resources ............................................................................................................................................................................................ 13

September 2020 1
Introduction to Per Core Licensing and Basic Definitions

Summary
The purpose of this brief is to introduce the basics of the different Per Core licensing models for key Microsoft
server software products.

Definitions
Assigning a license: Assigning a license means that you designate that license for one device or user. This
designation avoids sharing a license across more than one device or user simultaneously. For example, after you
have assigned a software license to a server, you are permitted to run the software on that server. You can use
whatever manual or technical method that works for you to ensure that you have the correct number of licenses to
cover your software use.

Figure 1: Assigning a license.

Data center: A building (or multiple buildings) that houses servers and ancillary equipment typically used in a
corporate computing environment connected by a local area network (LAN).

Hardware thread: A hardware thread is either a physical core or a hyper-thread in a physical processor.

Figure 2: Physical server showing physical processors, physical cores, and hardware threads.

Instance: An instance of software is the set of files that make up the software, stored in executable form, and ready
to run. You create an instance of software by executing the software’s setup or install procedure, or by duplicating
an existing instance. Instances of software can run on physical or virtual hardware systems.

Examples:

• An installed copy of the Windows Server operating system on a hard disk is an instance of Windows Server.
• An installed copy of Microsoft Exchange Server within a virtual hard drive (VHD) (or other image format) file
is an instance of Exchange Server.
• A VHD file with Exchange Server installed on top of Windows Server contains an instance of Windows
Server and an instance of Exchange Server. Copying that VHD file creates another instance of Windows

October 2022 2
Introduction to Per Core Licensing and Basic Definitions

Server and another instance of Exchange Server. Deploying that VHD file to another server creates an
instance of Windows Server and an instance of Exchange Server on that server.
Run an Instance: You run an instance of software by loading it into memory and executing one or more of its
instructions. Once this has occurred, an instance is considered to be running (whether or not its instructions
continue to execute) until it is removed from memory.

Figure 3: Different types of servers.

Operating system environment (OSE): all or part of an operating system instance, or all or part of a virtual (or
otherwise emulated) operating system instance which enables separate machine identity (primary computer name
or similar unique identifier) or separate administrative rights, and instances of applications, if any, configured to run
on the operating system instance or parts identified above. There are two types of OSEs, physical and virtual. A
physical hardware system can have one physical OSE and/or one or more virtual OSEs.

Physical core: Each physical processor contains smaller processing units called physical cores. Some processors
have eight cores, some 16 and so on.

Physical OSE: An OSE that is configured to run directly on a physical hardware system. The operating system
instance used to run hardware virtualization software (for example, Microsoft Hyper-V Server or similar
technologies) or to provide hardware virtualization services (for example, Microsoft virtualization technology or
similar technologies) is considered part of the physical OSE.

Physical processor: A processor in a physical hardware system. Physical OSEs (see “Operating System Environment
(OSE)”) use physical processors.

Server: A server is a physical hardware system capable of running server software. A hardware partition or blade is
considered to be a separate physical hardware system, and, therefore, a separate server.

Server farm: A server farm consists of up to two data centers each physically located in the following areas:

• In a time zone that is within four hours of the local time zone of the other (Coordinated Universal Time
[UTC] and not Daylight Saving Time [DST]), and/or
• Within the European Union (EU) and/or European Free Trade Association (EFTA)
Each data center can be part of only one server farm. You can reassign a data center from one server farm to
another, but not on a short-term basis (that is, not within 90 days of the last assignment).

Service provider: A service provider is an organization that provides services, such as software or hosting services,
to other organizations.

Virtual core: The unit of processing power in a virtual (or otherwise emulated) hardware system. A virtual core is
the virtual representation of one or more hardware threads. Virtual OSEs use one or more virtual cores.

October 2022 3
Introduction to Per Core Licensing and Basic Definitions

Figure 4: Virtual Machine (VM) using virtual cores.

Virtual OSE: An OSE that is configured to run on a virtual (or otherwise emulated) hardware system.

Introduction to Per Core Licensing

Core-based licensing provides a more precise measure of computing power and a more consistent licensing metric
than prior licensing models such as processor-based, regardless of whether solutions are deployed on physical
servers on-premises, or in virtual or cloud environments. Core-based licensing enables multi-cloud environments,
improving workload portability and helping remove friction across different licensing models, making it easier for
customers to migrate to the cloud at their own pace.

Today, there are primarily three licensing models that apply Per Core licensing:

1) The Per Core licensing model used by SQL Server and BizTalk Server.
2) The Per Core/CAL licensing model used by Windows Server (Standard and Datacenter).
3) The Management Servers (core-based) licensing model used by System Center (Standard and Datacenter
edition).

Per Core licensing model

There are two ways to license under the Per Core licensing model:

• Licensing based on Physical Cores on a Server

• Licensing by Individual Virtual Machine

October 2022 4
Introduction to Per Core Licensing and Basic Definitions

The number of core licenses needed depends on whether customers are licensing based on Physical Cores on a
Server or by virtual machine.

We refer to the use of software in virtual machines or VMs in this brief. In our license terms, these are virtual
operating system environments or virtual OSEs.

Licensing based on Physical Cores on a Server

When running an instance of the software in a physical OSE, all physical cores on the server must be licensed.
Software partitioning or custom system bios control does not reduce the number of core licenses required, except
when licensing individual virtual machines (VMs). A minimum of four core licenses is required for each physical
processor on the server.

Unlike the Server/CAL licensing model, the Per Core model allows access for an unlimited number of users or
devices to connect from either inside or outside an organization’s firewall. With the Per Core model, customers do
not need to purchase additional client access licenses (CALs) to access the Server software.

Enterprise editions: For each server to which you have assigned the required number of licenses, you can run on
the licensed server any number of instances of the server software in a number of physical OSEs and/or virtual
machines equal to the number of licenses assigned to that server. Thereafter, for each additional license that you
assign to the licensed server, you can run instances of the server software in an additional OSE (e.g., VM) on that
licensed server.

Standard and other editions: For each server to which you have assigned the required number of licenses, you can
run on the licensed server any number of instances of the server software in the physical OSE. The only way to
license Standard for use in a virtual machine is to license by virtual machine.

Licensing by Virtual Machine

Similar to the Per Core licensing model in physical OSEs, all virtual cores (v-cores) supporting virtual machines that
are running instances of SQL Server core edition software must be licensed accordingly. To license individual virtual
machines using the Per Core model, customers must purchase a core license for each virtual core (or virtual CPU,
virtual thread) allocated to the virtual machine, subject to a four-core license minimum per virtual machine. For
licensing purposes, a virtual core maps to a hardware thread. Customers with subscription licenses or licenses with
active Software Assurance coverage on SQL Server 2022 will have the option to license by virtual machine. For
earlier versions, customers with perpetual licenses also have this option.

Enterprise editions: For each server to which a customer assigns the required number of licenses, they may run any
number of instances of the server software in a virtual machine. The licenses are assigned to the physical server and
allocated to a virtual machine to allow running instances of the software. The licenses are not assigned to the virtual
machine.

Standard and other editions: For each server to which a customer assigns the required number of licenses, they
may run any number of instances of the server software in a virtual machine. The licenses are assigned to the
physical server and allocated to a virtual machine to allow running instances of the software. The licenses are not
assigned to the virtual machine.

Per Core/CAL licensing model

Beginning October 2022, there are two ways to license the Per Core/CAL licensing model:

• Licensing based on Physical Cores on a Server

• Licensing by Virtual Machine

October 2022 5
Introduction to Per Core Licensing and Basic Definitions

The number of core licenses needed depends on whether customers are licensing based on Physical Cores on a
Server or by virtual machine. The option to license by virtual machine is available only to customers with
subscription licenses or licenses with active Software Assurance.

Licensing based on Physical Cores on a Server

When licensing based on physical cores, the Per Core/CAL license model requires the customer to license all the
physical cores on the server they run the software on. The licensed server must be assigned a minimum of 16 core
licenses subject to a minimum of eight core licenses per physical processor. The greater of these two minimum
requirements would equal the minimum number of licenses any server running the software must have.
Datacenter edition: For each server to which a customer assigns the required number of licenses, they may run the
software in the physical OSE and any number of virtual machines on the licensed server.

Standard edition: For each server to which a customer assigns the required number of licenses, they may run the
software in up to two OSEs (physical or virtual) on the licensed server. If a customer runs the software in two
virtual machines, they may also run the software in the physical OSE if the physical OSE is used solely to host and
manage the virtual machines.

Customers may use Windows Server Containers with either edition. Windows Server Datacenter terms permit use of
any number of Windows Server Containers with or without Hyper-V isolation on servers licensed based on physical
cores. Windows Server Standard terms permit use of two Windows Server containers with Hyper-V isolation and
unlimited Windows Server containers without Hyper-V isolation on servers licensed based on physical cores.

Once a server is licensed for Windows Server Standard, customers may wish to use additional virtual machines or
Windows Server Containers with Hyper-V isolation. Fully relicensing the server based on physical cores permits use
of two additional virtual machines or Windows Server Containers with Hyper-V isolation. This practice is often
referred to as “stacking.. Alternatively, if the customer has active Software Assurance on their Standard licenses, they
may choose to purchase Step Up licenses to Datacenter edition or explore licensing by virtual machine.

Licensing by Individual Virtual Machine

When licensing either edition of Windows Server by virtual machine, the Per Core/CAL license model requires the
customer to license all the virtual cores in the virtual machine. The licensed server must be assigned a minimum of 8
core licenses per virtual machine. Additionally, a minimum of 16 core subscription licenses or licenses with active
Software Assurance per customer applies to any customer choosing to allocate Windows Server licenses by virtual
machine.
Access Licenses

In addition to licensing the server with core licenses under either option (based on physical cores or by virtual
machine), access to the server also requires a Client Access License (CAL). CALs are available as device CALs or user
CALs and each device or user is required to be licensed to directly or indirectly (e.g. multiplexing) access the server.

CALs are not required to access the server by another licensed server, a server running a Web Workload or HPC
Workload, or to access a physical OSE that is being used solely for hosting and managing Virtual OSEs.

Management Servers licensing model

Beginning October 2022, there are two ways to license the Management Servers licensing model:

• Licensing based on Physical Cores on a Server

October 2022 6
Introduction to Per Core Licensing and Basic Definitions

• Licensing by Virtual Machine The number of core licenses needed depends on whether customers are
licensing based on Physical Cores on a Server or by virtual machine. The option to license by virtual
machine is available only to customers with subscription licenses or licenses with active Software Assurance.
Licensing based on Physical Cores on a Server

When licensing based on Physical Cores, the Management Server license model is similar to the Per Core/CAL
model and requires the customer to license all the physical cores on the server in order to manage OSEs on that
server. The licensed server must be assigned a minimum of 16 core licenses subject to a minimum of eight core
licenses per physical processor. The greater of these two minimum requirements would equal the minimum number
of licenses any server with managed OSEs must have.
Datacenter edition: For each server to which a customer assigns the required number of licenses, they may manage
the Physical OSE and any number of virtual machines on the licensed server.

Standard edition: For each server to which a customer assigns the required number of licenses, they may manage
up to two OSEs (physical or virtual) on the licensed server. If a customer manages two virtual machines, they may
also manage the physical OSE if the physical OSE is used solely to host and manage the virtual machines.

If a customer needs to manage more than two OSEs on server licensed for Standard, they may fully relicense the
server based on physical cores. This is often referred to as “stacking” licenses. Alternatively, if the customer has
active Software Assurance on their Standard edition licenses, they may choose to purchase Step Up licenses to
Datacenter edition or explore licensing by virtual machine.

Licensing by Individual Virtual Machine

When licensing either edition of System Center by virtual machine, the Management Server license model requires
the customer to license all the virtual cores in the virtual machine they are managing. The managed server must be
assigned a minimum of 8 core licenses per virtual machine. Additionally, a minimum of 16 core licenses per
customer applies. The greater of these two minimum requirements would equal the minimum number of licenses
any server running a managed virtual machine must have.
Licensing for the management of client OSEs is subject to different terms. See the Microsoft Product Terms.

Server software products that apply Per Core licensing

SQL Server
Under the Per Core licensing model, each server running SQL Server software or any of its components (such as
Reporting Services or Integration Services) that are not included as Additional Software must be assigned an
appropriate number of SQL Server core licenses that are the same version as the software being run or newer
versions.

• When to use Per Core licensing model. Deploying the SQL Server Enterprise Core edition (including using
the SQL Server Parallel Data Warehouse deployment option), SQL Server Standard Core edition, or SQL
Server Web Core edition (available through service provider hosting only) software, and SQL Server Big
Data Node Core licenses.
• Deploying Internet or extranet workloads, systems that integrate with external-facing workloads (even if
external data goes through one or more other systems), or when the number of users/devices cannot be
counted easily.

October 2022 7
Introduction to Per Core Licensing and Basic Definitions

• Implementing centralized deployments that span a large number of direct and/or indirect users/devices.
• The total licensing costs for licensing SQL Server Core editions software are lower than those incurred using
the Server/CAL licensing model.
Note: The use of hyper-threading technology does not affect the number of core licenses required when
running SQL Server software in a physical OSE.

Licensing based on Physical Cores on a Server: To determine and acquire the correct number of core licenses
needed, customers must:

1) Count the total number of physical cores per physical processor in the server.
2) Purchase the appropriate number of core licenses required for the server. SQL Server Core licenses are sold
in packs of two (each licensing SKU includes two core licenses), so customers must divide the number of
licenses required by two to determine the actual number of line items (licensing SKUs) to order.

4-Processor Server with 4 4-Processor Server with 6 4-Processor Server with 10

physical cores per processor physical cores per processor physical cores per processor

Required # Required # Required # Required # Required # Required #

Cores Licenses 2-Pack SKUs Cores Licenses1 2-Pack SKUs Cores Licenses 2-Pack SKUs

SQL Enterprise
16 8 24 12 40 10
Core edition

SQL Server
Standard Core 16 8 24 12 40 10
edition

Per core—physical cores on a server. The number of licenses required equals the number of physical cores on the server subject to a
minimum requirement of four licenses per processor. The SQL Server Core Factor Table is no longer used to calculate the required
number of core licenses needed for SQL Server 2016 and later versions. For earlier versions of SQL Server, the number of licenses
required equals the number of physical cores on the server multiplied by the applicable core factor located in the SQL Server Core
Factor Table (PDF, 304 KB).

Licensing by Individual Virtual Machine: To determine and acquire the correct number of core licenses needed,
customers must:

1) Count the number of virtual cores allocated to the virtual machine an instance of the software will run in.
2) Purchase the appropriate number of core licenses required for the server (subject to a minimum of four
licenses per virtual machine). SQL Server Core licenses are sold in packs of two (each licensing SKU includes
two core licenses), so customers must divide the number of licenses required by two to determine the
actual number of line items (licensing SKUs) to order.
Note: Licensing individual VMs is the only licensing option available for SQL Server Standard Core edition customers
who are running the software in a virtualized environment under the Per Core model. The option to license SQL
Server 2022 by individual virtual OSE will apply only to customers with subscription licenses or licenses with active
Software Assurance.

2 Virtual OSEs: VM 1 = 8 virtual

1 Virtual OSE: 8 virtual cores 1 Virtual OSE: 10 virtual cores
cores, VM 2 = 12 virtual cores

Required # Required # Required # Required # Required # Required #

Cores Licenses 2-Pack SKUs Cores Licenses1 2-Pack SKUs Cores Licenses 2-Pack SKUs

October 2022 8
Introduction to Per Core Licensing and Basic Definitions

2 Virtual OSEs: VM 1 = 8 virtual

1 Virtual OSE: 8 virtual cores 1 Virtual OSE: 10 virtual cores
cores, VM 2 = 12 virtual cores

SQL Enterprise
8 4 10 5 20 10
Core edition

SQL Server
Standard Core 8 4 10 5 20 10
edition

SQL Server licensing options for highly virtualized environments

Customer that need to deploy large numbers of virtual machines running SQL Server on one server or across many
servers may benefit from greater flexibility provided with Software Assurance (SA) or subscription licenses.
Allocating SQL Server Enterprise Core subscription licenses or licenses with SA based on physical cores provide
customers with Unlimited Virtualization rights on the licensed server. Both SQL Server Enterprise Core and Standard
Core subscription licenses or licenses with SA also provide customers with License Mobility Across Server Farms.

SQL Server Enterprise Core Unlimited Virtualization

Customers that fully license a server (based on physical cores) with SQL Server Enterprise Core edition with
subscription licenses or licenses with active SA may run any number of instances of the software in the physical OSE
and any number of virtual machines on the licensed server.

License Mobility Across Server Farms

For customers with highly virtualized environments who want to move VMs dynamically across servers to reallocate
resources as needed, Microsoft permits License Mobility Across Server Farms as an SA benefit available for all SQL
Server editions. Under this option, licenses may be reassigned to another server in the same Server Farm at any time
as needed. License Mobility Across Server Farms rights are also conveyed under subscription licenses..

BizTalk Server
BizTalk Server (BTS) is licensed under the same Per Core model as SQL Server. This model provides a precise
measurement of computing power and a consistent licensing metric, regardless of whether your BTS solution is
deployed across servers on-premises, virtually or physically, or cloud environments under License Mobility with
Software Assurance. Under the Per Core licensing model, each server running BTS software must be assigned an
appropriate number of BTS core licenses. The number of core licenses needed depends on whether you are
licensing the physical server or individual virtual operating system environments (OSEs).

Per Core license model

Licensing based on Physical Cores on a Server: To determine and acquire the correct number of core licenses
needed, customers must:

1) Count the total number of physical cores per physical processor in the server.
2) Purchase the appropriate number of core licenses required for the server. BTS Core licenses are sold in
packs of two (each licensing SKU includes two core licenses), so customers must divide the number of
licenses required by two to determine the actual number of line items (licensing SKUs) to order.
Licensing by Individual Virtual Machine: To determine and acquire the correct number of core licenses needed,
customers must:

1) Count the number of virtual cores allocated to the virtual machine the software will run in.

October 2022 9
Introduction to Per Core Licensing and Basic Definitions

2) Purchase the appropriate number of core licenses required for the server (minimum of four per virtual
machine). SQL Server Core licenses are sold in packs of two (each licensing SKU includes two core licenses),
so customers must divide the number of licenses required by two to determine the actual number of line
items (licensing SKUs) to order.
Beginning with SQL Server 2022, the option to license by individual virtual OSE will apply only to subscription
licenses or licenses with active Software Assurance.

BizTalk Server licensing options for highly virtualized environments

Customer that need to deploy large numbers of virtual machines running BizTalk Server on one server or across
many servers may benefit from greater flexibility provided with Software Assurance (SA). BizTalk Server Enterprise
Core edition with SA provides customers with Unlimited Virtualization rights on the licensed server. Both BizTalk
Server Enterprise Core and Standard Core editions with SA also provide customers with License Mobility Across
Server Farms.

BizTalk Server Enterprise Core Unlimited Virtualization

Customers that fully license a server with BizTalk Server Enterprise Core edition with active SA based on physical
cores may run any number of instances of the software in the physical OSE and any number of virtual machines on
the licensed server.

License Mobility Across Server Farms

For customers with highly virtualized environments who want to move VMs dynamically across servers to reallocate
resources as needed, Microsoft permits License Mobility Across Server Farms as an exclusive SA benefit available for
all BizTalk Server editions. Under this option, licenses may be reassigned to another server in the same Server Farm
at any time as needed.

Windows Server
For both Standard and Datacenter editions, Windows Server is licensed by the Per Core/CAL license model. Like
products with Per Core licenses, Windows Server core licenses are sold in packs (2 core pack and 16 core pack).
Each license SKU includes the 2 or 16 core licenses per pack. As an alternative to licensing Windows Server based on
the physical cores on the server, customers can license by virtual machine.

Datacenter Standard Either Edition

Per Core/CAL Option Licensing based on physical Licensing based on physical Per Core/CAL by VM2
cores 1 cores /CAL1

License Type Core License Core License Core License

OSEs/Windows Server Unlimited Two3 One

containers with Hyper-V
isolation

Windows Server without Unlimited Unlimited Unlimited within one VM

Hyper-V isolation containers
1When licensing by physical core, licenses for all physical cores on the server must be assigned, subject to a minimum of 8 core
licenses per physical processor and a minimum of 16 core licenses per server.
2When licensing by virtual machine, licenses for all of the virtual cores in the virtual machine must be assigned, subject to a
minimum of 8 licenses per virtual machine and 16 licenses per customer.

October 2022 10
Introduction to Per Core Licensing and Basic Definitions

3When licensing based on physical cores, Windows Server Standard edition permits use of one running instance of the server
software in the physical OSE on the licensed server (in addition to two virtual machines), if the physical OSE is used solely to host
and manage the virtual machines.

Minimum core license requirements for Standard and Datacenter Editions

Licensing Based on Physical Cores

The table below provides examples for various server configurations, and the minimum number of core licenses
required when licensing based on the physical cores on the server.

Server
1-Processor Server 2-Processor Server 4-Processor Server
Licensing

Windows Required # Required # Required # Required # Required # Required #

Server Cores Licenses1 2 core - Pack Cores Licenses1 2 core - Pack Cores Licenses1 2 core - Pack
Standard & SKUs SKUs SKUs
Datacenter

2 cores per 16 8 16 8 32 16
processor

4 cores per 16 8 16 8 32 16
processor

6 cores per 16 8 16 8 32 16
processor

8 cores per 16 8 16 8 32 16
processor

10 cores per 16 8 20 10 40 20
processor
1Core licenses are sold in 2-packs.

Licensing by virtual machine

For licensing by virtual machine, the minimums are 8 per virtual machine and 16 per customer. In other words, four
2 core packs and eight 2 core packs, respectively. The number of processors on the server does not affect the
minimums.

Licensing requirements for adding virtual machines for Standard Edition when licensing by
physical core
The table below provides examples of “stacking” scenarios for various server configurations, the minimum number
of licenses required, and the resulting number of virtual machines or Windows Server Containers with Hyper-V
isolation provided. As a rule, for each additional set of two VMs or two Windows Server containers with Hyper-V
isolation the customer wishes to use, the server must be fully relicensed based on the physical cores. Note that
Datacenter edition has rights to unlimited virtualization so “stacking” therefore is not required. As an alternative to
relicensing the full server for stacking using Windows Server, customers with subscription licenses or licenses with
active Software Assurance can license additional virtual machines based on virtual cores and subject to license
minimums.

October 2022 11
Introduction to Per Core Licensing and Basic Definitions

“Stacking”
1-Proc Server with 16 cores 2-Proc Server with 16 cores 4-Proc Server with 32 cores
Standard

OSEs or Required # Required # Required # Required # Required # Required #

Hyper-V Cores Licenses1 2-Pack SKUs Cores Licenses1 2-Pack SKUs Cores Licenses1 2-Pack SKUs
Containers

2 per server 16 8 16 8 32 16

4 per server 32 16 32 16 64 32

6 per server 48 24 48 24 96 48

8 per server 64 32 64 32 128 64

10 per server 80 40 80 40 160 80

1Core licenses are sold in 2-packs.

System Center
For both Datacenter and Standard editions, System Center Server Management Licenses (Server MLs) are licensed
under the Management Servers license model. System Center Datacenter and Standard have core-based licensing,
in alignment with Windows Server. Like Windows Server Per Core licenses, System Center Server core licenses
(Server MLs) are sold in packs (2 core pack).

Datacenter Standard Either edition

Management Server Option Licensing based on physical Licensing based on physical Licensing by VM2
cores1 cores1

License Type Core License Core License Core License

OSEs/Windows Server Unlimited Two3 One

containers with Hyper-V
isolation

Windows Server containers Unlimited Unlimited Unlimited within one VM

without Hyper-V isolation
1When licensing based on physical cores, licenses for all physical cores on the server must be assigned, subject to a minimum of 8
core licenses per physical processor and a minimum of 16 core licenses per server.
2When licensing by virtual OSE, licenses for all of the virtual cores in the managed virtual OSE must assigned, subject to a minimum
of 8 licenses per virtual machine and 16 licenses per customer.
3Whenlicensing based on physical cores, System Center Standard edition permits management of the physical OSE on the
managed server (in addition to two virtual OSEs), if the physical OSE is used solely to host and manage virtual OSEs.

Minimum core license requirements for Standard and Datacenter Editions

Licensing based on physical cores

The table below provides examples for various server configurations, and the minimum number of core licenses
required when licensing based on the physical cores on the server.

October 2022 12
Introduction to Per Core Licensing and Basic Definitions

Server 1-Processor Server, 2 Cores per 2-Processor Server, 6 Cores per 4-Processor Server, 10 cores per
Licensing processor processor processor

Edition - OSEs Required # Required # Required # Required # Required # Required #

required Cores Licenses1 2 core - Pack Cores Licenses1 2 core - Pack Cores Licenses1 2 core - Pack
SKUs SKUs SKUs

Standard
edition – 2 16 8 16 8 40 10
OSEs

Standard
edition – 4 16 8 32 16 80 40
OSEs required

Datacenter
edition – 10 16 8 16 8 40 10
OSEs required

Licensing by virtual machine

For licensing by virtual OSE, the minimums are 8 per virtual OSE and 16 per customer. In other words, four 2 core
packs and eight 2 core packs, respectively. The number of processors on the server does not affect the minimums.

Additional resources
• SQL Server Licensing Resources and Documents.
• Windows Server Licensing Resources and Documents.
• Infrastructure and Other Servers Licensing Resources and Documents.
• Licensing Guides
• Licensing Briefs

© 2022 Microsoft Corporation. All rights reserved. This document is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN
THIS DOCUMENT. This information is provided to help guide your authorized use of products you license; it is not your agreement. Your use of products licensed
under your volume license agreement is governed by the terms and conditions of that agreement. In the case of any conflict between this information and your
agreement, the terms and conditions of your agreement control. Prices for licenses acquired through Microsoft resellers are determined by the reseller.

October 2022 13