Azure Hybrid Benefit offers a cost-effective way to leverage your existing on-premises licenses while modernizing your infrastructure with Azure Local. This article will guide you through the process of activating Azure Hybrid Benefit for Azure Local, ensuring you get the most value from your existing licenses and reduce cloud costs.
Azure Hybrid Benefit for Azure Local allows you to use your active Software Assurance-enabled Windows Server Datacenter licenses to reduce the cost of running workloads in Azure Local. With this benefit, you can exchange your on-premises licenses for Azure Local resources without incurring additional charges for the host service fee or Windows Server guest subscription. However, other Azure Local services, such as Azure-specific resources, will be billed at their standard rates.
This benefit is ideal for organizations looking to migrate their existing infrastructure to Azure while keeping costs manageable.
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Eligibility requirements
To take advantage of Azure Hybrid Benefit for Azure Local, your system must meet the following prerequisites:
- Windows Server Datacenter licenses with active Software Assurance.
- Azure Local instance running Version 22H2 or later (or Version 21H2 with the required security update).
- A registered Azure Local system with online status.
- Permission to make changes to the Azure Local resource (via contributor or owner role).
Get to know how to activate Azure Hybrid Benefit for Azure Local
You can activate Azure Hybrid Benefit for Azure Local via the Azure portal, PowerShell, or Azure CLI. Here’s how to activate the benefit via the Azure portal:
1. Sign in to the Azure portal.
2. Navigate to your Azure Local resource page.
3. Under Settings, select Configuration.
4. In the Azure Hybrid Benefit section, click Activate.
5. Confirm the system and the number of core licenses you wish to allocate, and then click Activate again to complete the process.
Once activated, the Azure Local host fee is waived, and you can enjoy cost savings on your system.
Additional benefit: Windows server subscription
When you activate Azure Hybrid Benefit for Azure Local, you also have the option to enable Windows Server subscription at no additional cost. This subscription provides unlimited virtualization rights for your system, further reducing costs.
To activate this feature:
1. Under the Windows Server subscription add-on in the Configuration pane, select Activate benefit.
2. Confirm the details and click Activate to complete the process.
After activation, the licenses are applied, and your system will automatically set up Automatic VM Activation (AVMA).
Maintaining compliance for Azure Hybrid Benefit
To maintain compliance, ensure that the Software Assurance term is active. If the term is approaching expiration, you’ll need to either renew your Software Assurance agreement, disable the Azure Hybrid Benefit functionality, or de-provision the systems using the benefit.
You can track the status of your Azure Hybrid Benefit by navigating to the Azure portal and reviewing the Configuration page. There, you’ll see whether the benefit is activated or not.
Conclusion
Azure Hybrid Benefit for Azure Local is a powerful way to reduce cloud infrastructure costs by utilizing your existing Windows Server Datacenter licenses with active Software Assurance. It allows you to modernize your infrastructure without incurring additional costs for the host service and provides options for cost-effective licensing on your systems.
By partnering with AVASOFT, you can get expert guidance on how to implement Azure Hybrid Benefit and optimize your cloud infrastructure. With our deep experience in Microsoft 365 solutions and Azure services, we can ensure a smooth and cost-effective transition to the cloud. Let us help you maximize the potential of your existing licenses and streamline your cloud journey.
