Azure Hybrid Benefits
  • 07 Jan 2026
  • 1 Minute to read
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Azure Hybrid Benefits

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Article summary

Introduction

Azure Hybrid Benefit (AHB) is a cost-saving feature provided by Microsoft Azure that allows users to use their existing on-premises Windows Server or SQL Server licenses with Software Assurance when running workloads in Azure. By applying these licenses, users can significantly reduce the overall cloud costs.

The Hybrid Benefits feature in Cost Analyzer enables Virtual Machines (VMs) and Virtual Machine Scale Sets (VMSS) to utilize existing Windows Server licenses, reducing operational costs. The feature provides visibility into resources where licenses are applied and highlights potential resources where licenses can be applied, helping administrators optimize license usage and manage costs efficiently.

Key Components

1. Resources with Benefits Applied

  • Displays VMs or VM Scale Sets where existing Windows Server licenses are applied.

  • Provides essential resource and cost information, allowing administrators to monitor license utilization effectively.

  • Download Option: Users can export the list and its details in Excel format for offline review and reporting

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2. Potential Resources

  • Displays VMs or VM Scale Sets that have eligible Windows Server licenses but are not yet applied.

  • Helps identify opportunities to apply unused licenses and achieve additional cost savings.

  • Download Option: Users can export the list and its details in Excel format for offline analysis.

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Benefits

  • Cost Optimization: Reduces VM and VMSS expenses by reusing existing licenses.

  • License Visibility: Central view to track applied and potential license usage.

  • Operational Efficiency: Identifies resources that can benefit from license application.

  • Financial Transparency: Includes cost details to support budgeting and planning.

Usage Notes

  • The feature automatically detects eligible resources for license application.

  • Administrators can monitor applied licenses and potential resources to make informed decisions.

  • Cost insights help prioritize license application for maximum savings.

  • Downloading resource details in Excel format allows for reporting, auditing, or further offline analysis.

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