I'm trying to figure out how licensing works for Windows Datacenter compared to just using Windows Server licenses for my virtual machines. For instance, I have a new physical server with 48 cores. If I install Windows Datacenter and license it for all 48 cores, it costs around $10,500. Alternatively, if I use Hyper-V 2019 as the OS and create VMs, I would need to purchase Windows Server licenses for those VMs, costing $700 for every 16 cores. Since we don't have a SAN and are only using local storage with multiple Hyper-V servers, what is the best licensing option here? Am I missing any important considerations?
4 Answers
You have to license all cores no matter the edition. Datacenter provides you the rights for unlimited VM use, while Standard is limited to just 2 VMs. Depending on how many VMs you need, Standard can be a cost-effective option by stacking licenses.
Regarding your setups, if you go the Standard route, you'd need to license all cores for the physical host regardless of VM allocation. So, for every two VMs you want, you effectively need another whole set of licensing for 48 cores. In your case, for 10 VMs, that would quickly add up to the cost of a Datacenter license.
It's all about the flexibility versus the cost. For under 10 Windows VMs, the Standard licenses are cheaper. But going with Datacenter gives you the freedom to spin up as many VMs as needed without worrying about additional licensing each time.
When using Windows Server Standard, you still need to license all 48 cores, but it allows you to run two instances of Windows Server on that. So, the tipping point is around 10 VMs; if you plan to run more than that, Datacenter becomes the better deal. Make sure to get a detailed quote from your vendor, as sometimes additional core packs can be cheaper than you'd expect.
So if I need just 4 VMs, I could license the host using Standard twice? That sounds like it might save some money!