Navigating Microsoft Server Licensing for Office Hosting

The licensing model for Microsoft Server can get a bit tricky. If you're running fewer than 10 virtual machines, it might be more cost-effective to double up on the Standard edition licensing instead of going for Data Center, which is more suited for setups with 10+ VMs. Just remember, each host will always require a minimum of 16 cores worth of licenses, and to maintain compliance, you'll want to ensure you have enough CALs too.

To get a clear idea of your Microsoft server licensing costs, you'll first need to check how many cores your physical servers have. Typically, the minimum is 16 cores per host, and even if your server has fewer cores, you'll still have to pay for 16. For your setup of 4 physical servers with virtual machines, make sure to also calculate how many Windows Client Access Licenses (CALs) you'll need for your 100 workstations. Each user will need roughly around $150 per year for User CALs and VDI licenses, so keep that in mind when budgeting.

If your organization is a 501(c)(3) non-profit, you might find some good deals. It's worth reaching out to a Value Added Reseller (VAR) to see if they can offer you server licenses for less than $1000. Also, check if your Microsoft 365 subscription covers some of the CALs you need, which could save you a chunk of cash!