If your organization has been using a Microsoft Windows Server, then you must have been aware of the licensing shift that occurred after the release of Microsoft Windows Server 2016. 

In particular, according to those who’ve analyzed the new model, Microsoft sought to increase licensing costs whilst adding new features to their Microsoft Windows Servers, a move that of course, was received with mixed reactions.

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The Different Editions Available

Microsoft Windows Server 2016 comes in three tiers. Datacenter edition is suited for a highly virtualized and software-defined data center environments, while the Standard edition, is best suited for a minimally virtualized or physical environment.

For smaller organizations, there is an Essentials edition, which is suited for an environment with a maximum of 25 users and 50 devices.

Related: Software Asset Management: Compliance and Management

So how has Microsoft Windows Server licensing changed?

Previously, with a Microsoft Server 2012 R2, you’d be billed based on the number of processors you were running on your server. But that’s not the case anymore.

The number of cores now count

The most significant change you’d notice with the 2016 windows server licensing model is that you’re now billed, per core. So, instead of getting a processor license, Microsoft now issues a core license, under the following rules. 

For each processor or socket, you need a minimum of 8 core licenses. On top of that there is a minimum of 16 cores required for any single server.  So even if you have a single socket server with a 4 core processor in it, you’ll need 16 core licenses to license that box. So maybe upgrade that server if you’re looking that installing Windows Server 2016 on it!

Here’s where the math gets a bit tricky. If you are running at or near the minimums described above, the cost of licensing that server on 2012 or 2016 should be relatively similar.

However, if you have a server, say running 2 processors with 16 cores each, then you’d need 32 core licenses. That would be more expensive, because where you previously were able to license that server with 2 processor licenses, you now need 32 core licenses.  From a cost perspective, this could be as much as twice the price of a 2012 processor license.

CALs are still there, save for one edition

Other things with the new licensing model remain fairly constant. For instance, Client Access Licenses are still needed. The only difference is that they are required for the Standard and Datacenter editions only.

If you are running the Essentials edition, a CAL is not necessary, since they have limited the number of users to 25, and devices to 50.

Related: The Different Types of Software Licensing

More focus on Datacenter

With the 2012 R2 windows licensing model, minimal technical differences could be pointed out between the Standard edition and the Datacenter edition. However, with the 2016 model, Microsoft introduced a larger technical discrepancy between the two.

In particular, both editions now contain Nano Servers, Windows containers, and a Windows Server OS installation mode. However, the Datacenter edition gets pumped up with new administrative, networking and storage features.

This is in a bid to ensure Datacenter licensing is more preferred than Standard licensing.  

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In a nutshell

Microsoft Windows Server Licensing has changed a lot over time. It is in your best interest to keep yourself in the loop, so as to make proper data and networking decisions in your organization.