Windows Server 2016 is the cloud-ready operating system that supports customer workloads while introducing new technologies that make it easy for customers to transition to cloud computing when they are ready. Windows Server 2016 delivers powerful new layers of security along with Azure-inspired innovation for the applications and infrastructure that power business. 

Customers can choose from three primary editions of Windows Server, based on the size of the organization as well as virtualization and datacenter requirements:

• Datacenter Edition is ideal for highly virtualized and softwaredefined datacenter environments.

• Standard Edition is ideal for customers with low density or non-virtualized environments.

• Essentials Edition is a cloud-connected first server, ideal for small businesses with up to 25 users and 50 devices. Essentials is a good option for customers currently using the Foundation Edition, which is not available with Windows Server 2016. 

Windows Server 2016 licensing model The business model for Standard and Datacenter editions transitioned from processor-based to core-based licensing in October 2016 with the general availability of Windows Server 2016 (all other editions of Windows Server 2016 continue to be on the processor-based licensing model). Core-based licensing provides a more consistent licensing metric across environments, enabling multicloud environments, improving workload portability for Windows Server through benefits like Azure Hybrid Benefit, and helping remove friction across different licensing models. Customers with Software Assurance will transition to core-based licensing at their first renewal after the general availability of Windows Server 2016, although they can deploy Windows Server 2016 at any time. The Windows Server 2016 licensing model includes both Cores + Client Access Licenses (CALs). Each user and/or device accessing a licensed Windows Server Standard, Datacenter, or Multipoint edition requires a Windows Server CAL or Windows Server and Remote Desktop Services CAL. A Windows Server CAL gives a user or device the right to access any edition of Windows Server of the same or earlier version. Each Window Server CAL allows access to multiple licenses of Windows Server. 

Edition Licensing model CAL requirements

Datacenter Core-based* Windows Server CAL**

Standard Core-based* Windows Server CAL**

Essentials Specialty server No CAL required **

All physical cores on the server must be licensed, subject to a minimum of 8 core licenses per physical processor and a minimum of 16 core licenses per server.

** CALs are required for every user or device accessing a server. See the Product Terms for details. 

Windows Server 2016 Standard and Datacenter: Core-based licensing Core-based licensing requires all physical cores in the server to be licensed. Servers are licensed based on the number of processor cores in the physical server.

• A minimum of 8 core licenses is required for each physical processor and a minimum of 16 core licenses is required for each server.

• Core licenses are sold in packs of two.*

• Standard Edition provides rights for up to 2 Operating System Environments or Windows Servers containers with Hyper-V isolation when all physical cores in the server are licensed. For each additional 1 or 2 VMs, all the physical cores in the server must be licensed again.

• The price of a set of 16 core licenses (for a 2-processor server) for Windows Server 2016 Datacenter and Standard editions is the same price** as the 2-processor license of the corresponding edition of Windows Server 2012 R2. Windows Server 2016 Licensing Azure Hybrid Benefit With the Azure Hybrid Benefit, customers with Software Assurance can benefit from special pricing for new Windows Server virtual machines in Azure. Customers pay only for the base compute rate, which is currently the same as the Linux rate for virtual machines. For complete details, visit www.azure.com/ahub.

** 8 two-core packs will be the minimum required to license each physical server. The two-core pack for each edition is 1/8th the price of a license for a 2-processor server for corresponding Windows Server 2012 R2 editions.

** Rounding may result in slight variations in the final price of eight 2-pack core SKUs relative to the price of one Windows Server 2012 R2 processor SKU.