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Organizations might choose to deploy apps in containers rather than virtual machines so let’s take a look at the licensing of Windows Server Containers, and Microsoft define two types of containers in the Product Terms.
Firstly, there’s a Windows Server Container with Hyper-V isolation which, from a licensing perspective, is considered to be a virtual operating system environment and thus follows the licensing rules for virtual machines which are covered in the previous section.
Then there’s a Windows Server Container without Hyper-V isolation which is a feature of the Windows Server software itself, and thus a customer may use as many of these containers as required as long as, of course, the physical server is completely licensed.
Page 24, BOK21