The Azure Hybrid Benefit for SQL Server can be used with Azure resources such as SQL Databases or Managed Instances, or SQL Server running in a virtual machine. This means that customers can bring their own licences with SA (or Server Subscriptions acquired through CSP) to pay for the SQL Server part of the resources. Historically, the Azure Hybrid Benefit has always been activated at the resource level, but a new option means that customers can now manage it for a single Azure Subscription or for a whole Billing Account.

This new feature is enabled in the Azure Management Portal where you specify the number of eligible SQL Server licences you have which are then converted to Normalized Core Licenses (NCLs). Because SQL Server Enterprise and Standard Core licences can be combined in Azure in the ratio of 4:1, this NCL number calculates (in effect) the total number of Standard Core licences you have available. So, 8 Enterprise and 16 Standard Core licences = 8 x 4 + 16 = 48 NCLs. These NCLs are then automatically allocated to SQL resources running in the chosen scope, rather than the Azure Hybrid Benefit having to be manually activated by a human on each resource.

Scope-level management of the Azure Hybrid Benefit can be used with SQL Databases, SQL Managed Instances, SQL Elastic Pools or SQL Server running in an Azure VM, but only resource-level management is available for Azure Dedicated Hosts and Azure Data Factory SQL Server Integration Services (SSIS). Note too that it’s not an option currently available for Web Direct or CSP customers, only those buying through an Enterprise Agreement or direct from Microsoft via the Microsoft Customer Agreement.

Find tutorials, how-go guides and an FAQ at the docs site here: https://bit.ly/3n2IfAO.