Windows Server 2016 Licensing, New Features, and More You Need to Know!

Windows Server 2016 is Microsoft's server operating system version that was released in the year 2016. A client or desktop operating system is typically the primary interface for a single user and one user at a time. In the Microsoft ecosystem, Windows 8, Windows 10, and Windows 11 would be examples of client operating systems. In contrast, a server operating system is primarily designed to handle requests from client systems in a networked environment. The server is rarely the primary computing environment for an individual user. Even administrators log into the server directly to perform maintenance, upgrades, or changes to various functions of the server. A server may have a single function, such as storing files or hosting a website or database. It can have many roles, such as authenticating all users, translating friendly internet names into numeric addresses used by computers, providing network addresses to all client computers, etc.

First of all, let us all take a moment to recall the licensing model of Windows Server 2012 R2. It was universally loved by the Microsoft community because of its clarity and simplicity. Microsoft offered two editions, Standard and Datacenter with the same functionality. Both included two physical processors, the only difference was that Standard allowed 1 physical or two virtual operating system environments (OSEs) while Datacenter allowed unlimited OSEs. For environments with low or no virtualization, organizations would purchase Standard. For highly virtualized environments, organizations would use Datacenter. This licensing setup would also include your Windows CALs (Client Access Licenses).

While Windows Server 2012 R2 licensing was much appreciated, we all knew that due to the continued improvements in processing power, this model would soon have to be adopted.

Introducing Windows Server 2016, now licensed by Core

2016 will still come in two flavors, Standard and Datacenter, but Datacenter will come with additional functionality that will help reduce storage costs, simplify networking, and enhance security. Both will be 2 core license packs. Each physical processor will need at least 8 cores and each physical server will need at least 16 cores. Because each license is a 2-core pack, a little simple math is needed to know that 8 is the minimum license quantity allowed for Windows Server 2016. The new model for licensing virtual machines is similar to the 2012 R2. A minimum of 8 Windows Server Standard 2016 licenses (16 cores) will allow for 2 OSE or 2 Hyper-V containers. If 4 VMS are required, double your Standard licensing number to 16 (32 cores).

There will be no price increase unless you exceed the minimum 16 cores per Server.

Now here's the good news. For all servers with 16 cores or less, there is no price increase as Microsoft has made the cost of 16 Windows Server 2016 cores equal to a Windows Server 2012 R2 license with 2 processors. That being said, if you have less than 16 cores, there will be no price reduction due to the minimum core requirement.

Below is a useful chart to help you calculate the number of licenses you will need for your server. As you can see, for the most part, there are no pricing changes when it comes to 2016. However, once you exceed the minimum of 16 cores per server, the quantity and pricing will increase.

If you purchased Software Assurance (SA) on your Windows Server 2012 R2 license, you will be granted a minimum of 8 cores per processor and up to 16 cores per server. If the processors have more than 8 cores, Microsoft will give you a core grant, allowing you to run Windows Server 2016 on those servers without having to purchase more licenses. At upgrade time, you will be able to purchase SA for those incremental cores. To claim the licensing grant, you can work with Softchoice to run an inventory tool on these Windows servers as a date-stamped document to share with Microsoft.

Big Changes in Windows Server 2016

IT pros can expect several new features, improvements to existing functionality, and a long list of significant licensing changes that could impact many organizations. If you have a few hours to spare, Microsoft has detailed what to expect in an 181-page ebook, various blog posts, videos, and white papers. If you don't have time for that, don't worry! Below you'll find many of the key things you need to know about Windows Server 2016.

Windows 2016 Usage Forecast: 17% Adoption by October 2017.

Differences between WS2016 Enterprise and Datacenter editions.

Windows Server 2016 is licensed per core.

Microsoft Windows Server 2016: A "cloud-ready" server OS.

Lightweight Nano Server makes its debut.

Windows Server Containers.

Enhanced security features in WS2016.

PowerShell 5.0 improvements.

Hyper-V virtualization features: new and improved.

Software-defined networking/storage improvements.

Software Assurance (SA) for Windows Server 2016

Being per core Windows Server 2016 standardizes Microsoft's licensing model as it now matches the licensing model found in Azure. To help customers migrate to the cloud, Microsoft has added a Software Assurance (SA) benefit called Azure Hybrid Use. This benefit will allow you to load and run your own Windows image in Azure on a non-Windows VM. You will have the option of running two 8-core instances or one 16-core instance in Azure. When licensing standard with SA, instances can no longer reside on your physical servers whereas Datacenter with SA will allow instances added in Azure as well as unlimited virtual machines on-premises.

Windows Server 2016 Licensing Model

Windows Server 2016 licensing model consists of per-core/processor + client access licenses (CAL).

A minimum of 8 core licenses are required for each physical CPU.

The 2-core license pack is the minimum amount of core licenses you can purchase. For example, you would need four 2-core license packs (4x2) to fully license an 8-core CPU.

The price of a 2-core license is 1/8 (one-eighth) of the price of a 2-CPU license for the corresponding Windows 2012 R2 editions so pricing remains the same. This means that a 16-core Windows 2016 Datacenter Server costs the same as a 2-CPU Windows 2012 R2 Datacenter Server.

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