Cost guides

What Microsoft licences actually cost

Microsoft list prices, the CALs nobody budgets for, and the exact point where a subscription overtakes a one-time purchase — worked through with real numbers.

What actually drives a Microsoft licensing bill

List price is rarely the number you end up paying. Windows Server is priced per physical core with a 16-core minimum per server and an 8-core minimum per processor, then every human or device that connects needs a client access licence on top. SQL Server offers a per-core model with no CALs and a Server+CAL model that is far cheaper for small, countable user populations. Office splits between a perpetual purchase you own and a subscription you rent.

The pages below work each of those models through with real arithmetic — including the break-even point where a subscription overtakes a one-time purchase, and the moments where adding one more virtual machine or one more part-time employee changes the cheapest answer entirely.

16
core minimum per Windows Server
8
core minimum per processor
~2.5 yrs
typical Office subscription break-even
2
SQL Server licensing models compared

Licensing models at a glance

The model decides the bill far more than the edition does. Find yours before comparing prices.

ProductHow it is countedThe cost nobody budgets for
Windows Server StandardPer physical core, 16-core minimumA CAL for every user or device that connects
Windows Server DatacenterPer physical core, unlimited VMsOnly pays off above roughly 12 VMs per host
SQL Server Standard (Server+CAL)One server licence plus a CAL per userBecomes unworkable once users are hard to count
SQL Server Standard (per core)Per core, 4-core minimum per instanceVirtual cores count, not physical, when licensing a VM
Office 2024 (perpetual)Per device, one-timeNo feature updates, no Outlook in Home & Student
Microsoft 365Per user, per monthCost never stops; five years doubles a perpetual buy
Visio / ProjectPer user or per devicePlan 1 vs Plan 2 differ on desktop app availability

Get these five numbers before you request a quote

  • Physical core count per server, including inactive cores — Microsoft counts them anyway.
  • Peak concurrent users and total named users; the smaller number decides the CAL model.
  • Number of virtual machines per host today and your realistic 24-month projection.
  • Whether anyone outside your organisation touches the system — that changes the licensing model entirely.
  • How long you will keep the hardware; the answer decides perpetual versus subscription on its own.

Licensing cost FAQ

Why is Windows Server priced per core rather than per server?
Microsoft moved to core-based licensing with Windows Server 2016 so that pricing scales with compute capacity. You license all physical cores in the server, with a floor of 8 per processor and 16 per server, then add CALs for access.
When does Datacenter beat Standard?
Standard grants two virtualised OS environments per licensed set of cores, so you re-license the same cores for each additional pair of VMs. Somewhere around 10 to 14 VMs per host, Datacenter's unlimited virtualisation becomes cheaper.
Is a perpetual Office licence cheaper than Microsoft 365?
Over roughly two and a half years, yes, if you do not need Outlook, mobile apps or 1 TB of cloud storage. Beyond that the subscription keeps charging while the perpetual licence keeps working.
Do I need CALs for a server nobody logs into directly?
Usually yes. CALs cover authenticated access of any kind, including service accounts and devices that connect indirectly through middleware — the multiplexing rules explicitly close that loophole.
Are second-hand perpetual licences a legitimate way to cut cost?
Within the EU, yes for perpetual licences that were first sold in the EEA and are transferred in full, following the Court of Justice's UsedSoft ruling. Subscriptions and partially split volume agreements are not transferable.
Do these figures include VAT?
No. All cost breakdowns use ex-VAT list pricing so they compare cleanly across countries; your invoice will add local VAT at checkout.

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