Server Licensing
Windows Server — Core-Based Licensing Model
Windows Server 2022/2025 uses a Core-Based licensing model. This means licensing is based on the physical cores in a server, not the number of processors or servers. Note: this model has been in effect since 2016, replacing the older processor-based system.

Core Rules
Minimum 16 cores per physical server
Regardless of actual core count, every physical server requires a minimum 16-core license. If your server has only 4 cores, you still purchase 16 cores of licensing.
Sold in 2-core packs
Licenses are available in 2-core packs. Minimum order is 8 packs (8 × 2 = 16 cores). Additional cores are added in 2-core increments.
All physical cores must be licensed
Every physical core in the server must be covered. Hyper-Threading logical cores do not count — only physical cores. Example: a 2-socket server with 12-core CPUs = 24 cores to license.
Minimum 8 cores per processor
Each physical processor must have at least 8 cores licensed. On a 2-socket server this means at least 2 × 8 = 16 cores, which matches the server minimum.
Standard vs Datacenter
| Feature | Standard | Datacenter |
|---|---|---|
| Virtual Machines (OSEs) | 2 VMs per license | Unlimited |
| Storage Replica | 1 partner, 2TB | Unlimited |
| Shielded VMs | ✕ | ✓ |
| Software-Defined Networking (SDN) | ✕ | ✓ |
| Storage Spaces Direct (S2D) | ✕ | ✓ |
| Approximate price (16-core) | ~$1,070 | ~$6,200 |
Calculation Example
Scenario: 2-socket server with 8-core CPUs in each socket (16 physical cores total).
Physical cores: 2 sockets × 8 cores = 16 cores
Minimum requirement: 16 cores (satisfied — actual count equals minimum)
Required 2-core packs: 16 ÷ 2 = 8 packs
With Standard edition: this license permits running 2 Windows Server VMs + 1 physical host (running only the Hyper-V role)
Example for a 24-core server:
2 sockets × 12 cores = 24 cores → 24 ÷ 2 = 12 packs needed (not 8, because actual cores exceed the 16-core minimum).
Related Articles
| Windows Server | Virtualization Rights |
| Licensing | CAL — Client Access License |
| RDS | RDS — Remote Desktop Services Licensing |