Microsoft Licensing

Azure RDS Licensing Simplified

Azure RDS licensing works as follows:

  • Per User or Per Device: Choose licenses based on the number of users or devices accessing RDS.
  • External Connector License: Ideal for organizations with many external users needing access.
  • Subscriber Access License (SAL): Suitable for a mix of internal and external users with fluctuating access needs.

Azure RDS Licensing Models

rds azure

Azure Remote Desktop Services (RDS) licensing provides multiple options to meet organizations’ diverse needs. Choosing the right licensing model is critical to achieving cost-effectiveness, ensuring compliance, and aligning with business operations.

Below is a detailed breakdown of the key licensing models, their use cases, and suitability.


1. Per User or Per Device Licensing

This model is based on individual users or specific devices accessing Azure RDS.

Key Details

  • Per User Licensing:
    • Licenses a specific user rather than a device.
    • Each licensed user can access RDS from multiple devices (e.g., laptops, tablets, mobile phones).
    • Best For: Organizations where employees need access to RDS from multiple devices or remote locations.
  • Per Device Licensing:
    • Licenses a single device rather than individual users.
    • Multiple users can access RDS, but only through the licensed device.
    • Best For: Organizations with shared workstations or limited access needs, such as kiosks or shift-based workers.

Example Scenarios

  • Per User: A company with 100 employees working remotely on multiple devices would benefit from user-based licensing.
  • Per Device: A call center with 50 shared computers across three shifts can license just those 50 devices.

2. External Connector License

The External Connector License is designed for organizations with many external users accessing their RDS environment. These external users could include partners, contractors, vendors, or customers.

Key Details

  • One External Connector License covers all external users connecting to the RDS environment from a single server.
  • Ideal for organizations that have unpredictable or large external user bases where per-user licensing would be impractical and costly.
  • Internal users (employees) are not covered under this license and must still be licensed under the per-user or per-device models.

Best For

  • Businesses that provide external partners or vendors access to their Azure RDS applications or desktops.
  • Customer-facing services where the number of external users fluctuates.

Example Scenario

A consulting firm allows 500 external contractors to access Azure-hosted applications. Instead of licensing 500 users individually, the External Connector License covers all users under a single license for the RDS server.


3. Subscriber Access License (SAL)

The SAL licensing model provides flexibility for environments with mixed user bases, including internal and external users. It is particularly useful when access needs are dynamic or unpredictable.

Key Details

  • A SAL license is assigned per user for any individual accessing Azure RDS.
  • No need to purchase perpetual licenses, as SAL is based on a subscription model.
  • Includes coverage for both internal employees and external users without requiring separate licensing models.

Best For

  • Organizations with fluctuating user counts, such as seasonal workers or temporary contractors, are affected.
  • Businesses with a hybrid workforce, where employees and external users access RDS pay-as-you-go.

Example Scenario

An e-commerce company hires 300 seasonal workers during peak holiday periods. Instead of purchasing perpetual per-user licenses, they opt for SAL, which allows monthly subscriptions and aligns with their short-term licensing needs.

Key Considerations for Azure RDS Licensing

  1. User Access Patterns
    • Analyze whether users require access from multiple devices (favoring per-user licensing) or through shared hardware (favoring per-device licensing).
  2. External vs. Internal Users
    • The External Connector License simplifies compliance and reduces extensive external user access costs.
    • SAL is more flexible when external and internal users need dynamic access.
  3. Cost Optimization
    • Predictable user counts are best suited for per-user or per-device licensing.
    • Organizations with fluctuating user counts should consider SAL for better scalability.
  4. Deployment Size
    • Businesses with large-scale deployments should carefully assess costs for external connectors versus per-user models based on usage.

Comparison of Licensing Models

ModelIdeal ForCoverageCost Structure
Per UserIndividual users accessing from multiple devicesInternal users onlyFixed per-user fee
Per DeviceShared devices with multiple usersInternal users onlyFixed per-device fee
External Connector LicenseLarge number of external users accessing RDSExternal users on a single serverFixed per server
Subscriber Access LicenseMixed internal and external users with variabilityInternal and external usersSubscription-based per user

Best Practices for Managing Azure RDS Licenses

Effective management of Azure RDS licenses ensures compliance, cost optimization, and scalability. Below are the key best practices to streamline your licensing strategy and avoid common pitfalls.


1. Conduct Regular License Audits

Audits of your Azure RDS licenses are frequently essential to maintain compliance and maximize resource utilization.

  • Why It Matters: Audits help identify underused, unused, or incorrectly allocated licenses, which can significantly reduce unnecessary costs.
  • Action Steps:
    • Use Azure management tools to monitor active licenses and usage patterns.
    • Reclaim unused licenses from inactive accounts or redundant devices.
    • Document all license assignments to track compliance effectively.

Example: During an audit, a business discovers 20 unused per-user licenses and reallocates them, saving on unnecessary new purchases.


2. Understand Licensing Terms and Conditions

Review and understand Microsoft’s Azure RDS licensing terms to ensure you comply with policies and avoid unexpected costs.

  • Key Considerations:
    • Per-User vs. Per-Device Licensing: Know when to use each model based on your users’ needs.
    • External User Licensing: Understand when External Connector Licenses apply.
    • Stay updated on Microsoft licensing changes as terms can evolve.

Action Steps:

  • Work with a licensing expert or Microsoft partner to clarify ambiguities.
  • Use Microsoft’s official documentation to verify the terms.

Example: Misinterpreting external licensing rules can lead to costly compliance issues when external contractors access your RDS environment.


3. Optimize License Allocation

Efficient allocation of licenses based on usage patterns helps minimize costs while meeting user requirements.

  • Best Practices for Allocation:
    • Assign per-user licenses to employees needing access across multiple devices or remote locations.
    • Use per-device licenses for shared devices, such as kiosks or terminals.
    • Track license usage to ensure users are assigned the correct licensing model.

Example: A manufacturing company with 50 shared workstations saves costs by using per-device licenses rather than assigning individual user licenses.


4. Plan for Scalability

Licensing models should accommodate your organization’s growth without disruption or added complexity.

  • Why Scalability Matters: Choosing a scalable licensing strategy avoids costly adjustments and downtime as your workforce expands or fluctuates.
  • Action Steps:
    • Monitor your business’s growth trends and plan license procurement proactively.
    • Use Subscriber Access License (SAL) for dynamic user counts, such as seasonal workers or contractors.
    • Regularly assess whether your current licensing model can support new users and workloads.

Example: An e-commerce company uses SAL licenses during peak seasons to accommodate temporary workers without overcommitting to long-term licenses.

Read how RDS compares to other cloud services.

FAQs

What is Azure RDS Licensing?
Azure RDS licensing refers to the licensing requirements for Remote Desktop Services when deployed in the Azure environment. It involves purchasing the appropriate licenses based on the number of users or devices accessing RDS.

How does per-user licensing work for Azure RDS?
With per-user licensing, each individual who connects to the RDS environment requires a separate license. It is ideal for users who need access from multiple devices.

What is per-device licensing in Azure RDS?
Per-device licensing requires a license for each device accessing the RDS environment. It works best for shared devices like kiosks or workstations in shift-based workplaces.

Can Azure RDS be used for external users?
Yes, external users can access Azure RDS, but you may need an External Connector License to cover large groups of external contractors, partners, or vendors.

What is an External Connector License?
An External Connector License is a single license that allows multiple external users to access the Azure RDS environment from a specific server. This license does not cover internal users.

What are the licensing requirements for virtual machines?
If you are deploying RDS on virtual machines in Azure, you must license each user or device connecting to the RDS environment. Additionally, Azure Virtual Machines running RDS must comply with Microsoft licensing rules.

How do I choose between per-user and per-device licensing?
Choose per-user licensing if users require access from multiple devices. Opt for per-device licensing when a limited number of devices are shared among multiple users.

Does Azure RDS licensing include CALs?
Yes, Remote Desktop Services requires Client Access Licenses (CALs) for each user or device connecting to the RDS environment.

How do I license RDS in a hybrid environment?
In hybrid environments where RDS runs on Azure and on-premises servers, you need appropriate CALs and must ensure compliance with Microsoft licensing terms for both deployments.

Are RDS licenses included in Azure Virtual Desktop?
Azure Virtual Desktop (AVD) has its own licensing requirements, and RDS CALs are not included by default. You must purchase RDS CALs separately if you are using standard RDS deployments.

How does Azure RDS licensing affect costs?
Azure RDS licensing costs depend on the number of users, devices, and the type of licenses purchased. Organizations should carefully assess their access needs to avoid over-licensing.

Can I transfer RDS licenses to Azure?
Yes, existing RDS CALs with active Software Assurance (SA) can be transferred to Azure under Microsoft’s licensing guidelines, reducing the need for additional licenses.

What happens if I don’t comply with Azure RDS licensing rules?
Failure to comply with Azure RDS licensing requirements can result in audit penalties, legal issues, and increased costs for acquiring the necessary licenses.

Is Azure RDS licensing different from on-premises RDS?
The licensing rules for Azure RDS are similar to those for on-premises deployments, but Azure environments require consideration of additional Azure-specific costs for virtual machines and resources.

How can I track RDS license usage in Azure?
To ensure compliance and effectively manage license allocations, you can monitor RDS license usage in Azure using tools like Microsoft License Manager or Azure monitoring solutions.

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Author
  • Fredrik Filipsson brings two decades of Oracle license management experience, including a nine-year tenure at Oracle and 11 years in Oracle license consulting. His expertise extends across leading IT corporations like IBM, enriching his profile with a broad spectrum of software and cloud projects. Filipsson's proficiency encompasses IBM, SAP, Microsoft, and Salesforce platforms, alongside significant involvement in Microsoft Copilot and AI initiatives, improving organizational efficiency.

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