Advanced Windows Server Management Enabled by Azure Arc

At Microsoft Ignite 2024 Microsoft announced the general availability of Windows Server management enabled by Azure Arc.  This allows Windows Server customers with Software Assurance access to certain Azure management services at no extra cost and add some additional management features that are only available through this offering. 

Also as part of this announcement you can now buy Windows Servers licenses for your Arc Arc enabled servers on a Pay As You Go basis through the Azure Portal.

Let’s break down what these announcements mean and how you can actually make them work for you within your environment. 

Windows Server Pay-as-you-go licensing

Licensing can be complicated and also expensive. And depending on your procurement processes purchasing a new Windows Server license may take too long for your project timeline.

This is where the new Azure Arc Pay-as-you-go licensing option for Windows Server 2025 can be quite useful. 

You can deploy a Windows Server device on-premises, Arc enable the device and then license it, and you only pay for as much as you use.  So if that new Windows Server 2025 device is live for 30 days and then deleted, you only pay for the license for those days. 

The charges will be billed via your Azure subscription.

While I am no expert in licensing and you should also check the documentation or consult your licensing provider there are some things you should be aware of with the Pay-as-you-go license:

• There are no client access licenses (CALs) required for standard functionality. However, Remote Desktop Services (RDS) CALs are still required.
• It doesn’t provide additional rights for virtual machines (VMs) running on the same server. 
• Pay-as–you-go licensing is only available for Windows Server 2025 Standard or Datacenter edition. 

Set up Windows Server Pay-as-you-go

When you install Windows Server 2025 the setup will ask you the licensing method you wish to use, ensure you select Pay-as-you-go, this will allow you to continue the install without providing a product key. 

Once the operating system is installed on your device, you need to install the Azure Arc agent onto the server. 

The next step is to enable the license via the Azure Portal. 

• Head to https://portal.azure.com
• Locate the Azure Arc management blade
• Click on Azure Arc resources > Machines
• Select the machine you wish to license
• Expand Licenses > Windows Server

• Tick the Pay-as-you-go with Azure box
• Click Confirm

The server is now licensed and you will be billed via your Azure subscription. 

Key features and benefits for Windows Server Management enabled by Azure Arc

If you are using Windows Server Pay-as-you-go licensing or have Windows Server licenses with Software Assurance (SA) Microsoft are offering a lot of management services within Azure, many of which are included at no additional cost. Additionally, some new management features are available:

• Azure Update Manager: This feature allows you to assess the update status of your servers and deploy updates ensuring you are always up-to-date with the latest security patches and improvements. Available to Windows Server 2012 and above. 
• Azure Change Tracking and Inventory: This tool within Azure allows you to monitor changes made to your server such as software, services, files and registry helping you to quickly identify any changes that have been made.  With this there are additional costs of storing data within Log Analytics. Available to Windows Server 2012 and above. 
• Azure Machine Configuration: This feature allows you to configure machine properties using Azure Policy, ensuring a consistent configuration across all servers.  Available to Windows Server 2012 and above. 
• Windows Admin Centre in Azure for Arc:  This tool allows you to be able to manage your server from anywhere, without the need for VPNs or public IP addresses.  It includes capabilities like RDP, Hyper-V management and event viewer. Available to Windows Server 2016 and above. 
• Remote Support: This feature offers professional support with just-in-time access, revocation rights and more.  Available to Windows Server 2016 and above. 
• Network HUD:  A host networking diagnostics and operational tool that runs spot checks, health checks, and cluster-wide checks to ensure optimal network setup. Available to Windows Server 2025 only.  
• Best Practices Assessment: This collects and analyses server data to help provide guidance on how to optimise performance, security, and adhere to best practices.  With this there are additional costs of storing data within Log Analytics. Available to Windows Server 2016 and above. 
• Azure Site Recovery Configuration: Helps to configure Azure Site Recovery to ensure business continuity and provides replications and data resilience for critical workloads. With this there are additional costs with the VM replication. Available to Windows Server 2016 and above. 

Set up Windows Server Management enabled by Azure Arc

• From your browser head to https://portal.azure.com
• Navigate to the Azure Arc management blade. 
• Under Licenses select Windows Server Azure benefits and licenses

• Select the Azure Arc-enabled servers that are eligible for enrolment (those that have Windows Server Software Assurance licenses or using the Pay-as-you-go licensing) 
• Now select Activate Azure benefits

• Review the terms and select the checkbox
• Now select Activate

It may take up to 10 mins for the activation to happen. 

Conclusion

The introduction of Pay-as-you-go licensing for Windows Server 2025, alongside the expanded benefits for Windows Server Software Assurance customers, provides greater flexibility and cost efficiency for organisations. With enhanced management capabilities through Azure Arc, businesses can streamline operations, improve security, and simplify licensing.

If you haven’t yet Arc-enabled your on-premises servers, now is the perfect time to explore these new capabilities and make the most of what Azure Arc has to offer.