Microsoft brings License Mobility to CSP subscriptions.

If you run SQL Server or Windows Server outside Azure using Microsoft subscription licences, Microsoft has made a licensing change you should be aware of.

What this change means for your Windows and SQL estate:

As of April 2026, Microsoft has updated its Product Terms so that Windows Server and SQL Server subscription licences purchased through a Microsoft partner now include License Mobility rights.

These partner‑sold subscriptions sit under Microsoft’s Cloud Solution Provider (CSP) programme, which is now how most organisations buy Microsoft licences.

In practical terms, this means customers no longer lose deployment flexibility when moving from traditional Volume Licensing with Software Assurance to subscription‑based licensing.

For organisations with hybrid, hosted or outsourced infrastructure, this removes a long‑standing licensing constraint.

In plain English...

If you previously stayed on older Microsoft agreements so you could run SQL Server or Windows Server in hosted or third‑party environments, this change means you may now be able to use subscription licences without giving up that flexibility.

The issue customers were running into:

Historically, License Mobility was tied to Software Assurance under legacy Volume Licensing agreements.

That mattered because License Mobility allows organisations to:

• Run eligible workloads outside their own dedicated hardware
• Deploy in shared or outsourced cloud environments
• Use authorised third‑party hosting providers, not just Azure

When customers moved from Volume Licensing with Software Assurance to subscription licences bought through a partner, those rights were no longer clearly available.

The result:

• Subscription licensing simplified purchasing and billing
• Deployment options became more restrictive
• Many organisations stayed on legacy agreements solely to protect mobility rights

Microsoft has now addressed that gap.

What has changed?

Microsoft updated the Product Terms under the Microsoft Customer Agreement so that eligible subscription licences now receive rights equivalent to Software Assurance.

The Product Terms now explicitly confirm that, for the duration of a subscription, customers are granted the same deployment rights that Software Assurance provided.

This applies to Windows Server and SQL Server subscription licences purchased through Microsoft partners.

What is License Mobility?

License Mobility allows Microsoft server workloads to move with your infrastructure, rather than being tied to a single hosting model.

With License Mobility, eligible licences can be:

• Deployed in shared datacentres
• Run in third‑party hosted or outsourced environments
• Used with Microsoft‑approved hosting providers

Until now, these rights largely applied only to customers with Software Assurance.

From April 2026, they are now available for eligible Microsoft subscription licences as well.

What this now allows customers to do:

With this change, Windows Server and SQL Server subscription licences offer Software Assurance‑equivalent deployment flexibility.

That means:

• Choosing subscription licensing no longer reduces your hosting options
• Eligible workloads can run in shared or hosted cloud environments
• Third‑party hosting providers are now a valid option
• Subscription licensing better aligns with long‑standing usage rights

For customers running hybrid estates, colocation, hosted platforms or structured outsourcing, this is a meaningful practical improvement.

What isn’t included (and why this matters):

Microsoft has been deliberate about scope.  This change:

• Does not apply to perpetual licences
• Applies only to subscription licences
• Does not automatically cover every Windows Server scenario

It’s also important to note:

• Eligible products include SQL Server and specific Windows Server components such as External Connector and Remote Desktop Services (RDS) CALs
• Hosting providers must still be recognised by Microsoft as authorised for License Mobility

Not all Microsoft licences can now be moved freely, and assumptions here can create compliance risk.

Do customers need to do anything?

The updated rights apply automatically through Microsoft’s Product Terms. However:

• Deployments using third‑party hosting providers may still require licence verification
• Eligibility should be checked before workloads are moved
• Licence records and deployment evidence remain important

The change reduces barriers, but it doesn’t remove the need for good licensing governance.

Who should pay closest attention?

This update matters most if you:

• Are moving away from older Microsoft agreements
• Run SQL Server or Windows Server outside Azure
• Use hosted platforms, colocation or third‑party datacentres
• Want the commercial benefits of subscriptions without narrowing deployment choices

If your infrastructure is hybrid or outsourced, this change removes a common licensing trade‑off.

Licensing flexibility only delivers value when it’s applied correctly.

If you’re reviewing your Microsoft estate, this is a sensible moment to reassess what can be simplified or modernised.

• Confirm which licences and deployment scenarios qualify
• Align infrastructure decisions with Microsoft Product Terms
• Reduce compliance risk during renewal or migration
• Simplify Microsoft licensing without losing control

Thinking about reviewing your Microsoft licensing or SQL and Windows Server deployments?
Talk to Intercity and we’ll help you cut through the complexity with confidence.