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AZ-900Chapter 107 of 138Objective 2.2

Azure Hybrid Benefit

This chapter covers Azure Hybrid Benefit. AZ-900 tests under 2.2.

6 min read
Intermediate
Updated Aug 20, 2026
Editorial oversight: Johnson Ajibi· Security Systems Architect · MSc IT Security · IEEE Senior Member

A simple way to picture Azure Hybrid Benefit

Discount for Existing Licenses

A software company might offer discounts if you bring existing licenses. Azure Hybrid Benefit does the same: use existing on-premises licenses (Windows, SQL Server) in Azure at a discount.

How It Actually Works

Hybrid Benefit reduces Azure costs if you have existing Microsoft software licenses: Windows Server, SQL Server licenses can be applied to reduce Azure VM costs.

Walk-Through

1

Confirm license eligibility

Verify you have qualifying licenses (Software Assurance required for some).

2

Enable Hybrid Benefit

When creating Azure resources, select the Hybrid Benefit option.

3

Reduced cost

Azure costs are reduced by applying your existing licenses.

What This Looks Like on the Job

A company with Windows Server licenses uses Hybrid Benefit to reduce the cost of Windows VMs in Azure.

How AZ-900 Actually Tests This

Objective 2.2 expects understanding of Hybrid Benefit as a cost-reduction option.

Key Takeaways

Applies existing licenses to Azure resources.

Reduces costs significantly.

Requires Software Assurance for some licenses.

Frequently Asked Questions

What is Azure Hybrid Benefit?

It allows existing Microsoft software licenses to be applied to Azure resources, significantly reducing costs.

Terms Worth Knowing

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