Cost-based licensing optimization for Microsoft

  • Release version: Australia
  • Updated March 12, 2026
  • 6 minutes to read
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    Summary of Cost-based licensing optimization for Microsoft

    The cost-based licensing optimization for Microsoft enables organizations to license their Microsoft software products efficiently across hybrid infrastructures. It ensures a balance between license compliance and cost-effectiveness, allowing for maximized savings. This feature is integrated within the Software Asset Management Professional plugin, eliminating the need for manual management of Microsoft software rights unless preferred by the organization.

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    Key Features

    • Automatic balancing of license compliance and cost savings.
    • Support for key Microsoft license types, including per core licenses for SQL Server and Windows Server.
    • Specialized optimization for Microsoft Windows Server deployments on Microsoft Hyper-V, allowing for combined licensing at both physical and virtual layers.
    • Insights into recommended licensing optimizations and the rationale behind them.

    Key Outcomes

    • Identify current and potential cost savings from existing software entitlements and infrastructure.
    • Utilize various reports and dashboards in the Software Asset Workspace to track and visualize realized and potential savings.
    • Make informed decisions on following or ignoring recommended licensing optimizations based on organizational strategy.

    The cost-based licensing optimization for Microsoft helps you determine the most optimal way to license your Microsoft software products across hybrid infrastructures. With this optimization, you can automatically balance license compliance with cost effectiveness to maximize cost savings.

    Note:
    This licensing optimization is automatically included in the Software Asset Management Professional (com.snc.samp) plugin, meaning that you do not have to optimize and manage allocations for your Microsoft software rights manually. However, you can choose to manage your allocations manually if the recommended licensing optimizations do not follow your organization's licensing strategy. See Allocation Management on ServiecNow SAM Pro for more details on manual allocation management.
    Note:
    You can bypass this licensing optimization in your hypervisor clusters by applying preferred licensing assignments to the Microsoft software products that are deployed on those clusters. For more information on preferred licensing assignments, see Create preferred licensing assignments for Microsoft software products deployed on clusters.
    This licensing optimization is supported by the following Microsoft license types:
    • Per core licenses for Microsoft SQL Server and Microsoft BizTalk Server
    • Per core (with CAL) licenses for Microsoft Windows Server, Microsoft Core Infrastructure Server, and Microsoft System Center
    See Supported Microsoft license types for more information on per core and per core (with CAL) licenses.

    Licensing optimization benefits

    This licensing optimization provides the following benefits:
    • Helps you determine the cost savings that you have already achieved through your current software entitlement and infrastructure setup.
    • Helps you determine if you can achieve further cost savings by following recommended licensing optimizations.
    • Helps you gain insight into each of the recommended licensing optimizations so that you can understand the reasoning behind them and determine if you want to follow or ignore them.

    Licensing optimization for Microsoft Server products deployed on Microsoft Hyper-V virtualization technology

    For Microsoft Windows Server Standard deployments on Microsoft Hyper-V virtualization technology, the Software Asset Management application supports a specialized licensing optimization that can help you achieve better cost efficiency. With this licensing optimization, the Software Asset Management application first licenses the physical hosts that contain Microsoft Windows Server Standard installations. It then licenses the individual VMs that contain Microsoft Windows Server Standard installations. This optimization strategy combines licensing at both the physical host layer and virtual layer, which can help reduce licensing requirements and costs.

    Understanding your licensing optimizations

    You can view and gain insight into your recommended licensing optimizations by using the following tables and views: