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Azure Hybrid Benefit (AHB) for Linux virtual machines enables you to take advantage of discounted reserved instance rates for your Red Hat Enterprise Linux (RHEL) and SUSE Linux Enterprise Server (SLES) VMs. Enabling AHB saves money by applying the licensing costs for RHEL and SLES on top of the discounted rate of reserved instances. This article explains the two Azure Hybrid Benefit licensing models and the process of converting to and between them.

Customers may see savings estimated to up to 76% with Azure Hybrid Benefit for Linux.

In Azure, there are two main licensing pricing options: 'pay-as-you-go' (PAYG) and 'bring-your-own-subscription' (BYOS). 'PAYG' is a pricing option where you pay for the resources you use on an hourly or monthly basis. You only pay for what you use and can scale up or down as needed. On the other hand, 'BYOS' is a licensing option where you can use your existing licenses for certain software, in this case RHEL and SLES, on Azure virtual machines. You can use your existing licenses and don't have to purchase new ones for use in Azure.

Virtual machines deployed from pay-as-you-go images on Azure without Azure Hybrid Benefit incur both an infrastructure fee and a software fee. You can either convert these VMs to standard BYOS, Azure Hybrid Benefit BYOS, or Azure Hybrid Benefit PAYG.

After you apply Azure Hybrid Benefit to your RHEL or SLES virtual machine, you're no longer charged a software fee. Your virtual machine is charged a BYOS fee instead. You can use Azure Hybrid Benefit to switch back to pay-as-you-go billing at any time.

Azure Hybrid Benefit BYOS and PAYG capability are available to all RHEL and SLES virtual machines. The VM can be created using a custom image or one taken from the Azure Marketplace

Azure dedicated host instances and SQL hybrid benefits aren't eligible for Azure Hybrid Benefit if you already use Azure Hybrid Benefit with Linux virtual machines.

In the Azure portal, you can enable Azure Hybrid Benefit on existing virtual machines or on new virtual machines at the time that you create them.

To enable Azure Hybrid Benefit on an existing virtual machine:

To enable Azure Hybrid Benefit when you create a virtual machine, use the following procedure. (The SUSE workflow is the same as the RHEL example shown here.)

You can use the az vm update command to update existing virtual machines.

To disable Azure Hybrid Benefit, use a --license-type value of None:

To enable Azure Hybrid Benefit on a large number of virtual machines, you can use the --ids parameter in the Azure CLI:

The following examples show two methods of getting a list of resource IDs: one at the resource group level, and one at the subscription level.

In addition to applying Azure Hybrid Benefit to existing pay-as-you-go virtual machines, you can invoke it at the time of virtual machine creation. Benefits of doing so are threefold:

You can view the Azure Hybrid Benefit status of a virtual machine by using the Azure CLI or by using Azure Instance Metadata Service.

You can use the az vm get-instance-view command to check the status. Look for a licenseType field in the response. If the licenseType field exists and the value is RHEL_BYOS or SLES_BYOS, your virtual machine has Azure Hybrid Benefit enabled.

From within the virtual machine itself, you can query the attested metadata in Azure Instance Metadata Service to determine the virtual machine's licenseType value. A licenseType value of RHEL_BYOS or SLES_BYOS indicates that your virtual machine has Azure Hybrid Benefit enabled. Learn more about attested metadata.

Azure reservations (Azure Reserved Virtual Machine Instances) help you save money by committing to one-year or three-year plans for multiple products. Azure Hybrid Benefit for pay-as-you-go virtual machines is available for reserved instances.

If you've purchased compute costs at a discounted rate by using reserved instances, you can apply Azure Hybrid Benefit on the licensing costs for RHEL and SUSE on top of it. The steps to apply Azure Hybrid Benefit for a reserved instance remain exactly same as they are for a regular virtual machine.

After you successfully install the AHBForSLES extension, you can use the az vm update command to update the existing license type on your running virtual machines. For SLES virtual machines, run the command and set the --license-type parameter to one of the following license types: SLES_STANDARD, SLES_SAP, or SLES_HPC.

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