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How is Windows Server licensed under SPLA?

Windows Server is licensed based on physical cores of the physical host/server.

License the physical server completely with one Standard Core license per physical core to license a single virtual machine. Purchase the same number of licenses again to license an additional virtual machine.

License the physical server completely with one Datacenter Core license per physical core to allow Windows Server to be run in an unlimited number of virtual machines.

A minimum of 8 Core licenses must be assigned to a physical processor.