Azure SQL Server VM

Question

Azure SQL Server VM

Philip Preece 41

We have an Azure subscription (type = Azure Plan) and have deployed an Azure VM using the Microsoft marketplace template ('Windows Server 2022 with SQL Server 2022 Standard'). Please note, this is an Azure Windows VM running SQL Server, not an Azure SQL Database running as a service.

The price of the VM includes the Windows server and SQL server licenses. From what I have read, we're entitle/covered to add up to 5 SQL instances on the VM, however, when try to create a new/second instance, the setup wizard is prompting us to chose a licensing method (please see below). We're struggling to find any meaningful documentation which confirms the licensing method we're meant to use. It's defaulting to 'product key' and has a pre-defined key. This seems like the obvious choice but its also asking us to select either 'SQL license only' or SQL license with SA'. Any advise would be appreciated.

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Adithya Prasad K 245 Reputation points Microsoft External Staff

2025-02-24T09:46:47.57+00:00

Hi Philip Preece,
Just checking in to see if the below answer provided by Erland Sommarskog.

If this answers your query, do click Accept Answer and Yes for was this answer helpful. And, if you have any further query do let us know.
PhP59300 76 Reputation points

2025-02-24T09:57:38.2233333+00:00

Hi Adithya,
Erland advise has been extremely useful but it would be great if we could get a definitive answer from Microsoft. Given our deployment/environment, do we need to select 'I have a SQL Server License Only' or should we select the PAYG option (which is currently greyed out).
Erland Sommarskog 119.8K Reputation points MVP

2025-02-24T21:38:50.4933333+00:00

I can't but agree.
Oury Ba-MSFT 20,531 Reputation points Microsoft Employee

2025-03-06T17:03:24.33+00:00

@Philip Preece Thank you for reaching out.

Customers can install up to 50, not only 5, SQL instances on an Operating System Environment (OSE), in this case an Azure VM. Additional SQL Server instances can strain system resources unless configured correctly.

For Azure marketplace images, SQL Server installation media is located at C:\SQLServerFull. The installation media of Azure SQL VM marketplace image comes with a product key with same version and edition as the image.

You can use the installation media to install multiple instances with the same version and edition. The product key will be pre-populated during setup. If you need different version or edition, if you have Software Assurance can obtain your installation media from the Volume Licensing Center.

Customers who don't have Software Assurance can deploy an Azure Marketplace SQL Server VM image with the desired edition of SQL Server and then copy the setup media to their target SQL Server VM.

Customers using Software Assurance or the pay-as-you-go licensing model can install multiple instances of SQL Server on the virtual machine without incurring extra licensing costs. Please note that you will be charged for the highest edition if you have multiple instances with different editions.

Regards,

Oury
Oury Ba-MSFT 20,531 Reputation points Microsoft Employee

2025-03-06T18:15:45.71+00:00

@Philip Preece I have modified the above answer. Please let me know if you have any questions.

Regards,

Oury
Erland Sommarskog 119.8K Reputation points MVP

2025-03-06T22:15:49.3266667+00:00

Thanks for stepping in, Oury. But you are still talking a little around the bush:

Customers using Software Assurance or the pay-as-you-go licensing model can install multiple instances of SQL Server on the virtual machine without incurring extra licensing costs.

I would expect to be able to add a second instance of the same edition to my Azure VM without extra cost, with or without SA. At least I can do this on-prem. Is Azure VM different?
Oury Ba-MSFT 20,531 Reputation points Microsoft Employee

2025-03-19T21:39:19.23+00:00

@Philip Preece Erland Sommarskog

You can check frequently asked questions for SQL Server on Azure VMs -

https://learn.microsoft.com/en-us/azure/azure-sql/virtual-machines/windows/frequently-asked-questions-faq?view=azuresql#administration

Can I install a second instance of SQL Server on the same VM? Can I change installed features of the default instance?

Yes. The SQL Server installation media is located in a folder on the C drive. Run Setup.exe from that location to add new SQL Server instances or to change other installed features of SQL Server on the machine. Some features, such as Automated Backup, Automated Patching, and Azure Key Vault Integration, only operate against the default instance, or a named instance that was configured properly (See Question 3). Customers using Software Assurance through the Azure Hybrid Benefit or the pay-as-you-go licensing model can install multiple instances of SQL Server on the virtual machine without incurring extra licensing costs. Additional SQL Server instances can strain system resources unless configured correctly.

What is the maximum number of instances on a VM?

SQL Server 2012 to SQL Server 2019 can support 50 instances on a stand-alone server. This is the same limit regardless of in Azure on-premises. See best practices to learn how to better prepare your environment.

1 answer

Your answer

Adithya Prasad K 245 Reputation points Microsoft External Staff

2025-02-24T09:46:47.57+00:00

Hi Philip Preece,
Just checking in to see if the below answer provided by Erland Sommarskog.

If this answers your query, do click Accept Answer and Yes for was this answer helpful. And, if you have any further query do let us know.
PhP59300 76 Reputation points

2025-02-24T09:57:38.2233333+00:00

Hi Adithya,
Erland advise has been extremely useful but it would be great if we could get a definitive answer from Microsoft. Given our deployment/environment, do we need to select 'I have a SQL Server License Only' or should we select the PAYG option (which is currently greyed out).
Erland Sommarskog 119.8K Reputation points MVP

2025-02-24T21:38:50.4933333+00:00

I can't but agree.
Oury Ba-MSFT 20,531 Reputation points Microsoft Employee

2025-03-06T17:03:24.33+00:00

@Philip Preece Thank you for reaching out.

Customers can install up to 50, not only 5, SQL instances on an Operating System Environment (OSE), in this case an Azure VM. Additional SQL Server instances can strain system resources unless configured correctly.

For Azure marketplace images, SQL Server installation media is located at C:\SQLServerFull. The installation media of Azure SQL VM marketplace image comes with a product key with same version and edition as the image.

You can use the installation media to install multiple instances with the same version and edition. The product key will be pre-populated during setup. If you need different version or edition, if you have Software Assurance can obtain your installation media from the Volume Licensing Center.

Customers who don't have Software Assurance can deploy an Azure Marketplace SQL Server VM image with the desired edition of SQL Server and then copy the setup media to their target SQL Server VM.

Customers using Software Assurance or the pay-as-you-go licensing model can install multiple instances of SQL Server on the virtual machine without incurring extra licensing costs. Please note that you will be charged for the highest edition if you have multiple instances with different editions.

Regards,

Oury
Oury Ba-MSFT 20,531 Reputation points Microsoft Employee

2025-03-06T18:15:45.71+00:00

@Philip Preece I have modified the above answer. Please let me know if you have any questions.

Regards,

Oury
Erland Sommarskog 119.8K Reputation points MVP

2025-03-06T22:15:49.3266667+00:00

Thanks for stepping in, Oury. But you are still talking a little around the bush:

Customers using Software Assurance or the pay-as-you-go licensing model can install multiple instances of SQL Server on the virtual machine without incurring extra licensing costs.

I would expect to be able to add a second instance of the same edition to my Azure VM without extra cost, with or without SA. At least I can do this on-prem. Is Azure VM different?
Oury Ba-MSFT 20,531 Reputation points Microsoft Employee

2025-03-19T21:39:19.23+00:00

@Philip Preece Erland Sommarskog

You can check frequently asked questions for SQL Server on Azure VMs -

https://learn.microsoft.com/en-us/azure/azure-sql/virtual-machines/windows/frequently-asked-questions-faq?view=azuresql#administration

Can I install a second instance of SQL Server on the same VM? Can I change installed features of the default instance?

Yes. The SQL Server installation media is located in a folder on the C drive. Run Setup.exe from that location to add new SQL Server instances or to change other installed features of SQL Server on the machine. Some features, such as Automated Backup, Automated Patching, and Azure Key Vault Integration, only operate against the default instance, or a named instance that was configured properly (See Question 3). Customers using Software Assurance through the Azure Hybrid Benefit or the pay-as-you-go licensing model can install multiple instances of SQL Server on the virtual machine without incurring extra licensing costs. Additional SQL Server instances can strain system resources unless configured correctly.

What is the maximum number of instances on a VM?

SQL Server 2012 to SQL Server 2019 can support 50 instances on a stand-alone server. This is the same limit regardless of in Azure on-premises. See best practices to learn how to better prepare your environment.

Answer 1

Erland Sommarskog 119.8K MVP

First or all, the SQL Server Setup media is agnostic to where you are. It will be the same as on on-prem.

Have you looked at https://learn.microsoft.com/en-us/azure/azure-sql/virtual-machines/windows/frequently-asked-questions-faq?view=azuresql? As I understand it, you should select Pay-as-you-go to avoid extra costs. But read it yourself and make your own judgement.

There is another important thing to observe: While you can install multiple instances on Azure VM, you can only manage the default instance through the portal. (This is also discussed in the topic above.)

Philip Preece 41 Reputation points

2025-02-22T13:46:03.9333333+00:00

Hi Erland, thanks for taking the time to help. The Pay-as-you-go licensing option is greyed out, in the setup wizard, when running the SQL setup wizard.
Erland Sommarskog 119.8K Reputation points MVP

2025-02-22T20:11:12.1533333+00:00

You're right. I looked more closely at https://learn.microsoft.com/en-us/azure/azure-sql/virtual-machines/windows/frequently-asked-questions-faq?view=azuresql#can-i-install-a-second-instance-of-sql-server-on-the-same-vm--can-i-change-installed-features-of-the-default-instance- and particularly this sentence:

Customers using Software Assurance through the Azure Hybrid Benefit or the pay-as-you-go licensing model can install multiple instances of SQL Server on the virtual machine without incurring extra licensing costs.

After been thinking of it for a while, I think that Pay-as-you-go refers to what you selected when you created the VM. Here you have the choice of Azure Hybrid Benefit. If you don't recall this, you can review this on the page for the VM in the portal. Select Settings and then SQL Server Configuration.

So you need to use the pre-pidded choice. As for which checkbox to use, that depends on whether you have Software Assurance or not. If you have SA, you can check the upper box, else check the lower. If you have SA, you get a few more features, which I don't recall exactly, and I have not been able to find a reference. But I seem to recall that at least some of them are related to Azure Arc, which is not of interest in an Azure VM anyway.

I need to add the disclaimer that this only based on my own thinking and that is precarious when it comes to licensing. You may want to wait until Monday when Microsoft staff/vendor may have something to add here.
Philip Preece 41 Reputation points

2025-02-23T08:44:06.3433333+00:00

Hi Erlan, I've just checked at it looks like we used the PAYG method when deploying the VM from the 'Windows Server 2022 with SQL Server 2022 Standard' template. As mentioned, the PAYG option is currently greyed out when attempting to add a second instance using the SQL setup media.
Erland Sommarskog 119.8K Reputation points MVP

2025-02-23T09:39:50.1966667+00:00

Yeah, it is a little confusing. The SQL Server setup does not know what you have in the portal, but just finds that the technical conditions for a PAYG installation are not met.

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