This article describes the licensing options you have when you want to deploy Windows Server Virtual Machines in Azure. It’s getting complicated when you start using the Hybrid Use Benefit solution, so always contact Microsoft or your licensing supplier. Please note that I will not answer any licensing questions.
Built-in Licensing for Windows Server
This type of licensing is by-far the most easy to use but it can be an expensive solution. You deploy an Azure Virtual Machine from the Portal or PowerShell and the licensing costs are automatically included with the Virtual Machine costs. But what if you want to use your existing KMS licenses which you’ve bought with your Enterprise Agreement? Or you want to use Windows Server Standard licenses instead of Datacenter licenses?