How to enable SQL ESU using "Bring Your Own License" SQL ESU and avoid getting back bill

Question

How to enable SQL ESU using "Bring Your Own License" SQL ESU and avoid getting back bill

Stewart Kennedy 1

Hi all, in Azure Arc, under the actual SQL Server Licensing Blade, it allows you to select "Bring Your Own License" but not under the ESU. So the question is how to "Bring Your Own License" SQL ESU to Azure Arc if we paid for previous years under VL and want to avoid Azure back-billing for those previous years. Both in the Physical and Virtual, where you enable it under the SQL Server Configuration section.

Siva shunmugam Nadessin 1,990 Reputation points Microsoft External Staff Moderator

2025-10-21T09:50:50.23+00:00

Hello Stewart Kennedy

Verify that your SQL Server licenses (for the machines you want to cover) have active Software Assurance (SA) or you have a SQL Server subscription license eligible for ESU. According to the documentation: "Bring your own license with Software Assurance or a SQL Server subscription" is supported. If you only have perpetual licenses without SA (or equivalent), the BYOL route for ESU is not supported. The doc says: “Bring your own license without Software Assurance … No” (for ESU).

 

Manage licensing and billing - SQL Server enabled by Azure Arc | Microsoft Learn

 

If above question doesn’t help please clarify the below ask:

Have you confirmed whether your ESU licenses (via Volume Licensing) cover all the physical and virtual machines currently registered with Azure Arc?

Are all your SQL Server licenses tied to active Software Assurance or subscription-based entitlements? If not, which ones are perpetual-only?

When were the ESU-enabled servers onboarded to Azure Arc? Were any added retroactively after ESU purchases? Have you reviewed Azure billing history to check for any ESU-related charges that may have already been applied?

Thanks.
Stewart Kennedy 1 Reputation point

2025-10-21T14:30:06.8866667+00:00

When we selected a SQL Server instance to which we had applied Extended Security Updates (ESU) under Volume Licensing (VL) for the first year, the back billing amount showed as $0. This indicates that the system recognises that the ESU was previously applied and does not charge for back billing.

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Your answer

Siva shunmugam Nadessin 1,990 Reputation points Microsoft External Staff Moderator

2025-10-21T09:50:50.23+00:00

Hello Stewart Kennedy

Verify that your SQL Server licenses (for the machines you want to cover) have active Software Assurance (SA) or you have a SQL Server subscription license eligible for ESU. According to the documentation: "Bring your own license with Software Assurance or a SQL Server subscription" is supported. If you only have perpetual licenses without SA (or equivalent), the BYOL route for ESU is not supported. The doc says: “Bring your own license without Software Assurance … No” (for ESU).

 

Manage licensing and billing - SQL Server enabled by Azure Arc | Microsoft Learn

 

If above question doesn’t help please clarify the below ask:

Have you confirmed whether your ESU licenses (via Volume Licensing) cover all the physical and virtual machines currently registered with Azure Arc?

Are all your SQL Server licenses tied to active Software Assurance or subscription-based entitlements? If not, which ones are perpetual-only?

When were the ESU-enabled servers onboarded to Azure Arc? Were any added retroactively after ESU purchases? Have you reviewed Azure billing history to check for any ESU-related charges that may have already been applied?

Thanks.
Stewart Kennedy 1 Reputation point

2025-10-21T14:30:06.8866667+00:00

When we selected a SQL Server instance to which we had applied Extended Security Updates (ESU) under Volume Licensing (VL) for the first year, the back billing amount showed as $0. This indicates that the system recognises that the ESU was previously applied and does not charge for back billing.

Answer 1

Hello Stewart Kennedy

As you are seeing $0 back-billing, it means Azure Arc successfully recognized your prior ESU entitlement from Volume Licensing. When ESU licenses are applied under VL and properly declared (e.g., via Invoice ID), Azure does not apply retroactive charges.

For reference, here are the official Microsoft documents that support this:

Manage licensing and billing – SQL Server enabled by Azure Arc which Explains BYOL requirements and eligibility: https://free.blessedness.top/en-us/sql/sql-server/azure-arc/manage-license-billing?view=sql-server-ver17
SQL Server Extended Security Updates enabled by Azure Arc:
Covers ESU subscription options and linking licenses: https://free.blessedness.top/en-us/sql/sql-server/azure-arc/extended-security-updates?view=sql-server-ver17
Billing service for Extended Security Updates for Azure Arc:
Details back-billing rules and how declaring prior VL entitlements prevents charges: https://free.blessedness.top/en-us/azure/azure-arc/servers/billing-extended-security-updates

For other servers, make sure you include the Volume Licensing Invoice ID when creating ESU licenses in Azure Arc to maintain this $0 back-billing behavior. Confirm all SQL Server licenses have active Software Assurance or subscription, BYOL for ESU is not supported for perpetual-only licenses.

If you have any other queries, please let us know.
Thanks,

Suchitra.

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How to enable SQL ESU using "Bring Your Own License" SQL ESU and avoid getting back bill

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