Enable free benefits: Microsoft has made several Azure server management capabilities free for eligible Windows Server machines connected through Azure Arc. These benefits are included at no extra cost if your machines run Pay-As-You-Go Windows Server or are covered by Software Assurance (SA) or Windows Server Subscriptions.
Free capabilities now include:
- Azure Update Manager
- Change Tracking & Inventory
- Machine Configuration
- Best Practice Assessment
- Windows Admin Center in Azure
Previously, each server needed manual activation of these benefits. Microsoft has now introduced a new Azure Policy that automatically identifies eligible Arc-enabled Windows Server machines and highlights any that are not yet configured correctly.
Administrators can then run a remediation task to activate the benefits across all selected servers with one action.
How Is This Beneficial to Admins
- No more manual license attestations per server
- Ensures all eligible machines get free management capabilities
- Continuously monitors newly added Arc servers
- Saves time and improves compliance across hybrid environments
How It Works
The new Azure Policy:
- Detects Arc-enabled Windows Server machines
- Checks whether they are covered by SA, Subscription, or PAYG
- Flags machines missing the required benefit activation
- Allows one-click remediation to enable free benefits
Note: PAYG machines may initially appear as Unlicensed. They must be marked once as PAYG before the policy can keep them compliant.
What You Should Do Now
- Make sure your Windows Servers are licensed correctly: This means checking whether each Windows Server is covered by:
- Software Assurance (SA), or
- a Windows Server Subscription, or
- is running as Pay‑As‑You‑Go (PAYG) in Azure.
Only servers with one of these three are eligible for the free management features. Azure Policy cannot validate your licensing rights; it can only enforce benefit activation once the machine is already marked as Licensed.
- Turn on the Azure Policy in your Azure environment: Assign the policy at subscription or management group level so Azure can automatically check all Arc‑connected Windows Servers for missing benefit activation. Learn how to deploy it here: https://techcommunity.microsoft.com/blog/coreinfrastructureandsecurityblog/automating-windows-server-licensing-benefits-with-azure-arc-policy/4469345#:~:text=How%20to%20Deploy%20the%20Policy.
- Let Azure fix any servers that are missing benefits: Azure Policy will list any eligible servers that do not yet have the free benefits activated. Select them and click Remediate. Azure will apply the correct settings automatically.
- Add this policy to your standard server onboarding: When you add new Windows Servers to Azure Arc in the future, Azure will automatically check them and show whether benefits need to be activated. This keeps your environment compliant without manual work.
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