Microsoft Azure Local OEM License

For more than 25 years, Microsoft and Lenovo have partnered to deliver trusted, enterprise-grade infrastructure solutions for businesses worldwide. Together, we integrate the latest Microsoft technologies with Lenovo ThinkSystem and ThinkAgile platforms to power secure, resilient, and high-performance datacenters.

Built on proven Lenovo innovation, ThinkAgile MX Series solutions extend Microsoft’s operating systems, virtualization, and hybrid infrastructure platforms, enabling organizations to simplify operations, accelerate deployment, and drive meaningful business outcomes. By combining Azure Local with Lenovo’s worldclass, scalable hardware, customers benefit from a seamless, turnkey experience that unites on-premises control with the agility of the cloud.

Figure 1. Azure Local Licensing Options on ThinkAgile MX Series

There are four ways to license Azure Local on ThinkAgile MX Series solutions, as shown in the figure above.

This licensing method is covered in this product guide:

1. Azure Local Integrated OEM License – Perpetual, factory-integrated licenses for Azure Local Host Operating System (OS) that includes Windows Server 2025 Datacenter Edition for unlimited guest VMs. These licenses are available at point-of-sale with ThinkAgile MX Series solutions.

These licensing methods are also available but not covered in this product guide:

2. Azure Local Subscription – Includes Azure Local Host OS subscription fee only and available via Lenovo as a Microsoft Cloud Solution Provider (CSP) in specific Geos. Outside Lenovo CSP regions, this license can be purchased via other CSPs or directly from the Azure Portal. Windows Server licenses for guest VMs are not included and must be purchased separately.
3. Azure Hybrid Benefit (AHB) for Azure Local:
   1. If you have a Microsoft Enterprise Agreement (EA) including Windows Server Datacenter Edition Licenses and active Software Assurance (SA), you can activate Azure Hybrid Benefit by exchanging Windows Server core licenses equal to the total physical cores in the servers in the Azure Local cluster. This waives the Azure Local Host OS subscription fee and retains Windows Server guest VM license rights with entitlement to future versions of Windows Server.
   2. If you have an active Windows Server Subscription purchased through a Microsoft Cloud Solution Provider (CSP), you can activate Azure Hybrid Benefit if you allocate enough core licenses equal to the total physical cores in the servers in the Azure Local cluster. This waives the Azure Local Host OS subscription fee and retains Windows Server guest VM license rights with entitlement to future versions of Windows Server.

The following table shows a comparison of the key features of the four licensing options.

Table notes:

1. Azure Hybrid Benefit → 1-core license of SA-enabled Windows Server Datacenter Edition or Subscription enables 1 physical core of Azure Local Host Service + Windows Server (Guest VMs)
2. Azure Local OEM license first contact is your OEM vendor. For additional help, file an Azure support request via the Azure portal
3. This license doesn’t require annual renewals or subscriptions. It is a prepaid license that remains valid for the lifetime of the hardware on which it was purchased.
4. Requires ongoing Software Assurance (SA) or Azure Local/Windows Server subscription renewals. SA is not available through Lenovo and must be purchased separately from other licenses.

The Azure Local Integrated OEM License package is a perpetual, life-of-device, factory-integrated software license option that is bundled with ThinkAgile MX Series systems. It provides customers with access to Azure Local, including Windows Server 2025 Datacenter Edition for Guest VMs through a one‑time, up‑front license purchase.

Azure Local delivered under this license includes features like Azure Stack HCI / Azure Local Host OS and Azure Kubernetes Service (AKS), with continuous access to all the latest updates. Windows Server 2025 Datacenter Edition offered through this license, enables unlimited Windows Server 2025 Guest VMs with all features supported.

These licenses are backed by Lenovo Premier Support, delivering a fully integrated support experience across both ThinkAgile MX Series hardware and Azure Local software—simplifying ownership and accelerating time to value.

This license is ideal for customers who prefer a price-predictable and perpetual license. It is best suited to enterprise and SMB customers deploying Azure Local in remote office/branch office (ROBO) and manufacturing or retail edge environments. It offers a predictable cost structure for their infrastructure investments that will be deployed for at least three years to optimize total cost of ownership, while it grants license rights for the life of the server.

The Azure Local Integrated OEM License needs to be configured in the ThinkAgile MX Series solution, at point-of-sale, using the Lenovo Data Center Solution Configurator (DCSC) and is delivered in a single transaction through Lenovo. The license is configured on a per core basis, with a base license for 16 cores, with 2-core incremental add-on licenses, automatically calculated in DCSC based on choice of hardware configuration.

Selecting the the above feature code will derive the license components listed in the table below. The number of additional licenses (SEDY) will adjust to match the number of processor cores (number of processors × processor core count) in the server.

The Azure Local Integrated OEM license from Lenovo offers a simple, predictable and operationally efficient way to deploy Azure Local on Lenovo ThinkAgile MX Series solutions. Designed for customers who value rapid time to value, streamlined operations, and end-to-end support, this license option delivers a tightly integrated hardware and software experience, directly from the factory. It is the only Azure Local license option that includes support by default.

Simplicity Through an Integrated License

The Azure Local Integrated OEM license combines Azure Local and Windows Server 2025 Datacenter Edition for guest VMs into a single OEM license, eliminating the need to manage separate host OS subscriptions, guest OS licenses, or hybrid entitlements.

Key benefits include:

• Factory installed and tightly integrated with the ThinkAgile MX Series system
• Automatic license sized based on CPU core counts, with simplified activation and no physical license keys
• Joint validation of hardware and software as a complete system

This integrated approach reduces deployment time and simplifies license management.

Predictable Economics and Lower Operational Overhead

Unlike subscription-only models, the Azure Local Integrated OEM license offers a one-time, upfront purchase with perpetual rights for the life of the server, making it ideal for customers seeking:

• Predictable infrastructure costs
• Simplified procurement and budgeting
• Lower long-term operational overhead, especially for ROBO and edge deployments

Bundling Azure Local and Windows Server guest VM rights further reduces administrative effort.

One Trusted Vendor, One Support Experience

Lenovo provides a single, integrated support model for both infrastructure and platform, including:

• ThinkAgile MX Series hardware support
• Integrated L1/L2 Azure Local software support
• End-to-end case management through Lenovo Premier Support

Customers benefit from a unified support experience that eliminates vendor handoffs and simplifies operations and lifecycle management.

This section describes how to verify your Azure Local Integrated OEM License status.

ThinkAgile MX Series systems with Azure Local Integrated OEM licenses do not ship with a physical license key. The keys are pre-installed in the hardware BIOS and automatically activate upon connecting to Azure, removing the need for manual keys. Activation requires an active Azure account, registration of the Azure Local cluster, and internet connectivity.

To verify if you have an active Integrated OEM license for Azure Local, use these steps:

1. Go to the Azure portal.
2. Search for your Azure Local instance.
3. Under your Azure Local instance, select Overview to check the Billing status.

If you have an active OEM license for Azure Local, your billing status should be OEM License, and your OEM license status should be Activated.

Figure 2. An instance with an active OEM license for Azure Local

If you don't have an active OEM license for Azure Local, you should see a billing status of Billed monthly, and an OEM license status of Not activated.

Figure 3. A instance billed monthly, without an active OEM license for Azure Local

It is important to plan your licensing for your Azure Local deployments and ensure homogeneity in licensing models in your cluster. All nodes in an Azure Local system require uniformity across the hardware, operating system, and billing treatment.

When an Azure Local instance uses different hardware models, operating system versions, or billing models, it is known as a mixed-node scenario. Specifically for the Azure Local Integrated OEM license, if your instance includes a mixed-node scenario where one or more of your machines don't have the OEM license, a notification in your monthly billing status details appears:

We have detected mixed nodes in your instance. You will be billed monthly for each node in your instance as one or more machines in your instance do not have an OEM license. To see which machines do not have the OEM license, go to Overview > Nodes and check the OEM license column. Learn more.

The following table lists some examples of mixed-mode scenarios that aren't supported.

You can activate Windows Server VMs on an Azure Local instance using generic Automatic Virtual Machine Activation (AVMA) client keys. You can use either Windows Admin Center or PowerShell. For more information on using AVMA to activate Windows Server VMs, see Activate Windows Server VMs on Azure Local.

Customers may also use Windows Server Azure Edition on Azure Local following these acquisition and deployment steps.

All support requests for ThinkAgile MX Series systems with Azure Local Integrated OEM licenses are handled through Lenovo Premier Support, providing end-to-end case management.

To contact support, visit Lenovo Support and enter your product serial number in the search field to find the appropriate support phone number.

For details on service coverage, see the Lenovo ISG Support Plan - ThinkAgile MX Solutions

For questions on Deployment and Hardware Installation, contact Lenovo Professional Services:

• North America: DCG_PS_NA@lenovo.com
• EMEA: DCG_PS_EMEA@lenovo.com
• Asia Pacific: DCG_PS_AP@lenovo.com