Azure Hybrid Benefit allows organizations to apply existing SQL Server licenses with Software Assurance or qualifying subscriptions to Azure SQL Databases. When this configuration is missed or not enforced, workloads continue to incur license-inclusive costs despite license ownership. This oversight often occurs in environments where licensing governance is decentralized or when databases are provisioned manually without applying existing entitlements. Across multiple databases or elastic pools, these duplicated license costs can accumulate substantially over time.
Azure SQL Database charges for compute and storage. Compute pricing can be either license-inclusive (pay-as-you-go) or license-excluded (when Azure Hybrid Benefit is applied). If AHB is not enabled, eligible databases are billed at higher license-inclusive rates even though valid SQL Server licenses already exist, resulting in double payment.