Direct answer: at Azure Dedicated Host public list prices on 10 November 2026 (eastus, USD, excluding tax and discounts), Dsv4-Type1 (80 vCPU/504 GiB) is $4.224/hour = $3,083.52/month, with a 1-year reservation at $21,758 ($1,813.17/month) and 3-year at $41,734 ($1,159.28/month); Esv4-Type1 (80/504) $4.435/hour = $3,237.55/month, 1-year $22,845, 3-year $43,824; Dadsv5-Type1 (112/768) $6.345/hour = $4,631.85/month, 1-year $32,792, 3-year $63,362; Msv2-Type1 (416/5,700) $54.538/hour = $39,812.74/month, 1-year $277,097, 3-year $401,312. Key point: PAYG host compute is $0.0528/vCPU-hour vs D4s_v5 at $0.048, about 10% more. Dsv4 fits only 20 D4s VMs (80 vCPU), and 20 PAYG VMs cost $2,803.20, below the host's $3,083.52—so PAYG hosts never break even on pure compute. The 1-year break-even is 12.94 VMs (65% occupancy), 3-year 8.27 VMs (41%). The real value is AHB: 40 Windows Server Datacenter/SQL Enterprise cores with SA grant unlimited virtualization; 20 Windows D4s VMs cost $5,489.60 vs the host's $3,083.52, saving 43.8%, with 1-year saving 67.0% and 3-year 78.9%. Hosts bill as soon as provisioned, even with no VMs; software licences bill per VM unless AHB applies.
This guide is for teams responsible for Windows/SQL migration, VMware-to-Azure, licence compliance, FinOps, procurement and finance. It separates official prices, editorial calculations and exclusions, covering host specs/hourly prices, PAYG vs reservations, VM comparisons, AHB unlimited virtualization, physical-core licensing, hidden costs and a 90-day checklist. Prices come from the Dedicated Host pricing page, Azure Retail Prices API, Learn and the AHB FAQ (10 November 2026). This is not licensing or procurement advice.
(1) A host bills per physical server, even with no VMs; software licences, storage and network are separate. (2) PAYG host compute usually costs more per vCPU than same-generation VMs, so pure compute rarely breaks even; only 1/3-year reservations or AHB unlimited virtualization change the math. (3) Unlimited virtualization needs Windows Server Datacenter or SQL Server Enterprise + SA covering all physical cores; Standard does not qualify and bills per VM.
Host specs and prices: per host, not per VM
A host SKU is a VM series plus hardware type; price varies by series/type/region. You can mix different VM sizes of the same series on one host. Dsv4-Type1 is 80 vCPU/504 GiB, Esv4-Type1 80/504, Dadsv5-Type1 112/768 and Msv2-Type1 416/5,700 GiB. PAYG per vCPU: Dsv4 $0.0528, Esv4 $0.0554, Dadsv5 $0.0567, Msv2 $0.1311; versus D4s_v5 at $0.048, only Msv2 (memory-optimized) is dramatically higher. 1/3-year reservations cut the monthly to about 59%/38% for Dsv4, but require commitment.
| Host SKU | vCPU/RAM | PAYG/hour | PAYG/month | 1-year/month | 3-year/month |
|---|---|---|---|---|---|
| Dsv4-Type1 | 80 / 504 GiB | $4.224 | $3,083.52 | $1,813.17 | $1,159.28 |
| Esv4-Type1 | 80 / 504 GiB | $4.435 | $3,237.55 | $1,903.75 | $1,217.33 |
| Dadsv5-Type1 | 112 / 768 GiB | $6.345 | $4,631.85 | $2,732.67 | $1,760.06 |
| Msv2-Type1 | 416 / 5,700 GiB | $54.538 | $39,812.74 | $23,091.42 | $11,147.56 |
Sources: Dedicated Host pricing page and Retail API (eastus, 10 November 2026). Monthly = hourly × 730; 1/3-year = reservation total ÷ 12/36; excludes software licences, storage, network, tax and discounts.
Versus D4s PAYG VMs: pure compute rarely breaks even
Dsv4's 80 vCPU fits 20 D4s VMs: 20 × $140.16 = $2,803.20/month, below the host's PAYG $3,083.52. The host would need 22 VMs to break even, but can only fit 20—so a PAYG host never pays back on pure compute. Esv4 is the same (20 VMs $2,803.20 vs $3,237.55); Dadsv5 fits 28 VMs, 28 × $140.16 = $3,924.48 < $4,631.85. Only 1/3-year reservations lower the break-even to 12.94/8.27 VMs (Dsv4), 13.58/8.69 (Esv4) and 19.5/12.56 (Dadsv5).
| Host | Max D4s | VM monthly | Host PAYG | Break-even VMs | Result |
|---|---|---|---|---|---|
| Dsv4 | 20 | $2,803.20 | $3,083.52 | 22.0 | PAYG never breaks even |
| Esv4 | 20 | $2,803.20 | $3,237.55 | 23.1 | PAYG never breaks even |
| Dadsv5 | 28 | $3,924.48 | $4,631.85 | 33.1 | PAYG never breaks even |
Editorial calculation: D4s_v5 Linux $0.192/hour × 730 = $140.16; break-even VMs = host monthly ÷ $140.16; excludes host reservations, AHB, storage, network, tax and discounts.
Reservations: break-even falls to 41%–70% occupancy
A 1-year reservation cuts Dsv4 to $1,813.17/month, breaking even at 12.94 VMs (65% occupancy); 3-year is $1,159.28, breaking even at 8.27 VMs (41%). Esv4: 1-year $1,903.75 (13.58 VMs/68%), 3-year $1,217.33 (8.69/43%). Dadsv5: 1-year $2,732.67 (19.5/70%), 3-year $1,760.06 (12.56/45%). In other words, only long-term, stable workloads above 41%–70% occupancy make a reserved host cheaper than PAYG VMs; below that, buy VMs.
| Host | Option | Monthly | Break-even VMs | Occupancy |
|---|---|---|---|---|
| Dsv4 | PAYG | $3,083.52 | 22.0 | >100% (doesn't fit) |
| Dsv4 | 1-year | $1,813.17 | 12.94 | 65% |
| Dsv4 | 3-year | $1,159.28 | 8.27 | 41% |
| Esv4 | 1-year | $1,903.75 | 13.58 | 68% |
| Esv4 | 3-year | $1,217.33 | 8.69 | 43% |
| Dadsv5 | 1-year | $2,732.67 | 19.5 | 70% |
| Dadsv5 | 3-year | $1,760.06 | 12.56 | 45% |
Editorial calculation: reservation total ÷ 12/36; occupancy = break-even VMs ÷ max D4s (20/20/28); excludes AHB, software licences, storage, network, tax and discounts.
AHB unlimited virtualization: where hosts actually pay
With Windows Server Datacenter or SQL Server Enterprise + SA covering all physical cores, you can run unlimited Windows/SQL VMs on that host. Dsv4's 80 vCPU at a 2:1 vCPU:core ratio = 40 physical cores; 20 Windows D4s VMs cost 20 × $274.48 = $5,489.60/month, while the host is $3,083.52, saving 43.8%; 1-year saves 67.0%, 3-year 78.9%. Esv4 (40 cores) saves 41.0%/65.3%/77.8%; Dadsv5 (56 cores, 28 Windows D4s at $7,685.44) saves 39.7%/64.4%/77.1%. The licence must already be owned/renewable; otherwise Windows/SQL bills per VM and the host may not be cheaper.
| Host | Physical cores | Windows VM monthly | Host PAYG | 1-year saving | 3-year saving |
|---|---|---|---|---|---|
| Dsv4 (20 VMs) | 40 | $5,489.60 | $3,083.52 | 67.0% | 78.9% |
| Esv4 (20 VMs) | 40 | $5,489.60 | $3,237.55 | 65.3% | 77.8% |
| Dadsv5 (28 VMs) | 56 | $7,685.44 | $4,631.85 | 64.4% | 77.1% |
Editorial calculation: Windows D4s_v5 $0.376/hour × 730 = $274.48; physical cores = vCPU ÷ 2; AHB needs Datacenter/Enterprise + SA on all physical cores; excludes SA cost, storage, network, tax and discounts.
Licensing rules: physical cores, editions and unlimited virtualization
The host price covers compute only; Windows/SQL/RHEL/SLES licences bill per VM by default. Unlimited virtualization requires Windows Server Datacenter or SQL Server Enterprise SA licences covering all physical cores (physical cores = available vCPU ÷ vCPU:core, usually 2). Windows Server Standard and SQL Standard do not grant unlimited virtualization. If you don't cover all cores or use the wrong edition, the host is not a "licence pool". Hosts bill as soon as provisioned, even with no VMs; one host can only run different sizes of the same VM series.
| Rule | What it means | Impact |
|---|---|---|
| Host-level billing | Bills on provisioning, even if empty | Cannot pause on demand |
| Physical cores | vCPU ÷ vCPU:core (usually 2) | Dsv4 80 vCPU = 40 cores |
| Unlimited virtualization | Windows Datacenter / SQL Enterprise + SA, all cores | No per-VM licence on that host |
| Standard | No unlimited virtualization | Still licensed per VM/core |
| Software licences | Per VM by default | AHB is the exception |
| VM series | Same series, different sizes only | Cannot mix D/E/M |
Sources: Dedicated Host pricing/FAQ and AHB FAQ (10 November 2026). Rights follow Microsoft Product Terms, your SA agreement and official docs.
Selection matrix and hidden costs
Good fit: physical isolation/compliance, existing Windows Datacenter or SQL Enterprise SA, ability to cover all physical cores, long-term stable occupancy above 41%–70%, or a dense VMware/SQL migration. Poor fit: short-term PAYG, low occupancy, no SA, Standard editions, mixed VM series, or no 1/3-year commitment. Seven hidden costs: billing while empty, software licences per VM, incomplete SA coverage, host series/size limits, storage/network separate, reservation commitment, and migration/operations. 90 days: weeks 1–2 inventory VM series/density, Windows/SQL editions and SA cores; weeks 2–4 price PAYG/1y/3y and occupancy; weeks 4–6 verify physical cores and unlimited-virtualization eligibility; weeks 6–8 deploy a host and AHB in a test subscription; weeks 8–10 load-test density/failover; weeks 10–12 reconcile host, licences and reservations against the bill.
| Scenario | Recommendation | Check first |
|---|---|---|
| Physical isolation/compliance | Dedicated Host | Series, region, occupancy |
| Windows Datacenter + SA | Host + AHB | 40/56-core coverage |
| SQL Enterprise + SA | Host + AHB | All cores, unlimited virtualization |
| Short-term/low occupancy | PAYG VMs | Break-even VMs |
| Stable 3 years | Reserved host | 41%–45% occupancy |
| No SA/Standard | Per-VM licensing | Host may not be cheaper |
Editorial summary, not licensing/procurement advice; eligibility, prices and terms follow official pages, Product Terms and contracts.
FAQ
How is Dedicated Host billed?
Per host-hour: Dsv4-Type1 $4.224/h = $3,083.52/month; Esv4 $4.435 = $3,237.55; Dadsv5 $6.345 = $4,631.85; Msv2 $54.538 = $39,812.74. It bills on provisioning even when empty; software licences, storage and network are separate.
Is a host cheaper than VMs?
PAYG hosts usually are not: Dsv4 is $0.0528/vCPU-hour vs D4s $0.048, and 80 vCPU fits only 20 D4s ($2,803.20) below the host's $3,083.52—22 VMs would break even but don't fit. 1-year breaks even at 12.94 VMs (65%), 3-year at 8.27 (41%).
How does AHB unlimited virtualization work?
Use Windows Server Datacenter or SQL Server Enterprise + SA covering all physical cores (vCPU ÷ 2; Dsv4 80 vCPU = 40 cores). Then Windows/SQL VMs on the host are not licensed per VM; Standard does not qualify.
How much can a Windows host save?
Dsv4 with 20 Windows D4s VMs: PAYG $5,489.60 vs host $3,083.52, 43.8% saving; 1-year 67.0%, 3-year 78.9%. It assumes 40 Datacenter SA cores are already owned; otherwise add licence cost.
Is a reserved host worth it?
Depends on occupancy: Dsv4 1-year breaks even at 65%, 3-year at 41%; Esv4 68%/43%; Dadsv5 70%/45%. Below break-even, PAYG VMs are cheaper; above it and stable for 1–3 years, the reserved host wins.
Can I mix VM series on one host?
No. A host runs different sizes of the same VM series only; the host SKU's series/hardware type determines supported VMs. Confirm series and region availability before choosing.
Am I charged when the host is empty?
Yes. The host bills hourly as soon as provisioned, regardless of how many VMs run; software licences bill per VM. Deleting the host stops the host fee but clears the host.
How do I avoid licensing/cost risk?
Five steps: (1) inventory VM series and density; (2) verify Windows/SQL editions and SA core counts; (3) price PAYG/1y/3y and occupancy; (4) validate AHB in a test subscription; (5) run a licence true-up/audit drill. Don't assume Standard includes unlimited virtualization.
Research method and limitations
Official facts (pricing page, Retail API, Learn, AHB FAQ): Dsv4/Esv4/Dadsv5/Msv2 host specs and PAYG/1/3-year prices; host-level billing on provisioning; software licences per VM; physical cores = vCPU ÷ 2; Datacenter/Enterprise + SA all-core unlimited virtualization; Standard excluded. Editorial calculations: 730 hours/month, D4s/D4s Windows monthly, occupancy = break-even VMs ÷ max VMs.
Seven limitations: (1) only eastus public list prices, excluding tax/contract discounts; (2) host specs/prices vary by series/type/region; (3) excludes SA cost, storage, network and tax; (4) no real density/failover/performance test; (5) reservation prices/availability vary by term/region; (6) AHB eligibility/unlimited virtualization follows Product Terms; (7) prices and roadmaps change—recheck official pages and bills before purchase.
Sources and basis
- Microsoft Azure, Azure Dedicated Host Pricing: azure.microsoft.com/en-us/pricing/details/virtual-machines/dedicated-host. Host specs, PAYG/1/3-year prices, host-level billing, software licences. Accessed 10 November 2026.
- Azure Retail Prices API (productName contains Dedicated Host, eastus): prices.azure.com/api/retail/prices. $4.224/$4.435/$6.345/$54.538 and $21,758/$41,734 and other reservation totals. Accessed 10 November 2026.
- Microsoft Learn, Azure Dedicated Hosts overview: virtual-machines/dedicated-hosts. Host series/type, mixing same-series VMs, software/storage/network billed separately. Accessed 10 November 2026.
- Microsoft Azure, Azure Hybrid Benefit FAQ: azure.microsoft.com/pricing/hybrid-use-benefit/faq. Datacenter/Enterprise all-core unlimited virtualization, physical-core calculation, Standard limits. Accessed 10 November 2026.
Data cut-off 10 November 2026; prices/licensing follow Microsoft official pages, Product Terms and contracts; this is not licensing, procurement or legal advice.