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Amazon EC2 Dedicated Hosts and AWS License Manager

This article is about AWS dedicated tenancy (Dedicated Hosts and Dedicated Instances) and AWS License Manager as the mechanisms for counting bring-your-own licenses on AWS. It does not restate any software vendor's license terms and is not legal advice.

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Amazon EC2 Dedicated Hosts and AWS License Manager are the two AWS features most often used to keep bring-your-own licenses countable on AWS. A Dedicated Host “is a physical server that is fully dedicated for your use”; it allows customers to use “existing per-socket, per-core, or per-VM software licenses” such as Windows Server, SQL Server, SUSE Linux Enterprise Server and Red Hat Enterprise Linux, subject to the license terms.[1] License Manager records the customer’s license terms as rules and tracks consumption “based on virtual cores (vCPUs), physical cores, sockets, or number of machines” across AWS Regions and accounts.[7] Neither feature grants any software license: when customers bring their own license, “you are responsible for managing your own licenses.”[6]

Editions

EC2 offers three tenancies. Default tenancy instances run on shared hardware where “multiple AWS accounts might share the same physical hardware.”[2] The two dedicated options differ as follows:[1]

Attribute Dedicated Host Dedicated Instance 
Dedicated physical server Physical server with instance capacity fully dedicated to your use Physical server dedicated to a single customer account 
Billing Per host Per instance 
Visibility of sockets, cores and host ID Number of sockets and physical cores visible None 
Host and instance affinity Supported Not supported 
Targeted instance placement Supported Not supported 
Bring your own license Supported Partial: SQL Server with License Mobility through Software Assurance, and Windows VDA licenses 
Capacity Reservations Not supported Supported 

Dedicated Instances “might share hardware with other instances from the same AWS account that are not Dedicated Instances”, and if a Dedicated Instance is stopped and started “it might not run on the same host.”[2] AWS states there are no performance, security or physical differences between the two.[1] The rule Dedicated Hosts expose sockets and physical cores records the comparison.

License Manager covers several functions: self-managed licenses (customer-defined rules), license asset groups across accounts, seller-issued and granted licenses for AWS Marketplace and ISVs, license type conversions, inventory search for on-premises servers through AWS Systems Manager, user-based subscriptions and Linux subscription tracking.[7] “There is no additional charge for AWS License Manager.”[11]

Metrics

A License Manager self-managed license has a license type, “The metric used to count licenses”, with the values vCPUs, Cores, Sockets and Instances.[8] These are recorded as the catalog metrics vCPU, Cores, Sockets and Instances. Physical cores and sockets are only meaningful on Dedicated Hosts: the EC2 describe-hosts API and License Manager report “the number of sockets and physical cores on a Dedicated Host.”[5] The host itself is billed as a Dedicated Host, whatever runs on it.[3]

Counting / floors

Rules available in License Manager

The rules a self-managed license can carry depend on the counting type:[8]

Rule API name Available for 
License affinity to host (1 to 180 days) licenseAffinityToHost Cores, Sockets 
Minimum / maximum cores minimumCores / maximumCores Cores, Sockets 
Minimum / maximum sockets minimumSockets / maximumSockets Cores, Sockets 
Minimum / maximum vCPUs minimumVcpus / maximumVcpus Instances, vCPUs 
Tenancy allowedTenancy All 
vCPU Optimization honorVcpuOptimization vCPUs 
Include stopped instances includedStoppedInstances All 

“Dedicated Hosts are required if the counting type is Cores or Sockets”, whereas shared tenancy, Dedicated Hosts and Dedicated Instances are all supported for Instances or vCPUs.[8] After a host affinity period elapses, the license is available for reuse within 24 hours.[8] With vCPU Optimization set, License Manager counts the customized core and thread count set through EC2 CPU options rather than the instance type’s default vCPUs.[8][16] See the rule Cores and Sockets require Dedicated Hosts.

Enforcement and release

Rules are attached to AMIs, launch templates or CloudFormation templates. “When a hard limit is reached, License Manager blocks additional instance launches. When a soft limit is reached, License Manager notifies you”.[9] Tracking runs from when rules are attached until the instance is terminated. By default a stopped instance’s license is released back to the pool; setting Include stopped instances keeps it counted, “useful when your licensing terms require that licenses remain allocated to instances regardless of their running state.”[9] License Manager “does not support cross-Region instance tracking”: copying an AMI that carries license configurations to another Region causes License Manager to block all launches from the copy.[9] A single resource can carry at most 10 self-managed licenses, and a Region at most 25, under the default service quotas.[17]

Dedicated Host billing

On-Demand Dedicated Hosts are billed “per second (with a minimum of 60 seconds) for active Dedicated Host, regardless of the quantity or the size of instances that you choose to launch on it.”[3] Bringing Windows Server or SQL Server licenses adds no software charge; alternatively Amazon-provided Windows Server AMIs cost $0.046 per hour per vCPU in every Region, so an r5.large (2 vCPUs) adds $0.092 per hour to the host charge.[4] Dedicated Instances carry a charge of “$2/hour in every Region you have at least one Dedicated Instance running”, which Savings Plans do not discount.[15]

Virtualization & partitioning

Dedicated Hosts give the physical-host evidence that per-core and per-socket licenses usually require. Host affinity means an instance “will only run on a specific Dedicated Host”, and targeted placement lets customers launch onto a chosen host; AWS positions these as the way to monitor Microsoft rules that a license cannot move to another region or physical machine for at least 90 days.[12] Host resource groups can separate hosts “by purpose (for example, dev/test versus production), organizational unit, or license constraint.”[5] Nitro-based host families can run different instance sizes of the same family on one host to improve utilization of hosts and licenses.[5] If a physical server is replaced, “the Dedicated Host will be given a new host-ID”, which matters for licenses tied to a physical machine.[5]

AWS Config can record Dedicated Host configuration changes, including instance and AMI IDs paired with host ID and socket and core counts, as a data source for license reporting.[12][6] For the vendor-side meaning of hard and soft partitioning, see Virtualization and partitioning.

Cloud / BYOL

The general BYOL procedure on Dedicated Hosts is to verify that the license terms allow use “in a virtualized cloud environment”, import the machine image with VM Import/Export, and launch it onto hosts in the account; imported Windows AMIs cannot be activated against the Amazon Windows KMS server.[6] RHEL and SUSE Linux on Dedicated Hosts require the customer’s own AMIs, because “You can’t use the RHEL and SUSE Linux AMIs that are offered by AWS or that are available on AWS Marketplace with Dedicated Hosts”, except on high-memory hosts.[1] Amazon RDS instances are not supported on Dedicated Hosts.[1] For Microsoft software, the Service Terms require Dedicated Instances or Dedicated Hosts under the BYOL Program unless the Microsoft agreement provides otherwise.[13]

License Manager integrates with Amazon RDS for Oracle and RDS for Db2 BYOL, tracking engine editions and packs by vCPU; discovery of Oracle DB instances can take up to 24 hours.[14] It can also track servers outside AWS through AWS Systems Manager.[7]

Audits

AWS’s documentation is explicit that “AWS does not participate in the audit process with software vendors. Customers are responsible for compliance and assume the responsibility of carefully understanding and capturing rules into License Manager based on their licensing agreements.”[9] The FAQ adds that License Manager dashboards can be used “in vendor audits”, while repeating that AWS cannot participate in them.[10] AWS states that it does not have access to license-tracking data, which remains in the customer’s account.[9] License Manager output is therefore customer evidence, not vendor-accepted evidence; see Software license audit and Effective license position.

Programs

Dedicated Host Reservations provide “a discount of up to 70 percent compared to On-Demand Dedicated Host pricing” and require active hosts before purchase.[1] A reservation covers hosts of one instance family in one Availability Zone, applies to the family rather than instance size, and a host associated with a reservation “can’t be released until the reservation’s term is over.”[3] Reservations are noncancellable and nonrefundable, and Dedicated Hosts are nontransferable (Service Terms 5.4.2).[13] Savings Plans can also apply to Dedicated Host usage, except for the u-6tb1 to u-24tb1 high-memory hosts.[3] See AWS Savings Plans and Reserved Instances.

Out of scope

This article does not cover per-family On-Demand Dedicated Host rates (rendered client-side on the AWS pricing page and not captured), instance capacity per host type, Amazon EVS or AWS Outposts, License Manager seller-issued licenses from the ISV side, or any vendor’s rules on which counting type applies.

References

  1. Amazon EC2 Dedicated Hosts (Amazon EC2 User Guide)docs.aws.amazon.com, not date-stamped. Comparison table and restrictions. Catalog: Amazon EC2 Dedicated Hosts (Amazon EC2 User Guide)Retrieved 2026-09-26.
  2. Amazon EC2 Dedicated Instances (Amazon EC2 User Guide)docs.aws.amazon.com, not date-stamped. Catalog: Amazon EC2 Dedicated Instances (Amazon EC2 User Guide)Retrieved 2026-09-26.
  3. Amazon EC2 Dedicated Host pricing and billing (Amazon EC2 User Guide)docs.aws.amazon.com, not date-stamped. Catalog: Amazon EC2 Dedicated Host pricing and billing (Amazon EC2 User Guide)Retrieved 2026-09-26.
  4. Amazon EC2 Dedicated Host PricingNot date-stamped. Per-family On-Demand rates load client-side and were not captured. Catalog: Amazon EC2 Dedicated Host PricingRetrieved 2026-09-26.
  5. Amazon EC2 Dedicated Hosts FAQsNot date-stamped. Catalog: Amazon EC2 Dedicated Hosts FAQsRetrieved 2026-09-26.
  6. Bring your own software licenses to Amazon EC2 Dedicated Hosts (Amazon EC2 User Guide)docs.aws.amazon.com, not date-stamped. Catalog: Bring your own software licenses to Amazon EC2 Dedicated Hosts (Amazon EC2 User Guide)Retrieved 2026-09-26.
  7. What is AWS License Manager? (AWS License Manager User Guide)docs.aws.amazon.com, not date-stamped. Catalog: What is AWS License Manager? (AWS License Manager User Guide)Retrieved 2026-09-26.
  8. Self-managed license parameters and rules in License Managerdocs.aws.amazon.com, not date-stamped. Catalog: Self-managed license parameters and rules in License ManagerRetrieved 2026-09-26.
  9. Self Managed License Rules in License Managerdocs.aws.amazon.com, not date-stamped. Catalog: Self Managed License Rules in License ManagerRetrieved 2026-09-26.
  10. AWS License Manager FAQsNot date-stamped. Catalog: AWS License Manager FAQsRetrieved 2026-09-26.
  11. AWS License Manager PricingNot date-stamped. Catalog: AWS License Manager PricingRetrieved 2026-09-26.
  12. Amazon Web Services and Microsoft FAQsNot date-stamped. Catalog: Amazon Web Services and Microsoft FAQsRetrieved 2026-09-26.
  13. AWS Service TermsLast Updated September 15, 2026. Sections 5.4 and 5.7. Catalog: AWS Service TermsEffective 2026-09-15. Retrieved 2026-09-26.
  14. RDS for Oracle licensing options (Amazon RDS User Guide)docs.aws.amazon.com, not date-stamped. Catalog: RDS for Oracle licensing options (Amazon RDS User Guide)Retrieved 2026-09-26.
  15. Savings Plans types (Savings Plans User Guide)docs.aws.amazon.com, not date-stamped. Catalog: Savings Plans types (Savings Plans User Guide)Retrieved 2026-09-26.
  16. CPU options for Amazon EC2 instances (Amazon EC2 User Guide)docs.aws.amazon.com, not date-stamped. Catalog: CPU options for Amazon EC2 instances (Amazon EC2 User Guide)Retrieved 2026-09-26.
  17. Self-managed licenses in License Managerdocs.aws.amazon.com, not date-stamped. Service quotas. Catalog: Self-managed licenses in License ManagerRetrieved 2026-09-26.

See also

Catalog Rows Cited

2Rules5Metrics2Programs2SKUs

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