When a virtual machine is provisioned on Azure, there are two types of cost are involved. These two costs are the resource cost for running the virtual machine and the operating system license cost. Although Enterprise Agreement customers get some discounts compared to other accounts, Azure provides another offer for them: the Azure Hybrid Benefit. In this scheme, existing Enterprise Agreement customers can use their on-premises operating system licenses to create their virtual machines on Azure and Azure will not charge the cost of the license. The cost savings can be as high as 40 percent or original cost using this scheme. Enterprise Agreement customers should also have software assurance to enjoy this benefit, which is applicable for both Windows Standard and Datacenter editions. Each 2-processor license or each set of 16-core licenses is entitled to two instances of up to 8 cores or 1 instance of up to 16 cores. The Azure Hybrid Benefit for Standard edition licenses can only be used in one instance, whether on-premises or in Azure. The Datacenter edition allows simultaneous usage both on-premises and in Azure.