Save 40% on Windows Azure VM made easy
creating a new Windows Azure VM you will notice a new selection at the Basics step. It is the Hybrid Use Benefit. Using this benefit you can save up to 40% on a Windows Azure VM cost using your own license with software assurance. You just need to have a Windows Server Standard or Datacenter license with Software Assurance, and it is not restricted to any specific licensing program, it is available to all licenses with Software Assurance.
At the final step, the Summary, you will see a notification about the Hybrid Use Benefit, explaining the limitations of the benefit, saying:
“Each Windows Server with Software Assurance (either via each 16-Core license or two-processor license) is entitled to two instances of up to 8 cores, or one instance of up to 16 cores. Please always refer to your Windows Server license count with Software Assurance, your Hybrid Use Benefit entitlements, and your Hybrid Use Benefit deployments to use this benefit while maintaining compliance.“


once the Azure VM is ready and login you will notice that the Operating System is not activated

so you need to press Activate Windows and add your key to activate the Azure VM

for more details visit the official page at https://azure.microsoft.com/en-us/pricing/hybrid-use-benefit/