When you have existing Microsoft Licenses with Software Assurance, they can opt for a hybrid model in which they can benefit from huge discounts.
Azure Hybrid Benefit:
In the provisioned computer tier of the vCore-based purchasing model, you can exchange your existing licenses for discounted rates on SQL Database using the Azure Hybrid Benefit for SQL Server. This Azure Benefit allows you to use your on-premises SQL Server Licenses to save up to 30% on Azure SQL Database using on-premises SQL Server licenses with Software Assurance.
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