Understanding User CAL vs. Device CAL for Microsoft Servers
Windows Server | 12/19/24

Understanding User CAL vs. Device CAL for Microsoft Servers

4 minute read

When setting up a network in a business environment, the server needs to be equipped with certain pieces of software. Devices on that network—computers, more commonly—will need to be able to access the server.


Your business must purchase a Client Access License (CAL) to facilitate this process. CALs are available in device-based forms (Device CAL) or on a user basis (User CAL), depending on how and who will access the server.


However, understand that CALs aren’t the same as a server software license. As you set up a network and consider its functionality, here’s what you should keep in mind.

How Do CALs Work?

Generally speaking, if you intend to use Windows Server Standard or Datacenter and Windows Server software programs on your network, you will need to purchase Windows Server CALs. The same applies to your SQL Server when licensing using the SQL Server CAL Model.


Within this broad picture, any network devices accessing the server require a Client Access License. More specifically, every user or device that connects with a Remote Desktop Session host will need a CAL and an RDS CAL. Once that device or user has a CAL, they will achieve compliance and access all of the software programs and capabilities on the server.


During this process, you will receive a server license after purchasing Windows Server Standard or Datacenter to install the server operating system onto a single computer or server. Despite this, purchasing a Windows Server Standard or DC license does not provide usage rights for every other device or user to connect to said computer or device to access the server’s software. 


Instead, these devices or users need a CAL (local) after a grace period of 120 days. Additionally, these devices and users may need to log in using remote desktop services requiring RDS CALs. It is important to note that RDS (remote desktop service) CALs grant this access using an activation key. CALs (local) are there for compliance purposes only and don't have an activation key


In considering this arrangement:


  • A user or device CAL needs to reflect the latest version of the server software installed. An older CAL does not grant access to newer or upgraded server software. However, the latest CAL can access an earlier server software version.
  • To grant RDS rights, you must install user and device RDS CALs onto a compatible server and assign them to specific users or devices. Local CALs are there for compliance purposes only.
  • CALs don’t travel with users. If an employee leaves your company or a computer is retired, you can assign the CAL to a new user or device.
  • Your network determines pricing: The fewer users or devices on the network, the fewer the CALs needed and the lower the cost. As a result, small businesses end up paying less for licensing than large corporations.
  • CALs are strictly for accessing software located on the server. Should a device or user simply be using the internet, that user or device will not require a CAL.

Types of CALs: User CALs vs. Device CALs

What is a User CAL?

Considering the licensing and pricing structure described above, a User CAL involves purchasing a license for every user accessing the server. This user may have access to multiple devices.

When is it used?

This arrangement is ideal for a company with an active directory where employees access the network locally or remotely using multiple devices. Generally, these businesses have more devices—for instance, a computer, phone, or tablet assigned to a single employee—than staff members.


As a good rule of thumb, if you have 20 employees accessing the server’s services, purchase 20 User CALs to account for each user.

Overview on Microsoft CALs

What is a Device CAL?

As the name implies, Device CALs are licenses delivered on a device basis. Generally, device CALs are ideal for workgroup environments where multiple employees share a single device. For RDS Cals, the device connects to the server, regardless of who uses it or when. When this occurs, the device receives a temporary license the first instance it connects to the remote desktop session host. For the next session, the device will receive a permanent license.

When is it used?

Device CALs typically benefit businesses with shift employees—for instance, in retail, call centers, or if you routinely go through a temporary or seasonal workforce. Equipment like a computer-powered timecard or login system used by multiple individuals throughout the day would also benefit from a Device CAL.


Remember that Device CALs won’t be the only licensing factor your business needs to consider for its network. A Management or External Connector License may be necessary for certain products.

Choosing Between User CALs and Device CALs

Deciding between User CALs and Device CALs ultimately comes down to your organization’s unique requirements and usage patterns. User CALs are ideal for businesses with an active directory where employees need access across multiple devices, while Device CALs work best in workgroup environments where several users share a limited number of devices. By understanding these distinctions, you can make a cost-effective choice that aligns with your operational needs.

At Trusted Tech Team, we’re here to help you navigate these licensing options. Our experts can assess your specific use case and recommend the most efficient and compliant CAL strategy for your organization. Contact us today to learn how we can simplify your licensing decisions and maximize the value of your IT investments.


Trusted Tech Team is an accredited Microsoft CSP Direct Bill Partner, carrying multiple Solutions Partner designations and the now-legacy Microsoft Gold Partner competency. Based in Irvine, California, we report trends affecting IT pros everywhere.


If your organization uses Microsoft 365 or Azure, you may be eligible to receive a complimentary savings report from a Trusted Tech Team Licensing Engineer. Click here to schedule a consultation with our team now to learn how much you can save today.

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