I have 2 Windows 2003 r2 servers with a SQL failover cluster installed across the 2 node. Generally I have been running off node1 with node2 as the failover partner. I have purchased the correct licensing for noe1 and from the following I do not need to purchase a license for node2: Failover clustering is a process where the operating system and SQL Server 2005 work together to provide availability in the event of an application failure, hardware failure, or operating-system error. Failover clustering provides hardware redundancy through a configuration in which critical resources are transferred automatically from a failing machine to an equally configured server to help ensure continuity of service. When doing failover support, a server is designated as the passive server. The purpose of the passive server is to absorb the data and information held in another server that fails. A passive server does not need a license if the number of processors in the passive server is equal to or less than the number of processors in the active server. The passive server can take the duties of the active server for 30 days. Afterwards, it must be licensed accordingly http://www.microsoft.com/sql/howtobuy/activepassive.mspx My questions are: 1) If I switch my cluster instace to point to node2 for testing node2 in case of a failover, would I need to purchase another licence ? This means I am not doing the repointing because of an 'event of an application failure, hardware failure, or operating-system error' ? Can you please provide information from MS ? 2) How are SQL Licences bound to the windows install in a SQL Server failover cluster configuration ? For instance if node1 legitimately fails due to an 'event of an application failure, hardware failure, or operating-system error' and you failover to node2. Then you think, stuff (forget about) node1 as I have 1 set of licences for SQL Enterprise already and therefore can run with a legitimate licence on node2. Can you please clarify ?