Windows Server 2016 is a cloud-ready operating system that supports workloads during customers' transition to cloud computing. It delivers new security features and Azure-inspired innovations. There are three editions - Datacenter for highly virtualized environments, Standard for low density environments, and Essentials for small businesses. Datacenter edition includes features like Shielded VMs while Standard includes containers. Licensing is core-based, requiring CALs and licensing all physical cores with a minimum of 16 cores per server. Customers with Software Assurance will transition to core-based licensing at renewal.