Azure Windows Server 2016 w/ SQL 2016 Hybrid-Use-Benefits

I am trying to understand Azure Hybrid Benefits for SQL and the payments better.
It is my understanding that if I pay for a VM image w/ SQL server built-in, it's automatically counted as eligible for Hybrid-Use-Benefits(HUB). So, I would essentially be able to get the 30%+ savings just by deploying the VM and checking, 'I Have a license'.

Another way to ask this; if I deploy a WIndows 2016 Server w/SQL 2016 VM, does it come with Software Assurance, therefore allowing me the Hybrid-Use-Benefits pricing?

My CSP is saying I can save a boatload on SQL server by using Hybrid-Use-Benefits but I don't already have a license. They state that the way I am thinking is strictly for on-prem and doesn't apply to Azure! Then why have even have H.U.B. as an option?

Or is there another way to get the discounted pricing?

Do I really have Software Assurance since I lease the VM? Now this renders me available to utilize Hybrid Use benefits because I have Software Assurance?

It just seems redundant and it feels like I am missing something.

tekmouseMgr. of InfraAsked:
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David Johnson, CD, MVPRetiredCommented:
in order to use hybrid use benefit you need to own the specific product AND have a current software assurance (SA)with microsoft for the product
I.e. have server 2019 datacenter and sql server 2019 with SA then one of your licenses can be used to lower the cost significantly.

i.e. Without Azure Hybrid Benefit per month $1,109.60
With Azure Hybrid Benefit per month $14.60
Savings across eligible Virtual Machines per month $1,095
(98.7% savings)
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