Convert SQL Server Web license-included to BYOL in place on existing Linux EC2 — possible?

AWS License Manager provides the capability to convert license types between AWS-provided licenses (license-included) and Bring Your Own License (BYOL) models without redeploying your existing workloads. This conversion functionality is designed to help you adapt to changing business needs while maintaining compliance.

However, your specific scenario involves several complexities that fall outside the standard license conversion capabilities. The typical license conversion process in AWS License Manager handles transitions between AWS-provided licenses and BYOL for supported configurations, primarily focusing on Windows Server and SQL Server licenses on Windows-based instances.

Your situation involves:

1. Running SQL Server on Linux (rather than Windows)
2. Changing SQL Server editions in-place (Web to Standard)
3. Using a third-party licensing mechanism (Azure Arc pay-as-you-go) rather than traditional BYOL

The standard approach would be to convert your instance from license-included to BYOL through AWS License Manager, which would stop AWS billing for the SQL Server license. However, this process is designed for scenarios where you're bringing your own perpetual licenses or licenses with Software Assurance, not for hybrid licensing arrangements with Azure Arc.

Running SQL Server Standard edition on an instance that AWS is billing as SQL Server Web edition-included creates a licensing mismatch. Even if you're paying Microsoft separately through Azure Arc, the AWS license-included model is tied to what's actually running on the instance, not just what the AMI originally provided.

For your specific use case involving a temporary edition change with minimal downtime requirements and Azure Arc licensing, I recommend contacting AWS Support or your AWS account team directly. They can provide authoritative guidance on whether your proposed configuration is compliant with AWS licensing terms and help you navigate the proper conversion process if one exists for your scenario.
Sources
End Manual License Tracking with AWS License Manager | Migration & Modernization
License type conversions in License Manager - AWS License Manager
Cost optimization - Best Practices for Deploying Microsoft SQL Server on Amazon EC2

You cannot simply flip a SQL Server Web license‑included AMI to Standard and remain compliant. AWS license‑included AMIs are contractually tied to the edition they ship with. Running Standard binaries on a Web‑licensed AMI means you’re paying AWS for a Web license you are not entitled to use, while separately paying Microsoft via Azure Arc for Standard. To move to BYOL or PAYG Standard, you must migrate to a BYOL‑eligible AMI or import your own image.

https://docs.aws.amazon.com/zh_tw/sql-server-ec2/latest/userguide/sql-server-on-ec2-licensing.html

https://docs.aws.amazon.com/zh_tw/license-manager/latest/userguide/conversion-types.html

https://aws.amazon.com/blogs/modernizing-with-aws/introducing-the-aws-well-architected-microsoft-workloads-lens/