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Windows in the cloud can be licensed two ways. Licence-included pricing adds an hourly premium per vCPU and requires no licence management, while bring-your-own uses existing agreements with software assurance and is charged per physical core. BYOL usually wins for steady always-on workloads and loses for intermittent ones, since the licence is paid regardless of runtime.
Windows licensing
licence-included = instances x vCPUs x hourly premium x 8760; BYOL = instances x ceil(vCPUs / 2) x annual per-core cost
For some products and licence types, yes. Dedicated host requirements change the economics substantially because you pay for the whole host regardless of utilisation.
It is licensed separately and is usually far more expensive than the operating system. The same licence-included versus BYOL comparison applies but with much larger numbers.