Microsoft SQL Server Cost Saving Insights
As organisations modernise their utilisation of SQL Server by leveraging IaaS and PaaS solutions in Azure, they may encounter opportunities for right sizing their licensing needs. This is particularly relevant for organisations that purchase SQL Server via Server and Cloud Enrollment (SCE) or an Enterprise Agreement. While this presents an opportunity for significant cost savings, it also introduces a range of complexities. Examples of these complexities can include gathering an accurate inventory, understanding SQL Server product terms, and forecasting future demand. In this blog I will explore a number of cost saving considerations for SQL Server in advance of SCE / EA true ups and renewals.
On-Premise Density — Many customers may have licensed SQL Server Enterprise with Software Assurance (SA) according to the number of licensable physical cores in the server hardware. This approach enables the deployment of as many SQL Servers as technically feasible on a physical host. However, migration to Azure could lead to consolidating the number of SQL Servers and adjusting capacity requirements for SQL Server in Azure. Such changes might necessitate migrating from expensive SQL Enterprise licenses to more cost-effective SQL Standard licenses, when suitable.
Azure Hybrid Benefit — SQL Server AHB is bundled with SA for both SQL Server core licenses and SQL Server subscriptions. This benefit extends to various SQL Server IaaS and PaaS offerings in Azure. Leveraging this benefit eliminates software rental fees linked to SQL Server, resulting in estimated cost savings ranging from 18% to 39%. It’s essential to assess the cost-effectiveness of retaining SQL SA or Subscriptions for AHB. In some cases, renewing or purchasing new licenses solely to acquire SQL Server AHB rights may not be financially prudent. Conversely, obtaining new licenses to gain AHB rights could lead to cost savings.
Test / Dev Benefit — This is a configuration option that allows unique subscriptions for developers and testers. When utilising this benefit, organisations can avail of material cost savings for SQL Database & SQL Server VMs. Only available under EA, MCA Enterprise Motion & PAYG (Microsoft Direct Online). Beware IT Staff, Developers & Test must have a Visual Studio user license. Using this benefit provides a non-disruptive way to eliminate unnecessary licensing costs for SQL Server.
HA / DR — Since 2020 Microsoft allow customers to install and run passive SQL Server instances in a separate OSE or server for disaster recovery in Azure in anticipation of a failover event. This benefit can be enabled by applying the license type High Availability/Disaster Recovery (HA/DR) and eliminating the need to bring a license to Azure or acquiring a license in Azure.
In conclusion, optimising SQL Server licensing costs requires careful consideration of various factors, including workload consolidation, benefit utilisation, and licensing options. By aligning licensing with actual usage, organisations can achieve substantial cost savings while modernizing their IT infrastructure. As organisations embark on their Azure migration journey, proactive planning and expert guidance are crucial for realizing the full potential of cost optimisation opportunities.
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About the Author:
Karl is a Principal Licensing Consultant at Version 1, providing Microsoft license expertise to organisations globally and ensuring customers get the best value from their Microsoft assets.
