Licensing Microsoft server products in virtual environments

There’s an updated (October 2022) “Licensing Microsoft server products in virtual environments” Licensing Brief from Microsoft.

There are updates for the new per virtual machine licensing model for Windows Server, the introduction of the Flexible Virtualization Benefit, and the changes for SQL Server 2022 where licensing by virtual machine becomes an SA/Software Subscription benefit.

Find this updated Licensing Brief here: https://bit.ly/3fG3BUw.

SQL Server 2022 licensing

There’s a new SQL Server 2022 Licensing Guide (http://bit.ly/3OeDYqT) and Datasheet (http://bit.ly/3V0dETI), and the Product Terms is also updated (http://bit.ly/3prduoo) for SQL Server 2022. Here are the key licensing changes to be aware of:

  • Licensing by virtual machine with Core licenses is now an SA/Software Subscription benefit
  • When licensing by virtual machine a customer can run SQL Server in any number of containers in the virtual machine
  • Customers with active SA/Software Subscriptions may now use Azure SQL Managed Instance as their preferred fail-over server option in Azure for disaster recovery

SQL Server 2022 licenses with SA or purchased as Software Subscriptions are also eligible for the Flexible Virtualization Benefit, introduced in October 2022, enabling customers to use their licences with any Authorized Outsourcer’s shared hardware. Find the Flexible Virtualization Benefit Licensing Guide here: http://bit.ly/3hGOJ9l.

And finally, there’s the new PAYG option where customers can pay for SQL Server on a consumption basis from $0.1 per hour for a Standard Core, and $0.375 for an Enterprise Core for Azure Arc-enabled servers. Find out more about how that all works here: http://bit.ly/3Arq2UP.

General Availability of Capacity Reservations

Microsoft announce the General Availability of Capacity Reservations for virtual machines.

A Capacity Reservation is linked to a specific virtual machine type running in a specific Azure data centre and ensures that there is always capacity available when you want to run a virtual machine of that type in that data centre.

They are priced the same as the Pay-As-You-Go prices for the VM, and if you have a matching Reserved Instance, that will automatically be applied to cover the charges of the Capacity Reservation.

Find the announcement here: https://bit.ly/3kiL53J, and a video explaining this new option here: https://bit.ly/3LFqVNr.

Windows Server Subscriptions for Azure Stack HCI

Azure Stack HCI is a virtualisation platform for Windows and Linux virtual machines, and customers have a choice as to how they license the Windows part of the VMs. Firstly, they can bring their own licences, and there’s no Software Assurance required when Azure Stack HCI is running as an on-premises solution dedicated to the customer.

From 1 April 2022 there’s a new option with the launch of special Windows Server Subscriptions specifically to license the guest (VM) operating systems on Azure Stack HCI. As is usual with Windows Server, you license at the physical core level, and a Windows Server Subscription costs $23.30 per physical core per month, with the first 60 days free.

Find the announcement here: https://bit.ly/3LrZXZd, and a useful page comparing the Windows Server licensing options for Azure Stack HCI here: https://bit.ly/3EW9zcz.

New constrained vCPU VMs available

Microsoft announce the availability of some new constrained vCPU capable virtual machines. In this type of VM the vCPU count can be constrained to a half or a quarter of the original VM size allowing customers to reduce the cost of software licensing.

For instance, in the E8-4as v4 virtual machine there are 4 active vCPUs and 8 underlying vCPUs, and licensing for SQL Server is constrained to the active vCPU count, with only the operating system cost based on the underlying vCPUs.

Find the announcement regarding the most recent additions to the family here: https://bit.ly/3kUnbsX, and see all the VMs of this type, and their pricing, by searching for “constrained” on this page: https://bit.ly/3fofzxL.

5-year Reservation available for the Azure HBv2 virtual machine

Microsoft announce that a 5-year Reservation is now available for the Azure HBv2 virtual machine. The existing 1 and 3-year Reservations give an estimated 25% and 50% saving on the compute costs of the VM, and the new 5-year Reservation increases savings to approximately 67%.

The announcement (https://bit.ly/32EWfI9) states that terms and conditions are mostly the same as for all other types of Reserved Instances, and page 54 of the July 2020 Product Terms confirms that the early termination fee for a 5-year Reservation is 35%, rather than the usual 12%.

Azure Dedicated Hosts now support additional VM types

Microsoft announce that Azure Dedicated Hosts now support M-series and NV v3 and v4-series virtual machines so that customers can run memory-intensive and graphics-intensive applications.

Find the announcement here: https://bit.ly/2XYnuK3, and the main Azure Dedicated Host page here: http://bit.ly/2KkxB6m which details the full range of VMs supported and has some useful configuration examples.

Licensing Windows desktop OS in virtual machines – Licensing Brief

There’s an updated (April 2020) Licensing Brief detailing how to license the Windows desktop operating system for use with virtual machines. It covers the different licences available, the different options for deploying Windows VMs, and a whole host of licensing scenarios.

Find this licensing brief here: https://bit.ly/WindOSVMsApr2020

Monthly payment option for Azure Reservations

Microsoft announce that a monthly payment option is now available for some Azure Reservations. There aren’t any additional costs for choosing to pay monthly rather than upfront, although if you’re in a non-US-dollar market the actual monthly payment may vary dependent on the exchange rate. Monthly payments are available for the following services: virtual machines, SQL Database, SQL Data Warehouse, Cosmos DB, and the App Service stamp fee, and it’s an option you select when you buy the Reservation from the Azure Management Portal.

Find some good pictures of the process and some FAQs here: http://bit.ly/2maim6g.

The original announcement is here: http://bit.ly/2lILGR0.

Changing the license type of a SQL Server virtual machine

If you provision an all-inclusive SQL Server virtual machine from the Azure Marketplace then you’ll be charged a single fee which includes the cost of SQL Server. If you want to bring your own SQL Server licences to that virtual machine via the Azure Hybrid Benefit, then you need to change the licence type of the virtual machine. You do this in the Azure Management Portal and simply change the licence type from Pay As You Go to the Azure Hybrid Benefit in the Configure settings of the VM. You can find instructions for that here: http://bit.ly/2Pd6miy.

If you’ve self-installed SQL Server on an Azure virtual machine, then again, you’re probably intending to bring your own licences. The Product Terms states that you need to indicate when you’re using the Azure Hybrid Benefit – which is what happened above – but this time you need to first register the SQL Server VM with the Resource Provider, and then activate the Azure Hybrid Benefit as before. You’ll find instructions for the process of registering a SQL Sever VM in Azure with the SQL Server VM Resource Provider here: http://bit.ly/324kGLx.