--- sourceDocument: Zurich IT Asset Management sourceDocumentLink: https://www.servicenow.com/docs/r/zurich/it-asset-management Release : - zurich ft:locale : - en-US ft:publication_title : - Zurich IT Asset Management ft:clusterId : - itam bundleId : - itam workflow : - Technology --- # Microsoft cost-based licensing optimization example # Microsoft cost-based licensing optimization example {#ariaid-title1} Release version: Zurich Updated July 31, 2025 ![](https://www.servicenow.com/docs/portal-asset/ico-clock) 2 minutes to read Summarize ![AI sparkle icon](https://servicenow.com/docs/portal-asset/ai-sparkle-icon) Summarized using AI This content was generated using new OpenAI-powered functionality. Results are provided on an as is basis and are not guaranteed to be accurate or complete. ## Summary of Microsoft cost-based licensing optimization example This example guides ServiceNow customers on optimizing Microsoft SQL Server licensing in a VMware cluster environment. It illustrates how a software asset manager can leverage purchased entitlements and cluster infrastructure details to select the most cost-effective licensing strategy for SQL Server deployments. Show full answer Show less ## Licensing Context The environment consists of a VMware cluster with three physical hosts running various SQL Server versions and editions on virtual machines (VMs). The manager holds two types of entitlements: * **SQL Server 2019 Enterprise Core with Software Assurance:** 1800 purchased rights costing $5,000 per core * **SQL Server 2019 Standard Core with Software Assurance:** 600 purchased rights costing $1,300 per core ## Licensing Options Evaluated Three licensing options are evaluated based on licensing layer (physical host or virtual machine) and license type: * **Option 1:** License at the physical host layer using Enterprise Core licenses. Total required rights: 52; approximate cost: $260,000. * **Option 2:** License at the virtual machine layer using only Enterprise Core licenses. Total required rights: 52; approximate cost: $260,000. * **Option 3:** License at the virtual machine layer using a combination of Enterprise and Standard Core licenses. Total required rights: 24 Enterprise and 28 Standard; approximate cost: $156,400. ## Key Outcome The software asset manager identifies **Option 3** as the most cost-effective solution. This approach leverages both Enterprise and Standard licenses at the VM layer, resulting in significant cost savings of approximately **$103,600** compared to other options. ServiceNow customers can apply this example to analyze their infrastructure, map license entitlements accurately to physical or virtual layers, and optimize license usage to reduce costs while maintaining compliance. This example demonstrates how a software asset manager can optimize Microsoft SQL Server licensing in a cluster deployment. In this example, a software asset manager is managing the following Microsoft SQL Server entitlements:{#microsoft-cost-based-licensing-optimization-example__table_rh2_ksv_zbc__entry__4} | Entitlement Name | License Type | Number of Purchased Rights | Cost Per Core | |-|-|-|-| | SQL Server Enterprise Licenses | SQL Server 2019 Enterprise Core with Software Assurance | 1800 | $5000 | | SQL Server Standard Licenses | SQL Server 2019 Standard Core with Software Assurance | 600 | $1300 | [Table 1. Microsoft SQL Server entitlements] {#microsoft-cost-based-licensing-optimization-example__table_rh2_ksv_zbc} The following infrastructure is a VMware cluster that consists of three physical hosts. Each physical host contains virtual machines (VMs) that are running various versions and editions of Microsoft SQL Server. These VMs may potentially be moving across all physical hosts within the cluster. Based on the available entitlements and the cluster infrastructure, the software asset manager can license the cluster using one of the following options:{#microsoft-cost-based-licensing-optimization-example__table_lk1_x5v_zbc__entry__6} | Option Number | License Type | Licensing Layer | Number of Rights Required on Each Host or VM | Total Number of Required Rights | Total Approximated Cost | |-|-|-|-|-|-| | 1 | SQL Server 2019 Enterprise Core with Software Assurance | Physical host layer | * Host 1: 12 rights * Host 2: 16 rights * Host 3: 24 rights {#microsoft-cost-based-licensing-optimization-example__ul_cln_1yv_zbc} | 12 rights (Host 1) + 16 rights (Host 2) + 24 rights (Host 3) = 52 rights total | 52 rights X $5000 = $260,000 | | 2 | SQL Server 2019 Enterprise Core with Software Assurance | Virtual layer | * VM-1: 4 rights * VM-2: 4 rights * VM-3: 4 rights * VM-4: 4 rights * VM-5: 4 rights * VM-6: 4 rights * VM-7: 4 rights * VM-8: 4 rights * VM-9: 4 rights * VM-10: 8 rights * VM-11: 8 rights {#microsoft-cost-based-licensing-optimization-example__ul_zfn_m1w_zbc} | 4 rights (VM-1) + 4 rights (VM-2) + 4 rights (VM-3) + 4 rights (VM-4) + 4 rights (VM-5) + 4 rights (VM-6) + 4 rights (VM-7) + 4 rights (VM-8) + 4 rights (VM-9) + 8 rights (VM-10) + 8 rights (VM-11) = 52 rights total | 52 rights X $5000 = $260,000 | | 3 | Both SQL Server 2019 Enterprise Core with Software Assurance and SQL Server 2019 Standard Core with Software Assurance | Virtual layer | * SQL Server 2019 Enterprise Core with Software Assurance: * VM-1: 4 rights * VM-9: 4 rights * VM-10: 8 rights * VM-11: 8 rights {#microsoft-cost-based-licensing-optimization-example__ul_lf1_qcw_zbc} * SQL Server 2019 Standard Core with Software Assurance: * VM-2: 4 rights * VM-3: 4 rights * VM-4: 4 rights * VM-5: 4 rights * VM-6: 4 rights * VM-7: 4 rights * VM-8: 4 rights {#microsoft-cost-based-licensing-optimization-example__ul_sxm_wcw_zbc} {#microsoft-cost-based-licensing-optimization-example__ul_f4m_pcw_zbc} | * SQL Server 2019 Enterprise Core with Software Assurance: 4 rights (VM-1) + 4 rights (VM-9) + 8 rights (VM-10) + 8 rights (VM-11) = 24 rights total * SQL Server 2019 Standard Core with Software Assurance: 4 rights (VM-2) + 4 rights (VM-3) + 4 rights (VM-4) + 4 rights (VM-5) + 4 rights (VM-6) + 4 rights (VM-7) + 4 rights (VM-8) = 28 rights total {#microsoft-cost-based-licensing-optimization-example__ul_myk_spx_zbc} | (24 rights X $5000) + (28 rights X $1300) = $156,400 | [Table 2. Licensing options] {#microsoft-cost-based-licensing-optimization-example__table_lk1_x5v_zbc}The software asset manager determines that option number 3 is the most cost-effective licensing solution for the cluster. By using this licensing option, the software asset manager can achieve a total cost savings of approximately $103,600.