Microsoft cost-based licensing optimization example
Summarize
Summary of Microsoft cost-based licensing optimization example
This example illustrates how a software asset manager can optimize Microsoft SQL Server licensing costs in a VMware cluster deployment. It focuses on managing SQL Server 2019 Enterprise and Standard Core licenses with Software Assurance across multiple virtual machines (VMs) distributed over three physical hosts.
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Licensing Options and Cost Comparison
- Option 1: License all physical hosts at the host level using SQL Server 2019 Enterprise Core licenses. This requires 52 rights total, costing approximately $260,000.
- Option 2: License each VM separately at the virtual layer using SQL Server 2019 Enterprise Core licenses. This also requires 52 rights total, resulting in the same cost of $260,000.
- Option 3: Combine licensing at the virtual layer by using both SQL Server 2019 Enterprise Core and Standard Core licenses, applying Enterprise licenses to certain VMs and Standard licenses to others. This reduces the total required rights to 24 Enterprise plus 28 Standard, resulting in an estimated cost of $156,400.
Key Outcome
The software asset manager identifies option 3 as the most cost-effective solution. By applying a mix of Enterprise and Standard licenses at the VM level, the organization can save approximately $103,600 compared to licensing the entire cluster with Enterprise licenses alone. This approach enables optimized license utilization and significant cost savings in a clustered VMware environment with mixed SQL Server editions.
This example demonstrates how a software asset manager can optimize Microsoft SQL Server licensing in a cluster deployment.
| 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 |
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.
| 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 |
|
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 |
|
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 |
|
|
(24 rights X $5000) + (28 rights X $1300) = $156,400 |