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sourceDocument: Australia Asset Management
sourceDocumentLink: https://www.servicenow.com/docs/r/australia/it-asset-management

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    - australia

ft:locale :

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ft:publication_title :

    - Australia Asset Management

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---

# Microsoft cost-based licensing optimization example

# Microsoft cost-based licensing optimization example {#ariaid-title1}

Release version: Australia  
Updated March 12, 2026  
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## Summary of Microsoft Cost-Based Licensing Optimization Example

This content presents a practical case for software asset managers on how to optimize Microsoft SQL Server licensing within a VMware cluster deployment.
It focuses on maximizing the use of available SQL Server entitlements to reduce costs effectively.
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## Key Features

* **Entitlements:** The manager oversees SQL Server licenses, including 1800 Enterprise Core licenses and 600 Standard Core licenses, each with associated costs.
* **Infrastructure:** The deployment consists of three physical hosts running various SQL Server versions within a VMware cluster.
* **Licensing Options:** Three different licensing strategies are provided, detailing the rights required and the total costs associated with each approach.

## Key Outcomes

The software asset manager evaluated the licensing options and determined that using a combination of SQL Server Enterprise and Standard licenses in a virtual layer (Option 3) was the most cost-effective solution, resulting in total savings of approximately $103,600.  
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.