SQL Server 2008 - 2022 White Paper

Executive Summary

In today’s fast-paced and data-driven world, businesses rely heavily on robust database management systems, and Microsoft SQL Server stands as a leading choice for many. However, the cost associated with SQL Server licensing often presents a significant financial challenge for companies. This white paper delves into the complexities and substantial expenses involved in SQL Server licensing, aiming to provide a comprehensive understanding and strategies for cost rationalisation.

The primary factors contributing to the high cost of SQL Server licenses are twofold. First, the inherent cost of the license itself is substantial. Microsoft’s pricing model, which includes a variety of editions and licensing options, often leads to confusion and can result in the selection of a more expensive licensing option than necessary. Second, and equally crucial, is the issue of insufficiently planned installations within the IT environment. A lack of strategic planning often leads to over-provisioning, where more licenses are purchased than are actually needed, or under-utilisation, where the full potential of the purchased licenses is not realised.

To effectively tackle the challenges associated with SQL Server licensing costs, a comprehensive and diverse strategy is essential. This white paper provides a detailed guide on various methods and practices designed to maximise the value of SQL Server license investments. It addresses the intimidating nature of these costs, highlighting that with the appropriate strategies and insights, businesses can achieve substantial cost reductions.

Objective and Target Audience

The primary goal of this document is to empower IT leaders with crucial and reliable knowledge and tools that enable them to adeptly manoeuvre through the intricacies of SQL Server licensing.

This white paper does not attempt to replace the official Microsoft documentation but to add much needed context and clarity derived from experience running successful SAM programs and Microsoft license audits. This white paper should be useful for Software Asset Managers, Software Licensing Specialists, IT Procurement, IT Service Providers, IT Managers, IT Consultants, Analysts and CIOs.

Problem Statement

The increasing complexity of SQL Server environments arises from a range of factors, including diverse and ever-evolving licensing models, the intricacies of SQL Server’s specific licensing requirements, rapidly changing technology trends, and the varied needs of businesses and end-users. SQL Server is used by 27.5% of organisations worldwide and is also supported on Linux. As it gains more popularity it becomes more integral to business operations across industries. Understanding and effectively managing these licenses is crucial.

SQL Server licensing has undergone significant changes, adapting to the shifting paradigms in software deployment and usage. With options ranging from core-based licensing to server/CAL (Client Access License) models, and the more recent cloud-based and hybrid scenarios, organisations are often challenged to identify the most cost-effective and compliant licensing strategy. Each model has its specific considerations, such as core counts, virtualisation, and user access levels, which can dramatically affect both cost and compliance.

Microsoft’s enterprise software, particularly SQL Server, has experienced a trend of consistent price increases over the years. These increases reflect not only Microsoft’s strategy in evolving its product line-up but also the broader dynamics in the enterprise software market. The recent history of Microsoft SQL Server’s pricing indicates a notable increase that took effect from January 1, 2023. This increase was the first significant change in pricing since the release of SQL Server 2012. Specifically, Microsoft implemented a 10% price increase for on-premises editions of SQL Server Enterprise, Standard, and Web across all purchasing channels. This adjustment was communicated to customers in late October 2022 and marked a substantial change in Microsoft’s pricing strategy, reflecting the added value and features over the past decade.

The price rise applies to various licensing models and affects Azure SQL customers using SQL Server licensing offers, such as software subscriptions or License and Software Assurance. However, the Azure SQL pay-as-you-go rate was not subject to this increase, given its recent launch at a higher price point compared to other offerings. For existing Software Assurance customers, the price increase will not take effect until their renewal.

This shift in pricing strategy underscores the continual evolution of Microsoft’s enterprise software offerings, mirroring the industry’s move towards more advanced and feature-rich solutions. The increase reflects the significant enhancements in SQL Server’s capabilities, particularly in its 2022 version, which includes new features like fully managed disaster recovery through Azure SQL Managed Instance and a new pay-as-you-go billing model enabled by Azure Arc.

For businesses and IT asset management professionals, this change emphasises the importance of staying informed about licensing costs and models. It also highlights the need for strategic planning around software investments, especially for organisations heavily reliant on Microsoft’s ecosystem.

Understanding the different SQL Server feature sets against organisational needs requires in-depth knowledge and strategic planning. The growing preference for cloud environments, including Azure SQL Database, introduces new licensing considerations and potential benefits, but also adds layers of complexity in terms of license management and cost optimisation.

Most common issues

Navigating the realm of SQL Server licensing is fraught with potential pitfalls. Even seasoned IT professionals and decision-makers can stumble upon various licensing challenges, leading to compliance issues and financial repercussions. Below are some of the most common SQL Server licensing issues, accompanied by examples for better understanding.

Compliance Risk

Microsoft SQL Server is a critical component in many IT environments, spanning traditional datacenters, public clouds, containerized environments, and virtualized environments. Ensuring compliance with Microsoft SQL Server licensing terms and conditions is essential for IT leaders to effectively manage their licensing requirements and avoid potential penalties.

Q: What is Microsoft license compliance verification (commonly known as “audit”)?

A: Microsoft license compliance verification (commonly known as “audit”) is a formal, mandatory compliance review of a company’s use of Microsoft products and services, and it is part of the Microsoft license and contract compliance program. Microsoft conducts industry-standard compliance reviews with its business customers through an independent auditor pursuant to the terms of their agreement. This review is an effort to help customers achieve and maintain license compliance, and to protect Microsoft intellectual property rights. Therefore, be assured that unless Microsoft invokes its contractual right to verify compliance via a third-party accounting firm (as fully documented in your Volume Licensing Agreement), you are not involved in a license compliance verification.

Read the full FAQ: Source

Overview of Licensing Terms and Conditions

Microsoft SQL Server licensing is intricate, involving various factors such as the type of deployment, the number of cores, and the edition of SQL Server being used. IT leaders must be familiar with these terms to allocate licenses appropriately across their IT environments. Understanding bundling and exclusion scenarios is also crucial to avoid over- or under-licensing.

Audit and Compliance Clauses

Enterprise Agreement

Microsoft includes audit rights in their Enterprise Agreement, similar to those seen in other enterprise software agreements. The audit clause is typically found in Section 10 of the Enterprise Agreement under “Compliance Verification.” The clause generally includes the following provisions:

Microsoft Enterprise Agreement^[2]

e.g.

Compliance Verification: During the term of this agreement and for a period of one (1) year thereafter, Microsoft may, at its expense, verify compliance with the terms of the agreement. This verification may include an audit of your use of the software and access to associated records and systems.

Universal License Terms

This clause indicates that Microsoft reserves the right to employ technical mechanisms to ensure that customers adhere to the terms of their software licenses. These technical measures might include methods such as software activation, validation processes, and the use of product keys. Additionally, Microsoft can verify whether customers are complying with the licensing terms outlined in their volume license agreement. Essentially, this means Microsoft can audit the customer’s use of its software to confirm that it aligns with the agreed-upon licensing terms.

Universal License Terms > For all Software^[3]

e.g.

“Microsoft may use technical measures to enforce terms that restrict Customer’s use of certain versions of Product and may verify compliance with those terms as provided in Customer’s volume license agreement.”

Audit Process

1. Notice: Microsoft will provide at least thirty (30) days prior written notice before conducting any audit.
2. Scope and Cooperation: You are required to provide reasonable access to facilities, systems, and records to verify compliance. This includes making personnel available to facilitate the audit process.
3. Resolution of Non-Compliance: If an audit reveals any non-compliance, you must resolve the issue within thirty (30) days from the date of notice. This may involve purchasing additional licenses to cover any under-licensed usage.
4. Costs: If the audit reveals an underpayment exceeding five percent (5%) of the total license fees payable, you must also reimburse Microsoft for the cost of the audit.

Maintaining compliance with Microsoft SQL Server licensing terms is crucial to avoid penalties and legal action and to ensure smooth operation of IT environments. Regularly reviewing and understanding the Product Terms and being prepared for potential audits can help mitigate compliance risks.

Problem Solving Process

The problem solving process can be structured into four logical parts:

1. Entitlement and contract analysis where we clarify three key aspects: the number of licenses we are entitled to use, the specific types of these licenses, and the terms and conditions governing their use.
2. Deployment analysis where we determine the actual number of licenses used based on what is installed and how the different SQL Server instances are configured and setup in the IT environment.
3. Reconciliation where we uncover the gaps, surplus and other possible issues by reconciling the license entitlements with the used software licenses.
4. Optimisation and remediation scenarios, where we identify potential cost saving opportunities as well as ways to fix any compliance issues.

Entitlement and Contract Analysis

A proper entitlement and contract analysis start with a complete inventory of the relevant data needed for the analysis.

Data Collection

For a proper analysis these are the go to sources to collect:

• Microsoft Licensing Statement (MLS) which is requested from your Licensing Service Provider (LSP). This is often the most reliable record of your entitlements;
• Check for owned entitlement data that may be missing from the MLS under the following volume licensing programs:
  • Cloud Solution Provider;
  • Open Value;
  • Microsoft Products and Services Agreement;
  • Microsoft Customer Agreement;
• Microsoft Volume Licensing Service Center (VLSC) export. It’s worth noting that VLSC is transitioning to the Microsoft 365 admin center. Users accessing functionality in VLSC will have permissions to see and manage that same functionality in a new volume licensing blade in Microsoft 365 admin center.
• Microsoft Contracts;
• Any other transactional documents: purchasing documents, invoices, purchasing orders etc.

Once collected these entitlement documents need to be properly stored, referenced and analysed and the information consolidated into one single source of truth with references to the raw data.

Microsoft Licensing Statement analysis

The MLS is an estimate of license entitlements by product and version based on the Volume License agreements and purchase transactions under those agreements (as reported by resellers to Microsoft).

The MLS is a document organised into several tabs, each serving a specific purpose in helping organisations understand and manage their Microsoft licenses.

When analysing the MLS, the main challenge lies in reconciling the License Summary tab with the Transaction Data tab as there are often inconsistencies in the reported quantities. We recommend doing the analysis starting at transaction level in order to fully understand how the license entitlements changed over time.

Entitlements missing from the MLS

The Microsoft Licensing Statement (MLS) is comprehensive, but there are instances where it might not include all owned entitlement data, especially under certain volume licensing programs. Here’s more detail on each:

Microsoft VLSC export analysis

The Microsoft Volume Licensing Service Center (VLSC)^[4] is an online platform provided by Microsoft for managing volume licensing agreements, downloading licensed software, and accessing volume license keys.

The VLSC export is typically organised into two tabs, each serving a specific purpose in helping organisations understand and manage their Microsoft licenses.

Microsoft Contracts

Microsoft license contract analysis is a crucial process for organisations to understand, manage, and optimise their use of Microsoft software products.

Understanding Microsoft Volume Licensing Models

Components of a License Contract Analysis

Transactional Documents

Transactional documents like purchasing documents, invoices, and purchase orders are complementary to the rest of the data and create a more reliable source of truth. Here’s why:

• Purchasing Documents: These documents provide proof of purchase and often detail the specific licenses and quantities purchased. They are essential for verifying the accuracy of MLS data and can be used to identify any discrepancies.
• Invoices: Invoices offer a financial record of the transactions, including the cost and the terms of purchase. They are useful for budgeting and financial planning, as well as for compliance audits.
• Purchase Orders: Purchase orders are official documents issued by a buyer committing to pay the seller for the sale of specific products or services to be delivered in the future. They serve as a legal offer and can be used to track the procurement of licenses and ensure they align with organisational needs and licensing agreements.
  

Deployment Analysis

  A proper entitlement and contract analysis start with a complete discovery and inventory of the devices in scope for the analysis for the analysis.

Data Collection

  Discovering and scanning all the devices in scope is not an easy task, especially in large environments. There’s a wide variety of tools and data sources one could leverage to collect the necessary data for a complete technical analysis.

  These are the most common data sources and tools that have worked great for us in the past based on our experience:

A proper entitlement and contract analysis start with a complete discovery and inventory of the devices in scope for the analysis for the analysis.

Data Collection

Discovering and scanning all the devices in scope is not an easy task, especially in large environments. There’s a wide variety of tools and data sources one could leverage to collect the necessary data for a complete technical analysis.

These are the most common data sources and tools that have worked great for us in the past based on our experience:

SQL Server Licensing Model 2008 - 2022

*Please check Appendix A**1. SQL Server Release and built numbers *for more information.

Microsoft SQL Server 2022

Reference: Microsoft SQL Server 2022 Licensing Guide

SQL Server 2022 commercial editions

Key capacity limits across SQL Server 2022 editions

SQL Server 2022 Software Assurance

SQL Server 2022 Licensing Model

A. SQL Server 2022 Per Core

When running SQL Server in a physical OSE, all physical cores on the server must be licensed. Software partitioning does not reduce the number of core licenses required, except when licensing individual virtual machines (VMs). A minimum of four core licenses is required for each physical processor on the server.

To determine and acquire the correct number of core licenses needed, customers must:

1. Count the total number of physical cores in the server.
2. Purchase the appropriate number of core licenses required for the server. Core licenses are sold in packs of two, so customers must divide the number of licenses required by two to determine the actual number of line items (licensing SKUs) to order.

**A.1. Licensing SQL Server 2022 individual virtual machines **

Similar to the Per Core licensing model in physical OSEs, all virtual cores (v-cores) supporting virtual OSEs that are running instances of SQL Server software must be licensed accordingly. To license individual VMs using the Per Core model, customers must purchase a core subscription license or license with Software Assurance for each v-core (or virtual processor, virtual CPU, virtual thread) allocated to the VM, subject to a four-core license minimum per VM.

For licensing purposes, a v-core maps to a hardware thread.

1. License the virtual cores in each virtual machine
2. There is a minimum of four core subscription licenses or licenses with Software Assurance required for each virtual machine
   

B. SQL Server 2022 Server + CAL

When licensing the SQL Server Standard Edition software under the Server+CAL model, customers purchase a server license for each server, and a client access license (CAL) for each device (Device CAL) and/or user (User CAL) accessing SQL Server or any of its components. A CAL is not software; it is a license granting users and devices access to the SQL Server software.

Under the Server+CAL licensing model, each operating system environment (OSE) running SQL Server software or any of its components must have a SQL Server server license assigned to the physical server hosting the OSE. Each server license allows customers to run any number of SQL Server instances in a single OSE, either physical or virtual.

**B.1. Licensing SQL Server 2022 individual virtual machines **

To license individual VMs using the Server+CAL model, customers simply purchase one server license for each VM running SQL Server software, regardless of the number of virtual processors allocated to the VM.

Each user or device accessing SQL Server software, regardless of a virtual or physical deployment, requires a SQL Server CAL (for the same or a later version).

1. License each virtual machine with a server license;
2. License each user or device with a CAL (for the same or a later version);

C. Licensing SQL Server 2022 for maximum virtualisation

With SQL Server Enterprise Edition, customers who have licensed all physical cores on the server can run an unlimited number of instances of the software in a number of OSEs/containers (physical and/or virtual) equal to the number of core licenses assigned to the server. For example, a four-processor server with four cores per processor—fully licensed with 16 core licenses—can run SQL Server software in up to 16 VMs, regardless of the number of virtual cores allocated to each VM.

• Customers who have licensed all the physical cores on the server and want to run SQL Server software in more VMs than are permitted, can assign additional core licenses to the licensed server.
• Each additional core license allows deployment of SQL Server software in an additional VM, so in the previous example, a customer who wants to run SQL Server Enterprise Edition in 18 VMs would simply acquire and assign 18 core licenses to that server.

On servers fully licensed (i.e., based on physical cores) under SQL Server Enterprise subscription licenses or licenses with Software Assurance (SA) , customers’ use rights allow any number of instances of the software to run in any number of OSEs/containers (physical or virtual). This benefit enables customers to deploy an unlimited number of VMs to handle dynamic workloads and fully utilize hardware computing capacity.

1. Fully license the physical server with SQL Server Enterprise Edition core subscription licenses or licenses with Software Assurance;
2. Deploy an unlimited number of virtual machines;

D. Licensing SQL Server 2022 in containers

SQL Server can be deployed on Linux and Docker platforms. This allows customers to not only choose their platform, but also to deploy SQL Server in containers using Docker container technology

Containers provide operating system level virtualization that allows multiple isolated applications to be run on a single system.

For licensing, an operating system environment is defined as all or part of an operating system instance, or all or part of a virtual operating system instance which enables separate machine identity. Containers and virtual machines are structured differently, but they are considered the same from a licensing perspective.

SQL Server 2022 - Step-ups, Upgrades / Downgrades

When licensing SQL Server software, several deployment options are available to support a variety of customer upgrade scenarios.

Microsoft SQL Server 2019

Reference: Microsoft SQL Server 2019 Licensing Guide

SQL Server 2019 commercial editions

Key capacity limits across SQL Server 2019 editions

SQL Server 2019 Software Assurance

SQL Server 2019 Licensing Model

A. SQL Server 2019 Per Core

Under the Per Core licensing model, each server running SQL Server 2019 software or any of its components (such as Reporting Services or Integration Services) must be assigned an appropriate number of SQL Server 2019 core licenses. The number of core licenses needed, depends on whether customers are licensing the physical server or individual virtual operating system environments (OSEs).

When running SQL Server in a physical OSE, all physical cores on the server must be licensed. Software partitioning does not reduce the number of core licenses required, except when licensing individual virtual machines (VMs). A minimum of four core licenses is required for each physical processor on the server.

To determine and acquire the correct number of core licenses needed, customers must:

1. Count the total number of physical cores in the server.
2. Purchase the appropriate number of core licenses required for the server. Core licenses are sold in packs of two, so customers must divide the number of licenses required by two to determine the actual number of line items (licensing SKUs) to order.

**A.1. Licensing individual SQL Server 2019 virtual machines **

As customers consolidate existing workloads and refresh hardware, they may find that a SQL Server instance uses only a fraction of available system computing power. When deploying databases in virtual environments that require just a fraction of a physical server, savings can be achieved by licensing individual virtual machines (VMs).

Similar to the Per Core licensing model in physical OSEs, all virtual cores (v-cores) supporting virtual OSEs that are running instances of SQL Server 2019 software must be licensed accordingly.

To license individual VMs using the Per Core model, customers must purchase a core license for each v-core (or virtual processor, virtual CPU, virtual thread) allocated to the VM, subject to a four-core license minimum per VM. For licensing purposes, a v-core maps to a hardware thread.

1. License the virtual cores in each virtual machine
2. There is a minimum of four core licenses required for each virtual machine

Additional licenses are required when:

• A single hardware thread is supporting multiple virtual cores. (A core license is required for each v-core.)
• Multiple hardware threads are supporting a single virtual core simultaneously. (A core license allows a single v-core to be supported by a single hardware thread.)

B. SQL Server 2019 Server + CAL

Under the Server+CAL licensing model, each operating system environment (OSE) running SQL Server 2019 software or any of its components must have a SQL Server 2019 server license assigned to the physical server hosting the OSE. Each server license allows customers to run any number of SQL Server instances in a single OSE, either physical or virtual.

Running SQL Server software on different hardware partitions or blades requires separate software licenses. Hardware partitions and blades are considered to be separate servers for licensing purposes and SQL Server software licenses cannot be assigned to more than one server at any time.

Devices not operated by humans require device CALs, even when connecting to SQL Server indirectly. For human operated devices such as PCs or hand-held terminals, a user CAL or device CAL can be used.

**B.1. Licensing SQL Server 2019 individual virtual machines **

To license individual VMs using the Server+CAL model, customers simply purchase one server license for each VM running SQL Server software, regardless of the number of virtual processors allocated to the VM.

1. License each virtual machine with a server license
2. License each user or device with a CAL

C. Licensing SQL Server 2019 for maximum virtualisation

With SQL Server 2019 Enterprise Edition, customers who have licensed all physical cores on the server can run an unlimited number of instances of the software in a number of OSEs (physical and/or virtual) equal to the number of core licenses assigned to the server. For example, a four-processor server with four cores per processor—fully licensed with 16 core licenses—can run SQL Server software in up to 16 VMs, regardless of the number of virtual cores allocated to each VM.

• Customers who have licensed all the physical cores on the server and want to run SQL Server 2019 software in more VMs than are permitted, can assign additional core licenses to the licensed server.
• Each additional core license allows deployment of SQL Server software in an additional VM, so in the previous example, a customer who wants to run SQL Server Enterprise Edition in 18 VMs would simply acquire and assign 18 core licenses to that server.

With the addition of Software Assurance (SA) coverage on all Enterprise Edition core licenses (for a fully licensed server), customers’ use rights are expanded to allow any number of instances of the software to run in any number of OSEs (physical or virtual). This valuable SA benefit enables customers to deploy an unlimited number of VMs to handle dynamic workloads and fully utilize hardware computing capacity.

1. Fully license the server with SQL Server 2019 Enterprise Edition core licenses and Software Assurance
2. Deploy an unlimited number of virtual machines

D. Licensing SQL Server 2019 in containers

Similar to the Per Core licensing model in physical OSEs, all virtual cores (v-cores) supporting containers running instances of SQL Server 2019 software, must be licensed accordingly.

To license individual containers using the Per Core model, customers must purchase a core license for each v-core (or virtual processor, virtual CPU, virtual thread) allocated to the container, subject to a four-core license minimum per container. For licensing purposes, a v-core maps to a hardware thread.

For customers with high density container environments who want to move containers dynamically across servers to reallocate resources as needed, Microsoft permits License Mobility as an exclusive SA benefit available for all SQL Server editions. For more information on licensing for application mobility, refer to the Advanced licensing scenarios section of this guide.

1. License the virtual cores in each container
2. There is a minimum of four core licenses required for each container

To license individual containers deployed using nested virtualization i.e. within a VM, customers must purchase a core license for each v-core (or virtual processor, virtual CPU, virtual thread) allocated to the container, subject to a four-core license minimum per container.

To license individual containers using the Server+CAL model customers simply purchase one server license for each container running SQL Server software, regardless of the number of virtual processors allocated to the container.

1. License each container with a server license
2. License each user or device with a CAL

Licensing containers for maximum density

With SQL Server 2019 Enterprise Edition, customers who have licensed all physical cores on the server can run a number of containers equal to the number of core licenses assigned to the server. For example, a four-processor server with four cores per processor—fully licensed with 16 core licenses—can run SQL Server software in up to 16 containers, regardless of the number of virtual cores allocated to each container.

• Customers who have licensed all the physical cores on the server and want to run SQL Server 2019 software in more containers than are permitted, can assign additional core licenses to the licensed server.
• Each additional core license allows deployment of SQL Server software in an additional container, so in the previous example, a customer who wants to run SQL Server Enterprise Edition in 18 containers would simply acquire and assign 18 core licenses to that server.

With the addition of Software Assurance (SA) coverage on all Enterprise Edition core licenses (for a fully licensed server), customers’ use rights are expanded to allow any number of containers to run on the licensed server. This valuable SA benefit enables customers to deploy an unlimited number of containers to handle dynamic workloads and fully utilize hardware computing capacity.

1. Fully license the server with SQL Server 2019 Enterprise Edition core licenses and Software Assurance;
2. Deploy an unlimited number of containers;

Microsoft SQL Server 2017

Reference: Microsoft SQL Server 2017 Licensing Guide

SQL Server 2017 commercial editions

Key capacity limits across SQL Server 2017 editions

SQL Server 2017 Software Assurance

SQL Server 2017 Licensing Model

A. SQL Server 2017 Per Core

Under the Per Core licensing model, each server running SQL Server 2017 software or any of its components (such as Reporting Services or Integration Services) must be assigned an appropriate number of SQL Server 2017 core licenses. The number of core licenses needed, depends on whether customers are licensing the physical server or individual virtual operating system environments (OSEs).

Unlike the Server+CAL licensing model, the Per Core model allows access for an unlimited number of users or devices to connect from either inside or outside an organization’s firewall. With the Per Core model, customers do not need to purchase additional client access licenses (CALs) to access the SQL Server software.

When running SQL Server in a physical OSE, all physical cores on the server must be licensed. Software partitioning does not reduce the number of core licenses required, except when licensing individual virtual machines (VMs). A minimum of four core licenses is required for each physical processor on the server.

To determine and acquire the correct number of core licenses needed, customers must:

1. Count the total number of physical cores in the server.
2. Purchase the appropriate number of core licenses required for the server. Core licenses are sold in packs of two, so customers must divide the number of licenses required by two to determine the actual number of line items (licensing SKUs) to order.

**A.1. Licensing individual SQL Server 2017 virtual machines **

Similar to the Per Core licensing model in physical OSEs, all virtual cores (v-cores) supporting virtual OSEs that are running instances of SQL Server 2017 software must be licensed accordingly.

To license individual VMs using the Per Core model, customers must purchase a core license for each v-core (or virtual processor, virtual CPU, virtual thread) allocated to the VM, subject to a four-core license minimum per VM. For licensing purposes, a v-core maps to a hardware thread.

1. License the virtual cores in each virtual machine;
2. There is a minimum of four core licenses required for each virtual machine;

Additional licenses are required when:

• A single hardware thread is supporting multiple virtual cores. (A core license is required for each v-core.)
• Multiple hardware threads are supporting a single virtual core simultaneously. (A core license allows a single v-core to be supported by a single hardware thread.)

B. SQL Server 2017 Server + CAL

Under the Server+CAL licensing model, each operating system environment (OSE) running SQL Server 2017 software or any of its components must have a SQL Server 2017 server license assigned to the physical server Microsoft SQL Server 2017 Licensing guide 14 hosting the OSE. Each server license allows customers to run any number of SQL Server instances in a single OSE, either physical or virtual.

Running SQL Server software on different hardware partitions or blades requires separate software licenses. Hardware partitions and blades are considered to be separate servers for licensing purposes and SQL Server software licenses cannot be assigned to more than one server at any time.

To access a licensed SQL Server, each user or device must have a SQL Server CAL that is the same version or newer than the SQL Server software version being accessed.

Devices not operated by humans require device CALs, even when connecting to SQL Server indirectly. For human operated devices such as PCs or hand-held terminals, a user CAL or device CAL can be used.

While being version-specific, each SQL Server 2017 CAL provides access to 1) any number of current and/or prior version licensed SQL Server instances in a customer’s organization, and 2) current or previous product editions, including legacy SQL Business Intelligence, SQL Server Enterprise, SQL Server Workgroup and SQL Server for Small Business edition servers.

The use of hardware or software that reduces the number of devices or users that directly access or use the software, multiplexing/pooling, does not reduce the number of CALs required.

**B.1. Licensing SQL Server 2017 individual virtual machines **

To license individual VMs using the Server+CAL model, customers simply purchase one server license for each VM running SQL Server software, regardless of the number of virtual processors allocated to the VM.
For example, a customer who wants to deploy Standard Edition running in six VMs, each allocated with four v-cores, would need to assign six SQL Server 2017 Standard server licenses to that server.

1. License each virtual machine with a server license;
2. License each user or device with a CAL

C. Licensing SQL Server 2017 for maximum virtualisation

With SQL Server 2017 Enterprise Edition, customers who have licensed all physical cores on the server can run an unlimited number of instances of the software in a number of OSEs (physical and/or virtual) equal to the number of core licenses assigned to the server. For example, a four-processor server with four cores per processor—fully licensed with sixteen core licenses—can run SQL Server software in up to sixteen VMs, regardless of the number of virtual cores allocated to each VM.

• Customers who have licensed all the physical cores on the server and want to run SQL Server 2017 software in more VMs than are permitted, can assign additional core licenses to the licensed server.
• Each additional core license allows deployment of SQL Server software in an additional VM, so in the previous example, a customer who wants to run SQL Server Enterprise Edition in eighteen VMs would simply acquire and assign eighteen core licenses to that server.

With the addition of Software Assurance (SA) coverage on all Enterprise Edition core licenses (for a fully licensed server), customers’ use rights are expanded to allow any number of instances of the software to run in any number of OSEs (physical or virtual). This valuable SA benefit enables customers to deploy an unlimited number of VMs to handle dynamic workloads and fully utilize hardware computing capacity. This benefit ends when SA coverage expires.

1. Fully license the server with SQL Server 2017 Enterprise Edition core licenses and Software Assurance;
2. Deploy an unlimited number of virtual machines;

Microsoft SQL Server 2016

Reference: Microsoft SQL Server 2016 Licensing Guide

SQL Server 2016 commercial editions

Key capacity limits across SQL Server 2016 editions

SQL Server 2016 Software Assurance

SQL Server 2016 Licensing Model

A. SQL Server 2016 Per Core

Under the Per Core licensing model, each server running SQL Server 2016 software or any of its components (such as Reporting Services or Integration Services) must be assigned an appropriate number of SQL Server 2016 core licenses. The number of core licenses needed depends on whether customers are licensing the physical server or individual virtual operating system environments (OSEs).

Unlike the Server+CAL licensing model, the Per Core model allows access for an unlimited number of users or devices to connect from either inside or outside an organization’s firewall. With the Per Core model, customers do not need to purchase additional client access licenses (CALs) to access the SQL Server software.

When running SQL Server in a physical OSE, all physical cores on the server must be licensed. Software partitioning does not reduce the number of core licenses required, except when licensing individual virtual machines (VMs).

A minimum of four core licenses are required for each physical processor on the server.

To determine and acquire the correct number of core licenses needed, customers must:

1. Count the total number of physical cores in the server.
2. Purchase the appropriate number of core licenses required for the server. Core licenses are sold in packs of two, so customers must divide the number of licenses required by two to determine the actual number of line items (licensing SKUs) to order.

A.1. Licensing individual SQL Server 2016 virtual machines

Similar to the Per Core licensing model in physical OSEs, all virtual cores (v-cores) supporting virtual OSEs that are running instances of SQL Server 2016 software must be licensed accordingly.

To license individual VMs using the Per Core model, customers must purchase a core license for each v-core (or virtual processor, virtual CPU, virtual thread) allocated to the VM, subject to a four core license minimum per VM. For licensing purposes, a v-core maps to a hardware thread.

1. License the virtual cores in each virtual machine
2. A minimum of four core licenses is required for each virtual machine

Additional licenses are required when:

• A single hardware thread is supporting multiple virtual cores. (A core license is required for each v-core.)
• Multiple hardware threads are supporting a single virtual core simultaneously. (A core license allows a single v-core to be supported by a single hardware thread.)

B. SQL Server 2016 Server + CAL

When licensing the SQL Server 2016 Standard Edition software under the Server+CAL model, customers purchase a server license for each server and a client access license (CAL) for each device (Device CAL) and/or user (User CAL) accessing SQL Server or any of its components. A CAL is not software; it is a license granting users and devices access to the SQL Server software.

Under the Server+CAL licensing model, each operating system environment (OSE) running SQL Server 2016 software or any of its components must have a SQL Server 2016 server license assigned to the physical server hosting the OSE. Each server license allows customers to run any number of SQL Server instances in a single OSE, either physical or virtual.

To access a licensed SQL Server, each user or device must have a SQL Server CAL that is the same version or newer than the SQL Server software version being accessed. For example, to access a server running SQL Server 2016 software, a user needs a SQL Server 2016 CAL.

While being version-specific, each SQL Server 2016 CAL provides access to any number of current and/or prior version licensed SQL Server instances in a customer’s organization, current or previous product edition, including legacy SQL Business Intelligence, SQL Server Enterprise, SQL Server Workgroup, and SQL Server for Small Business edition servers.

**B.1. Licensing SQL Server 2016 individual virtual machines **

To license individual VMs using the Server+CAL model, customers simply purchase one server license for each VM running SQL Server software, regardless of the number of virtual processors allocated to the VM.

1. License each virtual machine with a server license
2. License each user or device with a CAL

For example, a customer who wants to deploy Standard Edition running in six VMs, each allocated with four v-cores, would need to assign six SQL Server 2016 Standard server licenses to that server.

C. Licensing SQL Server 2016 for maximum virtualisation

With SQL Server 2016 Enterprise Edition, customers who have licensed all physical cores on the server can run an unlimited number of instances of the software in a number of OSEs (physical and/or virtual) equal to the number of core licenses assigned to the server. For example, a four-processor server with four cores per processor—fully licensed with 16 core licenses—can run SQL Server software in up to 16 VMs, regardless of the number of virtual cores allocated to each VM.

• Customers who have licensed all the physical cores on the server and want to run SQL Server 2016 software in more VMs than are permitted can assign additional core licenses to the licensed server.
• Each additional core license allows deployment of SQL Server software in an additional VM, so in the previous example, a customer who wants to run SQL Server Enterprise Edition in 18 VMs would simply acquire and assign 18 core licenses to that server.

With the addition of Software Assurance coverage on all Enterprise Edition core licenses (for a fully licensed server), customers’ use rights are expanded to allow any number of instances of the software to run in any number of OSEs (physical or virtual). This valuable Software Assurance benefit enables customers to deploy an unlimited number of VMs to handle dynamic workloads and fully utilize hardware computing capacity. This benefit ends when Software Assurance coverage expires.

Microsoft SQL Server 2014

Reference: Microsoft SQL Server 2014 Licensing Guide

SQL Server 2014 commercial editions

Key capacity limits across SQL Server 2014 editions

SQL Server 2014 Software Assurance

SQL Server 2014 Licensing Model

A. SQL Server 2014 Per Core

To determine and acquire the correct number of core licenses needed, customers must:

1. Count the total number of physical cores in the server.

2. Minimum of four core licenses is required for each physical processor on a physical server.

3. To determine the total number of licenses required for the server.

   Multiply the number of cores by the appropriate core factor

4. Core licenses are sold in packs of two, so customers must divide the number of licenses required by two to determine the actual number of line items (licensing SKUs) to order.

When running SQL Server in a physical OSE, all physical cores on the server must be licensed. Software partitioning does not reduce the number of core licenses required, except when licensing individual virtual machines (VMs). The minimum number of licenses required for each processor on the server still applies.

A.1. Licensing individual SQL Server 2014 virtual machines

To license individual VMs using the Per Core model, customers must purchase a core license for each v-core (or virtual processor, virtual CPU, virtual thread) allocated to the VM, subject to a four core license minimum per VM. For licensing purposes, a v-core maps to a hardware thread. When licensing individual VMs, core factors do not apply.

1. License the virtual core in each virtual machine
2. There is a minimum of four core licenses required for each virtual machine

B. SQL Server 2014 Server + CAL

Under the Server+CAL licensing model, each operating system environment (OSE) running SQL Server 2014 software or any of its components must have a SQL Server 2014 server license assigned to the physical server hosting the OSE. Each server license allows customers to run any number of SQL Server instances in a single OSE, either physical or virtual.

**B.1. Licensing SQL Server 2014 individual virtual machines **

To license individual VMs using the Server+CAL model (available for SQL Server 2014 Standard and Business Intelligence editions only) customers simply purchase one server license for each VM running SQL Server software, regardless of the number of virtual processors allocated to the VM.

C. Licensing SQL Server 2014 for maximum virtualisation

With SQL Server 2014 Enterprise Edition, customers who have licensed all physical cores on the server can run an unlimited number of instances of the software in a number of OSEs (physical and/or virtual) equal to the number of core licenses assigned to the server. For example, a four processor server with four cores per processor—fully licensed with sixteen core licenses—can run SQL Server software in up to sixteen VMs, regardless of the number of virtual cores allocated to each VM.

1. Fully license the server SQL Server 2014 Enterprise Edition Core licenses and Software Assurance
2. Deploy an unlimited number of virtual machines

Microsoft SQL Server 2012

Reference: Microsoft SQL Server 2012 Licensing Guide

SQL Server 2012 commercial editions

Key capacity limits across SQL Server 2012 editions

SQL Server 2012 Software Assurance

SQL Server 2012 Licensing Model

A. SQL Server 2012 Per Core

To determine and acquire the correct number of core licenses needed, customers must:

1. Count the total number of physical cores in the server.

2. Minimum of four core licenses is required for each physical processor on a physical server.

3. To determine the total number of licenses required for the server.

   Multiply the number of cores by the appropriate core factor

4. Core licenses are sold in packs of two, so customers must divide the number of licenses required by two to determine the actual number of line items (licensing SKUs) to order.

When running SQL Server in a physical OSE, all physical cores on the server must be licensed. Software partitioning does not reduce the number of core licenses required, except when licensing individual virtual machines (VMs). The minimum number of licenses required for each processor on the server still applies.

A.1. Licensing individual SQL Server 2014 virtual machines

To license individual VMs using the Per Core model, customers must purchase a core license for each v-core (or virtual processor, virtual CPU, virtual thread) allocated to the VM, subject to a four core license minimum per VM. For licensing purposes, a v-core maps to a hardware thread. When licensing individual VMs, core factors do not apply.

1. License the virtual core in each virtual machine
2. There is a minimum of four core licenses required for each virtual machine

B. SQL Server 2014 Server + CAL

Under the Server+CAL licensing model, each operating system environment (OSE) running SQL Server 2014 software or any of its components must have a SQL Server 2014 server license assigned to the physical server hosting the OSE. Each server license allows customers to run any number of SQL Server instances in a single OSE, either physical or virtual.

**B.1. Licensing SQL Server 2014 individual virtual machines **

To license individual VMs using the Server+CAL model (available for SQL Server 2014 Standard and Business Intelligence editions only) customers simply purchase one server license for each VM running SQL Server software, regardless of the number of virtual processors allocated to the VM.

C. Licensing SQL Server 2014 for maximum virtualisation

With SQL Server 2014 Enterprise Edition, customers who have licensed all physical cores on the server can run an unlimited number of instances of the software in a number of OSEs (physical and/or virtual) equal to the number of core licenses assigned to the server. For example, a four processor server with four cores per processor—fully licensed with sixteen core licenses—can run SQL Server software in up to sixteen VMs, regardless of the number of virtual cores allocated to each VM.

1. Fully license the server SQL Server 2014 Enterprise Edition Core licenses and Software Assurance
2. Deploy an unlimited number of virtual machines

Microsoft SQL Server 2008 R2

Reference: Microsoft SQL Server 2008 R2 Licensing Guide

SQL Server 2008 R2 commercial editions

Key capacity limits across SQL Server 2008 R2 editions

SQL Server 2008 R2 Software Assurance

SQL Server 2008 R2 Licensing Model

A. SQL Server 2008 R2 Per Processor

Microsoft offers a Per Processor licensing model to help alleviate complexity. When licensing SQL Server software under the Per Processor model, you do not need to purchase additional CALs; it includes access for an unlimited number of users or devices to connect from either inside or outside the firewall.

Per Processor Licenses for SQL Server 2008 R2 are available for Datacenter, Enterprise, Standard, Workgroup, Web, and Parallel Data Warehouse editions.

A.1. Licensing individual SQL Server 2008 R2 virtual machines

The number of operating system environments (OSEs) in which you may run instances of SQL Server 2008 R2 under the Per Processor model depends upon the edition you license and whether or not you license all of the physical processors with a Per Processor License.

B. SQL Server 2008 R2 Server + CAL

When licensing SQL Server software under the Server/CAL model, you purchase a Server License for the server and a Client Access License (CAL) for each device (Device CAL) and/or user (User CAL) accessing or using the services or functionality of SQL Server or any of its components (e.g. Reporting Services). A CAL is not software; it is a legal document granting access.

**B.1. Licensing SQL Server 2008 R2 individual virtual machines **

C. Licensing SQL Server 2008 R2 for maximum virtualisation

If you license all of the physical processors on the server (one license per physical processor), you may run unlimited instances of the SQL Server software in the following number of OSEs (either physical or virtual):

In the case of SQL Server 2008 R2 Standard, SQL Server 2008 R2 Workgroup, and SQL Server 2008 R2 Web, if you license all of the physical processors you may run the software in the physical OSE only. In order to run the software in virtual OSEs, you will need to license each virtual processor individually as described below.

Case Studies

Case Study #1: Implementing SAM Practices for SQL Server Licensing Compliance in a Mid-Sized Energy Company (“Contoso Energy”)

Background

Contoso Energy, a mid-size energy company, faced challenges in managing its Microsoft SQL Server licenses. With a growing IT infrastructure and lack of structured SAM practices, Contoso Energy struggled to maintain compliance and optimise its software licensing costs.

Introduction of SAM Practices

To address these challenges, Contoso Energy initiated a project to introduce SAM practices. A dedicated SAM team was established, responsible for developing policies, work standards, and implementing a SAM tool. The team’s primary task was to create an Effective License Position (ELP) report, which required detailed analysis of acquired software licenses and an inventory of the software in use.

Discovery and Analysis

The first phase involved gathering data on purchased licenses and conducting a thorough inventory of the IT environment. Contoso Energy didn’t have a SAM Solution in place yet, so they collected the required data from two existing IT tools: Microsoft SCCM and Lansweeper and used a PowerCLI script to collect the virtualisation topology from VMware. This allowed them to save time on the data collection part as the tools were already part of their IT stack they didn’t have to deploy any agents. And by consolidating the data from the tools, they ensured they got maximum coverage over their assets. Once the technical deployment data was collected, Contoso used a SAM discovery tool to analyse it.

The SAM team meticulously reviewed all purchased records using an updated Microsoft Licensing Statement (MLS) as a base and performed an entitlement inventory reconciliation. They uploaded the validated MLS to an entitlement management tool and generated an Effective License Position (ELP) for SQL Server.

Initial Findings

The initial ELP report revealed a concerning scenario: Contoso Energy required more SQL Server licenses than it had purchased. This negative compliance status was primarily due to the fact some Enterprise components were deployed alongside Standard database instances, new deployments that had been done without corresponding license purchases (a lack of procedures), and the fact CAL requirements had not been considered with multiplexing for a particular application using SQL. Whilst the customer had a mixture of Core and Server + CAL licensing models, neither was sufficient to cover the problem.

Addressing the License Shortfall

The straightforward solution was to purchase additional licenses to cover the shortfall. However, the SAM team advocated for a more strategic approach. They proposed analysing the company’s resource usage patterns and processes to identify solutions that are more cost-effective.

Datacentre Configuration and License Optimisation

Contoso’s datacentre comprised several hosts with varying configurations, from 16 to 48 physical cores. Clustering was implemented along with vMotion, enhancing management automation, reliability, and availability. Virtual machines had virtual cores assigned in the range of 8 to 16 virtual cores.

Proposing a Solution

The SAM team suggested a potential solution to reduce the required licenses by reducing the number of virtual cores assigned to VMs running SQL Server Standard. This approach would capitalize on the fact most VMs were running at an average of 25% capacity, and a minimum of 4 virtual cores for SQL server standard could be applied, reducing the requirement in half for the selected virtual machines.

Next, they documented which devices had Enterprise licensable components deployed and set a project to investigate the component usage and, if they were not in use, to be removed.

Lastly, utilising the now available core licenses, these were able to cover the shortfall on the SQL instance associated with their payroll system and remove the requirements for additional CAL licenses, as all employees utilise this payroll system, under the Server + CAL model it would have required all employees to have CALs which they did not have sufficient available.

Evaluating Impact and Feasibility

Implementing this solution required careful consideration of its impact on the datacentre’s configuration, database server processing capacity, and the operation of production applications. Additionally to this investigation on the Enterprise component utilization was required to understand if the functionality was actually required. The SAM team collaborated with other departments, including procurement and IT, to assess the feasibility of this solution.

A steering committee comprising key stakeholders in IT service management was convened to deliberate on the proposed changes. The primary question was whether reducing the cores assigned to particular virtual instances would adversely affect the reliability and availability of company resources.

Decision and Outcome

After thorough analysis and discussions, the steering committee concluded that limiting virtual core assignments was feasible without significantly compromising reliability or availability. This decision allowed Contoso Energy to rationalize its SQL Server license consumption, reducing the number of required licenses to less than the acquired ones and ensuring compliance without the immediate need for additional license purchases. Additionally to this it was determined the licensable components were not, in fact, needed for operation and were decommissioned. They continued to renew their Software Assurance on the surplus licenses to assign them in their Azure environment under Azure Hybrid Use Benefits, where One core on-premises = One vCore in General Purpose Azure compute, resulting in a cost-saving on their Azure subscription.

Conclusion

This case study demonstrates the critical role of SAM practices and leveraging the proper tooling in managing software licenses, particularly for complex products like Microsoft SQL Server. By adopting a proactive and analytical approach, Contoso Energy not only achieved compliance but also optimized its licensing strategy, highlighting the importance of SAM in modern IT environments.

Case Study #2

Archive note: the second case study described a vendor-specific SAM tool implementation and has been removed under the House rules (no product promotion).

Conclusion

In the dynamic and data-centric business landscape of today, effective software asset management (SAM) is paramount. As SQL Server continues to be a cornerstone for enterprise data management, understanding its complex licensing models is crucial to optimizing costs and ensuring compliance. This white paper has explored the intricate nature of SQL Server licensing, from the various editions and licensing models to common challenges and strategic solutions for cost rationalization.

By highlighting the importance of strategic planning, entitlement analysis, and comprehensive deployment assessments, this paper has provided actionable insights and best practices for maximizing the value of SQL Server investments. We have delved into the specificities of SQL Server versions from 2008 to 2022, elucidating the benefits and nuances of each licensing model.

Moreover, the case studies presented exemplify real-world applications of these strategies, demonstrating how businesses like Contoso Energy and Contoso Car Company have successfully navigated licensing complexities and achieved significant cost savings and compliance. These examples underscore the necessity of robust SAM practices and the value of automating license management.

In conclusion, effective SQL Server license management is not merely about compliance; it’s about leveraging strategic insights to drive business value. With the right tools and practices, organizations can turn the complexities of SQL Server licensing into opportunities for optimization and growth.

Appendices

A1. SQL Server Release and built numbers

Glossary

FAQ

What are the differences in licensing SQL Server with or without Software Assurance?

Here’s a side-by-side comparison highlighting the differences between SQL Server licensing with and without Software Assurance:

What is Microsoft license compliance verification (commonly known as “audit”)?

Microsoft license compliance verification (commonly known as “audit”) is a formal, mandatory compliance review of a company’s use of Microsoft products and services, and it is part of the Microsoft license and contract compliance program. Microsoft conducts industry-standard compliance reviews with its business customers through an independent auditor pursuant to the terms of their agreement. This review is an effort to help customers achieve and maintain license compliance, and to protect Microsoft intellectual property rights. Therefore, be assured that unless Microsoft invokes its contractual right to verify compliance via a third-party accounting firm (as fully documented in your Volume Licensing Agreement), you are not involved in a license compliance verification.

Source: License Compliance Verification FAQ | Microsoft Volume Licensing

What is Microsoft Software Asset Management (SAM)?

The Microsoft SAM program is a trusted IT advisory service based on industry SAM standards that help customers gain data insights, optimize licensing, minimize risks, and be more productive with their IT investments. SAM engagements provide a 360-degree view of the customer’s IT infrastructure and a set of recommendations on ways to improve their overall asset management, license management, and SAM policies and procedures. With this comprehensive view, customers get valuable recommendations on areas that are most challenging for their business. SAM engagements are performed by Microsoft SAM Certified Partners and are voluntary. We believe that SAM can be a strategic advantage for all our customers. Learn from customers how SAM has benefited their business.

Source: License Compliance Verification FAQ | Microsoft Volume Licensing

Some sources claim that Microsoft Software Asset Management (SAM) and license compliance verification (commonly known as “audit”) are the same. Is this correct?

No, Microsoft SAM and license compliance verification are not the same. The list below shows the differentiation between SAM and license compliance verification.

1. Microsoft Software Asset Management (SAM)

• Nature of engagement - Voluntary
• Performed by - Microsoft SAM Certified Partners with more flexibility in process
• Objective - Help customers maximize value, minimize risks, and achieve more with their IT investment

2. Microsoft license compliance verification (audit)

• Nature of engagement - Mandatory contractual requirement
• Performed by - Independent, internationally recognized certified public accounting firms. However, in some jurisdictions, verifications are also conducted by authorized consultants on behalf of Microsoft.
• Objective - Help customers achieve and maintain license compliance, and to protect Microsoft’s intellectual property rights

Source: License Compliance Verification FAQ | Microsoft Volume Licensing

How does Microsoft select customers for license compliance verifications?

Microsoft uses a programmatic approach to select customers for license compliance verification. Any customer with a Microsoft volume license may be selected. Microsoft performs license compliance verifications with a limited number of customers each year, to verify customers’ compliance to the terms and conditions of their respective agreements with Microsoft.

Source: License Compliance Verification FAQ | Microsoft Volume Licensing

How can customers prepare for Microsoft license compliance verifications?

A Microsoft license compliance verification is a routine process of checking customers’ compliance with Microsoft licensing agreements. Customers who take licensing compliance seriously and have a robust internal Software Asset Management (SAM) process are likely to be better prepared for license compliance verifications. Learn how to establish an effective SAM program.

Source: License Compliance Verification FAQ | Microsoft Volume Licensing

What should customers expect from a Microsoft license compliance verification?

Microsoft will directly provide customers with a formal notification of license compliance verification. The length of an engagement varies based on the complexity of the IT environment of an organization. Per the customer’s agreement, Microsoft makes every effort to ensure minimal disruption of the customer’s day-to-day operations.

Source: License Compliance Verification FAQ | Microsoft Volume Licensing

Who performs Microsoft license compliance verifications?

Microsoft license compliance verifications are executed by independent, internationally recognized certified public accounting firms. However, in some jurisdictions, verifications are also conducted by authorized consultants on behalf of Microsoft.

Source: License Compliance Verification FAQ | Microsoft Volume Licensing

What if license compliance verifications reveal license compliance issues?

The remedies and other requirements in case of compliance issue occurs are documented in your Volume License Agreements (refer the clause on Compliance Verification). If you need additional clarification, contact your Microsoft Account Manager.

Source: License Compliance Verification FAQ | Microsoft Volume Licensing

What are the licensing options for SQL Server in a hosting environment?

SQL Server can be licensed through either the Pay-As-You-Go (PAYG) model or the Bring-Your-Own-License (BYOL) model:

• PAYG: The end-client rents SQL Server licenses through the Service Provider License Agreement (SPLA) on a monthly basis.
• BYOL: The end-client brings their existing SQL Server licenses to the hosting provider, provided these licenses have Software Assurance or are subscription-based.

What is the difference between SPLA and BYOL licensing for SQL Server?

• SPLA: This is a monthly subscription model where the service provider licenses SQL Server on behalf of the client, and the cost is included in the service fee.
• BYOL: In this model, the client brings their own SQL Server licenses to the hosting provider, which must be eligible for hosting under the terms of Software Assurance or subscription licensing.

Can I use my existing licenses with a hosting provider?

Yes, you can use your existing SQL Server licenses with a hosting provider if they are covered by Software Assurance or are subscription licenses, and the hosting provider allows BYOL.

How do I avoid overpaying for SQL Server licenses?

To avoid overpaying:

• Choose the most suitable licensing model for your needs.
• Use mixed licensing (combining BYOL and SPLA) to handle both constant and seasonal demands.
• Take advantage of cluster discounts and disaster recovery rights to optimize costs.

What common mistakes should be avoided when reporting SQL Server licenses in SPLA?

Avoid the following common mistakes:

• Reporting incorrect license types or editions.
• Not meeting the minimum requirement of four core licenses per VM or physical CPU.
• Failing to report all authorized users when using Subscriber Access Licenses (SAL).

What are the different editions of SQL Server?

SQL Server is available in several editions:

• Standard Edition: Suitable for small to medium-sized businesses requiring essential database functionalities.
• Enterprise Edition: Designed for large enterprises needing high performance, scalability, and advanced features.
• Web Edition: Available only through SPLA, intended for web hosting scenarios.

What are the licensing options for SQL Server Standard in SPLA?

SQL Server Standard in SPLA can be licensed:

• Per core: For environments where user/device counting is impractical.
• Per user or device: With Subscriber Access Licenses (SAL), which do not require server licenses.

What are the licensing options for SQL Server Enterprise in SPLA?

SQL Server Enterprise can be licensed:

• Per virtual machine core: For flexible, virtualized environments.
• At the physical host level: Allowing unlimited virtualization on a host, provided all physical cores are licensed.

What is the minimum number of core licenses required for a SQL Server virtual machine?

A SQL Server virtual machine requires a minimum of four core licenses, regardless of the actual number of virtual cores used.

How do I choose the suitable SQL Server licensing model for my hosting environment?

Selecting the appropriate licensing model depends on several factors:

• The SQL Server edition (Standard, Enterprise, Web).
• The chosen licensing model (per-core, per user/device).
• The specific requirements of your environment, such as the number of virtual cores, users, or devices. Consulting with a licensing expert can help determine the most cost-effective and compliant model for your business.

What are the permitted periods of use for a disaster recovery server running SQL Server under disaster recovery rights?

A disaster recovery server can be used during:

• Brief disaster recovery testing within one week every 90 days.
• Actual disaster periods when the primary production server is down.
• Brief periods to facilitate the transition between the primary and disaster recovery servers.
  Note: The disaster recovery server must not be in the same cluster as the primary production server.

What are the advantages of using the Pay-As-You-Go (PAYG) model for SQL Server licensing?

The PAYG model offers several benefits:

• No long-term commitment: Licenses are billed on a monthly basis, allowing for flexibility.
• Scalability: Easily adjust licensing to match changing workload demands.
• Provider-managed: The hosting provider manages the licenses, reducing administrative overhead for the client.

What are the drawbacks of the Pay-As-You-Go (PAYG) model for SQL Server licensing?

While convenient, PAYG has some drawbacks:

• No price protection: Monthly costs can increase, typically on an annual basis.
• Potentially higher costs: PAYG can be more expensive over the long term compared to other licensing models.

What are the advantages of the Bring-Your-Own-License (BYOL) model for SQL Server licensing?

BYOL provides several benefits:

• Cost savings: Utilize existing licenses, which can be more economical than SPLA.
• Price protection: Licenses acquired through long-term agreements often include price protection.
• Flexibility: Combine BYOL with SPLA to optimize costs for consistent and fluctuating workloads.

What are the drawbacks of the Bring-Your-Own-License (BYOL) model for SQL Server licensing?

The BYOL model has some limitations:

• Management overhead: Clients must manage their own licenses and ensure compliance.
• Eligibility: Only licenses with Software Assurance or subscription-based licenses are eligible.
• Provider restrictions: Not all hosting providers support BYOL.

How do SQL Server licensing requirements differ between physical and virtual environments?

• Physical environments: Licenses are required for each physical core in the server, with a minimum of four core licenses per physical CPU.
• Virtual environments: Licenses are required for each virtual core in the virtual machine, with a minimum of four core licenses per virtual machine.

What is the Flexible Virtualization Benefit, and how does it apply to SQL Server licensing?

The Flexible Virtualization Benefit allows clients with Software Assurance or subscription licenses to use their licenses in virtualized environments across any service provider’s data center. This benefit enhances flexibility and cost-efficiency in deploying SQL Server across different hosting environments.

Can I use SQL Server licenses without Software Assurance in a hosting environment?

No, to use SQL Server licenses in a hosting environment, they must be covered by active Software Assurance or be subscription-based. This ensures compliance with Microsoft’s licensing terms and eligibility for the Flexible Virtualization Benefit.

What is the difference between SQL Server Standard and Enterprise editions in terms of functionality and licensing?

• SQL Server Standard: Suitable for small to medium-sized businesses, offering core database capabilities.
• SQL Server Enterprise: Designed for large enterprises, providing advanced features such as high availability, extensive security, and superior performance. Licensing costs are higher due to the additional functionalities.

How do I handle SQL Server licensing for disaster recovery setups?

For disaster recovery, the following licensing considerations apply:

• Passive node discount: For each licensed active node, one passive node is free.
• Disaster recovery server usage: Permitted for brief testing periods, during actual disasters, and for transition assistance, but not within the same cluster as the primary server.

What tools or practices can help with accurate license reporting and management for SQL Server in SPLA?

Effective license management involves:

• Regular audits: Conduct frequent license audits to ensure compliance and avoid penalties.
• Dedicated SPLA tools: Use specialized software tools to track and manage licenses accurately.
• Detailed documentation: Maintain comprehensive records of all licenses, usage, and reporting to streamline compliance processes.

How do Subscriber Access Licenses (SAL) work in SPLA for SQL Server Standard?

• Per-user/device licensing: Each user or device accessing the server requires a SAL.
• Unlimited instances: No server licenses are needed, and there is no limit on the number of SQL Server instances deployed.

What are the reporting requirements for SQL Server licenses under SPLA?

Service providers must:

• Monthly reporting: Accurately report the usage of SQL Server licenses each month.
• Compliance: Ensure all licenses, including SALs, meet the minimum requirements and are correctly reported to avoid financial or legal repercussions.