Louise UlrickLicensing School

Introduction to Reservations

February 2020

Azure Reservations

Reserved Instances

February 2020

Licensing scenario – Wide World Importers

Wide World Importers have an on-premises

server farm running Windows Server virtual

machines. It is fully licensed with Windows

Server licenses.

They want to evaluate running Windows Server

virtual machines in Azure as part of a risk-free,

proof of concept project.

Wide World

Importers

February 2020

Azure Pricing Calculatorh

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February 2020

Licensing scenario – Humongous Insurance

Humongous Insurance have an on-premises

server farm running Windows Server virtual

machines. It is fully licensed with Windows

Server licenses.

They want to retire some on-premises servers

and to move the existing virtual machines to

Azure, as well as to create some new virtual

machines. All virtual machines will be full-time,

and they want the best possible pricing.

Humongous

Insurance

February 2020

Azure Pricing Calculator

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/bit

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Pri

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February 2020

Azure Windows Server VM options

All-inclusive

Windows Server

VM meter

Reserved

Instance

+

Azure Hybrid

Benefit

$→

For customers

with short-term

or variable

workloads

For customers

with longer-term

or predictable

workloads

$→or

February 2020

Azure Reserved Instances

An overview• A way of purchasing Azure base compute with a great price and

flexibility, in return for a commitment in duration, and making

some choices at time of purchase

• Available through all ways of buying Azure

• Upfront or monthly payment options available

Choices

Type of virtual machine: For example, D4v3

Scope: All or single Subscriptions,or a Resource Group

Azure data center: For example, US East (USE)

Term: 1 or 3 years

February 2020

Cancel• Customers can cancel a

Reserved Instance at any

time

• Refunds are pro-rated

with a cancellation fee

deducted

Azure Reserved Instances flexibility

Reassign• Customers can reassign a

Reserved Instance at any

time to a different

Subscription or Resource

Group

Exchange• Customers can exchange

one Reserved Instance

for another

• Unused duration of

original RI is pro-rated

and credit is applied to a

new 1 or 3-year term RI

February 2020

$→

$→

$→

Woodgrove

Bank

Woodgrove Bank buy a D16_v3 Reserved Instance. They are

interested in how Instance Flexibility works

$→

D8_v3

4

D8_v3

4

D16_v3

8

D4_v3

2

D4_v3

2

D8_v3

4

D32_v3

16

Dv3-series

Size Ratio

Standard_D2_v3 1

Standard_D4_v3 2

Standard_D8_v3 4

Standard_D16_v3 8

Standard_D32_v3 16

Standard_D64_v3 32

8/16 = 0.5

= 50%

February 2020

Azure Windows Server VM options

Reserved

Instance

+

Azure Hybrid

Benefit

$→

$→or

For customers with longer-term or predictable workloads

Reserved Instances

• Paid upfront or monthly for 1 year or 3 years

Azure Hybrid Benefit

• Allows customers to assign their Windows

Server licenses to Azure VMs

Server Subscriptions for Windows Server

• Paid upfront for 1 year or 3 years

$→

$→

Windows Server licenses with active SA

or

February 2020

Azure Hybrid Benefit for Windows Server

• Eligibility: Active Software Assurance on Standard or

Datacenter edition Core licenses acquired through any

Volume Licensing program OR Server Subscriptions for

Standard edition acquired through CSP

• Standard edition licenses may be used EITHER on-

premises OR for Windows Server virtual machines in

Azure

• A minimum of 8 Core licenses must be assigned to an

Azure virtual machine

• Additional sets of 8 Core licenses may be assigned to

larger virtual machines

$→

February 2020

Azure Hybrid Benefit: Standard v Datacenter

✓ Rights are “Alternative”

✓ Use the Windows Server

license in an on-

premises environment

OR Azure

✓ Rights are “Additive”

✓ Use the Windows

Server license in an on-

premises environment

AND Azure

2

16

16

4

288

Std Std

Std Std

Std Std

Std Std

DC DC

DC DC

DC DC

DC DC

16

February 2020

Activating the Azure Hybrid Benefit

Enabling the

Azure Hybrid

Benefit on virtual

machine creation

Enabling the

Azure Hybrid

Benefit for a

running virtual

machine

February 2020

Woodgrove Bank has 3 full-time workloads running in the West US

data center and wants to save money by acquiring Reserved Instances

Currently With Reserved Instances

E2v3

running

Windows

Server

E2v3

running

Windows

Server

E2v3

running

Linux

Compute Operating System

Base VM/hour Azure Hybrid

Benefit

All inclusive Windows Server VM/hour

Base VM/hour

Compute Operating System

Windows Server

Core/hour

Azure Hybrid

Benefit

$→

$→

$→

RI inventory

3 x E2v3 for West US

Woodgrove

Bank

February 2020

Monthly price 3 years Breakeven pointCost for 12 months

out of 3 year period

All-inclusive Windows Server VM $152.57 $5,492.52 $1,830.84

Reserved Instance + Azure Hybrid Benefit

Base Compute: Reserved Instance (3 year)

Windows Server: Server Subscription (3 year)

OR

Base Compute: Reserved Instance (3 year)

Windows Server: Software Assurance (8 cores)

$37.05

$16.17

$53.22

$37.05

$9.20

$46.25

$1,333.80

$582.00

$1,915.80

$1,333.80

$331.20

$1,665.00

34.88%

30.31%

$1,333.80

$582.00

$1,915.80

$1,333.80

$331.20

$1,665.00

Some sample figures

MOSP + MSRP prices based

on an D2 v3 (2-core VM),

West US data center,

October 2019. SA prices

based on Open NL ERP.

0

1000

2000

3000

4000

5000

6000

J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D

All-inclusive RI + SS

February 2020

Monthly price 3 years Breakeven pointCost for 25 months

out of 3 year period

All-inclusive Windows Server VM $578.16 $20,813.76 $14,454.00

Reserved Instance + Azure Hybrid Benefit

Base Compute: Reserved Instance (3 year)

Windows Server: Server Subscription (3 year)

OR

Base Compute: Reserved Instance (3 year)

Windows Server: Software Assurance (8 cores)

$380.31

$16.17

$396.48

$380.31

$9.20

$389.51

$13,691.16

$582.00

$14,273.16

$13,691.16

$331.20

$14,022.36

68.58%

67.37%

$13,691.16

$582.00

$14,273.16

$13,691.16

$331.20

$14,022.36

Some sample figures

MOSP + MSRP prices based

on an F8s v2 (8-core VM),

West US data center, March

2019. SA prices based on

Open NL ERP.

0

5000

10000

15000

20000

25000

J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D

All-inclusive RI + SS

Reservations and SQL Server

February 2020

Options for Using SQL Server in Azure

Azure Virtual Machines:SQL Server running in individual

virtual machines

(IaaS)

Azure SQL Database: SQL Server running as a

managed Database-as-a-

Service (PaaS)

February 2020

Choose the right SQL Server option in Azureh

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/SQ

LOp

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ns

February 2020

Azure SQL Server VM options

SQL Server

SQL Server

All-inclusive SQL

Server VM meter

Reserved Instance

+

Azure Hybrid

Benefit

+

Azure Hybrid

Benefit

$→

For customers

with short-term

or variable

workloads

For customers

with longer-term

or predictable

workloads

$→or

$→or

February 2020

Azure SQL Server VM options

Reserved Instance

+

Azure Hybrid

Benefit

+

Azure Hybrid

Benefit

SQL Server

For customers with longer-term or predictable workloads

Reserved Instances

• Paid upfront for 1 year or 3 years$→

Azure Hybrid Benefit: Windows Server

• Via Windows Server licenses with active SA

• Via Windows Server Subscriptions paid

upfront for 1 year or 3 years $→

Azure Hybrid Benefit: SQL Server

• Via SQL Server licenses with active SA

• Via SQL Server Subscriptions paid upfront

for 1 year or 3 years $→

February 2020

Azure Hybrid Benefit for SQL Server

• Eligibility: Active Software Assurance on Standard or

Enterprise edition Core licenses acquired through any

Volume Licensing program OR Server Subscriptions

acquired through CSP

• Licenses may be used EITHER on-premises OR for

SQL Server virtual machines in Azure

• A minimum of 4 Core licenses must be assigned to

an Azure virtual machine

• Additional Core licenses may be assigned to larger

virtual machines

$→

February 2020

Monthly price 3 years Breakeven pointCost for 27 months

out of 3 year period

All-inclusive SQL Server VM $1,162.16 $41,837.76 $31,378.32

Reserved Instance + Azure Hybrid Benefit

Base Compute: Reserved Instance (3 year)

Windows Server: Server Subscription (3 year)

SQL Server: Server Subscription (3 year)

OR

Base Compute: Reserved Instance (3 year)

Windows Server: Software Assurance (8 cores)

SQL Server: Software Assurance (8 cores)

$380.31

$16.17

$472.67

$869.15

$380.31

$9.20

$310.00

$699.51

$13,691.16

$582.00

$17,016.00

$31,289.16

$13,691.16

$331.20

$11,160.00

$25,182.36

74.79%

60.19%

$13,691.16

$582.00

$17,016.00

$31,289.16

$13,691.16

$331.20

$11,160.00

$25,182.36

Some sample figures

MOSP + MSRP prices based

on an F8s v2 (8-core VM),

West US data center, March

2019. SA prices based on

Open NL ERP.

0

10000

20000

30000

40000

50000

J M M J S N J M M J S N J M M J S N

All-inclusive RI + SS + SS

February 2020

Options for Using SQL Server in Azure

Azure Virtual Machines:SQL Server running in individual

virtual machines

(IaaS)

Azure SQL Database: SQL Server running as a

managed Database-as-a-

Service (PaaS)

February 2020

Azure SQL Database options

SQL Server

Reserved

Capacity

+

Azure Hybrid

Benefit

$→

All-inclusive SQL

Database meter

SQL Server

For customers

with short-term

or variable

workloads

For customers

with longer-term

or predictable

workloads

$→or

February 2020

SQL Azure Database Reserved Capacity

An overview• A way of paying for Azure SQL Database infrastructure costs with a

great price and flexibility, in return for a commitment in duration,

and making some choices at time of purchase

• Available through Web Direct, CSP, EA, and the new commerce

experience

Choices

Performance Tier: Gen 4/5 for Business Criticalor General Purpose

Assignment level: Company or department

Azure data center: For example, US West

Term: 1 or 3 years

Deployment Type: Single/Elastic Pool or Managed Instance

February 2020

Azure Hybrid Benefit for SQL Server

• Eligibility: Active Software Assurance on Standard

or Enterprise edition Core licenses acquired

through any Volume Licensing program OR Server

Subscriptions acquired through CSP

• Licenses may be used EITHER on-premises OR for

SQL Server virtual machines in Azure OR for the

Azure SQL Database Service

• Each Core license gives rights to a number of

vCores for the Azure SQL Database Service:

$→

General Purpose

Standard: 1 Core license = 1 vCore

Enterprise: 1 Core license = 4 vCores

Business Critical

Enterprise: 1 Core license = 1 vCore

February 2020

Monthly price 3 years Breakeven pointCost for 21 months

out of 3 year period

All-inclusive Azure SQL Database $1,561.65 $56,219.40 $32,794.65

Reserved Capacity + Azure Hybrid Benefit

Base Compute: Reserved Capacity (3 year)

SQL Server: Server Subscription (3 year)

OR

Base Compute: Reserved Capacity (3 year)

SQL Server: Software Assurance (8 cores)

$439.99

$472.67

$912.66

$439.99

$310.00

$699.51

$15,839.64

$17,016.00

$32,855.64

$15,839.64

$11,160.00

$26,999.64

58.44%

48.03%

$15,839.64

$17,016.00

$32,855.64

$15,839.64

$11,160.00

$26,999.64

Some sample figures

MOSP + MSRP prices based on 8

vCores of Single Database,

General Purpose, Gen 4 in West

US data center, March 2019. SA

prices based on Open NL ERP.

0

10000

20000

30000

40000

50000

60000

J M M J S N J M M J S N J M M J S N

All-inclusive RC + SS

Louise UlrickLicensing School

Introduction to Reservations