How Do You License SQL Server?

SQL Server is one of the (if not the) most complicated products from Microsoft to license. It is typically licensed per core, with different editions available to meet different needs and budgets, but that is just the tip of the iceberg.

To license SQL Server, you must purchase a license for each core on the server where you will install the software (although you may license physical cores or virtual cores if the SQL server is virtualized). The number of cores you need to license is based on the number of cores in the processor or the virtual cores, not the number of physical processors or sockets. Microsoft also has a 4 Core minimum, so even if the server or virtual SQL Instance is only 2 cores, you would have to license with 4 Cores.

There are several editions of SQL Server available, including:

  • Enterprise Edition: This is the most feature-rich and powerful edition of SQL Server. It is designed for mission-critical applications and large-scale data warehousing.
  • Standard Edition: This edition is suitable for small to medium-sized businesses and includes many of the same features as Enterprise Edition but with some limitations on scalability and performance.
  • Express Edition: This free edition of SQL Server is suitable for small applications and is limited to a single processor and 10 GB of database storage. Express is a free edition of SQL Server.
  • Developer Edition: This edition is a full-featured version of SQL Server licensed for development and testing. It cannot be used for production environments.

To purchase a license for SQL Server, you can contact a Microsoft reseller or visit the Microsoft website.

How Do You Count Cores For SQL Server Licensing On A Physical Server?

To count the cores for SQL Server licensing, you need to determine the number of cores in the processors where you will be installing the software. Here are the steps to follow:

  1. Identify the servers where you will be installing SQL Server.
  2. Determine the number of processors in each server.
  3. Count the number of cores in each processor.
  4. Multiply the number of cores in each processor by the number of processors in the server, accounting for the fact that there is a 4 Core Minimum.
  5. Add the total number of cores for all servers where you will be installing SQL Server.

For example, if you have a server with 2 processors, each with 6 cores, the total number of cores for that server would be 12. If you have a second server with a single processor with 4 cores, the total number of cores for that server would be 4. The total number of cores for both servers would be 16.

You will need to purchase a license for each of these cores. SQL Server is typically licensed per core, with different editions available to meet different needs and budgets.

SQL Server is typically licensed

What Is The Minimum Number Of Cores You Need To License For A Physical Install of SQL Server?

The minimum number of cores you need to license for SQL Server depends on the edition of the software that you are using.

For the Standard and Enterprise editions, the minimum number of cores you need to license is 4 per physical processor. If you have a server with a single processor with 4 or more cores, you will need to purchase a license for at least 4. If you have a server with two processors, each with 4 or more cores, you will need to purchase a license for at least 8 cores (4 cores per processor).

For the Express edition, there is no minimum number of cores you need to license, as this edition is free and limited to a single processor and 10 GB of database storage.

It’s important to note that you need to license all the cores in the processors of the servers where you will be installing SQL Server, regardless of whether you will use all the cores.

How Do You License SQL in a Virtualized Environment?

In a virtualized environment, you must license SQL Server for each virtual machine (VM) running the software. You can use either the Physical Core-Based Licensing model or the Virtual Core-Based Licensing model to license SQL Servers in a virtualized environment.

Under the Physical Core-Based Licensing model, you must purchase a license for each physical core on the host server, regardless of the number of VMs or cores allocated to the VMs.

Under the Virtual Core-Based Licensing model, you must purchase a license for each virtual core (vCore) allocated to the VM. The number of vCores you need to license is based on the number of cores allocated to the VM, not the number of physical cores on the host server.

For both the Physical and Virtual models, you still need to purchase a minimum of 4 Cores.

To determine the number of vCores that you need to license for a VM, you can use the following formula:

Number of vCores = (Number of physical cores on the host server / Number of VMs on the host server) * Number of cores allocated to the VM

For example, if you have a host server with two processors, each with 6 cores, and you have two VMs running on the host server, with each VM allocated 2 cores, the number of vCores that you would need to license for each VM would be 4 (not 3 as you have a 4 core minimum to account for).

How Do I Optimize My SQL Server Licensing For Cost Savings

There are a few ways that you can optimize your SQL Server licensing for cost savings:

  1. Consider using the Virtual Core-Based Licensing model: If you are running SQL Server in a virtualized environment, you may save money using the Virtual Core-Based Licensing model instead of the Physical Core-Based Licensing model. Under this licensing model, you only need to purchase a license for the number of virtual cores (vCores) allocated to each virtual machine (VM) rather than a license for each physical core on the host server.  Don’t forget about the 4 core minimum rule when calculating this.
  2. Use the appropriate edition of SQL Server: Choose the edition of SQL Server that best meets your needs and budget. The Enterprise edition is the most feature-rich and powerful, and expensive. The Standard edition is suitable for many small to medium-sized businesses. It includes many of the same features as the Enterprise edition but with some limitations on scalability and performance. The Express edition is free for small applications and limited to a single processor and 10 GB of database storage.
  3. Optimize your hardware: Consider using processors with fewer cores or allocating fewer cores to each VM. This can help you reduce the number of cores that you need to license and save money on your SQL Server licenses.
  4. Use software assurance: Consider purchasing software assurance for your SQL Server licenses. Software Assurance (SA) is needed when there is server mobility occurring in a virtual environment (or to be allowed to use on 3rd party clouds – check the rules before deploying to any 3rd party cloud).  The SA allows a virtual SQL Server to move between hosts and have the licenses follow it. This is a very complicated license scenario, and you need to ensure you understand the rules when calculating requirements.  SA also gives you access to new software versions as they are released.
  5. Use the cloud provider’s licensing: If you are running SQL Server in a public cloud environment, such as Microsoft Azure or Amazon Web Services (AWS), you may save money by using the cloud provider’s licensing instead of purchasing your own licenses. Azure and AWS offer pay-as-you-go pricing for SQL Server, allowing you to only pay for the resources you use. This can be a cost-effective option, especially if you have variable or unpredictable workloads.

Use the cloud provider's licensing

How a software asset management (SAM) tool such as MetrixData 360’s SQL Server License Optimization Tool can help you optimize your SQL Server licensing:

  • License optimization: A SAM tool can help you optimize your SQL Server licensing by identifying underutilized licenses and recommending consolidation or redistribution. This can help you save money on your SQL Server licenses by ensuring you are not paying for more than you need.
  • Compliance reporting: A SAM tool can help track your SQL Server usage and ensure that you comply with your licensing agreements. It can provide you with reports that show how you are using your licenses and help you identify any potential compliance issues.
  • Software usage tracking: A SAM tool can help you track your SQL Server usage and identify opportunities for cost savings. It can provide reports on your usage patterns and help you understand how you use your licenses. This can help you identify underutilized licenses and make informed decisions about your licensing strategy.

Optimize Your SQL Server Software Contract

Optimize Your SQL Server Software Contract Before and After the Purchase and Save Money

 

A Fortune 100 company found itself in a costly situation after signing a software contract for $1.8M a year and licenses for 8,500 users. The vendor offered an excellent unit price. The company measured the deal’s value based on the discount they received and built a business case showing that they were saving multi-millions by buying upfront. 

The vendor also provided funding to help migrate their legacy application. However, the company could only deploy 2,000 users in the contract’s first three years due to technical challenges. By the end of the five-year contract, they forecasted to have only deployed 5,700 users. This means that the company is paying for unused licenses, resulting in a cost of nearly $4.5M more than if they had paid the list price as they deployed. This is a cautionary tale of how a seemingly good deal on unit price can lead to costly consequences if proper research and analysis are not done before signing a contract. It’s a reminder that measuring a deal’s value based on the discount alone is risky.

So what are the advantages of sql server and software contract optimization?

Avoid the Trap and Consider Short-Term Impacts

 

When it comes to budgeting for software purchases, it’s easy to fall into the trap of only considering the short-term impact on the budget and not fully considering the long-term ramifications of the decision. This was the case with the Fortune 100 company, as they budgeted for the development and license purchases over a five-year term, capitalizing on the costs. However, they did not consider the technical challenges that may occur during deployment and only focused on the immediate savings of the discounted unit price.

The IT department was concerned with losing funding, so they avoided looking at the hard facts and reality of the deployment. This led to many unused licenses and a poor return on investment.

A Cautionary Tale for Budget Holders

 

Budget holders must take a holistic approach when budgeting for software purchases. Don’t fall into the trap of only considering short-term savings, as this approach can lead to costly mistakes and a poor return on investment. It’s essential to ask hard questions, look at the data, and understand the technical challenges that may arise during deployment to make informed decisions that will benefit the company in the long run.

“In hindsight, we made a costly mistake by focusing solely on the unit price and discount we received. We didn’t consider the complications and technical challenges that would arise during deployment. If we had used a service provider like MetrixData 360, we would have had access to data and proper license management that could have helped us avoid this situation. We should have taken a more holistic approach and considered the long-term costs and potential roadblocks before signing the contract.” – IT Application Director.

 Advantages of Software Asset Management

 

To avoid the costly mistake of focusing solely on unit price and discount when purchasing software, companies should follow these best practices for software asset management and learn the benefits of learning SQL:optimization:

  • Take a holistic approach: Consider the long-term costs and potential roadblocks before signing a contract.
  • Utilize data and proper license management: Use a service provider like MetrixData 360 to access data and good license management that can help avoid complications during deployment.
  • Understand your usage: Understand your usage needs and anticipate future growth. Don’t buy more licenses than you will use.
  • Monitor your software usage: Keep track of your use and make adjustments to optimize your investment.
  • Review your contract: Review your contract and negotiate terms that align with your company’s usage and budget.
  • Measure the right things: Don’t just measure the discount %; consider all factors that contribute to the value of a deal, such as long-term costs, potential roadblocks, and usage needs. Measuring the discount % alone can lead to costly mistakes.

With these best practices in place, companies can make well-informed decisions when purchasing software and avoid the costly mistake of focusing solely on unit price and discount. By taking a proactive approach to software asset management, companies can ensure they get the best value for their investment and avoid unexpected costs. They can also get more value when they optimize their software contract after the purchase.

 Advantages of SQL Server Software Contract Optimization After the Purchase 

 

Optimizing an SQL Server contract and saving involves identifying and addressing performance issues impacting the database’s efficiency and responsiveness. Here are some steps you can take to optimize your SQL Server contract and the advantages of SQL optimization:

  1. Identify performance bottlenecks: Use SQL Server’s performance monitoring tools to identify performance bottlenecks. These tools can help you identify the root cause of slow queries, high CPU usage, and other performance issues.
  2. Tune database settings: Adjust the database settings to optimize performance. This includes setting the appropriate file size, buffer pool size, and query optimizer settings.
  3. Optimize queries: Identify and optimize slow-running queries. This can involve creating indexes, modifying queries, and rewriting stored procedures.
  4. Use stored procedures: Use stored procedures instead of ad hoc SQL statements. Stored procedures are pre-compiled and can be executed more efficiently than ad hoc SQL statements.
  5. Use indexing: Create indexes on frequently accessed columns to speed up queries. Make sure to regularly monitor the performance of your indexes and remove any that are not being used.
  6. Manage memory: Use memory by setting the appropriate maximum server memory and configuring the buffer pool.
  7. Regularly maintain the database: Regularly perform maintenance tasks, such as reorganizing and rebuilding indexes, updating statistics, and purging old data.
  8. Monitor performance: Regularly monitor the performance of your SQL Server contract to ensure that it is running smoothly. This can involve setting up alerts and notifications for any issues.

In Conclusion: Optimize SQL Software Contract Costs Before Purchasing and Optimize Performance After Purchasing

 

In conclusion, this case study illustrates the importance of proper research and analysis before signing a software contract. This case study also encourages other companies to optimize their software contracts once purchased to enjoy the advantages of sql optimization.

At MetrixData 360, we understand the importance of making informed decisions before and after purchasing a software contract. That’s why we offer contract and software cost optimization services and tools that provide data to help companies make well-informed decisions. Our services allow companies to take a proactive approach to software asset management, ensuring they get the best value for their investment and avoid unexpected costs.

We believe that sales tactics should not pressure companies. By utilizing our services, they can avoid the pitfalls of focusing solely on unit price and discount and be encouraged to optimize their software and its contract long after the initial purchase. 

Our team of experts has the knowledge and experience to help companies understand their usage needs, anticipate future growth, monitor their software usage, make adjustments to optimize their investment, review their contracts, and negotiate terms that align with a company’s usage and budget.

Companies can’t afford to make costly mistakes in today’s fast-paced business environment. By utilizing the services of MetrixData 360, they can make well-informed decisions, reduce costs, and mitigate risks before and during the software contract purchase. 

We are committed to helping companies achieve their business goals and stand ready to assist you. Get in touch with us for your SQL Server needs as well. 

 

https://metrixdata360.com/sql-server-questionnaire/ 

https://metrixdata360.com/contact-us/ 

How IT Departments Can Navigate the Complexities of Windows and SQL Server Licensing with Microsoft True Up Support

As technology continues to evolve and organizations become more reliant on it, managing software licenses and deployments has become increasingly complex and critical. Microsoft’s Windows and SQL Server are among the most widely used software platforms, making it essential for IT departments to ensure that they are adequately licensed and optimized. This is where MetrixData 360’s Microsoft True Up Support comes in.

Our Microsoft True Up Support is designed to help IT departments navigate the complexities of Windows and SQL Server licensing and optimize their deployments for maximum efficiency and cost savings. With our team of licensing experts and powerful tools, we can help you ensure that you comply with Microsoft’s licensing requirements and take advantage of all the benefits your licenses offer.

One of our clients, a Fortune 500 Customer, saw significant benefits from using our Microsoft True Up Support. The Director of Infrastructure at this organization stated, “MetrixData 360’s Microsoft True Up Support provided us with the expert guidance and tools we needed to optimize our Windows and SQL Server licenses. We reduced our licensing costs by over 30% and ensured that we fully complied with Microsoft’s requirements. The value we received from this service was tremendous, and I highly recommend it to any organization looking to optimize their Microsoft licenses.”

SQL Server licenses

SQL Server Deployments And Additional Tools

In addition to expert guidance and powerful tools, our Microsoft True Up Support also includes the following:

  • A comprehensive assessment of your current Windows and SQL Server deployments
  • A report outlining any compliance risks or inefficiencies in your current licensing and deployment strategies
  • Recommendations for optimizing your licenses and deployments for cost savings and efficiency
  • Ongoing support to ensure that you are fully up-to-date with the latest licensing requirements and best practices

We understand the importance of accessing reliable and accurate information when managing software licenses. That’s why we are dedicated to providing IT departments with the expert guidance and tools they need to optimize their Microsoft licenses and deployments. Our Microsoft True Up Support is a cost-effective solution that can help you save time, money, and resources while ensuring that your organization fully complies with Microsoft’s licensing requirements.

Customers Reviews On Microsoft Licensing and Microsoft True-Up Support

Customer quote 1: “MetrixData 360’s Microsoft True Up Support was a game-changer for our organization. The team provided a comprehensive assessment of our current licensing and deployment strategies. It recommended several cost-saving measures that we would never have thought of. The tools and support that we received have made it much easier for us to manage our licenses and ensure compliance with Microsoft’s requirements.” – CIO, a large financial services organization.

Customer quote 2: “We have been using MetrixData 360’s Microsoft True Up Support for several years, and it has been an invaluable resource for our IT department. The team’s expertise and attention to detail have allowed us to optimize our Windows and SQL Server licenses and reduce our costs significantly. We highly recommend this service to any organization looking to manage their Microsoft licenses effectively.” – IT Manager, a large healthcare organization.

At MetrixData 360, we aim to help organizations like yours achieve the greatest value from their Microsoft Office licenses. Our Microsoft True Up Support provides expert guidance, tools, and support to optimize your deployments and fully comply with Microsoft’s licensing requirements.

If you want to learn more about how our Microsoft True Up Support can help your IT department, we would happily arrange a consultation with one of our experts. Please don’t hesitate to contact us at MetricData 360 to schedule a convenient time. Alternatively, click here and answer the questionnaire.