SQL Server Licensing Secrets Microsoft Doesn't Want You to Know Presented by Paul DeGroot Senior Consultant Software Licensing Advisors
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1 SQL Server Licensing Secrets Microsoft Doesn't Want You to Know Presented by Paul DeGroot Senior Consultant Software Licensing Advisors Carl Berglund Director of Products DH2i Oct. 22, 2014
2 Software Licensing Advisors Senior Consultant: Paul DeGroot Consulting and analysis of Microsoft licensing for more than a decade. Author of Microsoft Licensing Concepts Guest speaker at industry and Microsoft events World-renowned expert on Microsoft licensing strategies. Quoted in Wall St. Journal, TechTarget, CNET, Network World, Infoworld, Computerworld, The Register, and many others Developer of the Microsoft Licensing and Negotiations Workshop, the most complete training program on Microsoft licensing Enterprise Agreement Advisor who has saved customers more than $200 million over the last three years
3 Who Are Software Licensing Advisors? Mission: The Customer s Advocate Too many customers must rely only on Microsoft or resellers who focus on maximizing revenue SLA focuses on value and fit Most customers pay Microsoft for software they haven t deployed, such as Vista or the latest Office version While, projects or investments with demonstrable ROI beg for funds SLA helps customers define what their real business needs, freeing up misallocated funds and enabling new initiatives Areas of focus Enterprise Agreement negotiations Determining and costing real requirements to create negotiating leverage Guiding the negotiation process Audit defense Turn back unfounded claims Pro-active audits to reduce compliance exposure Training Product licensing, volume purchasing, negotiation strategies We're smart about licensing and figured out out we we could save 50%. SLA showed us us how to to save another 25% We knocked 70% off off our our EA, giving us us an an extra $5 $5 million for for other priorities over the the next three years, thanks to to their advice. Microsoft told us us we we owed them $450,000 on on a a contract. SLA reviewed the the contract, found the the error, and sent them packing. As a a result of of SLA's strategy, we're spending less for for the the same software than we we did did in in our our last agreement even though prices went up.
4 Experience with Microsoft Savings Some of the firms our consultants have worked with:
5 Agenda for Today's Webinar New Challenges for SQL Server Users Pricing Changes Licensing Changes Innovative strategies that reduce the impact Overlicensing strategies that beat the vmotion tax Running multiple workloads in one operating system environment Running multiple SQL workloads with a single license
6 What Has Changed with SQL Server 2012/14 Licensing models Per-processor to per core Edition line-up Datacenter Edition eliminated Enterprise Edition Server/CAL deprecated Existing licenses can be renewed for SQL 2012, but new licenses are no longer available Business Intelligence Edition added Pricing Higher prices for CALs Potential for skyrocketing renewal prices related to changes in licensing model Software Assurance A new requirement to have Software Assurance for vmotion/live Migration Increases costs 75% over three years, which Microsoft positions as a new SA benefit Software Assurance required for SQL fail-over in SQL Server 2014
7 Impact of Changes Renewal costs skyrocket on systems with high core count Systems with four or fewer cores per processor see no significant change but most customers have systems with 6-12 cores per processor in use On a system with 6 cores per proc SQL renewal costs rise 50%, 8 cores translates into a 100% increase, and 10 cores generates an additional 150% Processor Licenses 2008 R Software Assurance Cores/ Processor Cores Licensed 2008 R2 (Enterprise) 2012 Increase $5,622 $5,622 0% $5,622 $5,622 0% $5,622 $5,622 0% $11,244 $11,244 0% $11,244 $11,244 0% $11,244 $16,865 50% $22,487 $44, % $22,487 $56, %
8 Key SQL Server Cost Reduction Strategies Overlicense SQL servers to bypass restrictions and extra costs for vmotion/ Live Migration Side-by-side SQL installations to increase efficiency, without losing important functionality For load balancing For patching, hardware upgrades
9 The 3 Ways to License VMs with SQL Enterprise Microsoft server licenses are ALWAYS assigned to the physical hardware Method 1: License per virtual CPU One core = one virtual CPU, and a minimum of 4 vcpus must be licensed in any VM Cost effective if the number of VMs is low and the number of physical cores is high On a 16-core server, you can run two SQL VMs for the cost of 8 cores Method 2: License all cores Assign core licenses to all cores and run 1 VM per core. Virtual CPUs don't count On a 16-core server, you can run 16 SQL VMs. Each additional core = one additional VM Method 3: License all cores and add Software Assurance Permits an unlimited number of VMs on a server Broader rights to move VMs from one server to another
10 Limits on Moving VMs Among Physical Servers General Rule: Licenses may not be re-assigned from one device to another in less than 90 days. 1 minute Example: vm Move four VMs from Host A to Host B to repair vm Host A power supply vm vm A B Return four VMs from Host B to Host A after repair 90 Days vm A vm B vm The 90-day limit was waived for most vm products Licenses can be re-assigned any time a VM is moved: License Mobility within Server Farms servers require SA for License Mobility
11 The High Cost of Software Assurance What is Software Assurance? Software Assurance provides upgrade rights and various other benefits. All software purchased in an Enterprise Agreement must be purchased with SA Software Assurance on server licenses is an annual payment of 25% of the license price Cost of a single Core (Select A Net) Cost of 16 Cores 3 Years SA on 16 cores (3 x 25%) Cost of 12 cores $5,622 X 16 $89,952 X.75 $67, x $5,622 = $67, Cores + SA = $67, Cores = $67, cores At end of agreement: 16 cores 28 cores
12 Licensing SQL 2012 for vmotion with SA Software Assurance provides two benefits for virtualization with SQL Server 1)If all cores are licensed for SQL Enterprise with SA, the customer can put unlimited SQL Enterprise VMs on a server 2)Organization can freely move VMs from server to server, because SA offers Licensing Mobility Example: Server farm with six 2x8 servers in a cluster Organization puts 80 VMs on the farm, SA permits VMs to be moved to distribute workloads ~13 VMs per server on average vmotion via Software Assurance (Select A Net pricing) Annual SA per Enterprise core $1,405 Annual SA per server $22,487 Annual cost per all servers $134,922 Three-year cost all servers $404,767 This customer is overlicensed 80 VMs on a farm with 96 cores in total 16 SQL Core w SA 16 SQL Core w SA 16 SQL Core w SA 16 SQL Core w SA 16 SQL Core w SA 16 SQL Core w SA
13 Over-Licensing for Mobility Without SA Unlimited virtualization and License Mobility are not available without SA But a server with 16 licensed SQL cores + + can run up to 16 SQL VMs without SA 16 4 cores SQL 16 4 cores + Customers can also purchase Core SQL 16 4 cores + Core SQL cores additional core licenses Core Each additional license permits one additional VM Tactic: License 24 additional cores, assigning 4 per server This brings the maximum server load from 16 to 20 SQL VMs SQL Core Because each server has spare core licenses, VMs can be moved without SA vmotion via Overlicensing No license ever moves. When a VM is moved, it gives up a license on the source host and takes up a surplus license on the target host. License Mobility is not about moving VMs, but about re-assigning licenses from one physical server to another 16 SQL Core 4 cores 16 SQL Core Per 4 cores SQL Enterprise 2014 cores $22,487 Total for 6 servers $134,922 Savings Over SA $269, cores
14 SQL Server Instance Stacking SQL Server is unique among Microsoft products in permitting multiple instances of the server to run in a single operating system environment The Rules Unlimited instances per operating system environment You may use any number of Running Instances of the server software in a Physical or Virtual OSE All instances in the server are licensed by the latest running version of SQL Server in the OSE One SQL 2014 license covers all instances SQL Server has down edition rights. A SQL Server Enterprise Edition license covers instances of SQL Server Standard Potential to cut licensing costs by 50% or more SLA customer: we run more than 100 SQL instances in 17 SQL Server virtual machine
15 Summary Rising SA costs leave many customers looking for alternatives By using the appropriate licensing model, customers can keep costs down Reduce or eliminate Software Assurance costs Low-density SQL VMs: license by virtual CPU High-density SQL VMs: license by physical core Very high-density SQL workloads: run multiple SQL instances in physical and virtual environments
16 More Information DH2i dh2i.com Software Licensing Advisors Msftadvisors. Com Microsoft Licensing and Negotiations Workshops San Francisco, Nov , 2014 Seattle, Apr , 2015 More information at: Join our Group: MICROSOFT ENTERPRISE AGREEMENT NEGOTIATIONS Membership by approval only. Excludes Microsoft account teams, Microsoft employees and Microsoft resellers Asking questions about concessions, licensing, allowable use scenarios, changes in Terms and Conditions, etc. Blog and RSS Feed
17 SQL Server Licensing Secrets 1 DH2i All Rights Reserved 2014
18 So Far Your. Software licensing options feel like a?
19 What If You Could..? Only license what you need Use whatever edition best suited requirement Have full mobility rights across a pool of hosts Upgrade where needed for free Without a Software Assurance requirement And most importantly be in compliance
20 SQL Server Today 4 10/22/1 4
21 Mobility Rights.
22 ApplicaDon Mobility OS VM Hypervisor SoKware Defined Networking ApplicaDon As a means of mobility Wherever it is needed Storage (data) Coordinated to active node
23 Standard ConnecDvity OS VM Hypervisor SoKware Defined Networking Logical computer name IP Address(es) Virtual host is active on node bound to its IP Virtual host is infrastructure independent Virtual hosts inherit local OS and associated app binaries when active
24 Stand Alone ApplicaDon OS VM Hypervisor SoKware Defined SQL Server Installations are local to every node desired to be a potential active node for any given instance Applications are bound to virtual host Bound application host name is the virtual host name
25 Any Shared Storage OS VM Hypervisor SoKware Defined Storage Data/logs Data and logs are on shared and/or replicated storage Data/logs access coordinated to active virtual host ISCSI, FC, external disk
26 Lightest Weight Mobility OS VM Hypervisor SoKware Defined Networking ApplicaDon OS Storage (data) infrastructure Only the IP moves Uses local Uses local Same data Uses local
27 Lightest Weight Mobility OS Application connection string stays the same, VM Hypervisor SoKware Defined Networking ApplicaDon OS Storage (data) infrastructure Only the IP moves Uses local Uses local Same data Uses local
28 Lightest Weight Mobility OS Application, OS, & infrastructure independence with a stop and restart VM Hypervisor SoKware Defined Networking ApplicaDon OS Storage (data) infrastructure Only the IP moves Uses local Uses local Same data Uses local
29 Lightest Weight Mobility OS Maybe you don t see the mobility yet? VM Hypervisor SoKware Defined Networking ApplicaDon OS Storage (data) infrastructure Only the IP moves Uses local Uses local Same data Uses local
30 Host to Host InstanceMobility From Networking with a stop restart To Networking ApplicaDon OS Storage (data) infrastructure ApplicaDon OS Storage (data) infrastructure
31 Host to Host InstanceMobility Application independence with a stop restart From To Networking Networking ApplicaDon OS Storage (data) infrastructure ApplicaDon + OS Storage (data) infrastructure
32 Host to Host InstanceMobility OS independence with a stop restart From To Networking Networking ApplicaDon OS Storage (data) infrastructure ApplicaDon OS + Storage (data) infrastructure
33 Host to Host InstanceMobility Anywhere Storage Independence - Stop restart DR, anywhere From To Networking Networking ApplicaDon OS Storage (data) infrastructure ApplicaDon OS Copy of data+ infrastructure
34 Host to Host InstanceMobility Anywhere Infrastructure Independence - no lock in From To Networking Networking ApplicaDon OS Storage (data) infrastructure ApplicaDon OS Storage (data) Infrastructure +
35 Host to Host InstanceMobility Anywhere From Any combination the app allows To Networking Networking ApplicaDon OS Storage (data) infrastructure ApplicaDon + OS + Storage (data)+ Infrastructure +
36 Host to Host InstanceMobility Anywhere As fast as the application can stop and restart From To Networking Networking ApplicaDon OS Storage (data) infrastructure ApplicaDon + OS + Storage (data)+ Infrastructure +
37 A Top Down Approach Ø ApplicaDon focused Ø Enables agility Ø AgnosDc Ø Any mix SQL & OS versions/edidons 21
38 Unlimited VirtualizaDon Datacenter edition of OS + Enterprise Edition of SQL Server = Unlimited number of VM s Any size With SA = unlimited mobility
39 Unlimited SQL Server VirtualizaDon w/ Enterprise EdiDon
40 Virtualized SQL Server With DxConsole
41 VirtualizaDon Mixed SQL EdiDon 50% Standard, 50% Enterprise
42 Virtualized SQL Server With DxConsole Mixed SQL EdiDon, 25% Enterprise
43 SQL Server ConsolidaDon on DxConsole
44 SQL Server ConsolidaDon on DxConsole
45 Example Ø 4 node cluster Ø 2 processors with 16 cores each server Ø All sokware costs at list (OS, SQL, VMware, Dx) Ø Same server configuradon for each example Ø 64 core licenses of SQL Server required Ø Requirement for Datacenter OS for VMware Ø Standard version of OS for DxConsole 29
46 Example 3 year TCO Dollars include software at list price. 30
47 Example 3 year TCO 31
48 Example 3 year TCO 32
49 VirtualizaDon Mixed Use Cluster Buy only what you need Easy for project based accounting 4 core minimum license per vm Often oversubscribed
50 VirtualizaDon Mixed Use Cluster Before DxConsole
51 VirtualizaDon Mixed Cluster With DxConsole
52 VirtualizaDon Mixed Cluster With DxConsole Enterprise and Standard EdiDon SQL Server
53 VirtualizaDon Mixed Cluster With DxConsole OS IsolaDon
54 Updates Through Progression Ø Will you likely deploy an addidonal SQL Server pod within 2-3 years? Current 38
55 Updates Through Progression Ø Will you likely deploy an addidonal SQL Server pod within 2-3 years? Current
56 Deployment Methods Deployment Model #1: All Physical Servers Deployment Model #2: Mixed Servers Deployment Model #3: All Virtual Servers Ethernet Fabric Ethernet Fabric Ethernet Fabric VM VM VM VM VM VM VM Storage Fabric Storage Fabric Storage Fabric Building Blocks Ø SQL Server 2005, 2008 &R2, 2012, 2014 Ø Windows Server 2008 & R & R2 Ø Industry Standard x64 Servers 40 Ø Ø Ø VM-, Hyper- V, VMware Xen IP Networking 1GE, 10GE & above SAN Storage FC, iscsi, IB
57 Extending the Framework to MulD- site 41
58 Result Ø Higher udlizadon of infrastructure & availability Ø ReducDon in planned and unplanned outages Mobility across heterogeneous hosts Fewest restricdons Applicable to any usage model Tech refresh & update ease Ø Licensing maximizadon while minimizing cost No lock in Ø Built in automated DR failover Ø Lower SQL Server lifecycle cost and risk IT agility 42
59 Q&A 43 10/22/1 4
60 Want To Know Your Savings? Ø Contact for a 3 year TCO analysis. 44 DH2i Confidential 7/30/12
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