SQL Server on Azure VMs: Unraveling the SQL Server Price Puzzle

Understanding the intricacies of SQL Server pricing on Azure Virtual Machines (VMs) is essential for optimizing costs, ensuring license compliance and making informed decisions. Let’s explore the key takeaways:

1. Cost Optimization:Azure VMs offer flexibility and scalability, but without pricing knowledge, you risk overspending. Choose the right VM size, edition, and licensing model to optimize costs.
2. License Compliance:SQL Server licensing can be complex. Comply with terms to avoid legal issues and unexpected costs.
3. Edition Selection:Different editions (Standard, Enterprise, Web) cater to varying workloads. Understand features, performance, and cost implications.
4. Hybrid Scenarios:Azure Hybrid Benefit lets you use existing licenses effectively. Save costs while maintaining a hybrid environment.
5. Resource Scaling:Proper pricing considerations impact your scaling strategy. Balance performance and cost when resizing VMs.
6. Budget Planning:Accurate pricing information aids financial planning. Align costs with business requirements.

In the ever-evolving landscape of cloud computing, understanding the intricacies of SQL Server pricing on Azure Virtual Machines (VMs) is not just a technical necessity, it’s a strategic advantage.

Free-Licensed SQL Server Editions

1. SQL Server Developer Edition:Ideal for development, testing, or proof of concept. Contains all features of SQL Server Enterprise edition. Not suitable for production use. Incurs charges only for the VM cost; no additional SQL Server licensing costs. Available for both Windows Server 2022 and Ubuntu Pro 20.04 LTS1.
2. SQL Server Express Edition:Suitable for lightweight production workloads (e.g., <4 cores, <1 GB memory, <10 GB/database). Incurs charges only for the VM cost. Consider choosing a smaller VM size to match these workloads (e.g., D2as_v5).

Paid SQL Server Editions

For non-lightweight production workloads, consider the following paid SQL Server editions:

1. SQL Server Web Edition:Designed for small web sites. Suitable for small to medium workloads. Licensing options: Pay per usage or Azure Hybrid Benefit (AHB).
2. SQL Server Standard Edition:Appropriate for small to medium workloads. Licensing options: Pay per usage or AHB.
3. SQL Server Enterprise Edition:Suited for large or mission-critical workloads. Licensing options: Pay per usage or AHB.

Licensing Models

1. Pay per Usage:Per-second cost includes SQL Server licensing. Recommended for temporary or periodic workloads. Pricing is consistent across all SQL Server versions (2012 SP3 to 2022).
2. Azure Hybrid Benefit (AHB):Allows you to use existing on-premises SQL Server licenses in Azure without additional cost. Applies to SQL Server Enterprise Edition VMs. Migrate your licenses to the cloud and save on licensing costs.

Remember to choose the right image that balances costs with your business requirements when deploying SQL Server on Azure VMs. If you need a cost estimate for a specific combination of SQL Server edition and VM size, refer to the pricing page for Windows or Linux on the Azure website.

Some other reference documents from Microsoft:

• SQL Server on Azure Virtual Machine
• SQL Server Enterprise Virtual Machines Pricing

Azure Hybrid Benefit

Azure Hybrid Benefit is a licensing offer that allows you to migrate and save when running your workloads in Microsoft Azure. Let’s break down the key points:

Eligibility:

To benefit from Azure Hybrid Benefit, you must be paying for either:

• Windows Server or SQL Server core licenses with Software Assurance.
• A subscription for these products.
• An active Linux subscription, including Red Hat Enterprise Linux or SUSE Linux Enterprise Server running in Azure.

Cost Savings:

• By applying your existing licenses or subscriptions, you can achieve substantial cost savings.
• For Windows Server and SQL Server, Azure is up to 5 times less expensive than AWS.
• Even for Linux workloads, you may see savings estimated up to 76% with Azure Hybrid Benefit.

Modernization and Flexibility:

• Utilize Azure services while maintaining an on-premises presence.
• Modernize and manage your infrastructure.
• Test cloud-specific services with solutions like Azure Kubernetes Service (AKS) and Azure Stack HCI at no additional cost through Azure Arc for Windows Servers.

Adjacent Benefits:

Combine Azure Hybrid Benefit with other Azure offers:

• Reservations: Save on compute costs.
• Extended Security Updates: Keep your workloads secure.
• Azure Savings Plan: Optimize business applications.

Remember, Azure Hybrid Benefit lets you use your existing licenses effectively, whether it’s Windows, SQL Server, or Linux, while benefiting from Azure’s

So, fellow cloud voyagers, as you embark on your SQL Server journey in Azure, remember that mastering pricing isn’t just about saving dollars - it’s about making informed decisions that propel your organization forward.

I extend my gratitude to Copilot for skillfully arranging and consolidating all the information in the blog.