SQL Server Licensing Secrets MicrosoftDoesn't Want You to KnowPresented byPaul DeGrootSenior ConsultantSoftware Licensing AdvisorsCarl BerglundDirector of ProductsDH2iOct. 22, 2014

Software Licensing Advisors Senior Consultant: Paul DeGroot Consulting Authorand analysis of Microsoft licensing for more than a decade.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, TheRegister, and many others Developerof the Microsoft Licensing and Negotiations Workshop, the mostcomplete training program on Microsoft licensing EnterpriseAgreement Advisor who has saved customers more than 200 millionover the last three years

Who Are Software Licensing Advisors? Mission: Too“The Customer’s Advocate”many customers must rely only on Microsoft or resellers who focus on maximizingrevenue SLAfocuses on value and fit Mostcustomers pay Microsoft for software they haven’t deployed, such as Vista or thelatest Office version While,projects or investments with demonstrable ROI beg for funds SLAhelps customers define what their real business needs, freeing up misallocatedfunds and enabling new initiatives Areasof focus EnterpriseAgreement negotiations Determiningand costing real requirements to create negotiating leverage Guiding the negotiation process Audit Turndefenseback unfounded claims Pro-active audits to reduce compliance exposure Training Productlicensing, volume purchasing, negotiation ouldsave50%.SLAshowedsave 50%. SLA A,givingusanextra 5milliongiving us an extra 5 crosofttoldtoldususweweowedowedthemthem 450,000onacontract.SLA 450,000 on a contract. undthetheerror,andsentthempacking.”error, and sent them inourlastagreementeventhoughwe did in our last agreement even thoughpricespriceswentwentup.”up.”

Experience with Microsoft SavingsSome of the firms our consultants have worked with:

Agenda for Today's WebinarNew Challenges for SQL Server Users PricingChanges Licensing ChangesInnovative strategies that reduce the impact Overlicensing Running Runningstrategies that beat the vMotion taxmultiple workloads in one operating system environmentmultiple SQL workloads with a single license

What Has Changed with SQL Server 2012/14 Licensingmodels Per-processor Editionto per coreline-up DatacenterEdition eliminated Enterprise Edition Server/CAL deprecated Existinglicenses can be renewed for SQL 2012, but new licenses are no longer available Business PricingIntelligence Edition added Higherprices for CALs Potential for skyrocketing renewal prices related to changes in licensing model Software AAssurancenew requirement to have Software Assurance for vMotion/Live Migration Increases Softwarecosts 75% over three years, which Microsoft positions as a “new SA benefit”Assurance required for SQL fail-over in SQL Server 2014

Impact of Changes Renewal Systemscosts skyrocket on systems with high core countwith four or fewer cores per processor see no significant change but most customershave systems with 6-12 cores per processor in use Ona system with 6 cores per proc SQL renewal costs rise 50%, 8 cores translatesinto a 100% increase, and 10 cores generates an additional 150%2008 02012CoresLicensed44488123240Software Assurance2008 R22012Increase(Enterprise)0% 5,622 5,6220% 5,622 5,6220% 5,622 5,6220% 11,244 11,2440% 11,244 11,24450% 11,244 16,865100% 22,487 44,974150% 22,487 56,218

Key SQL Server Cost Reduction Strategies OverlicenseMigration Side-by-sideSQL servers to bypass restrictions and extra costs for vMotion/ Livefunctionality ForSQL installations to increase efficiency, without losing importantload balancing For patching, hardware upgrades

The 3 Ways to License VMs with SQL Enterprise Microsoftserver licenses are ALWAYS assigned to the physical hardware Method1: License per virtual CPU Method2: License all cores Onecore 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 Assigncore licenses to all cores and run 1 VM per core. Virtual OnCPUs don't counta 16-core server, you can run 16 SQL VMs. Each additional core one additional VM Method Permits3: License all cores and add Software Assurancean unlimited number of VMs on a server Broader rights to move VMs from one server to another

Limits on Moving VMs Among Physical Servers GeneralRule: Licenses may not be re-assigned from one deviceto another in less than 90 days.1 minuteExample:vm Movefour VMs from Host A to Host B to repairHost A power supply ReturnAfour VMs from Host B to Host A after repairA The90-day limit was waived for most2008-2011 products Licenses 2012 vmvmvm90 DaysvmvmvmvmBBcan be re-assigned any time a VM is moved: “License Mobility within Server Farms”servers require SA for License Mobility

The High Cost of Software Assurance Whatis Software Assurance? SoftwareAssurance provides upgrade rights and various other benefits. All software purchasedin an Enterprise Agreement must be purchased with SA Software Assurance on server licenses is an annual payment of 25% of the license price Cost Cost 3of a single Core (Select A Net)X 16 89,952of 16 CoresYears SA on 16 cores (3 x 25%) Costof 12 cores 5,622X .75 67,46412 x 5,622 67,464At end ofagreement:16Cores SA 67,46416 cores16Cores 67,46428 cores12 cores

Licensing SQL 2012 for vMotion with SA SoftwareAssurance provides two benefits for virtualization with SQL Server1)If all cores are licensed for SQL Enterprise with SA, the customer can put unlimited SQLEnterprise VMs on a server2)Organization can freely move VMs from server to server, because SA offers Licensing MobilityExample: Server farm with six 2x8 servers in a cluster Organization 13puts 80 VMs on the farm, SA permits VMs to be moved to distribute workloadsVMs per server on averagevMotion via Software Assurance (Select A Net pricing) 1,405Annual SA per Enterprise core 22,487Annual SA per server 134,922Annual cost per all servers 404,767Three-year cost all servers This 80customer is overlicensedVMs on a farm with 96 cores in total16SQLCorew SA16SQLCorew SA16SQLCorew SA16SQLCorew SA16SQLCorew SA16SQLCorew SA

Over-Licensing for Mobility Without SA Unlimited Butvirtualization and License Mobility are not available without SAa server with 16 licensed SQL corescan run up to 16 SQL VMs without SA Customerscan also purchaseadditional core licenses Eachadditional license permits one Tactic: This 16 4 cores 16 4 coresSQL 16 4 coresSQLCore 16SQL4 coresCore 16 4 coresSQLCore16SQL4 coresCoreSQLadditional VMCoreCoreLicense 24 additional cores, assigning 4 per serverbrings the maximum server load from 16 to 20 SQL VMs Because each server has “spare” core licenses,vMotion via OverlicensingVMs can be moved without SA Nolicense ever “moves.” When a VM is moved,it gives up a license on the source hostand takes up a surplus license on the target host. LicenseSQL Enterprise 2014 coresTotal for 6 serversSavings Over SAMobility is not about moving VMs,but about re-assigning licenses from one physical server to anotherPer 4 cores 22,487 134,922 269,845

SQL Server Instance Stacking SQLServer is unique among Microsoft products in permitting multiple instances ofthe server to run in a single operating system environment The Rules Unlimited “You Allmay use any number of Running Instances of the server software in a Physical or Virtual OSE”instances in the server are licensed by the latest running version of SQL Server in the OSE One SQL Ainstances per operating system environmentSQL 2014 license covers all instancesServer has “down edition” rights.SQL Server Enterprise Edition license covers instances of SQL Server Standard Potential SLAto cut licensing costs by 50% or morecustomer: we run more than 100 SQL instances in 17 SQL Server virtual machine

Summary Rising BySA costs leave many customers looking for alternativesusing the appropriate licensing model, customers can keep costs down Reduceor eliminate Software Assurance costs Low-densitySQL VMs: license by virtual CPU High-densitySQL VMs: license by physical core Veryhigh-density SQL workloads: run multiple SQL instances in physical and virtualenvironments

More InformationDH2i SoftwareLicensing Advisors Msftadvisors.Com MicrosoftLicensing and NegotiationsWorkshops SanFrancisco, Nov. 18-20, 2014 Seattle, Apr. 14-16, 2015More information at: JoinourGroup:MICROSOFT ENTERPRISE AGREEMENTNEGOTIATIONSMembership by approval only. ExcludesMicrosoft account teams, Microsoftemployees and Microsoft resellers Asking questions about concessions,licensing, allowable use scenarios,changes in Terms and Conditions, etc. Blogand RSS Feed

SQLServerLicensingSecrets1DH2i All Rights Reserved [email protected] 970.295.4505

SoFarYour .Software licensingoptions feel like a ? [email protected] 970.295.4505

WhatIfYouCould.?Only license what you needUse whatever edition best suited requirementHave full mobility rights across a pool of hostsUpgrade where needed for freeWithout a Software Assurance requirementAnd most importantly – be in [email protected] 970.295.4505

SQLServerToday410/22/ [email protected] 970.295.4505

MobilityRights [email protected] 970.295.4505

workingAs a means of mobilityApplicaDonWherever it is neededStorage(data)Coordinated to active [email protected] 970.295.4505

tworkingLogical computer nameIP Address(es)Virtual host is active on node bound to its IPVirtual host is infrastructure independentVirtual hosts inherit local OS and associated appbinaries when [email protected] 970.295.4505

QLServerInstallations are local toevery node desired to bea potential active nodefor any given instanceApplications are bound tovirtual hostBound application host name is thevirtual host “name” [email protected] 970.295.4505

geData/logsData and logs are onshared and/or replicatedstorageData/logs accesscoordinated to activevirtual hostISCSI, FC, external [email protected] 970.295.4505

dNetworkingOnly the IP movesApplicaDonUses localOSUses localStorage(data)Same datainfrastructureUses [email protected] 970.295.4505

LightestWeightMobilityApplication connection string stays the same,OSVMHypervisorSoKwareDefinedNetworkingOnly the IP movesApplicaDonUses localOSUses localStorage(data)Same datainfrastructureUses [email protected] 970.295.4505

dApplication, OS, & infrastructure independencewith a stop and restartNetworkingOnly the IP movesApplicaDonUses localOSUses localStorage(data)Same datainfrastructureUses [email protected] 970.295.4505

LightestWeightMobilityMaybe you don’t see the mobility yet?OSVMHypervisorSoKwareDefinedNetworkingOnly the IP movesApplicaDonUses localOSUses localStorage(data)Same datainfrastructureUses [email protected] 970.295.4505

HosttoHostInstanceMobilitywith a stop [email protected] 970.295.4505

HosttoHostInstanceMobilityApplication independence with a stop Don [email protected] 970.295.4505

HosttoHostInstanceMobilityOS independence with a stop DonOSOS [email protected] 970.295.4505

HosttoHostInstanceMobilityAnywhereStorage Independence - Stop restart DR, aDonOSOSStorage(data)Copyofdata [email protected] 970.295.4505

HosttoHostInstanceMobilityAnywhereInfrastructure Independence - no lock ucture [email protected] 970.295.4505

HosttoHostInstanceMobilityAnywhereAny combination the app on OSOS Storage(data)Storage(data) infrastructureInfrastructure [email protected] 970.295.4505

HosttoHostInstanceMobilityAnywhereAs fast as the application can stop and Don OSOS Storage(data)Storage(data) infrastructureInfrastructure [email protected] 970.295.4505

ATopDownApproachApplicaDonfocusedØ EnablesagilityØ AgnosDcØ AnymixSQL&OSversions/ediDonsØ [email protected] 970.295.4505

UnlimitedVirtualizaDonDatacenter edition of OS Enterprise Edition of SQL Server Unlimited number of VM’sAny sizeWith SA unlimited [email protected] 970.295.4505 [email protected] 970.295.4505

VirtualizedSQLServer– [email protected] 970.295.4505 [email protected] 970.295.4505

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Example4nodeclusterØ 2processorswith16coreseachserverØ AllsoKwarecostsatlist(OS,SQL,VMware,Dx)Ø SameserverconfiguraDonforeachexampleØ 64corelicensesofSQLServerrequiredØ RequirementforDatacenterOSforVMwareØ StandardversionofOSforDxConsoleØ [email protected] 970.295.4505

Example3yearTCODollars include software at list [email protected] 970.295.4505 [email protected] 970.295.4505 [email protected] 970.295.4505

VirtualizaDonMixedUseClusterBuy only what you needEasy for project based accounting4 core minimum license per vmOften [email protected] 970.295.4505 [email protected] 970.295.4505 [email protected] 970.295.4505 [email protected] 970.295.4505 [email protected] 970.295.4505

UpdatesThroughProgressionØ WillyoulikelydeployanaddiDonalSQLServerpodwithin2- ‐3years? [email protected] 970.295.4505

UpdatesThroughProgressionØ WillyoulikelydeployanaddiDonalSQLServerpodwithin2- ‐3years?Current392016 [email protected] 970.295.4505

DeploymentMethodsDeployment Model #1:All Physical ServersDeployment Model #2:Mixed ServersDeployment Model #3:All Virtual torageFabricVMVMVMVMStorageFabricBuildingBlocksØ SQLServer2005,2008&R2,2012,2014Ø WindowsServer2008&R22012&R2Ø IndustryStandardx64Servers40VMVMVMStorageFabricØ Ø Ø VM- ‐,Hyper- age–FC,iSCSI, [email protected] 970.295.4505

ExtendingtheFrameworktoMulD- ‐ [email protected] 970.295.4505

ResultØ Ø oninplannedandunplannedoutages Ø nsingmaximizaDonwhileminimizingcost NolockinØ Ø ostandrisk [email protected] 970.295.4505

Q&A4310/22/ [email protected] 970.295.4505

WantToKnowYourSavings?Ø 44DH2i Confidential7/30/ [email protected] 970.295.4505

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, TechT