In November 2022, Microsoft quietly implemented significant changes to their SQL Server licensing rules, particularly affecting virtual SQL servers. These updates, including a notable price increase and new requirements for Software Assurance (SA) for virtual environments, could have a profound impact on your organization's IT budget and strategy. As IT executives, it's crucial to stay informed about these changes and understand how they affect your licensing and compliance landscape. This blog aims to provide an overview of the licensing changes introduced with SQL Server 2022 and how Connection SAM services can support you in navigating these updates.

Key Licensing Attributes for SQL Server 2022

1. Price Increase: Effective January 2023, Microsoft implemented a 10% price increase for SQL Server licensing. The price hike is reflective of the added value and enhanced capabilities of SQL Server 2022, but it also means that organizations need to budget for higher licensing costs. This change underscores the importance of evaluating the total cost of ownership and the benefits provided by the new features and improvements in SQL Server 2022.

2. New Requirements for Virtual SQL Servers: One of the most impactful changes with SQL Server 2022 is the new requirement for Software Assurance (SA) for virtual SQL server environments. Previously, organizations could deploy SQL Server on virtual machines without necessarily needing SA. However, with the new rules, virtual deployments now require SA to be compliant.

3. Per Core Licensing Model: SQL Server 2022 continues to use the Per Core licensing model as an option. The per-core licensing model ensures that customers pay for the actual computing power they use, providing a fair and scalable approach to licensing. This consistency across different deployment environments simplifies the licensing process and helps organizations manage their licensing costs more effectively.

Enhanced Benefits with Software Assurance

With Software Assurance (SA) or subscription licenses, SQL Server customers unlock a range of valuable benefits. These benefits include the Azure Hybrid Benefit, which allows customers to use their existing SQL Server licenses for Azure deployments at a reduced cost. Additionally, SA provides rights for failover servers, disaster recovery, high availability, and more-including now, of course, the option to license by virtual machine. These benefits enhance the overall value of SQL Server licensing and provide organizations with greater flexibility and cost-saving opportunities.

The updated SQL licensing terms reflect Microsoft's commitment to providing flexible, cloud-centric, and sometimes cost-effective licensing options. The changes in virtual machine licensing and the price increase are designed to encourage the adoption of Software Assurance and/or subscription licenses. The continued use of the Per Core licensing model and the enhanced benefits of Software Assurance further support organizations in managing their licensing costs and maximizing the value of their SQL Server investments. As organizations transition to SQL Server 2022, it is essential to understand these changes and evaluate their impact on licensing strategies, budgets, and compliance efforts.

Navigating these significant changes can be daunting. Connection is here to help. Our team of highly seasoned experts specialize in helping organizations understand and comply with volume licensing metrics, ensuring that you are fully informed on the latest licensing rules. Our offerings include:

• Assessment and Analysis: We provide a detailed assessment of your current SQL Server licensing and usage, identifying any gaps or areas where you may be at risk of non-compliance.
• Strategy Development: Based on our analysis, we help you develop a licensing strategy that aligns with your organizational goals and budget, ensuring you can leverage the full benefits of SQL Server 2022.
• Cost Optimization: We identify opportunities to optimize your licensing costs, such as utilizing the Azure Hybrid Benefit or adjusting your deployment models to maximize efficiency and reduce expenses.
• Compliance Guidance: We assess your licensing strategy and consult on how to comply with Microsoft's latest rules and regulations, providing peace of mind and avoiding potential legal and financial penalties.
• Ongoing Support: Our extended Microsoft team offers ongoing support and guidance, keeping you updated on any future changes to SQL Server licensing and helping you adapt your strategy as needed.

Reach Out Today!

Our Connection SAM services are designed to provide you with the expertise and support you need to navigate these updates successfully. Contact us to learn more about how we can help you understand and comply with these new licensing requirements.

Let us help you turn these changes into opportunities for growth and efficiency. Together, we can ensure that your organization is well-prepared and fully compliant with the latest SQL Server licensing rules.