Azure Use Existing License to Save on Cloud Costs

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Using your existing license on Azure can be a game-changer for your cloud costs.

You can save up to 70% on cloud costs by leveraging your existing licenses. This is a significant reduction that can make a big impact on your bottom line.

One of the key benefits of using your existing license on Azure is that you can bring your existing software investments with you to the cloud. This means you don't have to start from scratch or re-purchase licenses you already own.

By using your existing license, you can also reduce the complexity of managing multiple licenses and subscriptions. This can be a huge time-saver and help streamline your IT operations.

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Cloud

Azure Hybrid Benefit for Windows Server allows you to save up to 80% on hourly rates by utilizing your existing license. You can deploy new VMs with Azure Hybrid Benefit by setting configuration options during creation, specifying that you wish to apply the benefit.

Credit: youtube.com, Microsoft Azure Cloud Platform explained. Open Licensing Programme.

To create a VM with Azure Hybrid Benefit, scroll to the bottom of the Basics tab during the creation process and under Licensing check the box to use an existing Windows Server license. This option is available for both new and existing virtual machines.

You can also convert existing VMs to Azure Hybrid Benefit by updating the license type. This can be done without rebooting the system or causing any service interruptions. The process involves updating a metadata flag.

To convert an existing Windows Server VM to Azure Hybrid Benefit, you can use the following PowerShell command: $vm = Get-AzVM -ResourceGroup "rg-name" -Name "vm-name"; $vm.LicenseType = "Windows_Server"; Update-AzVM -ResourceGroupName rg-name -VM $vm. Alternatively, you can use the Azure CLI command: az vm update --resource-group myResourceGroup --name myVM --set licenseType=Windows_Server.

The Azure Hybrid Benefit extends to 180 days of dual-use rights, allowing you to run the same Windows Server license both on-premises and in Azure. This is especially helpful for businesses that are in the process of migrating to the cloud but still need to maintain an on-premises presence for a certain period.

Here are the steps to convert an existing Windows Server VM to Azure Hybrid Benefit:

  • Update the license type to "Windows_Server" using PowerShell: $vm = Get-AzVM -ResourceGroup "rg-name" -Name "vm-name"; $vm.LicenseType = "Windows_Server"; Update-AzVM -ResourceGroupName rg-name -VM $vm
  • Update the license type to "Windows_Server" using Azure CLI: az vm update --resource-group myResourceGroup --name myVM --set licenseType=Windows_Server

Licensing and Pricing

Credit: youtube.com, Microsoft Azure Cost Optimisation Video Part 3 Using Non-production Licensing To Reduce Azure Spend

Azure Hybrid Benefit reduces risk by allowing 180 days to run Azure and on-premises workloads simultaneously at no additional cost. This benefit is applicable to customers with an active Software Assurance (SA) or subscription license, such as EAS, SCE, or Open Value subscription on Windows Server.

You pay only for additional infrastructure with Azure Hybrid Benefit, and you will need to repurchase your Windows Server license on other providers' clouds. Azure offers free extended security updates, providing three years of free security updates after the end of support, reducing risk and cost.

The benefit is supported in all Azure regions and on virtual machines that are running SQL or third-party marketplace software. For a breakdown of the number of virtual cores allocated for those licenses, their requirements, and how to apply for benefits, check out Azure Hybrid Benefit for Windows Server.

Here's a snapshot of how much Azure Hybrid Benefit can save when moving Windows Server workloads:

Azure Hybrid Benefit enables Windows Server license assignment in the cloud, allowing you to use your existing Linux workloads on Azure and pay only for your virtual machine infrastructure costs. This benefit also applies to active and unused on-premises Red Hat or SUSE Linux subscriptions.

Understanding Azure

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Azure is a cloud platform that allows you to bring your own license (BYOL) and save on your cloud infrastructure spend.

The cost of an Azure resource is calculated from multiple parts, including software licenses. For example, when estimating your Azure VM cost, you might notice that the total row changes depending on the operating system and VM configuration type.

Azure Hybrid Benefit is a great cost optimization case for enterprise customers with existing Microsoft software licenses, such as Windows and SQL Server.

What is?

Azure Hybrid Benefit is a cost optimization feature that allows you to bring your own license (BYOL) for certain Microsoft software, saving you money on cloud infrastructure spend in Azure.

The total price for an Azure resource is calculated from multiple parts, including software licenses. For example, when estimating your Azure VM cost, the total row changes depending on the operating system and VM configuration type.

Enterprise customers with existing Windows and SQL Server licenses as part of their Enterprise agreements can greatly benefit from Azure Hybrid Benefit. This is especially true for customers with a significant portion of their infrastructure running outside of Azure.

Optimize Virtualized Workloads

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SQL Server Enterprise Edition customers with Software Assurance can migrate to SQL Database at a cost-effective rate.

Selecting the General Purpose option can offer 4 cores in the cloud for every 1 on-premises core, making it a cost-effective way to migrate.

Try out an SQL Database single database or elastic pool from the Azure portal or via Azure Marketplace to see the benefits for yourself.

Here's an interesting read: Azure Data Studio Connect to Azure Sql

Azure Features

Azure offers a range of features that make it easy to use existing licenses. This includes Azure Hybrid Benefit for Linux Virtual Machine, which eliminates the software fee for existing Linux VMs.

With Azure Hybrid Benefit, you can apply your existing Red Hat or SUSE licenses to your Linux VMs, covering the licensing cost and saving you money on software fees. This means you only pay for the VM compute costs, not the software fee.

Existing Red Hat or SUSE licenses can be used to cover the licensing cost for your Linux VMs, making it a cost-effective option for businesses.

Deploy VM Scale Set

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To deploy a Virtual Machine Scale Set in Azure, you'll need to specify an additional parameter called licenseType within your Virtual Machine Profile property.

You can do this through various methods, including ARM template, PowerShell, Azure CLI, or REST.

To use ARM template with a Windows Server 2016 Datacenter image, you'll need to create or update your scale set.

An important detail is that you can do this during create or update for your scale set through ARM template, PowerShell, Azure CLI, or REST.

Azure Features

Azure offers a range of features that can help you save money and optimize your cloud computing costs. Azure Hybrid Benefit for Windows Server allows you to deploy and run special price Windows Server virtual machines in Azure using local Windows Server licenses covered by Software Assurance.

You can create a VM with Azure Hybrid Benefit for Windows Server using Azure platform support images or uploading your own custom Windows Server images.

Worth a look: Azure Windows License

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To convert an existing VM to use Azure Hybrid Benefit, you can update the VM's license type from the portal VM blade by selecting the "Configuration" option and toggling the "Azure hybrid benefit" option.

Here are the steps to convert an existing Windows Server VM to Azure Hybrid Benefit:

  • Update the VM's license type to "Windows_Server" using the command `Update-AzVM -ResourceGroupName rg-name -VM $vm`
  • Convert Windows Server VMs with benefit back to pay-as-you-go by updating the license type to "None" using the command `Update-AzVM -ResourceGroupName rg-name -VM $vm`

Azure Hybrid Benefit can also be applied to virtual machine scale sets.

To verify if your VM is utilizing the licensing benefit, you can check the "Operating system" tab in the portal VM blade.

Azure Hybrid Benefit for Windows Server VMs is controlled by the licenseType property of an Azure VM, which can be switched on or off by updating the license type to 'Windows_Server' or 'None'.

The Azure Policy rule that defines the applicability logic of the benefit may vary depending on how you define your eligible VM instances.

To audit and enable Azure Hybrid Benefit for Windows Client VMs, you can use the policy definitions in my Azure Policy GitHub repository.

Azure Hybrid Benefit can also be applied to Linux Virtual Machine, effectively eliminating the software fee.

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Case Studies and Analysis

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By running Windows Server through Azure, customers can save costs compared to other public clouds.

The CPP plan is a yearly service for virtual machines, and it currently only applies to Online Service Premium Agreements.

Customers only need to pay for basic computing resources after using a local Windows Server license with Software Assurance.

Azure Services

You can use your existing SQL Server licenses with Azure Services, which helps reduce costs. Azure Hybrid Benefit for SQL Server on Azure Virtual Machines allows customers with Software Assurance to use their on-premises licenses.

The benefit applies to both IaaS and PaaS environments, and it's only available with Azure Hybrid Benefit. You can centrally manage your Azure Hybrid Benefit for SQL Server across an entire Azure subscription or overall billing account.

With Azure Hybrid Benefit, you can achieve savings of up to 85% on SQL Server licenses when opting for Azure SQL Database. For each core of your existing SQL Server Enterprise Edition license, you get 4 vCPUs in Azure SQL Managed Instance, Azure SQL Database general purpose, and Hyperscale tiers.

Template

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When deploying a VM through Azure Resource Manager template, you must specify an additional parameter called licenseType. This is a crucial step that ensures you can verify the setting correctly.

To deploy a VM, you can use PowerShell, Resource Manager template, or the portal, but you'll need to specify the licenseType parameter in your template. This will help you set up your VM correctly and avoid any licensing issues later on.

The licenseType parameter is required to ensure that your VM is properly licensed and configured for use. By specifying this parameter, you can avoid any potential problems that might arise from incorrect licensing.

You can verify the setting in your VM by checking the licenseType parameter in your Resource Manager template. This will give you peace of mind knowing that your VM is properly licensed and configured.

To check the licenseType parameter, you can use the following methods:

SQL Database

With Azure Hybrid Benefit, you can significantly reduce the costs of running your SQL Server workloads in the cloud.

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You can achieve savings of up to 85% on SQL Server licenses by opting for Azure Hybrid Benefit, which applies to both Platform as a Service (PaaS) environments and Azure Arc-enabled SQL Managed Instances.

The benefit also includes 180 days of dual-use rights, allowing you to use the same SQL Server license in Azure and on-premises concurrently.

This enables a smoother transition when migrating SQL Server workloads to Azure.

For each core of your existing SQL Server Enterprise Edition license, you get 4 vCPUs in Azure SQL Managed Instance, Azure SQL Database general purpose, and Hyperscale tiers.

The same exchange applies to SQL Server Standard edition when running on Azure Virtual Machines (VMs).

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Activation and Conversion

You can convert an existing VM to Azure Hybrid Benefit for Windows Server without any service interruptions. Changing the license type on the VM simply updates a metadata flag and doesn't require a reboot.

To convert an existing Windows Server VM to Azure Hybrid Benefit for Windows Server, you can use the Azure portal or Azure CLI. In the portal, go to the VM blade, select "Configuration", and toggle the "Azure hybrid benefit" option.

Credit: youtube.com, Applying And Removing A Hybrid Use Benefit License For An Existing Azure VM With PowerShell

Here are the steps to convert an existing Windows Server VM to Azure Hybrid Benefit for Windows Server using Azure CLI:

  • Get the VM resource group and name using `Get-AzVM` cmdlet
  • Update the VM license type to "Windows_Server" using `Update-AzVM` cmdlet

You can also convert Windows Server VMs with benefit back to pay-as-you-go by updating the license type to "None".

Convert VM

Converting a VM to Azure Hybrid Benefit for Windows Server is a straightforward process that doesn't require a system reboot or service interruption.

You can update the VM's license type by toggling the "Azure hybrid benefit" option in the portal VM blade.

The command to update the license type is $vm.LicenseType = "Windows_Server".

To convert an existing Windows Server VM to Azure Hybrid Benefit, you can use the following command: az vm update --resource-group myResourceGroup --name myVM --set licenseType=Windows_Server.

Here's a quick rundown of the steps to convert an existing Windows Server VM to Azure Hybrid Benefit:

  • Get the VM using Get-AzVM: $vm = Get-AzVM -ResourceGroup "rg-name" -Name "vm-name"
  • Update the license type: $vm.LicenseType = "Windows_Server"
  • Update the VM: Update-AzVM -ResourceGroupName rg-name -VM $vm

To convert a Windows Server VM back to pay-as-you-go, you can simply update the license type to "None".

Activate for SQL

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To activate Azure Hybrid Benefit for SQL Server, you can follow these steps. You can use your existing SQL Server licenses to run SQL Server on Azure Virtual Machines, and with Software Assurance, you can use the benefit when deploying a new SQL virtual machine or activate SQL Server Azure Hybrid Benefit for an existing SQL virtual machine with a pay-as-you-go license.

The benefit applies to Standard and Enterprise SQL Server editions only, and your SQL Server VMs must be appropriately registered with the SQL IaaS Agent Extension. This will allow you to set the sqlServerLicenseType property of the SQL Server VM resource to AHUB for the Azure Hybrid Benefit.

To apply Azure Hybrid Benefit for an underlying Windows Server VM and SQL Server instance running on it, you'll need to have all corresponding licenses. This can help you achieve substantial savings, so be sure to consider it when estimating potential Windows/SQL hosting costs in Azure.

Credit: youtube.com, SQL Server License Key Change

You can centrally manage your Azure Hybrid Benefit for SQL Server across the scope of an entire Azure subscription or overall billing account in the Azure portal. This makes it easy to keep track of your licenses and benefits.

Here are the possible values for the sqlServerLicenseType property:

  • AHUB for the Azure Hybrid Benefit
  • PAYG for pay-as-you-go
  • DR to activate the free HA/DR replica

By following these steps and understanding the benefits and requirements, you can activate Azure Hybrid Benefit for SQL Server and start saving on your SQL Server licenses.

Ellen Brekke

Senior Copy Editor

Ellen Brekke is a skilled and meticulous Copy Editor with a passion for refining written content. With a keen eye for detail and a deep understanding of language, Ellen has honed her skills in crafting clear and concise writing that engages readers. Ellen's expertise spans a wide range of topics, including technology and software, where she has honed her knowledge of Microsoft OneDrive Storage Management and other related subjects.

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