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Azure Arc has enabled SQL instance licensing for a considerable time, offering organizations a powerful and cost-effective way to manage SQL workloads. With this capability, businesses can shift the licensing costs of SQL workloads to their monthly Azure bill, streamlining financial management and resource allocation.

This option supports both ephemeral and long-standing operating system environments (OSEs), whether physical or virtual and accommodates SQL Server Standard and Enterprise Editions.

Key Benefits

  • Enhanced Management and Monitoring: Integrates with Azure Resource Manager via Azure Arc, providing centralized oversight, insights, migration readiness, and best practices assessments.
  • Pay-As-You-Go Flexibility: Pay hourly for your SQL licensing, eliminating upfront costs and aligning expenses with actual usage.
  • vCore Licensing Simplified: Licensing is based on vCores, and it includes all necessary CALs (Client Access Licenses).
  • Extended Security Updates (ESUs): Seamlessly access critical security updates for legacy SQL Server versions. Paid separately.

For the complete list of available features, visit: https://learn.microsoft.com/en-us/sql/sql-server/azure-arc/manage-license-billing?view=sql-server-ver16#available-features.

Supported Scenarios

Azure Arc supports SQL instance licensing for the following scenarios:

  1. Virtual OSEs Hosting SQL Server
  2. Physical OSEs Running SQL Server
  3. Physical OSEs Containing Virtual OSEs Running SQL Server

Supported Editions and Versions

The following SQL Server editions and versions are supported for Azure Arc-enabled licensing:

  • SQL Server 2012 (Standard or Enterprise Edition)
  • SQL Server 2014 (Standard or Enterprise Edition)
  • SQL Server 2017 (Standard or Enterprise Edition)
  • SQL Server 2019 (Standard or Enterprise Edition)
  • SQL Server 2022 (Standard or Enterprise Edition)

Activating licensing on virtual OSEs for SQL Server enabled by Azure Arc

Virtual operating system environments (OSEs) hosting SQL Server are a common configuration for many organizations. With Azure Arc, activating licensing for these virtualized environments becomes a seamless and efficient process.

This scenario is particularly relevant because SQL Server workloads are frequently hosted on virtual machines, making it a crucial capability for most organizations to optimize cost and streamline management.

To successfully activate licensing for SQL Server on virtual OSEs using Azure Arc, the following prerequisites must be met:

Once the prerequisites are met, follow these steps to activate the pay-as-you-go license for SQL Server:

  1. Navigate to the Azure Portal and locate the Arc-enabled server hosting the SQL instance you want to license.
  2. In the server’s resource menu, scroll down to the Operations section and select SQL Server Configuration.
  3. Under the License Type setting, choose Pay-as-you-go license.
  4. Click Save to apply the changes.

That’s it! The SQL Server instance is now licensed using the flexible pay-as-you-go model, aligning costs with actual usage.

The step-by-step guide provided applies exclusively to virtual OSEs running SQL Server. For activating licenses on physical OSEs, a different approach is required. Please refer to the following video on YouTube for detailed instructions.

Important Considerations for Pay-As-You-Go Licensing

  • The hosting machine must maintain an active connection to Azure for the pay-as-you-go subscription to remain valid.
  • Azure Arc provides built-in resilience for intermittent connectivity disruptions of up to 30 days. However, if the connection is lost for more than 30 days, the pay-as-you-go subscription will expire.
  • Once the subscription expires, the machine is no longer authorized to use SQL Server under this licensing model.
  • Hourly charges apply only when SQL Server is actively running on the machine.
  • Billing occurs for any hour during which SQL Server is operational, provided the machine is online and connected to Azure.

Conclusion

Licensing SQL Server instances using Azure Arc provides organizations with a modern, flexible, and cost-effective approach to managing their SQL workloads. By leveraging the pay-as-you-go model, businesses can align licensing costs with actual usage, avoid upfront expenses, and simplify license management for both virtual and physical environments.

With the ability to support a wide range of SQL Server editions and versions, Azure Arc ensures compatibility and extended security updates for legacy systems. Additionally, the seamless integration with Azure Resource Manager enhances monitoring, management, and overall operational efficiency.

While the setup process requires meeting certain prerequisites, the benefits far outweigh the effort, especially for organizations looking to modernize their IT infrastructure while maintaining control and compliance. By staying connected to Azure and adhering to billing guidelines, businesses can take full advantage of this innovative licensing solution to optimize costs and drive productivity.

Azure Arc is more than just a tool, it’s a strategic enabler for organizations on their journey to digital transformation!