Optimizing Centrally Managed Azure Hybrid Benefit for SQL Server

This comprehensive guide will walk you through the process of proactively managing and optimizing your use of Azure Hybrid Benefit for SQL Server. By centrally managing this benefit, you can reduce the costs of running Azure SQL and ensure you’re getting the most value out of your existing SQL Server licenses.

Prerequisites

Before you begin, make sure you have:

  1. Read and understood the What is centrally managed Azure Hybrid Benefit? article. This will give you a solid understanding of the types of SQL Server licenses that qualify for the benefit and how to enable it at the subscription or billing account level.

  2. Verified that your self-installed virtual machines running SQL Server in Azure are registered. This ensures that Azure can properly detect and manage your SQL Server resources. For more information, see Register SQL Server VM with SQL IaaS Agent Extension and Register multiple SQL VMs in Azure with the SQL IaaS Agent extension.

Gather License Usage and Availability Details

The first step is to understand your current and expected SQL Server usage in Azure, as well as the number of SQL Server core licenses with Software Assurance (or subscription licenses) that you have available to assign.

You can use the Azure Hybrid Benefit sql-license-usage PowerShell script to analyze and track the combined SQL Server license usage across your Azure resources. This can be a helpful tool to validate the information you gather from other sources.

Next, work with your software procurement or asset management teams to determine the number of eligible SQL Server core licenses you have available to assign to Azure. Keep in mind that if you’re migrating workloads from on-premises to Azure, the associated licenses can be used for Azure Hybrid Benefit, as you’re granted 180 days of dual use rights during the migration process.

Buy More Licenses if Needed

If the number of SQL Server licenses available is insufficient to cover your planned Azure SQL usage, work with your procurement department to purchase additional SQL Server core licenses with Software Assurance (or subscription licenses). Applying Azure Hybrid Benefit is significantly less expensive than paying for SQL Server by the hour in Azure, so it’s important to have enough licenses to cover your anticipated usage.

Assign Licenses to Azure

  1. Follow the instructions in the Azure portal and documentation to select at least one scope and assign your SQL Server licenses to it.

  2. As you assign licenses, review the detected Azure SQL usage again to verify that the details are consistent with the information you gathered earlier.

Monitor Usage and Adjust

  1. Navigate to Cost Management + Billing > Reservations + Hybrid Benefits in the Azure portal to view the Azure Hybrid Benefit license assignments and their utilization percentages.

  2. If any of the utilization percentages reach 100%, your organization is likely paying hourly rates for some SQL Server resources. Engage with other teams to understand if the current usage levels are temporary or expected to continue. If the latter, consider purchasing more licenses and assigning them to Azure to reduce costs.

  3. Even if utilization doesn’t exceed 100%, monitor it closely and proactively acquire and assign more licenses if usage is expected to rise in the near future.

Establish a Management Schedule

To ensure ongoing optimization of your Azure Hybrid Benefit for SQL Server, establish an annual or quarterly schedule that includes the following steps:

  1. Gather license usage and availability details.
  2. Purchase more licenses if needed to cover upcoming usage growth.
  3. Assign licenses to Azure.
  4. Monitor usage and adjust as necessary.
  5. Repeat the process on a regular cadence.

By following this comprehensive approach, you can proactively manage your SQL Server licenses, reduce costs, and ensure you’re getting the most value from Azure Hybrid Benefit.

This article was based on the content from the tutorial on optimizing centrally managed Azure Hybrid Benefit for SQL Server.