BYOL into AWS and Azure: Room for savings, or new trap?

Our customers have often asked us if they can use their licenses in the Cloud, and whether this will help optimize their spending.

To make a long story short, our answer is YES. 

That said, you will need a step-by-step approach to make sure you proceed correctly and avoid mistakes.

Where do you stand?

The first step is to know your license position. This is the same consideration as if you were about to license a new on-prem architecture. You need to know whether you have a buffer of unused licenses or not.

Establishing a license position for Windows Server, System Center and SQL Server should be automated as much as possible, and optimization through dynamic allocation should be repeated every time you refresh your license position.

Identify eligible situations for BYOL

Amazon and Azure have documented the situations that are eligible for BYOL. The rules can be found below:

• AWS
  
  • https://aws.amazon.com/windows/resources/licensemobility/?nc1=h_ls
  • https://aws.amazon.com/windows/faq/#need-lm
  • https://aws.amazon.com/windows/resources/licensing/#Bring_existing_licenses_to_Dedicated_Hosts
  • https://aws.amazon.com/windows/resources/licensemobility/
  • https://aws.amazon.com/windows/resources/licensing/#Bring_existing_licenses_with_License_Mobility
  • https://aws.amazon.com/ec2/dedicated-hosts/
• Azure
  
  • started/azure-hybrid-benefit
  • https://docs.microsoft.com/en-us/archive/blogs/cansql/BYOL-microsoft-server-license-to-the-cloud-azure-hybrid-benefit-vs-license-mobility-what-is-the-difference
  • https://docs.microsoft.com/en-us/azure/sql-database/sql-database-paas-vs-sql-server-iaas
  • https://docs.microsoft.com/en-us/windows-server/get-started/azure-hybrid-benefit

In summary:

• The rules have changed since October 2019 because Microsoft has specified the use of BYOL into the various Cloud providers (including Azure); these changes are reflected in the “Listed Providers” scheme here.
• It is more difficult now to bring existing Windows Server licenses into AWS; but some situations still exist, and for those, Software Assurance is not required.
• For AWS and SQL Server, you can use both the licensing mobility rule and the standard licensing rule, but you must pay attention to the subscribed plan (Standard EC2 instances, versus Dedicated EC2 instances, versus EC2 Dedicated Hosts). Software Assurance remains necessary.
• For Azure, the rules are more numerous, and you can benefit both from existing unused Windows Server and SQL Server licenses. These can be used through the Hybrid Use Benefits, and Microsoft also allows SQL Server BYOL for managed databases (not only IaaS, but PaaS).

Calculate and Optimize

You can use BYOL when the following conditions are met:

1. You have some unused licenses
2. You have one or several cloud situations eligible for BYOL.

Why choose BYOL?

First, because every day these unused licenses stay on the shelf, their value depreciates, and using them is never a wrong choice. 

If you are worried that you may need unused licenses for new projects, it is important to remember that BYOL is not irrevocable. You can change your mind every 90 days, put licenses back on the shelf, and go for an Azure or AWS subscription. 

Overall, you can expect an immediate 20 to 40% discount depending on your situation. 

To simulate such savings, you need to be accurate. Many licensing rules are different in the cloud versus on premise, and even between Cloud providers.

Fortunately, we have recently released in SamBox.io BYOL management for   both AWS and Azure. 

How to proceed?

First, you need to follow the above-mentioned steps to measure the potential savings. 

Then build your KPIs to demonstrate these savings, based on number of instances licensed through BYOL, and the amount of savings achieved; make sure to collect the average cloud spend per VM in advance to simulate the savings.

Finally, it is a matter of communication and sharing across the company. Write a short BYOL Policy, review your processes, communicate them to stakeholders, and make sure that SAM brings support to them to secure the savings.

By Damien Juillard, April 13, 2020

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