Move to Modern SQL Server Licensing with Confidence

If you have SQL Server workloads that qualify, the Pay-As-You-Go (PAYG) model is the best way to go when shifting away from fixed licenses and Software Assurance. This approach links costs directly to actual usage, making it easier to adapt as your needs change and reducing the hassle of managing a set number of licenses. Although you’ll need to update your resource configurations thoughtfully during the move, the end result is a more flexible licensing strategy that’s easier to manage.

• Align costs with actual usage: Switch to a consumption-based billing system for SQL Server resources instead of sticking to fixed license allocations.
• Scale without constant license adjustments: Allow your billing to automatically adjust as workloads are added, removed, migrated, resized, or used infrequently.
• Control licensing through Azure: Utilise Azure’s tools to check resource-level licensing, enhancing visibility across your entire setup.
• Simplify license management: Minimize the time spent tracking fixed quantities and matching resources with your licensing inventory.
• Maximise your committed consumption: Once your PAYG usage stabilises, consider Azure savings plans or reservations to help cut costs.

After your organisation opts for PAYG for the relevant SQL Server workloads, be sure to update the license configuration on each resource to reflect that choice. Just changing your licensing agreement doesn’t automatically adjust any individual settings.

Plan to carry out this configuration work as part of your overall transition rather than leaving it as an afterthought. Getting started early gives teams a chance to check security, networking, Azure Arc connectivity, billing, and operational workflows before making changes across the wider system.

Learn how to automate your move to PAYG SQL licensing at scale

Choose the transition strategy that suits your setup

When a targeted transition within a specific tenant, subscription, resource group, or resource scope is needed, PowerShell is your best bet.

• Explore and verify resources before making any modifications.
• Run a test transition with a small scope.
• Bulk-update eligible resources when your organisation is prepared.
• Check the resulting license configurations and billing indicators for accuracy.

Utilise Azure Policy to shift existing SQL resources to PAYG and to maintain the desired licensing setup over time. Azure Policy aids in identifying configuration issues, ensuring compliance, and automatically fixing any non-compliant resources on a larger scale.

• Set the approved licensing setup for eligible resources.
• Apply the policy to the relevant subscription or resource group.
• Keep an eye on compliance through centralised Azure views.
• Automatically correct any resources that stray from the approved setup.

1. Commit to the PAYG objective. Decide which eligible workloads will transition and designate teams responsible for licensing, Azure, security, networking, and SQL management.
2. Prepare your environment. If your SQL Server runs outside Azure, connect it to Azure Arc. Take inventory of all eligible SQL resources and ensure Azure Arc connectivity and necessary organisational approvals are set up.
3. Test the transition. Trial resource updates and billing responses within a limited resource group or subscription.
4. Scale the move. Use PowerShell for an orderly bulk transition, and then implement Azure Policy for ongoing management where needed.
5. Review and operate. Assess the resulting configuration, monitor compliance, and adjust as your SQL setup evolves.
6. Look into commitment-based savings. Once you have stable PAYG usage, check if an Azure savings plan or reservation could help lower costs. Discuss eligibility, coverage, and commitment details with your Microsoft representative.

Automate your transition to PAYG SQL licensing at scale

Manage SQL Server licensing and billing through Azure Arc

Get pricing guidance for SQL Server on Azure VMs

Check Azure SQL Database pricing

Keep in mind that eligibility, billing treatment, prerequisites, and the licensing options available differ depending on the resource and licensing agreement. Review the relevant Microsoft terms and product information, and feel free to consult your Microsoft representative or a licensing expert if you need help.