Does everyone agree that cloud computing is too expensive? Even Mark Zuckerberg thinks so. Most organizations rely on the cloud for scalability, security, and stability, but 58 percent say it costs too much. Ironically, most of these companies moved to the cloud to cut the costs of storing data on-premises.
Thankfully, Microsoft listened to these concerns. If you currently use (or plan to use) Windows Server or SQL Server in Microsoft Azure, you need to hear about Azure Hybrid Benefit for one crucial reason:
It could save you 85 percent when running your virtual machines (VMs) in Azure.
Yes, that’s 85 percent.
Microsoft describes Azure Hybrid Benefit as a “licensing benefit that helps you significantly reduce the costs of running your workloads in the cloud.” In other words, it’s a discount program that gives you more value from your Windows Server or SQL Server license.
But how does it work? And how much could you save? Read on to learn more about Azure Hybrid Benefit and why you need a partner to get more value from Microsoft’s suite of cloud products.
What is Azure Hybrid Benefit?
Azure Hybrid Benefit is a program that lets you use your current on-premises Windows Server and SQL Server license on Azure. (Note: Windows Server or SQL Server must have an active Software Assurance subscription or qualifying license, but more on this later.) By doing this, you could save money on the cost of running your Virtual Machines.
Microsoft says you can save up to 85 percent on standard Azure pay-as-you-go-rates by taking out Azure Hybrid Benefit, extended security updates, and reservation savings. Don’t have Azure yet? Microsoft gives you 180 days of dual-use rights, which lets you keep your on-premises solution when migrating to Azure.
How Much Will You Save?
Microsoft has a couple of examples of the savings you could make when you use Azure Hybrid Benefit:
- Organizations that currently use Windows Server could pay annual costs of $2,036 with Azure Hybrid Benefit compared to annual costs of $4,393 — that’s a saving of 50 percent.
- Organizations that currently use SQL Server Enterprise Edition could pay $0.598 per hour with Azure Hybrid Benefit compared to $3 per hour — that’s a saving of 85 percent.
The amount of money you save depends on three factors:
- How much you use Azure
The more you use Azure, the more you could save. It’s as simple as that.
- What Virtual Machines you use
You’ll save more if you use SQL Server compared to Windows Server.
- Your location
The amount of money you save with Azure Hybrid Benefit depends on your Azure region. (If you’re in the United States, there are currently 14 regions.) Like its regular Azure service, Microsoft prices Azure Hybrid Cloud depending on where you live in the world. (Amazon and other cloud providers do the same thing.)
There are lots of reasons for this:
- Data transfer speeds are slower/faster in some regions
- Latency is more reliable in some regions
- Particular services aren’t available in some regions
Azure Hybrid Benefit prices take all this into account.
Tip: Use Microsoft’s Azure Hybrid Benefit Calculator to estimate your cost savings.
Why Choose Azure Hybrid Benefit Licensing?
The advantages of using Azure Hybrid Benefit include:
- More value from your Windows Server or SQL Server license
- 180 days of dual-use rights between the cloud and on-premises
- Use your Windows Server license in the cloud, or
- Use your SQL Server license in a platform-as-a-service (PaaS) environment
What Licenses are Eligible for Azure Hybrid Benefit?
You’ll profit from Azure Hybrid Benefit if you have:
- Windows Server with Software Assurance or a qualifying subscription license, or
- SQL Server with Software Assurance or a qualifying subscription license
Whether you need Software Assurance or a qualifying subscription license depends on what edition of Windows Server/SQL Server you have. You’ll be eligible for Azure Hybrid Benefit if you own:
- Windows Server Datacenter Edition with Software Assurance
- Windows Server Standard Edition with Software Assurance
- SQL Server Enterprise Edition Core with Software Assurance or qualifying subscription licenses
- SQL Server Standard Edition Core with Software Assurance or qualifying subscription licenses
(You can always purchase Software Assurance when renewing any of the above or if you already have a qualifying subscription license.)
The rules above apply to all Microsoft Azure regions.
Why You Need a Microsoft Azure Hybrid Benefit Partner
As you can see, there are many caveats to Azure Hybrid Benefit. You’ll need the right license to qualify, and savings depend on usage, location, and your existing infrastructure. Azure Hybrid Benefit is a complicated beast. If you want to get more value from Azure Hybrid Benefit, it’s a good idea to use a partner like Dynamic Consultants Group, who will help you find the best solution for your business.
If you haven’t migrated to Azure just yet, working with a partner also provides you with benefits:
- Reduce data loss when migrating to the cloud
- Enhance data security
- Improve data compliance (GDPR, CCPA, HIPAA, etc.)
- Cut costs
- Limit downtime as you move between systems
- Train employees how to use Azure (or Azure Hybrid Benefit)
- Increase productivity
- Incorporate other products from the Microsoft ecosystem into your business to improve operational efficiencies
Final Word
Azure Hybrid Benefit is a discount program that could save you 85 percent when running virtual machines in Azure, significantly reducing the costs associated with cloud computing. The final cost savings depend on location, usage, and other factors. But, in almost all scenarios, you’ll end up paying less.
Do you want to save money with Azure Hybrid Benefit? Or are you thinking about moving data to Azure? Dynamic Consultants Group’s Azure cloud data storage and database services fit your business needs with experienced consultants worldwide who help you achieve your cloud computing goals.
