Azure Hybrid Use Benefits (AHUB) versus Software Assurance on Azure

Microsoft Licensing, when you plan to move your windows workloads to Azure, provides you with quite a few options. Azure Hybrid Use Benefit  – AHUB – is a great option, and one that other cloud vendors are unable to match.

Software Assurance Provides you with License Mobility

Software Assurance from Microsoft is the one that most people are already familiar with. While SA is great for taking your workloads to Azure (see benefits below), it still takes a back seat to Azure Hybrid Use Benefits or AHUB.

• License Mobility gives you 1 for 1 cores on the Windows Server
• License Mobility gives you 4 for 1 cores on the SQL Server

Overall, if you are moving to Azure, you will still gain a lot (get more bang for each license) with your SA subscription.

Azure Hybrid Use Benefits – AHUB Benefits (AHUB is now part of SA)

What is AHUB? AHUB is now included with SA.

This is the ONE benefit that can make the choice between AWS and Azure a no brainer. Especially if the majority of your workloads are Windows based. These can include Windows Servers, SQL Servers (Standard or Enterprise), Sharepoint Server and more.

Windows Servers – can operate in a dual environment mode. The same license allows you to live in your data center as well as on Azure. That’s one of the greatest benefits of AHUB.

SQL Servers  –   can also operate in a dual mode, but upto a limited period. Within 6 months, the AHUB owner has to decide whether they want to retain their Azure SQL Server or their data center SQL Server. The cutover for SQL Server Licenses has to occur within 6 months. Still, if you ask me, it is commendable that you can operate 2 at the price of 1, for a 6 month period !

Core Magnification – Just like with your Software Assurance, you still get 4 time the number of cores allowed for SQL Server on Azure.

AHUB Pricing – Azure HUB does have a cost associated with it. For most customers, it would range from $25k to $50k on an annual basis. Of course, it depends on the number of SQL server and Windows Server licenses you are interested in owning.

Other ways to save money on Azure – Reserved Instances

Everyone is familiar with RIs – and you typically get your own reserved set of instances, at a lower cost than the normal, pay as you go instances.  You can choose to pay for a 1 YEAR Reservation or a 3 year Reservation. Here is why I recommend that you ALWAYS opt for the 3 year.

3 Year Reservation Paid Upfront, Benefits – Often, folks pay year by year, due to budget constraints. However, if they end up purchasing 3 year Reserved Instances (by paying for a 3 Year RI upfront), they will, in most cases save money. If they simply use their 3 year hardware for even half of that duration, they will break even. If they host any longer, they are just saving more money (as compared to year by year payment of RIs).

Bottom Line and Summary

With the 4 cores for 1 core that Azure provides for all SQL Server editions (Standard and Enteprise), and the option to simultaneously license Windows Servers in two places (for the price of one), Azure Hybrid Use Benefit is well worth the annual subscription cost.

Depending on how many licenses you need, you may spend between $25k to $50k on the AHUB benefit, but, you can almost be guaranteed that you will save substantially more when moving to Azure. For example, for a count fo about 200 Windows Server 2016 and about 30 SQL Server Enterprise 2016 Licenses, you could save over a million dollars per year, hosting the EXACT same versions and, arguably better hardware on Azure.

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