In the rapidly evolving world of cloud computing, businesses are continuously seeking ways to optimize their investments and enhance efficiency. Azure Hybrid Benefits emerge as a pivotal solution in this context, offering a cost-effective pathway for leveraging existing on-premises licenses in the Azure cloud environment. While the initial target audience for Azure Hybrid Benefits was larger organization with on premise software investments, Small and Medium businesses can also see savings via Subscription licensing. This blog aims to elucidate the fundamentals, advantages, and strategic implementation of Azure Hybrid Benefits, catering specifically to Managed Service Providers (MSPs) looking to augment their services and client offerings.
Understanding Azure Hybrid Benefits
1. What are Azure Hybrid Benefits?
Azure Hybrid Benefits is a program designed by Microsoft to help customers save on Azure Virtual Machines (VMs) and Azure SQL Database compute resources. This benefit allows you to apply your existing Windows Server and SQL Server licenses with Software Assurance or qualifying subscription licenses to the Azure cloud, significantly reducing the cost of running workloads on Azure.
2. Eligibility and Requirements
To leverage Azure Hybrid Benefits, you must have an active Software Assurance or a qualifying subscription license. This encompasses licenses for Windows Server Datacenter and Standard editions and SQL Server Enterprise and Standard editions. Where some of the confusion arises for MSP’s is in the second statement: Qualifying Subscription Licenses. These would be the 1 or 3 year Cloud Solution Provider (CSP) Software licenses you can purchase from Indirect Providers. By having these purchases on the tenant you can confidently select you have your Hybrid Licensing and see instant savings. A Note: The Windows Server Standard licensing will provide the Hybrid Benefits on Azure Datacenter Servers. If you intend to use this licensing on premise in a vCPU model, you’ll need to match Datacenter to Datacenter.
Benefits of Azure Hybrid Benefits
1. Cost Savings
One of the most compelling advantages of Azure Hybrid Benefits is the potential for substantial cost reductions. It allows businesses to save up to 40% on Azure Virtual Machines and up to 55% on Azure SQL Database by using their existing on-premises licenses.
2. Flexibility and Scalability
Azure Hybrid Benefits provide the flexibility to use the benefit on-premises or in the cloud and the ability to switch as needed. This adaptability is crucial for businesses with fluctuating workloads or those embarking on a gradual migration to the cloud.
Implementing Azure Hybrid Benefits
1. Migration Strategies
For MSPs, implementing Azure Hybrid Benefits involves a strategic approach to migration. This includes assessing client environments, planning migration phases, and ensuring compliance with licensing terms. You’ll want to ensure you size the environment correctly as the Core packs are purchased in groups of 8 and cannot be split across Virtual Machines. If you go larger than 8 Cores you’ll need to purchase a second one to remain compliant.
2. Optimization and Management
Post-migration, MSPs must focus on optimizing resource utilization and managing the Azure environment to maximize cost savings and performance for their clients.
Conclusion
Azure Hybrid Benefits stand as a testament to Microsoft’s commitment to providing cost-effective solutions for cloud migration and management. For MSPs, understanding and implementing these benefits can lead to significant growth opportunities, enhanced service offerings, and strengthened client relationships.
Interesting Links: Azure Hybrid Benefit – Hybrid Cost Calculator | Microsoft Azure
