Microsoft changes SQL Server 2008 R2 virtualization licensing

In the complex and frustrating world of virtualization licensing, Microsoft has had its ups and downs and caused its fair share of IT aggravation. Licensing Microsoft products in a physical world has often been seen as an overly complicated affair, and virtualization certainly doesn’t make that process any easier.

x86 server virtualization has been around now for more than 10 years, and as the various server virtualization technologies continue to mature, more and more organizations are working toward migrating their applications over to a virtual instance. Unfortunately for some, it isn’t a lack of technology features or maturity holding them back, it’s a case of software licensing confusion — and that’s a shame.

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In the last two years, the virtualization industry has finally gotten to the point where organizations are comfortable virtualizing their database servers. Oracle remains a challenge in this regard, but only because of its restrictive virtualization licensing and support practices, but Microsoft seemed to be making strides in this area with Microsoft SQL Server and a number of other Microsoft server applications. In 2008, the company introduced the Server Virtualization Validation Program and changed its stand on licensing issues with migrating virtual machines.

But as often takes place, one step forward is followed by two steps back. Organizations that operate Microsoft SQL Server may have to rethink their database virtualization strategy, thanks to the upcoming release of Microsoft SQL Server 2008 R2. The new R2 version adds quite a few new feature enhancements to the product, but it comes at a hefty price.

The new R2 version of SQL Server 2008 follows a similar path as the R2 version of Windows Server 2008. Microsoft is introducing a new Datacenter Edition to the product line to go along with the Standard and Enterprise versions, and here is where we start to see the licensing changes and the problems it may cause an organization take shape if they weren’t ready for them.

The Enterprise Edition used to offer unlimited virtualization rights if all of the physical processors in the server were licensed. Now, with the introduction of the Datacenter Edition to the R2 product line, the Enterprise Edition for R2 only supports up to four operating system environments. To keep the unlimited virtualization rights that Enterprise consumers have become accustomed to, consumers will need to purchase the new Datacenter Edition, which costs twice as much as the Enterprise Edition: $54,990 without software assurance as compared to $27,495. Outside of the virtualization restrictions, licensing costs itself have gone up. Compared with previous retail pricing, costs associated with the Enterprise and Standard editions have gone up by almost 10 and 20 percent, respectively.

To try and make better sense of it, Microsoft does provide a SQL Server 2008 R2 licensing quick reference guide. The guide offers these frequently asked questions and answers to try and provide some guidance with this confusing issue. Evidently, there are instances where your organization may be grandfathered, so it could be worth a read.  It states:

Q: What is the scenario for grandfathering unlimited virtualization rights for SQL Server 2008 Enterprise? SQL Server 2008 Enterprise licenses with Software Assurance acquired prior to the release of SQL Server 2008 R2 will be granted the right to run in unlimited VMs. This right is remains in effect as long as Software Assurance coverage remains active and until the SQL Server version that follows SQL Server 2008 R2 is generally available. If you acquire new licenses (on a new or existing contract), you will also be granted similar rights to run unlimited VMs if you acquire Software Assurance.

Q: I acquired SQL Server 2008 R2 Enterprise License with Software Assurance and want to create unlimited VMs using SQL Server 2008 R2 Standard. Can I do this? Yes. The new down edition rights announced with SQL Server 2008 R2 allow you to deploy the Standard edition in place of Enterprise edition, and as long you remain active on your Enterprise Software Assurance, the right to run in unlimited VMs will continue until the next version of SQL Server after SQL Server 2008 R2 is generally available.

Q: I acquired two Datacenter licenses and installed those on a server with four processors. Can I create unlimited VMs? You need to license all physical processors in order to run instances of SQL Server 2008 R2 Datacenter in an unlimited number of virtual OSEs. In this case, you will need four Datacenter licenses.

If your company was having a difficult time getting budget approval for virtualizing SQL Server before this announcement, how will this new R2 pricing and virtualization licensing change impact your decisions going forward? Will these licensing changes be a widespread problem, or will they only affect a small minority of organizations?

This article, “Microsoft changes SQL Server 2008 R2 virtualization licensing,” was originally published at InfoWorld.com. Follow the latest developments in business technology news and get a digest of the key stories each day in the InfoWorld Daily newsletter and on your mobile device at infoworldmobile.com.