Summary
Microsoft Azure Arc is a game-changer in the world of SQL Server, and service providers need to understand how it impacts their offerings and their clients. Azure Arc enables clients to connect any SQL Server to Azure, regardless of where it's running – on-premises, in your data centre, or even on a competitor's cloud platform like AWS. While Azure Arc offers many benefits to end clients, it also presents new opportunities and challenges for service providers.
Understanding Azure Arc and its Benefits
At its core, Azure Arc allows for centralised management and monitoring of SQL Servers from the Azure portal. Clients gain a unified view of their SQL Server estate, regardless of location, and can manage security, compliance, and updates from a single pane of glass. However, perhaps the most significant feature for many is pay-as-you-go licensing. With Azure Arc, clients can pay for SQL Server on an hourly basis, similar to other Azure services.
This option offers greater flexibility and potential cost savings compared to traditional licensing models, especially for temporary or elastic workloads. Imagine a client needing extra SQL Server capacity for a short-term project or seasonal peak. Azure Arc allows them to scale up and down as needed, only paying for what they use.
Licensing Models: Azure Arc and SPLA
It's important to emphasize that Azure Arc is not a replacement for SPLA. The traditional SPLA licensing model, where providers license the service and bundle licenses with their offerings, remains a viable and popular option. Azure Arc simply adds another tool to your arsenal, allowing you to cater to a wider range of client needs and preferences. In addition to SPLA, you can now offer clients the following options for licensing SQL Server:
Bring Your Own License (BYOL): Clients can bring their existing licenses with Software Assurance or an active subscription to your environment.
Azure Arc with BYOL: Clients can use their own licenses with Azure Arc, maintaining existing agreements and benefits.
Azure Arc with Pay-as-You-Go: Clients can leverage the hourly billing model for maximum flexibility and cost optimization.
A key point to remember is that when you deploy SQL Server with Azure Arc for a client, it connects to their Azure tenant, not yours. This has implications for billing and management.
Here's how these options compare to each other:
SPLA | BYOL | Azure Arc with a license | Azure Arc pay-as-you-go | |
Licensee | Provider | End client | End client | End client |
License/billing | SPLA | CSP, EA, MPSA, etc. | CSP, EA, MPSA, etc. | Azure |
Billing period | 1 month | 1 year | 1 year | 1 hour |
Addressing Key Concerns for Service Providers
The introduction of Azure Arc raises important questions for service providers. Let's address some of the most common concerns.
Can providers use Azure Arc for their own workloads?
Generally, no. The exception is when hosting the provider's own SaaS applications with fluctuating demands. In this case, specific provisions allow providers to use their own Azure tenant with SQL Server and Azure Arc.
Can multiple clients share a SQL Server with Azure Arc?
No. Each Azure Arc-enabled SQL Server instance must be associated with a single client tenant. This also applies to licensing the host and sharing virtual machines among multiple clients.
Can you mix SPLA and Azure Arc licensing?
Absolutely. Microsoft allows for flexible licensing arrangements. You can use SPLA for some SQL Servers and Azure Arc for others, depending on your clients' needs and preferences.
Security
Microsoft collects certain data about SQL Server instances connected through Azure Arc, including server and instance names, database names, and even TCP ports. While Microsoft assures data transfer is outbound only and no other software information is collected, it's crucial to consult with your security team and review Microsoft's documentation to address any concerns.
When is Azure Arc the right choice?
Azure Arc is ideal for temporary or elastic workloads, testing environments, and situations where clients need the flexibility of hourly billing. However, for consistent, persistent workloads, traditional licensing might be more cost-effective. It's essential to evaluate each client's needs and workload characteristics to determine the optimal licensing strategy.
The Future of SPLA Licensing
While Azure Arc is gaining traction, SPLA remains a vital licensing model for service providers. Microsoft has officially promised to support SPLA until 2029. However, we can expect Microsoft to continue introducing new options that may appeal to end clients, such as Azure Stack HCI for Hosters, a multi-tenant version expected soon.
Service providers need to stay informed about these developments and adapt their offerings accordingly. Understanding the nuances of Azure Arc, SPLA, and other licensing models will allow you to provide valuable expertise to your clients and ensure you're prepared for the future of SQL Server in the cloud.