Azure Stack HCI Licensing

[Patrick_Lownds]

Introduction

I’m not a licensing specialist, but I often get asked by colleagues, partners and customers about Azure Stack HCI licensing. Often in these scenarios, the person asking the question wants to understand more about Azure Hybrid Benefit for Azure Stack HCI and how it can help reduce the costs of running workloads on-premises.

What is Azure Stack HCI

Azure Stack HCI is a hyper-converged infrastructure (HCI) solution that combines software-defined compute, storage, and networking with powerful management tools to deliver a seamless experience for running virtualised workloads. It is a hybrid cloud solution connected to Microsoft Azure that allows organizations to leverage the power of Microsoft Azure on-premises. In this article, we will discuss Azure Stack HCI licensing and the Azure Hybrid Benefit for Azure Stack HCI.

Fig 1 - Azure Stack HCI integration with Azure

Azure Stack HCI Licensing

Azure Stack HCI is licensed per physical core. This means that you must purchase licenses for all the physical cores in the server that will run Azure Stack HCI (note that an Azure subscription is required to complete the set-up on your Azure Stack HCI hardware). Licensing is subscription-based and is billed monthly as a service fee to your Azure subscription at the cost of $10 per physical core.

Fig 2 - Azure Stack HCI Pricing

There are two ways of obtaining the Azure Stack HCI software:

1. Buy a validated hardware solution from HPE (validated nodes or through HPE GreenLake as-a-service solution) with Azure Stack HCI software pre-installed either at the factory or onsite.
2. Install Azure Stack HCI software on a 60-day trial period, deployed on either new or repurposed HPE hardware (note that the hardware must match the capability of a published HPE solution in Azure Stack HCI catalogue). Then simply download the software.

There are multiple ways of obtaining an Azure subscription, depending on the needs of your organisation or personal use. Here are the most common ways to purchase an Azure subscription:

1. Azure website - Users can visit the Azure website and purchase an Azure subscription directly from Microsoft. This option is best for individuals or small businesses who do not have complex licensing or support needs.
2. Azure Enterprise Agreement (EA) - An Azure Enterprise Agreement is a volume licensing program for large organisations that have a long-term commitment to Azure services. An EA allows customers to purchase Azure services in large quantities and receive volume discounts.
3. Azure CSP (Cloud Solution Provider) – HPE is an Azure Cloud Solution Provider. The CSP program enables partners to resell Azure services to their customers. The CSP program allows customers to purchase Azure services from a local provider, who can provide additional support and services.
4. Pay-As-You-Go (PAYG) - A PAYG subscription allows users to pay only for the services they use on a monthly basis. This option is best for customers who are new to Azure and want to initially try out the platform.
5. Azure Dev/Test - An Azure Dev/Test subscription is a discounted subscription for developers and testers to use Azure services for development and testing purposes. This subscription is best for customers who are building and testing applications on Azure.
6. Azure Free Account - A free Azure account provides users with $200 in Azure credits for 30 days, as well as free access to some popular Azure services. This option is best for users who want to explore Azure and test out its capabilities and is also used in learning environments.

Each of these options for obtaining an Azure subscription provides different levels of support, flexibility, and pricing. Customers should carefully evaluate their needs and choose the option that best fits their requirements. Additionally, Microsoft regularly updates its pricing and subscription models, so it is important to stay informed of any pricing changes that may impact your subscription costs.

Azure Hybrid Benefit for Azure Stack HCI

The Azure Hybrid Benefit for Azure Stack HCI is a licensing benefit that allows you to exchange one core license of Software Assurance-enabled Windows Server Datacenter for one physical core of Azure Stack HCI. This benefit can significantly reduce the cost of running virtual machines on Azure Stack HCI, as it waives the Azure Stack HCI host service fee and the Windows Server guest subscription.

If you need to purchase Windows Server Datacenter licenses to make that exchange possible, one of the most cost-effective ways to achieve that if you are purchasing new hardware is to buy Original Equipment Manufacturer (OEM) licenses from HPE.

OEM licenses are designed to be sold with hardware and are typically less expensive than the retail version of those same licenses. You can then attach Software Assurance to the OEM licenses, but you must do this within 90 days of purchasing the OEM licenses.

So how do you go about purchasing Software Assurance? You can buy Windows Server Software Assurance through the Microsoft Volume Licensing program. Contact either your Microsoft Licensing Solutions Partner (LSP) or contact Microsoft directly to discuss your licensing needs and obtain a quote for Software Assurance.

Note that Software Assurance has a number of other additional benefits, such as upgrades to the latest version of the software and access to Microsoft technical support.

Fig 3 - Azure Stack HCI Pricing with Azure Hybrid Benefit

Alternatively, you can license Windows Server if you don’t have existing Windows Server licenses with Software Assurance by purchasing an add-on subscription. This add-on subscription is billed monthly as a service fee to your Azure subscription at the cost of $23.3 per physical core.

Fig 4 - Azure Stack HCI Pricing without Azure Hybrid Benefit

Here are the steps to enable Azure Hybrid Benefit for Azure Stack HCI:

1. Use your Microsoft Azure credentials to sign in to the Azure portal https://portal.azure.com.
2. Go to the Azure Stack HCI cluster resource page.
3. Under Settings, select Configuration.
4. Under Azure Hybrid Benefit, select the Activate link.
5. In the Activate Azure Hybrid Benefit pane on the right-hand side, confirm the chosen cluster and the number of core licenses to allocate, and select Activate again to confirm.
6. When the Azure Hybrid Benefit has been successfully activated for your cluster, the Azure Stack HCI host fee is waived for that cluster.
7. To enable the Windows Server subscription at no additional cost, under the Windows Server subscription add-on feature in the same Configuration pane, select Activate benefit.
8. In the Activate Azure Hybrid Benefit pane on the right-hand side, check the details and then select Activate to confirm. Upon activation, licenses take a few minutes to apply and set up automatic virtual machine activation (AVMA) on the cluster.

Fig 5 - Activate Azure Hybrid Benefit

Azure Kubernetes Service (AKS) hybrid

Azure Kubernetes Service (AKS) Hybrid is a deployment option for AKS that enables customers to deploy and manage Kubernetes clusters on-premises using Azure Arc, while still leveraging the capabilities and services of Azure.

With AKS Hybrid, customers can extend their AKS deployments to their own data centres or other cloud properties, providing greater flexibility and agility for their applications. AKS Hybrid also simplifies the management of Kubernetes clusters, providing a consistent management experience across all environments. Licensing is subscription-based and is billed daily as a service fee to your Azure subscription at a cost of $0.80 per virtual core. Like the Azure Stack HCI software, the initial AKS deployments include a free 60-day trial period.

Fig 6 - AKS on Azure Stack HCI

AKS Hybrid can be licensed using the Azure Hybrid Benefit program. The Azure Hybrid Benefit program enables customers to use their existing licenses for Windows Server and SQL Server to run AKS on Azure Stack HCI, thereby reducing the cost of licensing. Here's how AKS on HCI is licensed with Azure Hybrid Benefit:

To use Azure Hybrid Benefit for AKS on Azure Stack HCI, you must have an eligible Windows Server or SQL Server license with active Software Assurance or Subscription licenses. Eligible licenses include:

• Windows Server Standard and Datacenter Editions
• SQL Server Standard and Enterprise Editions
• SQL Server Standard Core and Enterprise Core Editions

Enabling Azure Hybrid Benefit for Azure Stack HCI can help reduce the cost of licensing and improve the overall value of your Azure subscription.

For more information on the many ways we can help you, https://www.hpe.com/uk/en/services/pointnext.html.

Patrick Lownds
Hewlett Packard Enterprise

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