When Microsoft announced that Windows Server and System Center 2016 will move to a per-core licensing metric, we decided to do a little research to determine how ready customers are for this significant change. Turns out, customers will face a 22% price increase on average when they transition to the new licensing model if they do not optimize their existing footprint.
In addition to the licensing change, Microsoft will depart from consistent feature parity between Windows Standard and Datacenter Edition for 2016. Customers will be able to take advantage of the Azure Hybrid Use benefit, so only pay for compute on Azure. These modifications mean there are a range of future state design and migration options and destinations, including consolidation, as part of an upgrade to Windows Server 2016 and Microsoft Azure.
Will your business be “core-ready” for Windows Server 2016?
This change in licensing, along with the additional features in Windows Server 2016, make it worth looking into the transition in order to get the most out of the new OS to ensure your licensing footprint is toned and rid of excess. Microsoft has advised customers to conduct an inventory of the number of physical cores in each processor licensed with Windows server to secure license grants and ensure compliance.
Consider the following:
- Across the SoftwareONE client base, the average number of Cores Per CPU is now 8.59 Cores
- The estimated uplift in Per Core Software Assurance (SA) spend, comparative to maintaining a CPU metric, would be a 22% increase without optimization
- The average cost uplift is a £773.61 (~$1k USD) increase per server at SA renewal
- The average value of a ‘license grant’ per server (in excess of 8 cores) is £3.9K (~$5k USD) at renewal
- 39.5% of servers have greater than 8 Cores, but will represent 49% of ongoing SA spend
Prepare carefully to avoid a Microsoft audit
While your prep may get you into a good starting position, it is critical to transition carefully. Otherwise, you may find yourself overpaying on licenses or not buying enough, causing non-compliance at audit time.
The key benefits of a “core-ready” business:
- Enable license spend reduction
- Access license grants from Microsoft
- Assess candidates for Azure and consolidation
- Maintain compliance
- Mitigate risk of a Microsoft audit
- Have a predictable commercial forecast
While the changes may seem disruptive, they don’t have to be. Some significant benefits include:
- Easier to calculate licenses across all use cases
- Simplified metrics that create a “common currency”
- Aligns with SQL Server 2012 licensing
- Allows easier use of MS Azure for Disaster Recovery
- Smoother transition to the cloud when ready
Learn more in our FREE upcoming Windows Server 2016 webinar!
So how do you get to these benefits and beyond? SoftwareONE can be your coach every step of the way to ensure you’re core-ready. Whether it’s a licensing transition or moving workloads to the cloud in the process, SoftwareONE has the expertise to guide you to your ideal IT environment quickly with cost control central to any program.
We have two upcoming Windows Server 2016 webinars. To reserve your seat for either one, click the banner below and complete the following form.