MSFTCOST02-BP03 Bring Your Own Licenses (BYOL)
If you have already invested in licenses for your Microsoft workload, such as having enterprise licensing agreements, you can choose to bring your own licenses to AWS and save costs on EC2. Depending on when the licenses were acquired and the version, Windows Server licenses can be brought to Amazon EC2 Dedicated Hosts. Other products covered by Software Assurance and License Mobility in the agreement, like SQL Server, can be brought to default (shared) tenancy.
AWS License Manager provides the flexibility to convert between Bring Your Own License (BYOL) and License Included configurations, allowing you to optimize licensing costs based on your needs and eligibility. This conversion capability enables you to switch between license models without having to rebuild instances, making it easier to adapt to changing licensing requirements or to take advantage of different cost models. For more information on licensing options, see the Microsoft FAQ on the AWS public page, or contact your account team to help you engage with a Microsoft expert on AWS to guide you through the options.
Desired outcome: Successfully optimize costs and maintain compliance by leveraging existing Microsoft licenses through BYOL implementation on AWS, while ensuring seamless license management and flexibility to convert between license models as needed, resulting in documented cost savings and efficient resource utilization without service disruption.
Common anti-patterns:
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Misaligned license deployment: Incorrectly deploying Windows Server licenses on shared tenancy instead of required Dedicated Hosts, or placing SQL Server with software assurance on Dedicated Hosts when it could run on shared tenancy, resulting in unnecessary costs and compliance violations.
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Missed conversion opportunities: Failing to utilize AWS License Manager's conversion capabilities between BYOL and license included configurations, leading to unnecessary instance rebuilds and downtime when licensing requirements change or cost optimization opportunities arise.
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Independent license decision-making: Making BYOL decisions without consulting AWS account teams or Microsoft licensing experts, resulting in missed opportunities for cost savings, improper license mobility implementation, and potential compliance issues with enterprise agreements.
Benefits of establishing this best practice:
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By leveraging existing Microsoft licenses through BYOL, organizations can significantly reduce EC2 instance costs compared to License Included options. This maximizes the value of existing enterprise licensing agreements and allows for more efficient allocation of IT budgets.
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AWS License Manager's ability to convert between BYOL and License Included configurations provides unprecedented flexibility. This allows organizations to adapt quickly to changing business needs, licensing requirements, or cost structures without service interruptions or time-consuming instance rebuilds.
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Properly implementing BYOL with guidance from AWS and Microsoft experts ensures compliance with complex licensing terms. This minimizes the risk of unexpected costs or penalties during audits, while also ensuring that licenses are correctly applied to the right types of instances (for example, Windows Server on Dedicated Hosts, SQL Server on shared tenancy when applicable).
Level of risk exposed if this best practice is not established: Medium
Implementation guidance
Start with a comprehensive audit of existing Microsoft licenses, then engage AWS account teams for expert guidance on BYOL implementation. Deploy AWS License Manager to track and manage licenses, ensuring proper instance placement (Dedicated Hosts versus shared tenancy) based on license terms. Regularly review and optimize configurations, maintaining thorough documentation for compliance purposes.
Implementation steps
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Audit existing Microsoft licenses and enterprise agreements
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Consult AWS and Microsoft experts for BYOL eligibility and options
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Set up AWS License Manager for tracking and conversion capabilities
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Deploy licenses correctly (for example, Windows Server on Dedicated Hosts, SQL Server on shared tenancy)
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Establish regular review process for ongoing optimization and compliance
Resources
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