Tag: Azure Reserved Instances

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Azure Reservations – no more exchanges


From January 1, 2024* it will no longer be possible to exchange reservations for:

  • Azure Reserved Virtual Machine Instances
  • Azure Dedicated Host reservations,
  • Azure App Services reservations

purchased on or after that date. For reservations purchased before that date, you will have the option to exchange once after the cut-off date. There is no limitation being put on trading in reservations for Azure Savings Plans, that will still be perfectly possible.

Ensure you do a review of your Reserved Instances, and how you use exchanges, prior to the end of 2023. If you find a lot of exchanges take place, it’s worth understanding why and what changes you may need to make to processes going forward.

*Update*

Microsoft have extended the deadline to “at least” July 1, 2024, giving organisations at least a further 6 months to get on top of they Azure reservations needs and strategy.

You can see more about the change and grace period here.

For more answers, advice, and insights into Microsoft licensing for you and your organisation – get in touch here:

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Microsoft Product Terms: June 2020


Photo by Markus Winkler on Pexels.com

June is the last month of Microsoft’s financial year but they’re still made a few changes worth noting in this month’s Product Terms:

  • 5 year reservations for Azure VMs are added – with a 35% early termination fee
  • Azure Hybrid Rights for SQL have been expanded so now:
    • on-premises SQL Server Standard licenses can be used to run SQL Server Enterprise VMs in Azure
    • on-premises SQL Server Enterprise licenses can be used to run SQL Server Standard VMs in Azure
  • Changes to the eligibility for Office 365 and Microsoft 365 F1 & F3 licenses

SQL Server

The core conversion ratio is different for the two new scenarios:

4 x SQL Server Std on-prem cores w/SA = 1 x SQL Server Ent Azure core

1 x SQL Server Ent on-prem core w/SA = 4 x SQL Server Std Azure core

You can see the above table, and the info, on pages 54-54 of the June 2020 Product Terms.

F1/F3 changes

Microsoft have again changed the rules around who is eligible for a “Firstline” SKU. The new requirements are that to qualify for an F1/F3 license a worker must satisfy at least one of these conditions:

  • Uses a primary work device with a single screen smaller than 10.1”
  • Shares their primary work device with other qualifying Microsoft 365 or Office 365 Firstline Worker licensed users, during or across shifts
    • Other licensed Microsoft Firstline Worker users must also use the device as their primary work device
    • Any software or services accessed from the shared device requires the device or users to be assigned a license that includes use of those software or services

The previous guidance, updated in November 2019, was:

“A Dedicated Device is a computing device used for work with a 10.1” screen or larger, used by the user more than 60% of the user’s total work time during any 90-day period.”

These new rules should make it a bit easier for everyone to police but, for organisations already licensed for F1/F3 prior to June 1, 2020, you can continue to license based on the previous rules until your next renewal.

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