---
sourceDocument: Australia Asset Management
sourceDocumentLink: https://servicenow-prod.fluidtopics.net/r/it-asset-management

 Release :

    - australia

ft:locale :

    - en-US

ft:publication_title :

    - Australia Asset Management

ft:clusterId :

    - itam

bundleId :

    - itam

workflow :

    - Technology


---

# Microsoft cost-based licensing optimization example

# Microsoft cost-based licensing optimization example {#ariaid-title1}

* Release version: Australia
* 
* Updated March 12, 2026
* 
* ![](https://www.servicenow.com/docs/portal-asset/ico-clock) 2 minutes to read

This example demonstrates how a software asset manager can optimize Microsoft SQL Server licensing in a cluster deployment.
In this example, a software asset manager is managing the following Microsoft SQL Server entitlements:{#microsoft-cost-based-licensing-optimization-example__table_rh2_ksv_zbc__entry__4}

| Entitlement Name | License Type | Number of Purchased Rights | Cost Per Core |
|-|-|-|-|
| SQL Server Enterprise Licenses | SQL Server 2019 Enterprise Core with Software Assurance | 1800 | $5000 |
| SQL Server Standard Licenses | SQL Server 2019 Standard Core with Software Assurance | 600 | $1300 |
[Table 1. Microsoft SQL Server entitlements]

{#microsoft-cost-based-licensing-optimization-example__table_rh2_ksv_zbc}

The following infrastructure is a VMware cluster that consists of three physical hosts. Each physical host contains virtual machines (VMs) that are running various versions and editions of Microsoft SQL Server. These VMs may potentially be moving across all physical hosts within the cluster.

Based on the available entitlements and the cluster infrastructure, the software asset manager can license the cluster using one of the following options:{#microsoft-cost-based-licensing-optimization-example__table_lk1_x5v_zbc__entry__6}

| Option Number | License Type | Licensing Layer | Number of Rights Required on Each Host or VM | Total Number of Required Rights | Total Approximated Cost |
|-|-|-|-|-|-|
| 1 | SQL Server 2019 Enterprise Core with Software Assurance | Physical host layer | * Host 1: 12 rights * Host 2: 16 rights * Host 3: 24 rights {#microsoft-cost-based-licensing-optimization-example__ul_cln_1yv_zbc} | 12 rights (Host 1) + 16 rights (Host 2) + 24 rights (Host 3) = 52 rights total | 52 rights X $5000 = $260,000 |
| 2 | SQL Server 2019 Enterprise Core with Software Assurance | Virtual layer | * VM-1: 4 rights * VM-2: 4 rights * VM-3: 4 rights * VM-4: 4 rights * VM-5: 4 rights * VM-6: 4 rights * VM-7: 4 rights * VM-8: 4 rights * VM-9: 4 rights * VM-10: 8 rights * VM-11: 8 rights {#microsoft-cost-based-licensing-optimization-example__ul_zfn_m1w_zbc} | 4 rights (VM-1) + 4 rights (VM-2) + 4 rights (VM-3) + 4 rights (VM-4) + 4 rights (VM-5) + 4 rights (VM-6) + 4 rights (VM-7) + 4 rights (VM-8) + 4 rights (VM-9) + 8 rights (VM-10) + 8 rights (VM-11) = 52 rights total | 52 rights X $5000 = $260,000 |
| 3 | Both SQL Server 2019 Enterprise Core with Software Assurance and SQL Server 2019 Standard Core with Software Assurance | Virtual layer | * SQL Server 2019 Enterprise Core with Software Assurance: * VM-1: 4 rights * VM-9: 4 rights * VM-10: 8 rights * VM-11: 8 rights {#microsoft-cost-based-licensing-optimization-example__ul_lf1_qcw_zbc} * SQL Server 2019 Standard Core with Software Assurance: * VM-2: 4 rights * VM-3: 4 rights * VM-4: 4 rights * VM-5: 4 rights * VM-6: 4 rights * VM-7: 4 rights * VM-8: 4 rights {#microsoft-cost-based-licensing-optimization-example__ul_sxm_wcw_zbc} {#microsoft-cost-based-licensing-optimization-example__ul_f4m_pcw_zbc} | * SQL Server 2019 Enterprise Core with Software Assurance: 4 rights (VM-1) + 4 rights (VM-9) + 8 rights (VM-10) + 8 rights (VM-11) = 24 rights total * SQL Server 2019 Standard Core with Software Assurance: 4 rights (VM-2) + 4 rights (VM-3) + 4 rights (VM-4) + 4 rights (VM-5) + 4 rights (VM-6) + 4 rights (VM-7) + 4 rights (VM-8) = 28 rights total {#microsoft-cost-based-licensing-optimization-example__ul_myk_spx_zbc} | (24 rights X $5000) + (28 rights X $1300) = $156,400 |
[Table 2. Licensing options]

{#microsoft-cost-based-licensing-optimization-example__table_lk1_x5v_zbc}The software asset manager determines that option number 3 is the most cost-effective licensing solution for the cluster. By using this licensing option, the software asset manager can achieve a total cost savings of approximately $103,600.