Based on data from Evolve Cloud Services optimization and licensing assessments, SQL Server 2016 continues to make up over 20% of an organization’s total SQL Server deployment on average. As SQL Server 2016 End of Support (EOS) approaches, it is critical for businesses to explore their EOS options as soon as possible. Early planning will help avoid last minute “fire drills” where businesses must make quick decisions that might limit their choices and increase cost.
While there are options to upgrade to supported versions on-premises, the cloud provides advantages for addressing EOS that do not exist on-premises. One of these options is to use services that include the licensing for SQL Server on a pay-as-you-go (PAYG) basis without long term commitments. Transitioning to license included instances in the cloud eliminates the need for further investment in on-premises licenses. Alternatively, cloud customers can also bring on-premises SQL Server licenses and utilize cloud-based guidance and tools to upgrade to supported versions.
Businesses that wish to avoid the cost and complexity of using Windows-based technology can also modernize and move to a non-SQL Server alternative in the cloud. Modernization is emerging as a highly intriguing option, especially if organizations can start planning early so they have time to explore all their options.
With over 3000 completed optimization and licensing assessments, Evolve Cloud Services has significant experience in helping businesses evaluate and contrast the advantages (and potential challenges) of every cloud deployment option. Businesses who partner with Evolve can make confident decisions based on data and a thorough evaluation of every technical, licensing, and cost consideration.
What Happens When SQL Server 2016 Reaches EOS?
SQL Server 2016 reaches the end of extended support on July 14th, 2026. After that time Microsoft will no longer issue free security updates and patches or provide technical support, which can make SQL Server 2016 workloads vulnerable to compliance and security threats.
Unfortunately, preparation for SQL Server EOS sometimes begins too late. This is understandable considering the massive burden that the EOS for Microsoft software puts on IT. As soon as one version reaches the end of support, it is time to prepare for the next one. For example, after SQL Server 2016 reaches end of extended support in July 2026, SQL Server 2017 will reach end of extended support 15 months later in October 2027. Windows Server support introduces similar challenges, and juggling multiple EOS dates can be a major headache. Modernization may be the cure. More about that later.
How Does SQL Server 2016 EOS Impact On-Premises Workloads?
Businesses using SQL Server 2016 on-premises have two options if they wish to continue receiving support for SQL Server after July 2026:
- Upgrade to a supported version
- Purchase Extended Security Updates (ESU)
When SQL Server is licensed for use on-premises, subscription licenses and perpetual licenses with Software Assurance (SA) can be upgraded to a supported version. In contrast, perpetual (non-subscription) SQL Server licenses without SA can only be upgraded to the last version that was publicly available when SA was active. For example, if an organization purchased SQL Server 2016 with SA under an Enterprise Agreement that expired on 12/31/2019 and decided to not renew SA, they could only upgrade to a version as recent as SQL Server 2019 (the most recent version available when SA expired). In this example, the licenses are forever limited to SQL 2019 and prior versions because SA cannot be added back onto a license once it has expired. If they need to upgrade to SQL Server 2022 on premises, they must purchase new licenses.
While it is common for businesses to have subscription licenses or perpetual licenses with SA, the challenge that Evolve Cloud Services often encounters in optimization assessments is that businesses may become “stuck” on a specific version of SQL Server due to the use of an application that does not support a more current version. When this occurs on-premises, organizations often consider purchasing ESUs, which enable critical security updates but do not include new features, functionality, or non-security fixes. ESU cost is calculated based on the number of virtual cores on the instance. ESU costs approximately 75% of the price of a full license yearly and is required to be eligible to make the purchase. The option to purchase ESU is also limited to three years, and businesses who purchase ESU will still need to upgrade eventually. It is wise for businesses to proactively explore their upgrade and modernization alternatives rather than spending money on ESUs. Migrating these workloads to the cloud creates some strategies to address these challenges.
SQL Server Licensing Options in the Cloud
There are two options for licensing SQL Server in the public cloud: Bring Your Own License (BYOL) and license included. Azure, AWS, and Google Cloud all offer SQL Server BYOL and license included options.
In a BYOL scenario, SQL Server perpetual licenses with SA (or subscription licenses) are generally eligible for deployment in the shared or dedicated tenant cloud through License Mobility benefits. In contrast, if an organization does not have SA, SQL 2016 BYOL is limited to dedicated tenant environments and requires that the licenses were purchased under an agreement effective before 10/2019. While ESU can be applied to BYOL SQL Server licenses, SA is required to purchase ESU. If an organization does not have SA, they cannot purchase ESUs for use on-premises or in the cloud.
The alternative to BYOL is to use license included instances, which allow cloud customers to pay the cloud provider on a PAYG basis for the use of SQL Server.
License Included Instances as an EOS Strategy
If organizations do not have SA for on-premises licenses, transitioning to license included instances can offer significant EOS advantages. In a license included scenario, SQL Server instances can be upgraded to supported versions without making any new license or SA purchases. Public cloud providers also offer technical guidance to help their customers upgrade to a supported version in-place. AWS provides this guidance here, Google Cloud provides guidance here, and Azure speaks to it here.
Even with early planning, there will be scenarios where certain applications must remain on SQL Server 2016 for various reasons. If these environments were migrated to license included instances prior to EOS, they will have access to license included instances that include SQL Server 2016 software. If SQL Server 2016 is a known requirement for a future migration, it is wise to activate the instances prior to EOS, because the software could be removed from the cloud console at EOS. This would allow for the continued use of SQL Server 2016 until the cloud customer is prepared to upgrade or modernize. In these scenarios, ESUs can be purchased from Microsoft for use on cloud-based license included SQL Server instances for up to three years.
ESU – Azure Versus Other Public Clouds
Azure has traditionally offered three years of ESU (from the EOS date) at no additional charge. Unfortunately, Microsoft does not extend this offer to other cloud environments or to their on-premises customers. Azure customers qualify for this EOS benefit when using license included instances and when bringing SQL Server subscription and perpetual licenses with SA. While extending the use of SQL Server 2016 on Azure with free ESUs may be tempting in the short term, the three year limitation means that businesses will still need to upgrade to a supported version eventually for continued support. This benefit also requires the continued cost of renewing SA for BYOL licenses.
In contrast, regardless of whether an organization uses license included or BYOL, using SQL Server 2016 after EOS in the non-Azure public cloud will require the purchase ESUs from Microsoft for continued security updates. Since SA is required to purchase ESU for BYOL licenses, organizations using BYOL who plan early may be in a better position to use their SA benefits to upgrade to a supported version rather than spending money on ESU. While resorting to paid ESUs is not an attractive option for anyone, it does provide a last resort option for businesses facing EOS challenges.
Regardless of whether an organization runs SQL Server 2016 on-prem, on Azure, or in the non-Azure cloud, they will need to upgrade to a supported version in the future to avoid losing support. Once this obstacle is behind them, they can prepare for Windows Server 2016 and SQL Server 2017 EOS. Good times indeed.
Managing the end of support dates for SQL Server and Windows Server can feel like a never ending task for IT. Modernization provides an alternative.
Modernization
In addition to staying current with support, organizations running SQL Server must manage high cost and complex licensing that may limit where they can effectively deploy their software. While these challenges can cause immense frustration, businesses often choose to remain on SQK Server and other Windows-based solutions due to familiarity and the level of expertise within their organization. While staying on SQL Server may feel comfortable and familiar, modernization is an alternative that should not be overlooked. SQL Server 2016 EOS should motivate businesses to explore modernization as an alternative to investing their time, energy, and resources into another version upgrade.
Modernizing to a cloud-based solution offers several benefits including:
- Increased developer productivity and innovation as a shift is made away from managing hardware and updating software
- Pay-as-you-go for software without making long term commitments or upfront purchases
- Improved scalability and flexibility to meet dynamic user requirements
- Security and compliance
- Integration with AI and machine learning
- Access to managed solutions that automatically scale to meet changing demands
Modernized solutions are available in several public cloud environments, including AWS, Google Cloud, and Azure. These solutions often utilize open source solutions such as PostgreSQL, MySQL, and DSQL. As mentioned in this Evolve Cloud Services blog, Is today the day to move SQL Server to Open Source?, PostgreSQL is a leading candidate in SQL Server replacement discussions due to its open-source licensing and expanding extension libraries. Amazon Aurora is a good example of a modernized solution that enhances PostgreSQL through separated storage and compute tiers, while including features that improve scalability, performance, and multi-region functionality.
The Evolve Cloud Services Modernization Viability Assessment helps organizations evaluate workload requirements, compare cost, and identify the steps required to modernize each specific workload.
Partner with Evolve Cloud Services To Evaluate Your EOS Options
Engagements with Evolve start with an assessment of an organization’s applications and server requirements. This information is used to identify the most optimal cloud service for the workload, along with the best technical and sizing options. Server instances are right-sized and consolidated, often leading to reduced cost. As Evolve gains an understanding of the licenses owned by the organization, BYOL eligibility is and the impact on cost is calculated. Cloud options that are evaluated include (but are not limited to) managed versus unmanaged cloud, desktop as a service, Nutanix Cloud Clusters (NC2), and modernization. Evolve knows from experience that every workload has unique requirements, and it is common for businesses to find that a combination of deployment options can benefit their business.
Are you ready to explore these options and start building a cloud migration strategy for SQL Server 2016? Do you have other workloads that you are considering moving to the cloud? Evolve is ready to help.
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Information on the Modernization Viability Assessment and partnering with Evolve Cloud Services to modernize your server workloads is available here.
If you have questions about how Evolve Cloud Services can help you, please contact us for more information.