Enterprise software remains a cornerstone of the tech industry, with no signs of slowing growth. In 2021 alone, global spending on enterprise software reached $601 billion, and projections suggest even greater growth in the years ahead.
However, for many businesses, managing enterprise software costs, particularly Windows Server licensing, can be a significant challenge. Without proper planning, licensing expenses can quickly spiral out of control. Whether due to selecting the wrong licensing options or underutilizing your licenses, there are actionable strategies to help mitigate waste and optimize costs.
This guide will explore practical tips to reduce the cost of Windows Server licensing without compromising performance or compliance.
Best Ways to Reduce Your Windows Server Licensing Costs
Understand Your Licensing Options
Choosing the right Windows Server licensing option is critical to managing costs effectively. Microsoft offers several licensing models, including:
-
Per Core Licensing: This requires licensing of all physical cores on a server, with a minimum of 16 cores per server.
-
Client Access Licenses (CALs): This is required for users or devices to access the server.
-
Datacenter vs. Standard Editions: Datacenter supports unlimited virtualization, while Standard is more cost-effective for environments with fewer virtual machines.
How to Save:Â
Evaluate your current and future needs carefully. For example, if your workloads are not highly virtualized, the Standard Edition may be sufficient and significantly less expensive than the Datacenter Edition. Additionally, ensure that you purchase only the CALs you actually need to avoid unnecessary costs.
Leverage Software Assurance Benefits
Microsoft’s Software Assurance program offers benefits that can reduce long-term costs, such as:
-
Version Upgrades: Stay current without buying new licenses.
-
Version Downgrades: Get compatibility for any older software running on your server.
-
License Mobility: Use existing licenses in the cloud, eliminating the need for separate cloud-specific licenses.
-
Disaster Recovery Rights: Reduce costs associated with redundancy and backups.
How to Save:
Evaluate whether the upfront cost of Software Assurance aligns with your usage and growth plans. If your organization frequently upgrades or uses hybrid cloud environments, the benefits outweigh the initial expense.
Optimize License Utilization
Underutilized licenses represent a significant source of wasted spending. Common issues include over-purchasing CALs or underutilizing server capacity.
How to Save:
-
Audit Your Licenses: Conduct regular audits to ensure you use all purchased licenses efficiently.
-
Right-Size Your Environment: Match server capacity to actual workloads, scaling down where possible.
-
Use Virtualization Strategically: Consolidate workloads to fewer physical servers to maximize license value.
Take Advantage of Azure Hybrid Benefits
If your organization is transitioning to the cloud, Azure Hybrid Benefits can significantly reduce costs by allowing you to reuse existing on-premises licenses for Azure.
How to Save:
-
Use existing Windows Server licenses with Software Assurance to reduce Azure costs.
-
Evaluate whether a hybrid model (on-premises and cloud) aligns with your business needs for additional cost savings.
Partner with a Microsoft CSP
Working with a Microsoft Cloud Solution Provider (CSP) can help businesses navigate complex licensing scenarios and secure competitive pricing.
How to Save:
-
CSPs often provide volume discounts and flexible payment options.
-
They can also recommend the most cost-effective licensing strategies based on your specific needs.
Take Control of Your Windows Server Licensing Costs
Windows Server licensing doesn’t have to break your budget. By choosing the right licensing model, optimizing utilization, and leveraging tools like Azure Hybrid Benefits, you can significantly reduce costs while maintaining robust server capabilities.
At Trusted Tech Team, we specialize in helping businesses optimize their Windows Server licensing to maximize value and minimize waste. Contact us today to learn how we can help you save on your licensing costs and ensure compliance every step of the way.
Â
Â
Trusted Tech Team is an accredited Microsoft CSP Direct Bill Partner, carrying multiple Solutions Partner designations and the now-legacy Microsoft Gold Partner competency. Based in Irvine, California, we report trends affecting IT pros everywhere.
If your organization uses Microsoft 365 or Azure, you may be eligible to receive a complimentary savings report from a Trusted Tech Team Licensing Engineer. Click here to schedule a consultation with our team now to learn how much you can save today.
Â
