Microsoft recently introduced a new OEM licensing model for Azure Stack HCI, designed to simplify the licensing process and offer numerous benefits. This new model, available through major hardware vendors like HPE, Dell, and Lenovo, provides companies with an additional option to manage their Azure Stack HCI licenses. In this article, we will explore the current licensing options in detail and the features of the new OEM license, highlighting the technical aspects and benefits for users.
Existing Licensing Options
Before diving into the new OEM licensing option, it is essential to understand the currently available licensing models for Azure Stack HCI. For all details on the Azure Stack HCI cost model, you can consult this article.
Overview of the New OEM License
The new OEM licensing option for Azure Stack HCI is a prepaid license available through specific hardware vendors, such as HPE, Dell, and Lenovo. Intended for Azure Stack HCI hardware, including Premier Solutions, Integrated Systems, and Validated Nodes, this license offers a pre-installed solution that is activated in Azure and remains valid for the duration of the hardware.
The Azure Stack HCI OEM license includes three essential components:
- Azure Stack HCI: The foundational platform for hybrid cloud that enables running virtualized workloads.
- Azure Kubernetes Services (AKS): The container orchestration service that simplifies the management and deployment of containerized applications.
- VM and guest containers: Through Windows Server Datacenter 2022, Windows Server VMs can be activated on an Azure Stack HCI cluster using generic keys for Automatic Virtual Machine Activation (AVMA), via Windows Admin Center or PowerShell.
This license ensures access to the latest versions of Azure Stack HCI and AKS, allowing for the use of unlimited VMs and containers.
OEM License Features
The features of the Azure Stack HCI OEM license are as follows:
- Inclusion of Azure Stack HCI and AKS: The license includes Azure Stack HCI and Azure Kubernetes Services (AKS) with unlimited virtual CPUs. This is a significant advantage compared to the Azure Hybrid Benefit, which limits the use of AKS to the number of licensed physical cores.
- Physical core licensing: Each physical core in the server must be licensed. The base license covers up to 16 cores, with additional components available in two and four core increments for systems with more than 16 cores. For example, a 36-core system requires two 16-core licenses plus an additional four-core license. This license does not support a dynamic per-core model.
- Prepaid and permanent license: This license does not require annual renewals or subscriptions. It is a prepaid license that remains valid for the duration of the hardware on which the Azure Stack HCI operating system is installed.
- No support for mixed nodes: Currently, this license does not support environments with mixed nodes in the same Azure Stack HCI system. For more information, it is advisable to consult the mixed node scenarios.
- Non-transferable license: The license is tied to the original hardware on which the Azure Stack HCI operating system is pre-installed and cannot be transferred to different hardware or systems. This approach ensures that the license and its benefits remain specific to the initial hardware configuration.
- Automatic activation: This pre-installed license does not include product keys or COA. The license is automatically activated once the device is registered in Azure. In the event of a failure requiring reinstallation, it is necessary to contact the OEM vendor.
- No CAL requirements: For this specific license, no Device or User CAL is required.
Technical Details
The new OEM license is pre-installed on the hardware and automatically activates in Azure. This process eliminates the need for physical licenses or additional activation steps. When users connect Azure Stack HCI nodes to Azure, the system recognizes the OEM license and automatically activates the associated benefits.
To verify if you have an active OEM license for Azure Stack HCI, you can follow these steps:
- Access the Azure portal.
- Search for your Azure Stack HCI cluster.
- Under the cluster, select Overview to check the billing status.
- If you have an active OEM license for Azure Stack HCI, the billing status should be OEM License, and the OEM license status should be Activated.
Figure 1 – Azure Stack HCI Billing status
For support with the Azure Stack HCI OEM license, you must first contact your OEM vendor. If support is not available from the vendor, it is advisable to open an Azure support request through the Azure portal.
Advantages of the New OEM Licensing Mechanism
The new OEM licensing option offers several significant advantages for Azure Stack HCI users:
- Simplified licensing: Users do not need to manage separate licenses or worry about additional documentation. The license is embedded in the hardware, simplifying the entire process and reducing administrative complexity.
- Different and more predictable cost model: By prepaying the license, users avoid recurring monthly or annual costs, which can result in significant long-term savings. Users benefit from a one-time purchase that includes hardware, software, and full support, simplifying IT resource procurement and management.
- Unlimited use of AKS: The inclusion of unlimited virtual CPUs for Azure Kubernetes Services (AKS) is a substantial advantage, particularly for organizations that extensively use Kubernetes for containerized applications.
- Operational efficiency: The automatic activation feature ensures that users can quickly and easily start using their Azure Stack HCI infrastructure without additional configuration or licensing steps, improving operational efficiency. Moreover, a single license covers Azure Stack HCI, AKS, and Windows Server 2022 as guest VMs, offering an integrated solution that simplifies overall license management.
Conclusion
The new OEM licensing model for Azure Stack HCI represents a new opportunity for licensing hybrid infrastructures. Through direct integration with major hardware vendors like HPE, Dell, and Lenovo, this solution offers a prepaid and permanent license, simplifying the purchasing process and reducing administrative complexity. The benefits include unlimited use of Azure Kubernetes Services, a more predictable cost model, and automatic activation that allows users to quickly start using their infrastructure. While this licensing model does not support mixed node environments and is non-transferable, it makes Azure Stack HCI an even more attractive choice for companies seeking efficiency and flexibility in managing Microsoft hybrid solutions.
