As organizations aim to control IT expenses without compromising performance, many are moving away from blunt cost-cutting tactics toward more strategic cost-efficiency approaches. Cloud-based SQL Server deployments are a prime example of this shift. Significant savings can be unlocked across four key areas: licensing, compute, storage, and data transfer costs. When teams align their infrastructure with actual usage patterns and business needs, the potential for cost reduction increases further.

In this episode of Data Driven, Dave Bermingham, Senior Technical Evangelist at SIOS Technology, breaks down four key approaches to managing SQL Server costs. Licensing, especially for Enterprise Edition, remains the most significant expense. However, Bermingham believes many businesses can reduce costs by switching to SQL Server Standard Edition and building SANless failover clusters in the cloud. With tools like SIOS Data Keeper, businesses can use locally attached cloud storage instead of shared storage, avoiding the need for Enterprise Edition licenses while still maintaining high availability.

Cloud providers also offer cost-saving options beyond licensing. In Azure, businesses can take advantage of Azure Reservations or Azure Savings Plans by committing to a specific usage level over time. AWS offers similar structures with Compute and EC2 Instance Savings Plans. These programs can help reduce compute costs if businesses can forecast and commit to consistent workloads.

Storage and data transfer represent other cost variables. Over-provisioning high-performance storage like premium solid-state drives (SSDs) or provisioned input/output operations per second (IOPS) can drive up expenses unnecessarily. Bermingham advocates for balancing performance requirements with cost saying, “The key is to make sure you’re not over-provisioning, but also provisioning what you need.” Accounting for data transfer fees, particularly when replicating databases across regions for high availability (HA) or disaster recovery (DR) is also crucial.

When deciding between self-managed SQL Server and cloud-managed services like Azure SQL Managed Instances, Bermingham advises evaluating both technical requirements and operational goals. Managed services simplify tasks like patching and backups. However, some organizations require the customization and control of self-managed environments, especially when dealing with legacy applications or compliance requirements.

Bermingham underscores the importance of “right-sizing” infrastructure, leveraging licensing benefits, and aligning with the right pricing model. Focusing on cost efficiency rather than simply cutting costs is key to achieving long-term success in cloud strategy.

Guest: Dave Bermingham (LinkedIn)
Company: SIOS Technology
Show: Data Driven

This summary was written by Emily Nicholls.