Microsoft SQL Server: When Core Licenses Become More Cost-Effective than Server + CAL Licenses
In the server licensing model, a choice is often made between two options: the Server + CAL (Client Access License) model or the Core licensing model. Each of these models has its own advantages, depending on the size of the organization and the number of users. This blog examines the tipping point between the two models and helps you determine which licensing model is the most cost-effective for your organization.
What are Server + CAL Licenses?
What is the Server + CAL Model?
The Server + CAL model works as follows: you purchase a server license, and then you need to acquire a separate CAL for each user or device that accesses the server. This model is usually more cost-effective for smaller organizations with a limited number of users or devices. At Softtrader, we offer competitively priced pre-owned Server + CAL licenses, such as Microsoft SQL Server.
Advantages of Server + CAL:
- Cost-effective for smaller organizations with fewer users.
- Licenses based on users or devices.
What are Core Licensing Models?
What is the Core Licensing Model?
In the Core licensing model, the server is licensed based on the number of cores (CPU cores). This model is often used by larger organizations, as no separate CALs are required for users or devices. This makes it more cost-effective for organizations with many users or for environments where multiple servers operate. At Softtrader, we also offer competitively priced pre-owned Core licensing models, such as Microsoft SQL Server.
Advantages of the Core Licensing Model:
- Cost-effective for organizations with many users.
- No need to purchase individual CALs.
- Suitable for environments with virtualization and large server capacities.
When to Choose Which Model?
Choosing the right licensing model depends on the size of your organization and the number of users or devices that access the server. For smaller organizations with fewer users, the Server + CAL model offers the most value. As the number of users increases, the Core licensing model quickly becomes more advantageous. By carefully assessing your organization's current and future user needs, you can determine which model is best suited for your situation.
The Tipping Point of Cost-Effectiveness
When does the Core licensing model become more cost-effective than Server + CAL? Below, you will read more about the specific numbers of the tipping point. Additionally, the difference between new and pre-owned servers regarding the tipping point for cost-effectiveness is also significant. Generally, the following applies to new Server + CAL and Core licensing models:
- With a smaller number of users within an organization (1-50), the Server + CAL model is more advantageous.
- With a larger number of users (more than 50), the Core licensing model is the better option.
The prices in the example below are based on Microsoft's pricing. The prices are taken from the website at the time of writing.
Cost Example of the Tipping Point:
Scenario 1: Server + CAL
- Server License: €1000
- CAL per User: €200
- Number of Users: 32
- Total Costs: €1000 + (€200 x 32) = €8,040
Scenario 2: 2 Core Licenses
- Core Price per 2 Cores: €4,000
- Minimum 2 x 2 Core Required: 2 x €4,000 = €8,000
- Total Costs: €8,000
With 32 users or more, it is already more advantageous for your organization to consider purchasing the Core licensing model instead of the Server + CAL model.
Pre-owned licenses can save you up to 70% of the costs compared to new prices from Microsoft!
At Softtrader, the tipping point for the pre-owned Microsoft SQL Server lies around 35 users. Softtrader offers the license pre-owned, which makes the tipping point differ from a new Microsoft SQL Server from Microsoft.
For companies with fewer than 35 users, Softtrader’s Server + CAL model is more advantageous. With more than 35 users, the Core licensing model is a better option for your organization. Due to the pre-owned sale of server licenses, it is interesting for organizations to save on IT costs. Softtrader helps you choose the right license tailored to your specific needs.
Do you have questions about what the best option is for you? Please contact us!
For more information about which Microsoft software licenses are best suited for you, contact us. We are available Monday to Friday from 9:00 AM to 5:00 PM.