SQL Server Multicore Licensing Policy

Multicore processors, which consist of multiple processing execution units or "cores" on one chip, promise to boost computing power, allowing servers, workstations, and PCs to perform more functions simultaneously. By the end of 2006, Intel expects more than 80 percent of its server products to be shipping with multicore technology. Because most server-side software is licensed "per processor," it has caused confusion among some software vendors regarding whether to charge their customers "per processor" or "per core."

Microsoft has been driving thought leadership in this area by charging the same amount per processor, regardless of how many cores are in the processor. Microsoft was the first database vendor to make this announcement, in October of 2004, and continues to be the only vendor to date that has taken this position. This strategy is based on the belief that multicore processors are a natural extension of Moore's Law (that the number of transistors on a chip doubles about every one to two years), and that the benefits should be passed on directly to customers.

For example, if you are using SQL Server Enterprise Edition on a four-processor server with quad-core processors, using all 16 (sixteen) cores (four cores x four processors), you will require only four processor licenses. That can mean substantial savings for customers of Microsoft compared to its competitors.

For only the Oracle Enterprise Edition of the database, Oracle views each "core" as 1/2 of a processor for Intel and AMD platforms. For example, for a quad-core processor, Oracle will require 4 x 0.5 = 2 licenses. So for a four-processor server with quad-core processors, Oracle would charge for eight processor licenses (16 cores x 0.5 = 8), versus four processor licenses under the Microsoft pricing model.

IBM has recently adopted a new licensing approach called Value Unit pricing, or VU pricing. A VU is a unit of measure used to differentiate cores from the various hardware vendors through IBM SWG Value Unit table that shows VU conversion rates. Please note that this conversion rate changes as IBM sees the need. For example, Intel and AMD multicore processors give a VU of 50 per core, while SUN UltraSPARC T1 has VU of 30 per core, and IBM Power5 has VU of 100 per core.

In addition to passing on to customers the cost-saving benefits based on the multicore licensing policy, SQL Server also supports feature-inclusive packaging where customers do not pay separately for enterprise capabilities such as manageability, high availability, and high-end business intelligence capabilities.

Figure 1. Oracle total cost is for a server with a "single" quad-core processor running Oracle EE edition on the Intel/AMD platform. IBM DB2 total cost is for a server with a "single" quad-core processor running DB2 EE edition on the Intel/AMD platform.

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