Azure SQL (PaaS) Costing and SQL Licensing

Question

I am very new to Azure and Azure SQL. I built out a low end VM for various tasks that I need to complete. Separately, I also want to take advantage of Azure SQL so I set up a single Azure SQL database (Basic tier - 5 DTU).

From everything I've read, it is supposed to be less expensive than having a monthly SQL license - but after adding Azure SQL - I'm seeing charges for

1. the VM
2. the Azure SQL (Basic DTU - $17 - this was somewhat expected - although more than the $4 advertised)
3. SQL licensing ($500+/month)

Is this correct? the pricing estimator doesn't show the SQL license, and I cant seem to find the info for Azure SQL licensing requirements. Seeing as the license cost is 2x the cost of the entire VM and Azure SQL, I'd like to understand if it's an incorrect setting, or if that's to be expected with the full "Platform As A Service" Azure SQL

Note: NOT Azure Hybrid, or SQL Server on Azure Machine

Answer 1

Hi @Devin Martin

Thanks for the Question and using Microsoft Q&A

It looks like you're using Azure SQL Database in the Basic Tier (5 DTU), which is generally priced around $5–$20 per month, depending on the region. The $17 charge you're seeing is within the expected range for the Basic Tier. However, the pricing can vary slightly based on your specific region and any additional configurations.

The $500+ monthly charge you're seeing for SQL licensing is unexpected when using Azure SQL Database (PaaS). Azure SQL Database is a Platform as a Service (PaaS) offering, and the cost of SQL Server licensing is included in the Azure SQL pricing. You should not be seeing additional SQL Server license fees on top of this.

Possible Causes of Unexpected Charges

There are a few reasons why you might be seeing this extra licensing charge:

SQL Server on VM: If you are using SQL Server on a Virtual Machine (VM) instead of Azure SQL Database (PaaS), you would be charged separately for the SQL Server license in addition to the VM cost. This could be the source of the additional $500+ charge.

Azure Hybrid Benefit: If you have existing on-premises SQL Server licenses, you may be eligible for the Azure Hybrid Benefit. Without this benefit, the licensing cost for SQL Server on VM could be higher.

Please Review your Azure subscription and billing details to identify any additional services or resources that might be contributing to the cost.

Please go through these Documentations that might help you:

https://learn.microsoft.com/en-us/azure/azure-sql/database/cost-management?view=azuresql

https://azure.microsoft.com/en-in/pricing/details/azure-sql-database/single/

Hope this helps. Do let us know if you any further queries.

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