The document explains the process and importance of conducting annual true-ups for Microsoft SQL Server under enterprise agreements, which is required to reconcile changes in users, devices, and processors. While increasing license counts is straightforward, reducing them can be challenging, and the document outlines strategies for doing so, including using accurate data and preparing in advance. It also emphasizes the necessity of removing unapproved product installations to avoid unexpected costs.

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Tips for Cutting SQL
Server Licensing Costs
SQL Server resellers often send true-up forms to their customers more frequently than Microsoft
requires, with some customers receiving them every month. They may feel compelled to fill them out
each time, but Microsoft only requires one true-up each year. This true-up must also include an update
statement that describes the count changes for the previous year. Increasing true-up counts in the EA
is quite easy, but reducing the count, also known as truing down, can be very difficult. However, it can
be done by performing the following steps.
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• Base current count on hard data rather than estimates
• Determine qualified device count (QDC)
o Look in network’s Active Directory
o Use software asset management (SAM) tool
o Use System Center Configuration Manager (SCCM) tool
• Find qualified user counts (QUCs)
o Browse email accounts
o Review human resources (HR) systems
CHECK COUNTS
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• Value gap: Difference in licensing cost between last
true-up count reported to Microsoft and actual/current count
• Build arguments for truing down
• Many software vendors provide solutions for this task
CREATE VALUE GAP
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• Microsoft's enterprise customers often procrastinate on true-ups
• This could prevent properly truing down
• Microsoft allows enterprise customers to reduce their counts
between 30 and 60 days before true-up is due
• Prepare for true-ups well in advance
PREPARE FOR TRUE-UP
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• Is SQL Server purchased for entire enterprise?
• Was SQL Server bought via perpetual license or subscription?
• Microsoft only allows customers to reduce counts on enterprise
agreements when scaling counts back down to original levels
CHECK ORIGINAL COUNTS
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• License fees of different SQL Server editions vary considerably
• Reduce cost by replacing editions that are fully utilized
• For example, downgrading from Enterprise to Standard edition
saves about $10k
REVIEW SQL EDITIONS
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• Some Microsoft products are easy to manage
• True-ups are more challenging for products like SQL Server
• Pay close attention to contractual language
• Understand deployment of complicated products, especially their
count requirements
BEWARE OF BAD PRODUCTS
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• For Microsoft’s enterprise agreements (EA)
• Reconcile changes in users, devices, and
processors
• For particular Microsoft products like SQL
Server
MICROSOFT TRUE-UPS
• Identify unapproved product installations
• Can result in huge unexpected bills
• Need to remove unauthorized installations
before true-up
CONSEQUENCES

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TRUE-UP FORMS
• Microsoft requires one true-up per year
• Must also include update statement with count changes for previous year
• Increasing counts in enterprise agreements is quite easy
• Reducing counts (truing down) can be very difficult

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TRUE-UPS SUMMARY
A true-up is a general accounting term for the reconciliation of multiple balances. A
Microsoft Enterprise Agreement (EA) requires enterprise customers to conduct an annual
true-up to reconcile changes in its users, devices and processors for a particular Microsoft
product like SQL Server since the last true-up. The purpose of this process is to identify
unapproved installations of these products, which can result in an unexpected bill of
thousands or even millions of dollars. It’s therefore essential to remove these unauthorized
installations before the annual true-up is due.
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