AZ-900 Describe Azure management and governance Practice Question
Which Azure feature allows you to save money on Azure SQL Database and Azure SQL Managed Instance using existing on-premises SQL Server licenses?
⚠ Common exam trap
Many exam-takers confuse Azure Hybrid Benefit with Azure Reserved Instances, thinking both are purely discount mechanisms, but Hybrid Benefit specifically reuses existing licenses whereas Reserved Instances only commit to future spend without license portability.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Azure Hybrid Benefit
Azure Hybrid Benefit allows you to use your existing on-premises SQL Server licenses with Software Assurance to reduce the cost of Azure SQL Database and Azure SQL Managed Instance. By applying this benefit, you pay only for the underlying compute infrastructure at the base compute rate, effectively saving up to 55% on SQL licensing costs. This is specifically designed to maximize value from existing license investments when migrating to Azure.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Azure Reserved Instances
Why it's wrong here
Azure Reserved Instances require a one- or three-year commitment to specific vCore-based compute or SKUs, delivering a discount for prepaying capacity. However, they do not allow you to apply your existing SQL Server licenses; you are still paying for the included SQL Server license at the reserved rate. The cost reduction comes from capacity reservation, not from license reuse, which is the core mechanism of Azure Hybrid Benefit.
- ✓
Azure Hybrid Benefit
Why this is correct
Azure Hybrid Benefit (AHB) for SQL Server lets customers with active Software Assurance (SA) on their on-premises SQL Server licenses apply those licenses to Azure SQL Database or SQL Managed Instance. This removes the SQL Server license component from the Azure vCore price, reducing costs by up to 30% (or up to 55% when combined with a Reserved Instance). Only this option actually leverages existing licenses to lower the licensing cost for production workloads, making it the correct answer.
- ✗
Azure Spot VMs
Why it's wrong here
Azure Spot VMs provide discounted access to spare Azure compute capacity, but they can be evicted with only a 30-second warning when that capacity is reclaimed. They are designed solely for interruptible, stateless workloads such as batch jobs or data processing, not for production SQL Server databases. Spot VMs do not accept or apply existing SQL Server licenses; you must still pay for the license-included rate, so they don't provide any license mobility benefit.
- ✗
Azure Dev/Test pricing
Why it's wrong here
Azure Dev/Test pricing offers reduced hourly rates for development and testing workloads, but it is only available to customers with a Visual Studio subscription and explicitly prohibits production use. The discount applies to the VM infrastructure, not to the SQL Server license, and it does not involve transferring or reusing on-premises Software Assurance licenses. In contrast, Azure Hybrid Benefit targets production SQL Server workloads, so Dev/Test pricing is not the correct mechanism here.
Go deeper
Related to this question
Learn chapter
Azure Cost Management and Billing
Key term
Azure SQL Database
Azure SQL Database is a fully managed relational database-as-a-service (DBaaS) in Microsoft Azure, based on the SQL Server engine, that handles scaling, backups, patching, and high availability automatically.
Key term
SQL Managed Instance
SQL Managed Instance is a cloud database service from Azure that gives you most of the features of a full SQL Server instance without you having to manage the underlying hardware or software patches.
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