New Opportunities with Azure Arc-Enabled SQL Server Reclass: A Win for Microsoft Partners

Microsoft continues to lead the charge with groundbreaking solutions that not only address the needs of today’s businesses but also create new opportunities for partners. One such innovation is the Azure Arc-enabled SQL Server Reclass feature, which allows customers to transition their existing SQL Server licenses to a Pay-As-You-Go (PAYG) model. This new capability is a game-changer for Microsoft partners, offering a unique opportunity to drive customer value, increase revenue, and strengthen relationships.

What is Azure Arc-Enabled SQL Server Reclass?

Azure Arc-enabled SQL Server allows customers to extend Azure services to their on-premises, multi-cloud, or edge environments. With the new Reclass feature, customers can now convert their existing SQL Server licenses (with active Software Assurance) into a Pay-As-You-Go model. This means customers can pay for SQL Server usage on a monthly or hourly basis, without the need for upfront commitments or long-term contracts.

This Reclass process is seamless and can be done without disrupting existing workloads. Customers can continue to use their on-premises SQL Server instances while benefiting from the flexibility and cost-efficiency of the PAYG model.

How Does Reclass Benefit Microsoft Partners?

For our Microsoft partners, the Azure Arc-enabled SQL Server Reclass feature opens up several exciting opportunities:

Drive Customer Value with Flexible Licensing:

• Cost Efficiency: Customers can optimize their SQL Server costs by paying only for what they use. This is particularly beneficial for organizations with fluctuating workloads or those looking to reduce upfront capital expenditure (CAPEX).
• No Upfront Commitment: The PAYG model eliminates the need for long-term commitments, making it easier for customers to adopt SQL Server without financial risk.
• Scalability: Customers can easily scale their SQL Server instances up or down based on demand, providing greater flexibility and cost control.

Partners can position this as a cost-effective solution for customers who want to modernize their SQL Server environments without the burden of traditional licensing models.

Expand Revenue Opportunities

• New Revenue Streams: By helping customers transition to the PAYG model, partners can unlock new revenue streams through Azure consumption. The PAYG model is billed monthly as part of the customer’s Azure bill, which means partners can earn recurring revenue.
• Incentives and Rebates: Partners can earn incentives and rebates through the Azure Consumption Revenue (ACR) program. When customers reclassify their SQL Server licenses, partners can start earning ACR-based incentives, contributing to their overall profitability.
• Upsell Opportunities: The Reclass process opens the door to additional Azure services, such as Microsoft Defender for SQL Server, Azure Monitor, and Azure Purview. Partners can upsell these services to enhance customer value and increase their own revenue.

Strengthening Customer Relationships

• Modernization and Cloud Adoption: By helping customers reclassify their SQL Server licenses, partners can position themselves as trusted advisors in the customer’s cloud and modernization journey. This strengthens the partner-customer relationship and builds long-term loyalty.
• Simplified Management: With Azure Arc, customers can manage their SQL Server instances across on-premises, multi-cloud, and edge environments from a single pane of glass in the Azure portal. Partners can highlight the ease of management and operational efficiency as key benefits of the Reclass process.
• Compliance and Security: Partners can emphasize the built-in security features of Azure Arc-enabled SQL Server, such as Microsoft Defender for SQL Server and vulnerability assessment scanning. This helps customers meet compliance requirements and secure their SQL Server environments.

Targeted Customer Segments

• SPLA License Conversion: Partners can target customers with SPLA (Service Provider License Agreement) licenses that are due for renewal. By converting these licenses to PAYG, customers can benefit from greater flexibility and cost savings.
• Legacy SQL Server Customers: Customers running older versions of SQL Server (e.g., SQL Server 2014, 2016) can be encouraged to upgrade to newer versions (e.g., SQL Server 2022) without upfront costs or commitments.
• Periodic Workloads: Customers with periodic workloads, such as ERP systems or payroll processing, can benefit from the PAYG model by scaling down their SQL Server instances during off-peak periods.

How to Get Started with Reclass

For partners looking to capitalize on this opportunity, here’s a quick guide to getting started:

• Identify Potential Customers: Start by contacting your Surestep Ambassador and identify customers who are using SQL Server with active Software Assurance or those with SPLA licenses due for renewal. These customers are ideal candidates for Reclass.
• Deploy Azure Arc Agent: Help customers deploy the Azure Arc agent on their on-premises SQL Server instances. This connects their SQL Server to the Azure portal, enabling management and monitoring from Azure.
• Set Licensing to PAYG: Once the Arc agent is deployed, guide customers through the process of setting their SQL Server licensing to the PAYG model. This can be done seamlessly through the Azure portal.
• Monitor and Optimize: After Reclass, partners can help customers monitor their SQL Server usage and optimize costs using Azure tools like Azure Monitor and Azure Cost Management.
• Upsell Additional Services: Use the Reclass process as an opportunity to upsell additional Azure services, such as Microsoft Defender for SQL Server, Azure Purview, and Azure Synapse Link.

The Azure Arc-enabled SQL Server Reclass feature is a powerful tool for our Microsoft partners to drive customer value, expand revenue opportunities, and strengthen relationships. By helping customers transition to a flexible, cost-effective PAYG model, partners can position themselves as trusted advisors in the customer’s cloud and modernization journey.

As the demand for hybrid and multi-cloud solutions continues to grow, partners who embrace this opportunity will be well-positioned to succeed in the evolving cloud landscape. Now is the time to explore the potential of Azure Arc-enabled SQL Server Reclass and unlock new opportunities for your business and your customers.

Now is the time to embrace the flexibility and innovation these tools bring by contacting your Surestep Ambassador team at This email address is being protected from spambots. You need JavaScript enabled to view it. to assist you to connect your customer’s SQL Servers to Azure Arc and adopting the PAYG model and further benefit from the incentives.