What is BYOL (bring your own license)?
BYOL (bring your own license) is a type of licensing model used in cloud computing. The purpose of this model is to enable the re-utilization of existing software licenses in a cloud, multi-cloud, or hybrid environment. This strategy is useful for optimizing cloud costs and improving risk management.
Cloud computing is an integral component of most IT infrastructures. The centralization of data, scalability, and accessibility of this system are just some of its primary advantages. There are many different cloud vendors, and each one has their own terms and conditions of use, pricing structures, and compliance policies. BYOL is responsible for the negotiation and unification of multivendor sourced licenses.
Unlike some software subscriptions, cloud licenses are relatively easy for a company to both purchase and deploy, but without careful management, these can quickly turn into an area of overspending and inefficiency. The BYOL model is one way to take control of cloud spending and maximize on IT funds already spent.
Let’s take a look at the meaning of BYOL, some of its key characteristics, as well as various platforms that support this model, such as (BYOL) Bring Your Own License AWS, and how you can implement it across your cloud infrastructure.
BYOL Benefits and Characteristics
Bring Your Own License, or BYOL, is a licensing model that enables companies to flexibly integrate pre-existing software subscriptions into their cloud or on-premises infrastructures. This type of license has several benefits and flexibility between on-premises and cloud environments that distinguish it as the best of both worlds. Here are some key benefits of the BYOL model:Flexibility
The BYOL model offers an array of features that make this type of computing license a good choice for on-premises and cloud environments. Vendor lock-in is a common challenge companies face when starting out in cloud computing.Risk reduction
Purchasing cloud licenses can be risky if you’re unsure about the correct computing capacity for your license. Paying for cloud licenses with too much computing capacity can quickly turn costly, leading to financial loss.Cost Efficiency
The BYOL model is designed to optimize licensing costs and leverage software subscriptions that have already been purchased.Version control
The management of BYOL licenses rests entirely on the customer. Therefore, the customer can independently manage software updates and maintain control over their software versions in accordance with the license agreement and compliance policy.Pay-As-You-Go vs. BYOL
Cloud licenses and BYOL licenses have different pricing and payment structures. Cloud vendors charge per a Pay-As-You-Go (PAYG) rate, which is either hourly or usage-based. PAYG is a flexible pricing structure, however, without strategic management and periodic license right-sizing, it can become more costly than traditional subscription-based methods.
BYOL licenses, on the other hand, have a different pricing structure that mimics the software’s original pricing. The license can typically be purchased upfront for a select term, such as a one-, two-, or three-year subscription.
Implementing BYOL
Here are some examples of using BYOL with different Cloud Vendors:
- BYOL AWS: AWS (Amazon Web Services) offers a BYOL or License Mobility program that simplifies the management of previously purchased on-premises licenses. With the AWS License Manager tool, BYOL licenses are categorized by their “Dedicated Host”, such as Microsoft Azure or SQL Server, and include features that help maintain compliance and reduce Total Cost of Ownership (TCO).
- BYOL SAP: SAP HANA (SAP’s Cloud platform) has a BYOL program designed to enable customers to deploy their previously purchased software licenses in a new cloud environment. The deployment, customization, and management of BYOL licenses in SAP are the responsibility of the customer and the pricing is based on resource usage.
- BYOL Azure: Microsoft Azure’s Dedicated Hosts function allows customers to provision and manage their previously purchased on-premises within their private Azure subscription. With Dedicated Hosts, customers can customize and control the management of their licenses. It also includes most of the standard features of Azure’s VMs, including the Azure Hybrid benefit and other cost-saving features.
- BYOL Oracle: Oracle’s BYOL program allows its users to take their pre-existing on-premises licenses and exchange the software for Oracle’s PaaS equivalent. This is also known as their BYOL-to-PaaS program. The BYOL program can be used for both PaaS and IaaS and includes computing capabilities, advanced automation functions, and compute or license support. To calculate the potential costs of using Oracle’s BYOL program, you can plug your information into their cost estimator tool.
Challenges of BYOL
The BYOL model has several benefits, especially in regard to cost optimization. However, benefits aside, there are always challenges that need to be faced. Here are some of the challenges IT faces when considering or deploying BYOL:
Maintaining Compliance
Each BYOL license may have its own compliance policy and maintenance schedule. Whereas cloud vendors generally provide cloud license management services and maintain licensing compliance, BYOL licenses must be managed by the company. Some cloud service providers also offer tools for BYOL license management.
Increased Complexity
BYOL license management adds additional monitoring and maintenance procedures that can increase the overall complexity of license management.
Vendor Compatibility
Unfortunately, not all on-premises licenses are BYOL compatible. Before a BYOL license can be deployed, the company must first check for vendor compatibility.
Data Privacy & Security
The transfer of data from on-premises servers to the cloud inevitably comes with a certain level of risk. If the data has not been properly encrypted and protected, it is more susceptible to cyberattacks and security breaches.
BYOL with USU
Integrating the BYOL model into your cloud strategy has many advantages. USU’s FinOps and Cloud Management solutions are complete with the tools you need to deploy and monitor your BYOL licensing agreements. Planning a migration to the cloud or setting up a hybrid cloud solution? Make the most of USU’s Software Asset Management solution and its Cloud Discovery tool to find out if your current licenses are BYOL compatible. Our Cloud Cost Management solution work’s hand-in-hand with our SAM platform, delivering valuable expense-related information for strategic decision-making.
FAQ
What is BYOL?
BYOL (bring your own license) is a licensing model that enables companies to take pre-existing software licenses and reuse them in cloud or other on-premises environments.
What is the purpose of BYOL?
The purpose of the BYOL licensing model is to allow companies to reuse existing licenses when migrating their IT infrastructure from on-premises to a cloud or multi-cloud environment. This not only maximizes on previous licensing investments, but is especially beneficial for improving flexibility, reducing risk, and broadening the range of cloud services.
How do I know if my license is BYOL compatible?
To find out if your current licenses are BYOL compatible, it will depend on the licensing terms and agreements between software and cloud vendors. In this case, you will need to work with both vendors to come to an agreement. Another option is to use a tool like USU’s SAM Cloud Discovery tool to pull this data.