Gen5 effectively doubles the costs for some customers
With the phasing out of Gen4, Microsoft is effectively forcing a 2x+ price increase on some SQL Azure customers.
We heavily use EDPs with Gen4 vCore based pricing. Our typical config is 1.5TB pools with 3 Gen4 vCores at a cost of around $750/month. Our CPU usage is minimal, but our pools are fairly large in terms of storage requirements.
The same 1.5TB storage allocation for a Gen5 pool requires 6 vCores and costs nearly $1400/month. As our pools have <10% CPU at any given time, this is effectively doubling our costs with no benefit.
It's even worse when you consider the fact we were just about to purchase reserved vCores to achieve additional cost savings, but Gen4 was just removed from the options when purchasing reservations. So this robs us of the 40-60% of additional savings we were budgeting for 2020.
Phasing out old hardware is obviously expected, but forcing upgrades to configurations that cost 2x as much is not acceptable.
Jason Saunders commented
We are in the exact same situation! We are being told to migrate from Gen4 to Gen5, as mentioned above the storage allocations are smaller than the Gen4 we're migrating from causing us to have to pay for additional vcores just to get the higher storage options. Then to top it all off we can no longer purchase reservations for Gen4 even though it doesn't deprecate until 2023 so we're paying now full face value for Gen4. This puts us in a terrible situation we can't get out of without enormous additional expense.
This isn't just for EDPs. Single databases that use Gen5 also now require double the number of vCores as they did with Gen4 for the same storage capacity.