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Monthly Archives: December 2014

How I saved a company over $100K a year in reporting

Sounds pretty good doesn’t it?  This is a story about knowing what you are reporting and the reasoning behind it. Windows 2012 was launched a couple of years ago (give or take).  At that time there were several service providers reporting Windows Enterprise.  Their customers had applications that needed the functionality of Windows Enterprise, and since it wasn’t virtualized, Windows Datacenter was not an option. The service provider continued to report/license Windows Enterprise after the launch of 2012.  There’s nothing wrong with this, in fact, the terms of the SPLA agreement state you can continue licensing 2008 use rights up until your agreement expires.  What most providers don’t know is you can do the opposite.  You can run 2008 versions but report 2012.  Why would they do that?

In this case, they had Windows Enterprise installed; but since Windows Enterprise was discontinued with the release of 2012, they could downgrade to Windows Standard edition. Sounds funny doesn’t it?  DOWNGRADE to Windows Standard from Enterprise?  Yes, I said that correct.  Enterprise is discontinued. Again, nothing was virtual, and that is very important. If it was virtual, they would continue to report Enterprise up until the agreement expired and report Windows Datacenter moving forward.   Not only did he save on their monthly usage report, I’m guessing he had added margin since he was already contracted with his customer.

Quick note – not all products discontinued have the same outcome.  In most cases (such as SQL 2012 switch to cores) their costs actually went up

Ahh…but where is this written in the SPUR?  I’ll save you time, it’s not.  That’s why you need to read “Why Timing is Everything” You are bound by the SPUR (i.e.products/versions/use rights) available at the time of signing your SPLA agreement.  Those reporting SQL by processor better pay attention.

I receive 100’s of SPLA questions from the SPLA community about licensing and the cost associated with it. From the largest of the large providers down to a guy hosting Windows Web Server out of his parents basement (which is discontinued by the way), there’s always way you can reconsider your strategy. Moral of the story?  Pay attention to how you report and don’t report out of convenience…It can cost you.

Thanks for reading,

SPLA Man

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Posted by on December 30, 2014 in In My Opinion, Windows Virtualization

 

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Price increases in 2015!!

Happy New Year!  Here’s a price increase. How can Microsoft do this?  In the SPLA agreement it states they (Microsoft) can issue a price increase once a year in January.  Be prepared! Are there decreases?  No, but that doesn’t mean you cannot reduce your costs.

If you report over 10,000 a month (US, EU, or Australia) in SPLA reporting email me and let’s review. (blaforge@splalicensing.com) Why 10,000?  Historically, that’s where I was able to make the most cost savings.  There are tricks to licensing that often get overlooked.  In the “about” section of this blog, I mention I want to ensure you are licensing correctly (that’s #1) but just as important, the most cost effective way.  Happy to help.

Thanks for reading!

SPLA Man

 

 
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Posted by on December 16, 2014 in Uncategorized

 

Office 365 and SPLA – It’s all about Office

The #1 post (by volume) on this blog site is “Office 365 Under SPLA.”  (It’s probably what brought you to this article in the first place). For those that read this blog regularly, can you guess #2?  Ok…you give up.  If you would’ve guessed  “Office Needs Mobility Rights” you would have been correct.  Can I conclude in my scientific analysis that Office is at the top of everyone’s mind in the hosting industry?

Who remember’s BPOS?  Remember that beauty?  I used to manage BPOS several years ago. BPOS consisted of Exchange Online, OCS (that’s right…OCS not Lync) and SharePoint online.  It was bundled as a package and sold to smaller companies (originally).  It was a big deal.  For “x” amount of dollars you would get a 5GB mailbox!  Google caught on, raised the bar to 10GB mailbox, than 20 and the cloud race still continues today.  Mailbox size and price was what everyone talked about.  I remember it well. Than Microsoft threw the cloud world a curve ball.  “What would happen if we offer Office as a subscription model and call it Office 365”  Things started to change pretty quickly.  Office as a subscription?  “But wait…let’s allow Office to be installed on not one device, but 5!  Now the cloud world is really spinning.”  What’s next?

Let’s don’t forget about our friend Azure.  Who could forget about him?  Azure is growing rapidly (talk about a generality but remember I am SPLA Man, not Gartner) and adding new features such as Linux VM’s, ability to purchase using your Enterprise Agreement, and the biggest news of all….ability to install a copy of Office from Office 365.  Wait! What?!!!

Let’s take a step back and look at what Office means for the SPLA community.  You want to host Office? Here’s what you need.  Windows + RDS+Office.  There you have it.

Here’s what you can’t do – Under no circumstance can you have your end customer purchase Office under Office 365 and install it in your shared cloud.  Don’t argue with me here…you can’t do it.  You are probably thinking…well, that’s ok, i will dedicate a VM.  Ahhhh….there we go again.  Dedicated a customer owned license on a VM.  What did I just describe?

Dedicate a VM +shared hardware = License Mobility.  What does not have license mobility rights?  Office.

Now back to Azure.  You might be thinking that Azure is a shared cloud. It is. How can they do it but I can’t?  Well, they developed Office and they developed Azure.  They can make up the rules to their own game.  Check out the online services terms page 22

What happens if you purchase your own Azure agreement to host your SaaS offering for your clients?  It doesn’t matter.  A hoster leveraging Azure for their offering would not be able to accept end-user Office 365 Office licenses.

So is it all doom and gloom?  Not by a long shot.  When there’s confusion, when your competitors spend more time worrying about what they can’t do instead of focusing on growing their business, consider that an opportunity. I’ve written 70+ articles on SPLA.  It’s not going away and neither are you.  I just think you (the service provider) need to get creative. Price is always an issue.  Office is an issue today, but it will be something else tomorrow.  Again, don’t focus on what you can’t do, it’s time to start thinking about what you can do.

I am going to write another article in which I provide a real world example on how I was able to save a service provider money  It’s not revolutionary, but it proves that if your not working with someone who looks at your usage report regularly and makes suggestions to reduce costs, you are missing out.  Sounds kind of like a salesman, but I think you will find the article helpful.  I can’t change the rules of SPLA, but I can make recommendations in the way you think about your business.  It’s time to reconsider our licensing strategy.  Stay tuned.  In the meantime, here’s a cool glimpse into the future.

Future of Office 

Thanks for reading,

SPLA Man

 
6 Comments

Posted by on December 6, 2014 in Azure, Office 365

 

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