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

30 Dec

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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2 Comments

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

 

Tags: , , , , , , , ,

2 responses to “How I saved a company over $100K a year in reporting

  1. Piaras MacDonnell (@piarasmacdonnel)

    December 31, 2014 at 2:01 am

    Good point about the SPUR at the time of signing, I’m guessing a few organizations who have just renewed will have underestimated the impact and be a little surprised with the January bill

     
    • splaman

      December 31, 2014 at 9:32 am

      I completely agree. Customers need to understand that when they sign a SPLA, they are not simply renewing an agreement. Happy New Year Piaras.

       

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