RSS

Author Archives: MS Licensing

How SAL Licenses Really Work

SAL (subscriber access licenses) can be complex and without question the number one underreported licenses under SPLA.  Why all the confusion stems from misinterpretation of the SPUR and/or bad advice.

When you report by user, you have to take in account each user that HAS access to the software, not who does.   Microsoft is not based on concurrent licensing.  I wrote about this prior, but thought it was worth repeating.  If you have 5 users that use the software, but 15 users can access at any given time, you must report all 15.  Seems ridiculous, but is 100% true.  Consider licensing by processor if user licenses become too difficult to track.

Read this section of the SPUR (use rights).  “You must acquire and assign a SAL to each user that is authorized to access your instances of the server software directly or indirectly, regardless of actual access of the server software.”  It’s the last part of that sentence that can get you in trouble “regardless of actual access of the server software” For a copy of the SPUR check out http://spur.microsoft.com/products.aspx

Thanks,

SPLA Man

 
6 Comments

Posted by on September 21, 2013 in Compliance

 

Tags: , , , , ,

SPLA and Azure – Friend or Foe?

With the release of the new Azure platform comes both opportunity and challenges for the Service Provider community.

This is an opportunity for smaller Service Providers to look at developing partnerships with Microsoft (Azure) or with other established providers to promote their hosted solution.  Why pay for a datacenter when you can leverage someone else’s?

There’s also opportunity for large ISV’s (Independent Software Vendors who develop applications and host it using Microsoft technology) to leverage a third party platform, utilize volume licensing (Azure EA) and still use SPLA for RDS, Office, or any other Microsoft technology users can access directly or indirectly.  They can also purchase SQL  from Azure or use SQL SAL licenses via SPLA.  They would not report Windows, since that is covered with Azure.  In a sense, SPLA and Azure can coexist.  Maybe Azure is a friend after all.

The challenge for SPLA’s is more competition. (Foe) Microsoft is not only competing against Service Providers for SaaS applications with Office 365, now they are competing against them in the datacenter as well.  (IaaS).  Differentiation is going to be key for SPLA’s. Check out my Office 365 blog in which I review (at a high level) how SPLAs can compete.  Microsoft is not going away, it is just getting started.

There is a frequent asked questions guide at http://www.windowsazure.com/en-us/pricing/licensing-faq/  Here’s a couple highlights from the FAQ:

If you are a Service Provider with a signed SPLA using SQL Server, you can:

  • Obtain a SQL image from the Windows Azure VM gallery and pay per-minute rate of SQL Server, or
  • Install or upload your SQL Server Standard image with a Subscriber Access License (SAL) reported via your SPLA.

Notice in the second bullet point it did not say  “SQL Enterprise” Remember, SQL Enterprise SAL licenses were discontinued with the release of SQL 2012.  Check out “Why Timing is Everything” from this blog to learn more.

If you are an end-customer using SQL Server, you can:

  • Obtain a SQL image from the Windows Azure VM gallery and pay the per-minute rate of SQL Server, or
  • Install or upload your own SQL Server using the license mobility benefits under Software Assurance.

Check out the Azure web page to learn pricing, etc.

I am curious, what are ways in which you as a hoster differentiate yourself?  What are your plans as it pertains to Office 365 and Azure?  Do you think Azure is a friend or foe? Happy to help brainstorm off line and provide additional guidance around this offering.

Thanks,

SPLA Man

 
2 Comments

Posted by on September 6, 2013 in Uncategorized

 

New In SPLA Land

I looked around the web and noticed some blogs out there were misinformed about some recently announced SPLA changes.

When Microsoft makes a licensing change, it only affects the new SPLA agreements signed after the announcement. For example, when SQL moved to core, only those service providers that signed a new SPLA or renewed an old one were affected/forced to license by core. All others could continue to license by processor (unless they deployed SQL 2012) up until their agreement expires.

Here’s a snapshot of what was announced:

Data Center Providers. SPLA allows Service Providers to deliver software services with infrastructure software provided by a separate Service Provider. Azure could be a datacenter provider (DCP) to Service Providers. Azure is not available in SPLA, but Service Providers may obtain Azure services for hosting applications under a separate agreement. I will write a blog about this and Azure in the next few days. SPLA’s can always partner with someone to provide a solution. Azure brings a new element to the game that could benefit smaller providers.

• Early Termination. Microsoft can terminate SPLA if the Service Provider submits a zero use report more than 6 consecutive months. Nothing new here. Report zero usage for several months, you will be terminated.

• End User Facility Installations. SPLA allows Service Provider’s to provide software services on servers located at the end user’s facility. Service Providers may use servers owned by the end user if the server is under the day to day manage and control of the Service Provider. Microsoft did good with this one. It makes sense, the service would still be under the service providers control.

• Verifying Compliance. Service Providers must provide access to all servers used to provide software services including dedicated outsourcing services.

• Unlicensed Use. Microsoft increases the charge for unlicensed software to 125% from 115%. Ouch! That’s why it’s important to understand the SPUR.

• End Hosting Community Qualification. Effective August 19, 2013 membership in the Hosting Community is not required to be eligible for SPLA. We removed the hosting community field from the SPLA 2013 form. – Good call. Not sure how many service provider’s use the Hosting Community resources anyways.

Writing just a news update usually provides more questions than answers. I will follow up with this update with a specific post and thoughts. Just thought I would relay what I know.
Thanks,

SPLA Man

 
3 Comments

Posted by on August 24, 2013 in Uncategorized

 

Your Cloud…My Terms

“Oh Cloud” Steve Ballmer once shouted vociferously to an enthusiastic croud at the Microsoft’s World Partner Conference a few years ago. He was later quoted as saying “the cloud creates opportunities and responsibilities” This may sound generic, but feel he’s absolutely right.

I think for vendors such as Microsoft, the opportunity exists to better align themselves with a platform that is more adaptable to the cloud. (Just look at System Center, Office 365, and Azure as examples). I think for the Enterprise space, it means the opportunity to leverage their mission critical applications in a cloud environment with the end result being cost savings. Finally, I think for cloud hosters it means both (opportunity and responsibility). How can they differentiate themselves to end customers so they will be “all in” (another Ballmer line) their cloud and not someone elses, while ensuring their customer can sleep well at night knowing their information is secure?

At the Microsoft Hosting Summit this past spring, one of the presenters discussed ways in which hosters can increase confidence with customers and truly differentiate themselves in a competitive market. They concluded that customers will go to the cloud when they are in control. Things such as security, location of data, and disaster recovery were top of their list. That shouldn’t come to anyone’s surprise, but do feel cloud providers must be prepared to address these concerns if they are to grow.

Managing the SPLA program in particular, I regularly hear cloud providers concerned over Office 365 and what other service providers are advertising. I understand, if I was in the hosting business I’d be concerned as well. We may not like it, but we must somehow acknowledge it. Office 365 is not going away, neither is Azure and neither are the other 8,000 SPLA partners. So what are you to do?

I agree with the presenter at the Hosting Summit. I feel customers want to outsource the headache of managing an infrastructure, but still want a sense of control over their data. I read a statistic that showed over 65% of companies would rather have a private and public cloud than hosting everything in-house. Their main concern as to why they do not do it today is security. I strongly believe that if you can create a brand that acknowledges end-user control, keeping the cloud on their terms instead of yours, and have strong (even public) SLA’s that customers can easily read (no small print) it will make switching from an on premise solution to the cloud that much more compelling.

I understand I am not writing something that you haven’t heard or read before, but do feel it is often overlooked. Even in searching the largest of the large providers on the web, I cannot easily find an SLA on their site. If knowing security is a concern, advertise how you address this issue and listen what your customers want. They will thank you later.

Thanks for reading.

SPLA Man

 
4 Comments

Posted by on July 26, 2013 in In My Opinion, Uncategorized

 

Tags: , , , , , , ,

How To Download SPLA Media and License Keys

You signed a SPLA agreement…now what?

When you sign a new SPLA, you will receive an acceptance notification from Microsoft via email.  This will be sent to the notices and/or primary contact on your agreement. The acceptance notification typically has the following in the subject line “Microsoft SPLA Acceptance Notice” It is sent from an unmanaged alias msvlop@microsoft.com.  You should receive a hardcopy of the SPLA agreement signed by Microsoft via courier .  Keep this for your records, it has your enrollment number and other relevant information.

All that being said, if you still have questions the good news is your browser/search engine directed you to the right place…this post!  To download media and license keys please go to https://licensing.microsoft.com.  This is the Volume Licensing Services Center (VLSC) website where everyone with a signed SPLA will have access.  You will need to log in with your email, follow the online steps, and you should be good to go.  One issue that comes up quite frequently is the person attempting to log in to the site does not have online administrative rights.  If you have this issue, please reach out to the primary contact on your agreement.  If you are the primary contact and do not have access, the odds are there’s an error somewhere in the system.  More times than not, the email address used on your agreement was inserted incorrectly.  Check your agreement to verify.  If this is the case, reach out to your reseller who can assist.  If everything checks out correctly and you still do not have access, please reach out to the VLSC directly either by email – VLSChelpa@microsoft.com or by phone 866-230-0560.  Please include your enrollment number. (found on your SPLA or ask your reseller).  I found this guide to be helpful.  (download VLSC guide) if you have questions.

If you are in the middle of completing an agreement, think about who in your organization you would like to be the online administrator (the one that has authorization and provides others in your organization access).  This will help eliminate future issues!

Keep in mind some products do not have license keys (keys will be embedded in the media) – Exchange, SQL, and CRM are examples.  RDS licenses will require you to enter your enrollment number, not a license key.

Hope this helps!

SPLA Man Read the rest of this entry »

 
 

Tags: , , ,

Reporting SPLA Usage

Managing the SPLA program for as long as I have, I came to the conclusion that no one likes to report their SPLA.  For what it’s worth, Microsoft and resellers don’t like it either, but it’s the most important aspect of the SPLA program.  Here’s a list of reasons why you need to report on time.

  • It’s unlawful if you don’t report.  Think about this for a moment,  you did not pay for the licenses upfront, but you are charging customers for their access.  In some countries, that’s called stealing.
  • It is part of your signed North America SPLA agreement.   Page 11 section 11a –  “Customer must submit either a monthly use report or zero use report to its Reseller within 10 days after the last day of each month or on a date agreed to by the Customer and its Reseller.”
  • After the 10th, Microsoft runs audit checks.  This doesn’t mean you will automatically get audited, but it does mean Microsoft will be keeping a closer eye on what you report.
  • If you report on the 10th and your credit card has issues or you are on credit hold, the reseller cannot submit it to Microsoft.  That’s one reason you should report prior to the 10th to avoid any errors.
  • Make it routine – you pay your cable bill each month, you should pay your SPLA as well.
  • It’s the cost of doing business
  • Any way you slice it, you have to report something

I understand that no one likes to report.  In a lot of instances it’s your biggest cost as a company.  My advice is always report, the cost of your monthly licensing spend is a lot less than the cost of an audit!  Hope this helps.

Thanks for reading,

SPLA Man

 
4 Comments

Posted by on July 16, 2013 in Compliance, SPLA Reporting

 

Tags: , , , , ,

RDS Licensing Explained

This article has been moved to our new platform:

RDS and other licensing related white papers: https://mscloudlicensing.com/document-library/

RDS licensing questions from the community

https://mscloudlicensing.com/forum/

RDS Blog Article

https://mscloudlicensing.com/blog-articles/

 
11 Comments

Posted by on July 7, 2013 in RDS

 

Tags: , , , , ,

Forefront…Where Did You Go?!!!

As you may or may not know, Microsoft made significant changes to its security suite of products this past year. I receive numerous inquiries around Forefront specifically, the options available for SPLA customers, and what ultimately this means for you as you move forward.

To recap, Microsoft discontinued the following SKUs from the price list:

• Forefront Protection 2010 for SharePoint – (supported thru December 31st, 2015)
• Forefront Protection 2010 for Exchange Server –(supported thru December 31st, 2015)
• Forefront Security for Office Communications Server – (supported thru December 31st, 2015)
• Forefront Protection Server Management Console – (supported thru December 31st, 2015)
• Forefront Threat Management Web Protection Services – (supported thru December 31st, 2015)
• Forefront Threat Management Gateway 2010 – supported thru April 14, 2015 (extended support April 14 2020)

Microsoft will continue to support the products, (highlighted above) but as a service provider you will only have access up until your agreement expires. Sign a new SPLA, you can no longer offer the above SKUs as part of your offering. In my opinion, Microsoft is not getting away from the security business, but making some of the Forefront features to be included with the new releases of the server software. (You can check out the latest updates at http://www.microsoft.com/security). For example, Exchange 2013, has basic antivirus protection built-in, thus encouraging customers to upgrade to the latest version. As a side note, FOPE (Forefront Online Protection for Exchange) is renamed Exchange Online Protection (EOP) and only available through the new Office 365 release.

So what does all this mean to you? If you are hosting these products today, rest assured they will not be there when your agreement expires. You can become a partner of Microsoft to continue offering EOP, or consider third-party vendors such as Symantec, McAfee, or Trend Micro to name a few. Check out http://www.softwareone.com for a quote.

Thanks for reading!

SPLA Man

 
Leave a comment

Posted by on July 1, 2013 in Forefront

 

Tags: , , ,

What’s Your Licensing Strategy?

I love the question “What’s your cloud strategy?” It’s the new ice breaker for salespeople around the globe. My thoughts? Why bother asking customers about their cloud strategy if it does not include licensing?  The BIGGEST mistake service providers (SPLA’s) make is selling a solution first and worrying about the licensing impact later. They build data centers, talk about virtualizing, even talk about the savings of cap ex vs. op ex, but never talk about the licensing until someone brings it up or they get audited. Just because the technology enables something, does not mean you can license that way.

VDI is a prime example of this. “You can host virtual desktops as a service right? Install the desktop OS on a server and stream it? Why not? The concept has been around for years. I ‘Googled’ VDI as a service and several companies are doing this…it must be right…right?” Wrong! Yes, technically speaking you can host virtual desktops using Windows 7/8. Licensing gurus and the product user rights and the audit team will disagree with you. Unfortunately there’s no way to do this under SPLA. Next question that comes up is “why?” Wish I knew the answer, perhaps Microsoft is looking out after the OEM manufactures, but then again they launched Surface.

Microsoft is auditing everyone. There are few guarantees in life, but one guarantee is not everyone under the SPLA program is licensing correctly. Just a word of advice, know the licensing before implementing a solution.

Thanks for reading,

SPLA Man

 
 

Tags: , , , , ,

Tips & Tricks of SQL 2012

“What’s the least favorite licensing topic at Microsoft?” If you answered SQL, you would probably be correct. It’s not overly complex, but can be very confusing; especially as it pertains to virtualization. To add to the confusion, Microsoft changed the licensing terms with the release of SQL 2012 and discontinued several products altogether. For service providers, this confusion can escalate to over/under licensing and ultimately compliance risk. Here’s a list of common mistakes service providers make with licensing SQL.

1. They have Vmotion set up in which virtual machines are moving from host to host simultaneously. Be careful! Check out license mobility rights in the SPUR and read my previous blog license mobility Virtual Machines can move from host to host but it cannot be active on two separate hosts at the same time.

2. They have a customer bring SQL into their environment (end customer owns SQL via a separate volume licensing agreement) and the service provider dedicates the virtual machine to the customer but not the physical hardware (hardware is shared). The end customer would need to have software assurance for SQL in order to take advantage of license mobility and the service provider would need to report Windows under SPLA. This is called License Mobility with Software Assurance.

3. Sign a new SPLA agreement after December 31, 2012 and continue to license SQL by processor. Once you sign a new or renew your old SPLA agreement, you are forced to license by the core, not processor. Check out my blog Why Timing Is Everything

4. They license (1) 2 core pack of SQL 2012. The minimum you need to license/report is (2) 2 core packs or 4 cores per processor. Under no circumstance can you report only two cores.

5. They don’t report SQL at all. I hear this all the time. “My customer does not directly access SQL and therefore I do not need to report it.” Wrong. If customers indirectly access any application it must be licensed. Ask yourself, “If I remove this product from my hosted solution, would it still work the same?” If you answer “no’ it needs a SPLA license.

6. Report SQL Web to support a line of business application.  SQL Web is designed for websites/web applications, not line of business applications.

Just thought I would try to answer common questions around SQL. Hope this was helpful.

Thanks for reading,

SPLA Man

 
3 Comments

Posted by on June 11, 2013 in SQL 2012

 

Tags: , , , , ,