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Microsoft Online Services Terms – What you need to pay attention to before signing your Azure agreement

There’s a lot of benefits to moving to Azure, I’ll let your Microsoft account team review them with you.  On this website, we are not that concerned about the benefits, all we care about is the licensing.  In this article, we will review the Microsoft Online Services Terms.

What is the Microsoft Online Services Terms?  First starters, it used to be called Microsoft Online Services Use Rights or MOLSUR for short (or long).   It is now called OST pronounced OAST when speaking to Microsoft.  Basically the OST defines how you may consume online services through Microsoft.  You can download a copy here.  Although your legal team should review the document in its entirety, below are some of the highlights I think you will find relevant and are often overlooked.

License Reassignment 

“Most, but not all, SLs may be reassigned. Except as permitted in this paragraph or in the Online Service-specific Terms, Customer may not reassign an SL on a short-term basis (i.e., within 90 days of the last assignment). Customer may reassign an SL on a short-term basis to cover a user’s absence or the unavailability of a device that is out of service. Reassignment of an SL for any other purpose must be permanent. When Customer reassigns an SL from one device or user to another, Customer must block access and remove any related software from the former device or from the former user’s device.” (April, 2017 OST)

What does this mean?

Most Microsoft products cannot be reassigned on a short-term basis, that’s why Microsoft has the use right called license mobility.  In short, pay attention to which users are assigned a license and if/when they no longer need the service.

Hosting Exception “Customer may create and maintain a Customer Solution and, despite anything to the contrary in Customer’s volume licensing agreement, combine Microsoft Azure Services with Customer Data owned or licensed by Customer or a third party, to create a Customer Solution using the Microsoft Azure Service and the Customer Data together. Customer may permit third parties to access and use the Microsoft Azure Services in connection with the use of that Customer Solution. Customer is responsible for that use and for ensuring that these terms and the terms and conditions of Customer’s volume licensing agreement are met by that use.” (April, 2017)

What does this mean?

It allows you (a service provider) the right to use Azure as a datacenter provider.  The last sentence is very important in the above definition “Customer is responsible for that use and for ensuring that these terms and the terms and conditions of Customer’s volume licensing agreement are met by that use.”  In the above definition,  “customer” is you.  If you use Azure as a datacenter provider, purchase Azure via your own volume licensing agreement, and use SPLA for user based products (e.g. RDS) you must follow the OST, Product Terms, and the SPUR!

Azure Services Limitations

Customer may not “Allow multiple users to directly or indirectly access any Microsoft Azure Service feature that is made available on a per user basis (e.g., Active Directory Premium). Specific reassignment terms applicable to a Microsoft Azure Service feature may be provided in supplemental documentation for that feature.” (April, 2017 OST)

What does this mean?

Sounds similar to a SAL license right? “Directly or Indirectly access any Microsoft Azure Service.”  Although if you are using Azure as your datacenter provider, the likelihood of you consuming user based licensing through Azure is not very high.

Security

I encourage you to read the security measures and policy’s set forth by Microsoft for their online services.  You can read it here.  I included a breakdown of the difference compliance and security certifications below:

Microsoft Online Information Security Policy (as of April, 2017)

Online Service ISO 27001 ISO 27002

Code of Practice

ISO 27018

Code of Practice

SSAE 16 SOC 1 Type II SSAE 16 SOC 2 Type II
Office 365 Services Yes Yes Yes Yes Yes
Microsoft Dynamics 365 Core Services Yes Yes Yes Yes* Yes*
Microsoft Azure Core Services Yes Yes Yes Varies** Varies**
Microsoft Cloud App Security Yes Yes Yes No No
Microsoft Intune Online Services Yes Yes Yes Yes Yes
Microsoft Power BI Services Yes Yes Yes No No

 

Last and certainly not least, I get asked A LOT about language that you should include as a service provider.  I would encourage you to create your own online services terms for your hosted offerings.  Too many providers do not have basic language around compliance, licensing, and overall use rights.  At a minimum, you should include a copy of the End User License Terms for SPLA.  If you do not have a copy, please contact your reseller.  If you forget to include licensing terms and conditions, you could be on the hook during an audit.  Don’t be on the hook.

Thanks for reading,

SPLA Man

 
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Posted by on April 24, 2017 in Uncategorized

 

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Top 5 Questions…Answered

Where can I get my license keys for CRM?  My Microsoft contact can’t seem to find the answer and my reseller doesn’t know either.  Any ideas?

For CRM and D365 you can download them directly from the VLSC website.  All other Dynamics products need to go through the License Key Creator Tool.

If I am a CSP Tier 1/direct provider, can I sell CSP to another CSP Tier 1 provider? 

Yes. There are no limitations as to who you can sell to.  Good luck!

Is CSP replacing SPLA?

Not entirely.  I am not Microsoft but I can see the similarities.  In the end, they are both Microsoft programs, how they consume it doesn’t really matter.  The only drawback to SPLA (In Microsoft’s eyes) is the service provider has the option of offering other software outside of Microsoft.  Exchange as an example, could technically be replaced with Zimbra.  If they use Office 365, the customer is using Office 365.

I offer desktop as a service.  When can we expect VDI to be available in SPLA?

Never.

Will I get audited?

Yes.  Make sure to read the MBSA agreement that you signed.

Thanks for reading,

SPLA Man

 
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Posted by on April 24, 2017 in Top 5 Licensing Questions

 

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The Cloud Insider Times

In this edition of The Cloud Insider Times, you will find articles on the likes of Google, Amazon, IBM, Veeam, and the infamous Shared Computer Activation (among others) If your company would like to be included in future articles, please email info@splalicensing.com
Computer Business Review – Three Private Cloud Myths Busted!
 
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Posted by on April 20, 2017 in The Cloud Insider Times

 

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Exchange 2007 support ended. What does that mean for you?

This past weekend I was forced to buy new running shoes.  I run 3-4 times a week, and my philosophy had always been if not’s broke, don’t fix it.  Recently, my shoes started to feel heavy, my feet started to hurt, and I knew it was my body telling me to change (something).  After googling (sorry binging) different causes for running pain, one of the top results came up “change your running shoes.”  I then proceeded to look at my shoes more closely and noticed the bottoms were worn, the shoe itself was very flexible ( bends easily – a bad thing) and realized my shoes were no longer the shoes I once I loved.  It was time to upgrade.   In a strange way, my buying decision is similar to most IT departments.  If it’s not broke, don’t fix it until we absolutely have to.  For consumers running older versions of Exchange, that time is now.  This past week, Exchange 2007 support has gulp…ended.

One (of the many) reasons customers move to the cloud is outdated technology.   When something as critical as security updates, product updates, etc. are no longer available, customers start looking for other solutions.  In the case of Exchange, customers either upgrade on premise (which also means upgrading their hardware)  or finally start thinking about the cloud.  Now that can mean good news for you (if you are an Exchange hoster) or bad news if you haven’t started the conversations with your potential clients.  It’s also great news for Office 365.

I would  guess that Microsoft is looking at all end customers who purchased Exchange 2007 but haven’t upgraded to Exchange 2010.  Those customers  are all  prime for Office 365 conversations.   Every Office 365 distributor and reseller are also reaching out to these customers.  Check out Sherweb, Intermedia (one of Microsoft’s largest Exchange hosters), and Rackspace Every single one of them are not saying “go to our cloud” when exploring migration options, the top reason is “Migrate to Office 365”

If your company has not investigated getting into the CSP game or partnering, the time is now.  I’m not selling you on Office 365, I am selling you to watch out for the competition.  As mentioned above – SherWeb, Intermedia, and Rackspace are all hosting Exchange but they are also promoting Office 365 through product support life cycles.   One way to stay ahead of the competition, is to know when product life cycles end and which products are impacted.   For a list of product support updates and life cycles check out https://support.microsoft.com/en-us/lifecycle/search

Thanks for reading,

SPLA Man

 

 

 

 

 
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Posted by on April 17, 2017 in In My Opinion, Uncategorized

 

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The Cloud Insider Times

In this edition of The Cloud Insider Times, you will find articles on Dynamics 365, Desktop as a Service, and other cloud technologies.  If your company would like to be included in future articles, please email info@splalicensing.com

Data Resolution –  Dynamics 365 Transition Guide

Armor Defense Inc – Words of Wisdom: A True Campaign Goes Well Beyond Holding a Single Event

Schooldude.com  – A Process to Help Future-Proof Your Facilities

CyberlinkASP  Three Reasons Businesses Are Clamoring for Desktop-as-a-Service

Team Software – Are Workforce Management Tools Right for You?

The Kotter Group – 5 reasons why cloud computing is more secure than traditional data storage

Logicalis Group – Cities Are Getting Smarter This Year – and the IoT is Changing Everything

Information Builders, Inc – Dirty Data, Broken Trust (White Paper)

Asscociations Now – LIVIN’ ON THE EDGE: WHAT COMES NEXT AFTER CLOUD COMPUTING

K2 Technologies 4 Ways the Cloud Enhances How You Do Business

Netelligent – The Mid-Sized Business Conundrum

Interserver – The Backbone of a Web Hosting Company

Zumasys – Desktop-as-a-Service Platform Grows to 2,000+ Users in Less Than Two Years

Thanks for reading,

SPLA Man

 
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Posted by on April 13, 2017 in The Cloud Insider Times

 

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Core Licensing for Windows and SQL

In today’s article, we will review Per Core licensing in SPLA for Windows and SQL Server.

What products are licensed by core?

Application – SQL Server 2016

Per Core (OS) – Windows Server Standard 2016;Windows Server Datacenter 2016; Core Infrastructure Datacenter 2016; and Core Infrastructure Standard 2016.

How is it licensed for SQL 2016?

Physical Core – Removed the core factor table with the release of SQL 2016.  The number of licenses required equals the number of physical cores on the Server with a minimum of 4 cores per physical processor.  For Enterprise, you can run unlimited number of instances on the physical or virtual OSE’s (In other words, unlimited virtualization rights with SQL Enterprise).   For other editions, you can run unlimited instances on the physical server (not virtual).

Individual OSE (individual VM’s)  4 cores per minimum virtual OSE.  (license the number of cores you assign to a VM with a 4 core minimum) You are allowed to run unlimited instances on the virtual OSE provided that each virtual OSE is properly licensed.

SQL is sold in packs of two cores.  Again, you cannot license 1 – 2 core pack of SQL.  You would be found out of compliant pretty easily since the licensing rules state you must report a minimum of 4 cores not 2.

How is per core license with Windows?

Licensing is very similar to the old model, just licensed by physical core instead of each physical processor (minor change).

The number of licenses required equals the number of physical cores on the host machine.  It does not matter if it’s ESX host or Hyper-V.  Unlike SQL, there is a 8 core minimum per physical processor.  As with previous editions, Datacenter will allow unlimited VM’s and Standard will allow 1.  If you have more than 7 VM’s on a host machine, Datacenter edition is more economical.  With Standard edition, you have to license each physical core but it will only allow 1 VM.  If you have a second VM on that host, you must license each physical core a second time (Stack licenses to get more VM’s).  Like SQL, it is priced/sold in packs of two cores.

Other items to remember with Windows 2016:

Containers 

Container is a technology, not a license definition.  It means an isolated place where an application can run without affecting the rest of the system.  It helps eliminate application delay and density.  Stuck watching an application icon spin for eternity because of volume?  Containers might be your answer.  There are two types of containers:

Windows Server Container – shares a kernel (not popcorn) with the container host and all containers running on the host.  It’s part of the operating system, which is why both Datacenter and Standard edition allow for unlimited Windows containers.

Hyper-V Containers –  are completely isolated virtual machines.  That’s why Datacenter is the only edition to allow unlimited Hyper-V-containers.  Each Hyper-V container has its own copy of the Windows kernel and have memory assigned directly to them.  In short, you can think of a Hyper-V container as a separate VM.

Nano Server Option –  This is not a separate license model, just a deployment option.  In volume licensing, it is a software assurance benefit.  In SPLA, it is included.

Other things to note

Hyper-Threading

This is also a technology, not a licensing term.  It splits the physical core into two separate threads of power.  When hyper-threading is turned on, it creates two hardware threads for each physical core.  From a licensing perspective, you must license one core for one thread.  Since hyper-threading is for virtual cores, no need to worry about it when licensing by the physical core option only.

Fail-Over- When an end customer uses a license mobility right (transfers a license over to a third party’s dedicated VM) they can also move their failover rights that come with software assurance.  They cannot use the datacenter provider as the failover only.  In other words, they cannot install SQL with software assurance on premise and extend the fail-over to a third-party datacenter.  The end customer would have to transfer via license mobility to the datacenter provider in order for failover rights to be applicable in an outsourcer scenario.

Thanks for reading,

SPLA Man

 

 

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The Cloud Insider Times

Have a question or hot topic or would like to be added to “The Cloud Insider Times”Contact us at info@splalicensing.com

Vuzion Cloud-  Microsoft CSP Incentive Reminder – Microsoft has announced that the CSP (Cloud Solution Provider) programme 4% EU Accelerator 

Acronis – 12 Frequently Asked Questions

ZDNet – Want to run Windows 10 desktops virtually on Azure? Now you can

GoogleCompare the management services that Amazon and Google provide in their respective cloud environments. 

V3 – Two-thirds of British business now use public cloud

Motley Fool4 Best Dividend Stocks in Cloud Computing

Citrix Through June 30, 2017, take advantage of limited-time Citrix Cloud promotions for customers

eFolder – Steve Riat, Director of Sales at Nex-Tech, shares his insights for MSPs looking to build a successful and scalable sales team

Xcentric – Top 10 Questions for Your IT Manager

Cloudflare – Our Response to the Senate Vote on FCC Privacy Rules

Connectwise – Stop Whining & Start Winning: 6 Reasons Marketing IS for You

Network World – Serverless computing is a new way of hosting applications on infrastructure that end users do not manage

MDSL12 months to prepare for the EU Benchmark Regulation – Is your firm ready?

IBM – 5 cloud predictions for 2017

Trend Micro – From Old To New: Server Security That Bridges The Hybrid Cloud

OneNet What is Cloud Computing?

Benzinga – Microsoft Turning Azure Cloud Service Skeptics Into Believers

Hosted Desktop UK – Operating in the Cloud offers huge benefits when disaster strikes

Host Analytics – BUILDING THE BUSINESS CASE FOR CLOUD-BASED PLANNING AND REPORTING

RackspaceProfessional Services — For Every Step Along Your Cloud Journey

 
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Posted by on April 6, 2017 in Uncategorized

 
 
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