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Answers to Your Cloud Licensing Questions

Will Azure be part of the SPLA program?

I wouldn’t think so and wouldn’t know how they could incorporate the two.  Azure is Microsoft hosted and SPLA is partnered.   Microsoft will want to keep SPLA and Azure separate.

Is Azure Stack part of SPLA?

Azure Stack by itself is not part of SPLA.  What’s part of SPLA is the Windows licenses.  As a service provider, you could deploy Azure Stack, pay the base consumption rate, and use Windows licensing with SPLA.  In fact, I think it’s less expensive to do it this way.

If my customer wants to use their own Windows license on Azure Stack, do they also require CAL’s?

Yes.  You need to pay attention to the Product Terms to ensure compliance.  As an example, volume licensing prohibits hosting.  You cannot install your own Windows licenses through volume licensing and host using Azure Stack.

Does Office 365 qualify for the SAL for SA product in SPLA?

The only Office 365 product that is eligible for SAL for SA is Skype.

Is SPLA pricing going up?

Yes and will not be decreasing anytime soon.

Since AWS offers dedicated hardware, could I transfer my customer’s license to their datacenter without Software Assurance?

Yes.  If its dedicated hardware Software Assurance is not required.

What about Azure?

No, you would need Software Assurance.

Will Microsoft finally allow MSDN to be licensed in my datacenter?

Probably not.  Although if you use Azure, MSDN is eligible to be transferred.

If I sell CSP through 2-Tier distributor, can I sign the QMTH addendum?

No.  You must be CSP 1 – Tier to qualify for QMTH.

Can I outsource support for certain software through CSP?

Yes.  You an resell the solutions you can support and leverage another partner for support for other products.

Thanks for reading,

SPLA Man

 

 

 

 

 

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Posted by on November 7, 2017 in Top 5 Licensing Questions

 

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SPLA Pricing Going Up? Not on my watch

I hate when other partners promote a SPLA price increase to gain business.  Yeah, no one can control what the publisher will ultimately do and pricing is never consistent (just look at your local gas pump) but that doesn’t mean you cannot leverage use rights and other factors to lower your SPLA bill.  In this article, we will look at how SPLA partners can lower their bill regardless what Microsoft may or may not do in the future.  Here are a quick (some easy, some not so easy) ways to accomplish this.

  1. SQL Server:  How confident are you that you are licensing the most expensive product in SPLA correctly?  Let me provide an example, reporting SQL Web because of price is not a sound strategy.  Auditors look at licensing historically, when you license incorrectly for a product like SQL Web and it should’ve been Standard, you will pay an astronomically higher price in the long run.  Pay attention to your given use rights to uncover cost savings, such as SQL Enterprise for unlimited virtualization, Standard SAL licenses for multiple VM’s and Servers, etc.
  2. Administration Access:  Why report administrators?  As part of your signed SPLA agreement, you are allowed 20 admins per datacenter without the need for SPLA.  Doing a demo for your customer?  Don’t report it.  Pay attention to the use rights in your SPLA agreement, not just the SPUR.
  3. SPLA Internal Use:  If you have more external users than internal users, perhaps you should use SPLA to cover both.  As an example, if you host Exchange for 10 users, you can use up to 5 internally.  Those licenses are not free, you would report a total of 15 on your SPLA moving forward.  This entitlement is called the 50% rule which states that you cannot license more than 50% of what you are hosting, internally.  I like this because it eliminates two things: 1) if a user leaves your company, you simply do not license the user the next month.  In Volume Licensing, you own the licenses which would force you to either reassign the license to another user internally or it goes unused.  2).  You would not be required to have separate hardware for this solution.  In traditional SPLA, you must have separate hardware from what you are hosting.  If using SPLA for internal consumption, it can be on the same hardware since it follows the same use rights.
  4. Leveraging Skype for Business through Office 365:  Yeah, in many cases O365 is the big bad wolf; in other cases, it’s your best friend.  If you want to host Skype, you can sell your customers who purchased Skype O365 licenses, host it from your datacenter environment, and leverage the SAL for SA SKU.  Skype USL (Office 365 licenses) is the only product that qualifies for SAL for SA in SPLA.  If your customer purchased Skype USL licenses and are unhappy with migrating it to Microsoft datacenter, you can tell the customer that you can host it for them for little cost.  It’s much cheaper than licensing/reporting the regular Skype for Business SAL.  On the flip side, let’s say your customer purchased Exchange Online USL license, they would just need to purchase the Exchange Server with Software Assurance to leverage license mobility.   Exchange Online does not qualify for SAL for SA.
  5. Private Cloud: When the public cloud is taking up all the headlines, maybe it’s time to differentiate and create a new headline.  No one gets ahead by doing the same thing others are doing.   If Azure offers public cloud, maybe you should start offering private cloud.  In this example, private cloud is fully dedicated, isolated hardware for each individual customer.  Here are three ways this could be beneficial:
    1. Dedicated hardware does not require Software Assurance.  Your customer owns SQL 2000 or still stuck on Windows 2003?  No problem, move it to your cloud.  Try doing the same in Azure or other fully public clouds, they would need SA for those licenses.
    2. Unlimited Virtualization.  Windows does not have mobility rights, but if you were to offer dedicated servers, an end customer can transfer their Windows licenses without issue.  More importantly, if they purchased Windows Datacenter because of virtualization (which they did), they can still have unlimited virtualization rights as if they were running it on premise (still dependent upon the size of the server).  Do the same in Azure HUB, and it doesn’t quite add up.
    3. No SPLA licenses, no VDI restrictions, no CSP requirement and ease of security concerns. Kind of speaks for itself.

I understand that in many situations transitioning to a private cloud is easier said than done, but it does have tremendous licensing advantages over public clouds.  Worried about SPLA price increases or CSP?  Private cloud might be your answer.

As always, have a question on SPLA pricing, licensing, or anything else that comes to mind, email info@splalicensing.com

Thanks for reading,

SPLA Man

 

 
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Posted by on October 5, 2017 in In My Opinion

 

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Top News in September

Here’s the latest news of the month for all MSP’s and SPLA providers.  Enjoy!

SQL 2017

This month is a month we will remember for the rest of our lives.  That’s right, today SQL 2017 is available to run on…a non-Microsoft system?

From the licensing guide: “SQL Server 2017 now supports deployment on RedHat Enterprise Linux (RHEL), Ubuntu, and SUSE Linux Enterprise Server (SLES). The SQL Server 2017 SKUs are platform agnostic, so customers can run the software on either Windows or Linux.” (check it out here)

What this means for those anti-Microsoft lovers is a customer who demands SQL can now install SQL 2017 on a Linux machine and not report Windows.  The machine cannot run any Windows guest VM’s for it not to be reported.  Pay attention to that last sentence as we get asked a lot about licensing individual VM’s instead of the actual host.  In Windows licensing, you license the physical host, not the VM’s.  If there are 100 Linux VM’s and only 1 Windows VM, you must license the host with Windows Datacenter to be in compliant.

Azure Stack Availability

The long await is over – Azure Stack is now shipping through the OEM channel (Dell, Lenovo, HPE)  You can read more about this announce here  From a licensing perspective, I think it is less expensive to license Windows through SPLA than pay as you use model.  It’s more of a predictable cost in my opinion.  This is one way Microsoft is attempting to extend Azure (public cloud) into your private cloud and have the best of both worlds.

“Hit Refresh”

Satya Nadella “Hit Refresh” book is available at a time when we are all in a strange way, hitting refresh.  The cloud transformation is only getting more complex – hybrid, dedicated, Google, AWS, Azure, every company is transforming to try and get the slightest edge over their competitors.  I look forward to reading it and every dollar goes to Microsoft charities.  Regardless of what you think of Microsoft, Satya seems like one of the good guys.  You can check out more about the book here

More to come –

Thanks for reading,

SPLA Man

 

 

 

 
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Posted by on September 25, 2017 in In My Opinion, Uncategorized

 

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Top 5 Licensing questions…Answered

  1. If a customer has 4 x SQL Server Standard (8 cores), does that mean I will also need to have 4 x SQL-SAL?

There’s no server + CAL model in SPLA.  You license either per core or per user depending on the product.  Remember, SAL is not licensed per server, but for each user that has access to that server.  Your question indicates you might believe a SAL is licensed per server which is not true.

2.  Is MSDN available through SPLA?  Is it through Azure?

MSDN is not available in SPLA, but you can license the individual components through SPLA.   If an end-user would like to bring their MSDN license over to your datacenter, you must dedicate the solution for your customer.  Yes, Amazon must play by the same rules.  Oddly enough, Azure (which is shared) does allow MSDN to be transferred over to their datacenter.

3. I received an audit notification.  Should I respond?

Yes. But don’t work on their time, work on yours.

4.  If I signed the SCA addendum, do I need to sign the new QMTH addendum?

Unless you are planning on hosting Windows 10 you do not need to sign the new addendum.

5.  If I buy from a CSP indirect partner, do I qualify for QMTH?

No.  Your company must be CSP 1 tier authorized in order to qualify.

Thanks  for reading,

SPLA Man

 
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Posted by on September 11, 2017 in Top 5 Licensing Questions

 

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Details of the Qualified Multitenant Addendum

There’s been a lot of talk as of late about the new QMTH addendum.  I’ve written a couple of articles on the topic here  In this article, we will summarize what is written in the addendum so there’s no surprises.  I listed some (not all) of terms and conditions to ensure you are up to speed on the latest developments.

  • CSP Membership – You (or affiliates) must be a Direct CSP partner.  This means you cannot leverage an Indirect CSP partner for this program.  In other words, if you receive CSP licensing from Ingram Micro or SherWeb (as an example) your partnership with those distributors/partner does not qualify for QMTH.  Your organization must be CSP Direct authorized, not your partner.
  • Must meet the system requirements – System Requirements can be found here
  • Have an active SPLA agreement.
  • Reporting Requirements – You will always need to report underlying licenses in SPLA.  Those underlying licenses could be any software to deploy a VDI solution – (Windows Server and RDS).   In addition, you must report (by the last calendar day of each month) the Windows 10/O365 licenses deployed.  This is manual, meaning you will send an email to the QMTH alias for submission.  Once automated reporting is available, you must enable Microsoft’s automated reporting tool.  Microsoft will use the tool to collect your customer’s organization ID and tenant ID as well as the total number of users accessing the software.
  • As the provider, you must report to your SPLA Reseller the program administrative fee.  If you are currently in the SCA program, you will be familiar with this SKU.
  • As the provider, you must make all education materials publicly available.  You cannot just sign up for CSP, the education material should be like what’s on the QMH website.
  • For each per user subscription to Windows 10 Enterprise, the end-user can only access up to four (4) instances of Windows 10 either on Azure or you, the QMTH hoster.  This is like the SCA program in which the end user has five (5) instances of Office Pro Plus, Windows 10 works the same way.

Listed above is a summary.  I encourage you to reach out to your Microsoft rep for additional information.  I am happy to review it further, it’s a new program with pluses and minuses.  Be sure to understand the minuses first 🙂

Thanks for reading,

SPLA Man

 

 
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Posted by on August 3, 2017 in Office 365

 

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Yikes…how to move from one cloud to the next.

The latest buzz word in this crazy IT world in which we live is not “Cloud” it’s “Hybrid Cloud”.   Even the definition of hybrid cloud has evolved throughout its short existence. Having a mix of on premise workloads and cloud workloads has transformed into having workloads spread throughout different cloud vendors as well.  “Cloud Sprawl” is born and guessing is here to stay.

In this article, we will review how the licensing works to move a customer’s workload from one cloud to another; customer’s owned licenses back to on premise; and customers on premise licenses back to your cloud.  As the title of this article states..Yikes!

Moving away from your cloud to another cloud

So, your sales rep “accidentally” promised the world to your customer that he/she could not deliver.  Unfortunately, they now want to move to another provider.  First thing to do is fire the sales rep.  Second thing to do is read your SPLA agreement.

When you sign a SPLA agreement (or any Microsoft agreement) your license keys are your license keys.   The data is not yours, but the keys are (at least while you have an active agreement – remember, SPLA is non-perpetual license). License keys are not to be transferred, resold, etc. over to another datacenter provider.   Where does it say that?

In section 6C, page 5, of the 2017 SPLA Indirect Agreement “Copying and distribution of Products and Software documentation” states: “customer may distribute original media or software contains products only to outsourcing company and affiliates.”  Another cloud provider is not your affiliate or outsourcing company, they are your competitor.  The section continues: “Customer may distribute original media or software containing client software and/or redistribution software to its end users.”

What that statement is saying is the service provider can provide the image to their client but not to another service provider.  If they do this, Microsoft requires the license keys to be removed first.  Remember, your keys are your keys, not theirs. As mentioned, the data is not yours either.  An end customer has the right to transfer their data from your datacenter to another provider.  You can also transfer the media to your customer, but not to another service provider as the statement suggests.

Over the years, the transfer of data, transferring images, and using outsourcing companies has made it difficult to track which media/keys belong to which company.  My recommendation is to have language in your agreement that is like the one in your SPLA to protect you.  Is this a gray area?  Absolutely.  My other recommendation is that no matter which keys belong to which organization – be sure to license the environment correctly; in the end, that’s the most important part.

Customer’s owned licenses back to on premise 

The same sales rep screwed up again.  They promised the customer that by moving to your cloud environment they would never be audited again.  Guess what?   They got audited.  Now they are upset and want to move back to on premise.  How does the licensing work?

In this situation, let’s assume the customer is moving workloads that have software assurance (SA) and are using license mobility. (even if they didn’t, same rules would apply.  I just like using license mobility because it’s more common).   Whenever an end customer transfers their own licenses (not SPLA) it’s important to read the Product Terms, not just the SPUR.  The Product Terms is for volume licensing, which applies to customer owned licenses.  The SPUR, as we all know is for SPLA.  Two different programs, two different use rights.

Page 84 (good Lord this is a massive document) of the 2017 Product Terms states “Customer (your end customer) may move its licensed software from shared servers (license mobility) back to its Licensed Servers or to another party’s shared servers, but not on a short-term basis (not within 90 days of the last assignment).

When you buy a license through volume licensing (VL), you assign that license to a server.  That’s one of the reasons you cannot mix SPLA and VL on the same server (different use rights).  When you assign that server to a different server farm (another datacenter provider) that server license cannot move within 90 days of assignment.  If your end customer gets upset and demands you transfer their licenses back to their premise, you can pull out this little blurb in the Product Terms.  I would recommend having language in your agreement that states the same.

You might be wondering – “isn’t the benefit of Software Assurance the ability to move workloads freely without worrying about the 90-day rule?”  That’s true and I’m glad you brought that up.  If it’s within the same server farm, workloads can move freely.  Pay attention to page 84 of the Product Terms as well as the definition of a server farm.

One of the best lines in the Product Terms happens to be on the same page (84).  “Customer (again, customer in this example is your end customer) agrees that it will be responsible for third-parties’ actions about software deployed and managed on its behalf” I would definitely include that statement with your customers.

Moving back to your cloud

You gave your sales rep an ultimatum, win the customer back or lose your job!  Your sales rep won the customer back.  Now your customer can move back to your cloud, but make sure you follow the license mobility use rights as mentioned above.  Remember the 90 day rule.  Once a customer assigns a license back to their premise, they have to wait 90 days to move it back.  Secondly, if they do not have SA, you must dedicate the entire infrastructure for your customer.  Dedicated means the hardware used to support the solution.

The moral of this story?  Make sure you have a good sales rep!  Secondly, read the SPUR, Product Terms, SPLALicensing.com, and have language written in your agreement to protect yourself.  Lots of talk about moving to the cloud, moving away from it is just as important.

Thanks for reading,

SPLA Man

 

 

 

 

 
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Posted by on August 3, 2017 in Compliance

 

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Deep thoughts with SPLA Man

As we enter the new FY at Microsoft, I thought I would put together a list of topics that’s on everyone’s mind.

  • SPLA going away?  I don’t think so.  There’s too many SPLA partners to make an entire program disappear.  I also think this is one of the benefits Microsoft has over all it’s competitors.  If a customer wants to have an application hosted in one datacenter and use Azure for disaster recovery – Microsoft wins.  If Amazon is running Windows workloads (which they are) they must pay Microsoft for that usage through SPLA.  I also think SPLA is a way to move customers to Azure.  If you are a SPLA customer who just went through an audit, the SPLA customer might ask themselves why they continue to host at all?  Let’s use Azure and my compliance problems go away.  (they don’t but that’s for another article).
  • Is CSP/QMH really a must?   I guess the jury is still out (it hasn’t even launched yet for the partner community – September 2017).  There are a lot of restrictions to this program to consider – underlying Windows Pro licenses, becoming CSP direct authorized, not using CSP Indirect, RDS licenses when deploying VDI, etc.  If you decide to go down this route, pay close attention to what you can and cannot do.
  • Will SPLA pricing increase?  Yes.  No doubt about it.  Nothing stays the same for too long.
  • How can AWS win the cloud war?   Amazon has a revenue first, profit second mentality in my opinion.  Just look at their last earnings report (2017).  They can buy their way into the SaaS market at any cost.  They are not just a cloud company, they are an everything company.  They have the leverage to really get creative with their marketing and win businesses over.
  • How can Google beat AWS and Microsoft?  Google hasn’t scratched the surface with their footprint in the enterprise space.  One slip up by the other cloud powerhouses and Google becomes a very attractive offering.  Google has the power, the money, and the brand to make headway. Like AWS, they are not just a cloud/software company, they are an everything company.  I really think Google will surprise a lot of analyst in the near future with their cloud growth.
  • How can Microsoft beat them all?  Any organization that uses Microsoft software in a hosted environment must pay Microsoft for that luxury.  They already have a large footprint and very large customer base to move to Azure.  They also have 30k + SPLA partners (estimate) that are being used to sell their solution.
  • Will SPLA Man be able to afford a nice piece of jewelry for Mrs. SPLA Man?  For all the single women who read SPLAlicensing.com, don’t make the same mistake Mrs. SPLA Man made.  Poor Mrs. SPLA Man, when I first met her at the bar, she thought SPLA was something I created for the space station. Space Program Living Association.  S.P.L.A. – kind of like a home owner’s association but for space.  (I am not sure where she got that idea).  I do have a cool blog??!

Thanks for reading,

SPLA Man

 
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Posted by on August 2, 2017 in In My Opinion

 

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