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Top 5 CSP Questions….Answered!

  1. Is the SCA addendum removed now that Microsoft announced the Qualified Multitenant Hoster addendum?  Yes.  SCA has been removed and replaced with the QMH addendum.
  2. If I have a CSP Indirect/Tier 1 authorization, can I resell Azure Stack but license Windows Server through SPLA?  Yes.  You will pay the base consumption rate because you A) Purchased the hardware through an authorized dealer and 2) paid for the Windows license through SPLA.
  3. If I am not authorized for CSP, can I still sell Office 365 to my end users?  Not in the general sense.  What you can do is resell CSP through a distributor or authorized CSP Indirect/Tier 2 partner. You can also partner with a CSP Direct partner to offer the solution.  They would resell the actual license but you can provide services on top of it.
  4. I am a SPLA partner who wants to resell Office to my end users.  What are my options?  You can sell Office through SPLA and include RDS and Windows.  You can become CSP Direct authorized and use the QMH addendum mentioned above.  You can also use end customer owned Office licenses and host it in a dedicated environment.
  5. Will Microsoft offer QMH for Indirect partners as well?  Not at this time.  You must be CSP Direct to qualify, not Indirect.

Lots more on this.

Thanks for reading,

SPLA Man

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Posted by on July 17, 2017 in Office 365

 

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VDI Under SPLA? Maybe it’s possible after all – Multitenant Hosting Rights for Windows 10

Good news for those who have customers who want you to host Windows 10 in your shared cloud environment –  they might now have that as an option.  Microsoft recently announced “Multitenant Hosting Rights for Windows 10.  You can read the announcement here 

We also created a new website called MSCloudlicensing to help SPLA and CSP partners understand the different program options and use rights available to them. The new website is www.mscloudlicensing.com it’s designed to be a collaborative platform that includes a forum to ask and answer licensing questions, document library, and licensing articles.  Check it out, it’s free.

What is it?

Allows customers who purchased qualified Windows 10 licenses the ability transfer those licenses over to a Qualified Multi-Tenant Hoster shared datacenter environment.

Why is this important?

For years SPLA partners have asked for VDI in SPLA.  Although this is not technically VDI in SPLA, is does provide an avenue to implement a virtual desktop session from your shared server environment.  At the end of the day, it gives your end customers deployment options.

Can I still license Windows Desktop in SPLA?

No.  Windows desktop licenses were removed last year.  You can read/download the lease agreement that outlines the details here

What are the requirements?

To no surprise, the SPLA partner must be CSP Tier 1 authorized.  They must also sign the Qualified Multitenant Hoster addendum and have an active SPLA with Microsoft.  To get the QMH (another Microsoft acronym) you can contact info@splalicensing.com or your Microsoft Reseller.

What happens if I offer dedicated environments?  Do I still need the addendum?

No.  If it is 100% dedicated (isolated hardware) you can always transfer end customer  licenses over to your datacenter environment.  Whenever it is shared – VM or hardware, you must consider SPLA or in this case the QMH addendum)

When is it available?

Program will be available August 1, 2017 for VL and September 6, 2017 to transact in CSP.

Can I bundle my customers Office solution they purchased as well as Windows 10 to offer a complete VDI experience?

Yes.  This is a great way to bundle different desktop applications.

Conclusion 

If you provide IaaS to your customers, this is definitely something you should consider.  Any time you can offer your customers the ability to leverage existing investments the better.  Azure is not going away.  In fact, you don’t have to be QMTH authorized to leverage Azure as your datacenter provider.  Please review the announcement, there will be a lot more information on this in the coming days.  I will also write out several scenarios to make this more simple.  As always, you can email me at info@splalciensing.com

Thanks for reading,

SPLA Man

 

 

 
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Posted by on July 12, 2017 in Office 365

 

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Top 5 Compliance Trends for MSP’s and SPLA

There are so many license changes and gotchas with SPLA, Azure, AWS, and all the others that I thought I would highlight for you some of the trends we see when it comes to compliance.

  1. Licensing Office Standard when Office Professional is installed.  In many cases, an IT administrator will inadvertently install Office Pro, report Office Standard to their procurement team who in return reports it to the reseller.  The IT admin will leave the company, and the procurement team continues to report Standard not knowing Pro is installed until audit time.  In this situation, Microsoft will check when Office was installed, and take the delta of what was reported (STD) v. what should be reported (Pro).  Don’t make this mistake.  Many partners are only charging their customers for Standard pricing!
  2. Not reporting SPLA at all.  Sounds silly, but many providers focus on developing software and not on the licensing.  We have found instances in which the procurement manager (who was in charge of reporting SPLA) left the organization and no one else took over their responsibility.   The reseller continues to email the procurement manager but obviously the email goes unnoticed.  After many months, their SPLA will be terminated and all licenses will have to be trued up.  The problem with this scenario is not just unexpected licensing expense, but when your SPLA terminates, you must sign a new one.  When you sign a new SPLA, you must adhere to the latest SPUR use rights.  As an example, if you had a SPLA prior to the Windows core licensing change, you could continue to report processors.  If your SPLA terminates, you would be forced to license by core now instead of later when your previous agreement (that is now terminated) expired.
  3. Using a VL copy of Office to deploy Shared Computer Activation (SCA).   SCA is specific to Office 365.  If you install Office Pro Plus VL, it goes against the product use rights in which Office (without SCA) cannot be installed on shared hardware.  It takes a lot of negotiation power and time to prove you are SCA eligible, the customer purchased Office 365, and you inadvertently installed the wrong product.
  4. Using License Mobility without License Mobility.  This is by far the most popular compliance trend.  Many organizations do not know what is installed in their datacenter when it comes to customer owned licenses.  Be sure to have the right documentation, addendum, and licensing to ensure compliance.
  5. Leasing an application, hosting the application, and purchasing volume licensing agreement to offer software as a service.   A healthcare company may lease an EMR application, host the application to other healthcare organizations, and license the infrastructure through volume licensing.  If your organization does not own the application you are hosting, you must license it through SPLA.  Self-Hosted for ISV is only eligible for providers who develop and own the application.  This means the code, the rights, everything must be owned by the organization.  Leasing the application and using other plugins you may have developed does not qualify.

I hope this provides you a little insight into the world of compliance.  If you find yourself out of compliant, let us know and we can connect you to the right resource.  info@splalicensing.com

Thanks for reading,

SPLA Man

 
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Posted by on July 5, 2017 in Compliance

 

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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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Top 5 SPLA Licensing Questions in March 2017

There’s March madness in college basketball and March madness in licensing.  College basketball is over, but licensing is just getting started.  In this post, I completed a list of the top 5 questions in SPLA.  Enjoy!

1.  Can we offer a customer dedicated VMs where they can have Windows-admin access? We want to offer the OS-plattform and let the customer handle applications etc themselves

No.  You can offer dedicated VMs, but unless a customer is transferring their licenses over to your datacenter, they should not have admin access.  Amazon does a good job of explaining this.  Check it out here

2.   I am looking at licensing SQL in Azure.  My question is can we run multiple     instances on a single VM or is it 1 instance per VM?  How can we reduce our consumption?

Yes. You can run multiple instances on a single VM to reduce the number of VM’s deployed.  This works with Azure, AWS, or even your own datacenter.

3.   If we have a hypervisor running 2012r2 datacenter edition. Can I install server 2016 on a VM or does the hyper visor also have to be 2016?

You can install the VM with 2016 but the entire host must be licensed by core if you do. (even if you are also running 2012) Remember with 2016, there is an 8- core minimum per physical processor and is sold in packs of 2 cores.

4. I have a production SQL server fully licenced. We will be introducing a second server that will only receive SQL transaction logs throughout the day. It’s not a hot standby, not even a warm standby.  Does it require a license?

As long as that server is passive, log shipping is allowed.  

5. We are a cloud hosting provider and find it very frustrating in regard to Office 365 and not being able to use SCA.  Any help?

There are specific requirements to become CSP Tier 1.  I will say Microsoft has made the requirements easier as it pertains to support.  If you are having difficulty becoming CSP Tier 1, it may help to look at partnering.  Let us know.  info@splalicensing.com

Thanks for reading,

SPLA Man

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

 

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It’s a bird…it’s a plane…it’s VDI and SPLA!!!

We have all been there. You see an email come across in the subject line that you’ve seen before. You release a loud sigh, because you already know the response to the email before you even open it. How? Well you’ve been asked the same question before on numerous occcassions and give the same response. For me in particular, the subject in the email is “SPLA and VDI”  It’s not frustrating, it’s just I hate saying “no”  (just ask my son – a bit spoiled I admit)

I try to write about different topics, but I also like to give updates and understanding to various topics that really hit home; VDI is one of them. You can read my previous article here  In this post, I will break VDI into two parts: defining VDI and moving forward.

Definition

What is a virtual desktop in the licensing world? You should think about virtual desktop as a software assurance benefit. Like license mobility, software assurance is required. Unlike license mobility, there is no option to install in shared infrastructure. Let me repeat – no option to install in shared infrastructure. One more time…no option to install in shared infrastructure. What are the options?

Since VDI/VDA is a software assurance benefit, your customer must purchase their desktop OS with software assurance to have VDI rights. That means if they did not purchase with software assurance, there is no option for them to use virtual desktops from a true licensing perspective. What if the machine is a dummy terminal with no software assurance option available? The end-user would be required to purchase a VDA license for each device. VDA license is kind of like a device CAL, it just provides the user access to a virtual instance. If your customer has not purchased VDA or software assurance on the OS, they need to reconsider if they want a virtual desktop.

Some service providers are under the impression that they can sell a desktop OS perpetually to the customer and host it for them in a dedicated environment. They have the dedicated environment part right, but an OS sold to an end-user does not grant that end-user access to a virtual desktop without software assurance (SA). Secondly, you have to be an authorized reseller to sell perpetual licenses (non SPLA) to consumers. Third, you cannot buy a Windows desktop license yourself and host it to third parties. Anything you buy outside of SPLA is for your internal employees only. Last, not only should you not buy licenses and host, but do not install on servers that is also used for your internal use. That is a big compliance headache.  Where is it written that you cannot host on servers internal employees are also accessing?  It’s not.  That’s what makes it a headache.  Just don’t shoot the messenger!

So why can’t the end-user just go to Best Buy or some other retailer, purchase a retail copy, have you (the service provider) host it for them? That not only is a compliance risk, it is also not very economical. Download the FAQ guide here

Moving Forward

What are your options?  The good news is Azure, AWS, and all the others have the same rules.  They cannot offer desktop OS in the public cloud.  This is probably the best FAQ guide I’ve read around Azure and it applies really to all IaaS providers.  Check it out here

What you can do is offer Windows Server to emulate a desktop using RDS.  I get it, not the same thing but I think it is a more of a compelling solution from a cost perspective (and be compliant).  Dedicating a physical server and virtual server is not always the most profitable solution.  I’ve said this before, I think the bigger issue is Office.  RDS now has mobility rights, I think Office should too.

My Opinion

If I was a service provider, I would work with someone who is an expert in SPLA based licensing and an expert in software assurance benefits.  As you can see from my previous posts and with VDI, software assurance is a requirement for most cloud based licensing solutions.  In years past, SA (Software Assurance) was only leveraged for organizations that wanted the latest version on software and pay annually for the licenses under their agreement.  The “cloud” has changed that.  Fast forward to today and customers want to move to the cloud but leverage their existing licenses.  Have you been asked that before?  How do they accomplish that?  The answer is Software Assurance.  They need SA to use license mobility, they need SA for VDI, they need SA for hybrid scenarios such as the SAL for SA SKU’s, and they still  need SA for latest version rights and pay annually.  If I was a Microsoft shareholder, I would applaud that move.  It’s a way to add additional revenue on top of the licenses they purchased all the while giving customers the benefits they are after.

So if you ask, “why does Microsoft not allow VDI in a shared environment?”  My answer is “why would they?”

Thanks for reading,

SPLA Man

 
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Posted by on August 13, 2014 in VDI

 

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Datacenter Outsourcing

I’ve written before on how partnering with an established provider can save you money, especially as a short term solution to get your hosting business started.  What I haven’t really addressed is the licensing.

Data Center Outsourcing is essentially what the name applies.  “Data Center” and “Outsourcing”; you outsource your data center. Amazing how that works.  Microsoft definition is a bit more confusing – amazing how that works too. From the outsourcing guide:

  1. “A Data Center Provider is a Service Provider that provides Software Services, usually IaaS, to another Service Provider using Products licensed from Microsoft through its own SPLA..”

Microsoft Azure is a good example of a data center outsourcing company.  When you sign up for Azure, Windows will be included in the service.  They are essentially providing the infrastructure (Windows and/or SQL cores) and you provide the application licenses via your own SPLA.  When you leverage another service provider who provides the infrastructure, they must be providing the Windows licenses. Hmmm…here’s why.

Let’s say you have a signed SPLA agreement to offer Exchange to your clients and you decide to use Brett’s Hosting to provide the infrastructure.  Brett’s Hosting offers a public cloud environment (multiple customers sharing same resources).  Under this model, you will report Exchange licenses for each user that HAS access to the software and NOT report Windows under your own SPLA; Brett’s Hosting would report Windows via their own SPLA.  Why?  If it is a shared environment, there is no way Brett’s Hosting can allocate processors for you to report it.  SQL cores works the same way.  Still don’t believe me?  Check out the FAQ guide from Azure here. Notice under SQL it states you can purchase a VM or use SAL licenses.  Notice under Windows it states Windows is included with your agreement.

Here’s the bottom line, if you decide to outsource your data center to a public cloud provider, ask them how they manage the Windows OS.  If they say it is not included in the cost of the service and you should be providing the licenses, they are out of compliant.

Want more proof?  Download the outsourcing guide here

That being said, if you provide data center outsourcing services, I think you are in the right business. This is the fastest growing area within the hosting industry.  Windows is relatively inexpensive from a licensing perspective, especially as you add more VM’s and can capitalize on the Data Center edition.  (remember…unlimited VM’s).  SQL can get a bit more complex, but if you understand it I think that could be an added value over your competition.  Last, because you report Windows and SQL only and let the service provider control the user based licensing; it limits your compliance exposure.  (processors/cores are easier to track).

So are you a data center outsource or a service provider?  Do you work with someone to resell your solution or do it alone?  Would love to learn more about your offerings. If you need guidance or best practices or just want a second opinion from a licensing perspective you can email me at blaforge@splalicensing.com.

Thanks for reading,

SPLA Man

 
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Posted by on August 7, 2014 in Data Center Outsourcing

 

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