Holidays are right around the corner, chill in the air, and a looming end of security update for Windows 7 and Windows 2008 is right around the corner. What is a MSP going to do? Luckily for you, there’s SPLA Man, or MSP Man, or CSP Man (whatever acronym Microsoft calls me these days), any of which can provide you options. In this article, we’ll review these options and how each one can fit into your business.
Windows Server 2008
If you are hosting software under SPLA, the good news is you already have access to the latest version as part of your agreement. If you are not licensing SPLA and want to provide Windows Servers to your clients, you have a couple options:
- Under the Cloud Solution Provider Program (CSP) you can license Windows Servers through your indirect provider or through your own authorization. This will allow you access to the latest version, pay annually for the subscription, and allow you to install the software on your customers datacenter or in Azure. You will not be allowed to host Windows Server subscription licenses in CSP and host it from your datacenter. Whenever you install CSP Server Subscriptions on premise, it follows the Product Terms (which prohibits hosting). This also means you must buy CALs if installed on premise as well. CALs are available through CSP or through the end customers volume licensing agreement.
- You can have your end customers buy the new version of Windows Server licenses through their own volume licensing agreement. Under this model, you (as a service provider) would need to isolate the hardware for that customer (dedicated hardware). CALs would also be required. You cannot have the end customer buy the licenses and host it in AWS or other “Listed Provider” as mentioned in the Product Terms. Microsoft prohibits anything outside of license mobility to be installed on shared servers from a Listed Provider.
- You can have the end customer buy ESU through their own volume licensing agreement (I believe only the Enterprise Agreement qualifies). This is a fairly expensive option.
Windows 7
Many organizations must upgrade their PCs and end devices running Windows 7 to a newer version. Here are the 3 options available.
- Windows 10 through CSP. You receive the latest version rights which will allow the end customer to upgrade from Windows 7 to Windows 10. Couple things to keep in mind: 1) Windows 7 Pro can upgrade to Windows 10 Pro included with the subscription. 2) Windows 7 Home can upgrade to Windows 10 Home (Home only). CSP is a channel program that allows a service provider to buy licenses from an authorized CSP provider and resell it to their end users. (Same process as SPLA in essence).
- Buy ESU. Similar to servers, ESU is available through the Enterprise Agreement. (Should be avaialble through CSP in December). This is only a viable option if the end customer does not have plans to upgrade to a newer version.
- Buy Windows 10 through a Volume Licensing agreement. There is a rental addendum through VL that allows an organization to rent PCs to end users. More details can be found here
The good news is there are options. The bad news is time is running out. If you have any questions, please let us know info@splalicensing.com
Thanks for reading,
SPLA Man
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Tags: Azure, Cloud Solution Provider Program, CSP, End of security update, ESU, spla, Windows 7, Windows Server 2008
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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Tags: Amazon Cloud, Amazon Web Services, AWS, Azure, Azure stack, Cloud licensing, Cloud Solution Provider Program, CSP, CSP Licensing, Dedicated hosting, Hosting, Microsoft Cloud, MSDN, Office 365, QMTH, QMTH addendum, SAL for SA, Service Provider License Agreement, Software Assurance, spla, SPLA Audit
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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Tags: AWS, Azure, Azure stack, Cloud Solution Provider Program, CSP, Digital Transformation, Google, Hit Refresh, Hybrid cloud, Microsoft, Microsoft Licensing, Microsoft SQL Server, Satya Nadella, spla, SQL 2017
The one thing consistent with Microsoft is change. Attempting to predict what will happen tomorrow is just as difficult as predicting what will happen two years from now. That being said, Microsoft is giving hints as to what the landscape of SPLA and CSP will look like in the not so distance future. Without further delay, here’s my predictions:
- Microsoft will increase SPLA pricing at some point. It’s inevitable. See point number 2.
- There will be a big push to move SPLA providers to CSP and it’s happening now. CSP pricing is not going up any time soon.
- CSP membership will be part of the requirement to join SPLA. Going out on a limb here, but if the goal is to move SPLA to CSP, I think this would be a good way to do it.
- CSP requirements will be more streamlined and easier to obtain. See point number 2.
- SPLA compliance will increase. See point number 2.
- SPLA Resellers will put more focus on CSP than SPLA. See point number 2.
Good news? I think it’s time for SPLAlicensing.com to get a facelift. It’s been several years using the same format. What features would you like to see? What topics interest you? What do you think will happen in SPLA? Email info@splalicensing.com and would love any suggestions.
Thanks for reading,
SPLA Man
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Tags: Azure, Cloud Solution Provider Program, CSP, CSP Membership, Microsoft Cloud Solution Program, microsoft CSP, Microsoft Exchange, Microsoft SPLA, Microsoft's, Service Provider License Agreement, SPLA Pricing, SPLA Reseller
- 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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Tags: AWS, Azure, CAL, Cloud Solution Provider Program, CSP, Hosting, Licensing Mobility, Microsoft Audit, Microsoft Hosting, Office 365, QMTH, Qualified Multitenant Hosting, SCA, spla, SQL, Subscriber Access License
Lot’s of questions about Dynamics 365 and SPLA. Here are a few frequently asked questions to help solve the mystery.
- I’m having difficulty keeping track of all the changes at Microsoft. If I reported CRM prior to the new Dynamics 365 SKU’s in SPLA, can I continue to report the way I did prior to the change?
Yes. Service Providers who reported CRM before can continue to do so until your agreement expires. Once you renew, you can start reporting the transition SKU’s a lower cost through October 2019.
- How does the new SKU’s correlate to the old SKU’s in CRM?
There’s no 1-1 ratio with older CRM products and the new Dynamics 365 products. Some of the features that are included with Dynamics 365 are not found in some of the older products. Let me provide an example, if a hoster offered CRM 2016 Pro, they would have to stack licenses to get all the functionality. To be specific, they would have to report EMT-00648 and ENJ-00826.
- But what would happen if I was reporting Basic?
You would also be required to stack licenses to get all the functionality. Specifically, you would need EMT-00649 and ENJ-00827 to cover everything.
It’s a clever move to get end users to transition to CRM Online in my humble opinion.
- Ok. But I didn’t have customers on CRM prior to the change. Can I still report old SKU’s.
According to Microsoft, you must report the new Dynamics 365 products.
- I would like to use the new Social Engagement feature within CRM. How do I activate in SPLA?
Although the Social Engagement feature can be enabled for on premise CRM deployments, I “believe” they are assuming the customer already purchased an Dynamics Online subscription. In other words, in order to obtain Social Engagement, the customer would require an online subscription. Would love to know if this is different 🙂
Thanks for reading,
SPLA Man
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Tags: Azure, Cloud Solution Provider Program, Dynamics 365, Dynamics CRM, Dynamics Online, Hosting, Microsoft Dynamics, Office 365, Social Engagement, spla
Here are a few hot topics this week around CSP. Enjoy!
What would happen if I sell myself Office Pro Plus through my own CSP authorization? Can I do that?
No. You cannot sell yourself Office 365 Pro Plus licenses. You can purchase it through any volume licensing program or through another CSP provider. Might be a good way to check out the competition support processes though!
If you are CSP authorized in Australia, but have customers in UK, can you resell Office 365 through CSP?
No. You can only resell in the region in which you are authorized.
If my end customer purchased Office 365 Pro Plus through Volume Licensing, can I host it from my datacenter if I am QMTH authorized?
Yes. The end customer can purchase from any licensing program as long as it is Office 365 Pro Plus version. As the service provider, you must be QMTH authorized.
If I purchase CSP licenses indirectly from my distributor, do I qualify for QMTH?
No. You must CSP Direct authorized in order to that. You cannot purchase from a distributor and offer VDI or Office Pro Plus.
If I sell Azure through CSP, how do I know which region my data is located?
With Azure, you get to pick the region.
If I sell Office 365 through CSP, which region is my service hosted from?
The address on the invoice determines the location of the services.
***Watch out for the new Microsoft Cloud Agreement (MCA) coming in September. You can download the old version here
Thanks for reading,
SPLA Man
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Tags: Azure, Azure stack, Cloud Solution Provider Program, CSP, CSP Direct, CSP Tier 1, CSP Tier 2, Microsoft Cloud, Office 365, QMH, QMTH, SCA, shared computer activation, spla, VDI
What happens if you have end customers who want to use Office Online for external users (non-employees of your organization). Is that SPLA? In this article, we will break down Office Online through three programs – SPLA, Volume Licensing, and CSP.
SPLA
If you are hosting Office for another organization SPLA definitely fits. As an example, if you provide DaaS to your customers who are also licensed for Office, they can access Office Online. In this model, you license SharePoint (requirement for Office Online) Office by user, RDS per user, and Windows + SQL Server. Very expensive to simply offer a customer the ability to view and edit documents online.
Volume Licensing and Office 365
Office Online was added as a Software Assurance benefit for Office in 2016. End customer’s who simply want to view documents can download it directly from the Volume Licensing Services Center (VLSC). End customers that require document creation, edit/save functionality will be required to have an on-premises Office license with Software Assurance or an Office 365 ProPlus subscription. Any customer that purchased an Office 2016 suite through Volume Licensing before August 1, 2016 will not require SA through August 1, 2019. After August 1, 2019 they must buy SA for any on-premise Office licenses.
According to the Product Terms (May 2016) “If Customer has a License for Office 365 Pro Plus, then Customer may use Office Online services. Each of Customer’s Licensed Users of Office 365 Pro Plus may access Office Online services for viewing and editing documents, as long as they are also licensed for SharePoint Online or OneDrive for Business.” It’s the last sentence that stings. In other words, you want Office Online? Better buy Office 365 E3.
Office Online for CSP
The same rules apply. In this scenario, the hosting company could sell Office 365 E3 through CSP program to their end users. In CSP, the end customer is paying month – month and paying for support.
Thanks for reading,
SPLA Man
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Tags: Azure, Cloud Solution Provider Program, CSP, DaaS, desktop as a service, Microsoft Cloud, Microsoft Licensing, Microsoft SPLA, Office 365, Office Online, spla
We all love stories—all of us. We love to hear about good overcoming evil – the prince saving the princess, the bad guy that the good guy captures. In short, what we love are fairy tales. The reality is we do not live in a world of fairy tales, and sometimes, yeah, the bad guys do win. The prince, admired by many, is not such a good prince after all. We trust without knowing they can be trusted. So, what does this have to do with audits?
Businesses are built based on one concept – to solve a customer’s problem. You are their hero to save whatever pain they have or problem they can’t seem to overcome. You are (as the story goes) their knight in shining armor. Your customer needs someone to deliver a solution; you are just the good guy to do it.
Fast forward a couple of years, your business is booming, your customers are happy, and in walks every IT nightmare…the auditor. Eyeglasses the size of saucers, a necktie tied just a shade too short, and a laugh that is about as annoying as a nail on a chalkboard; you succumb to a software audit.
How do you defend such evil? The biggest mistake a hosting partner (or enterprises in general) often makes is fear. They give the auditors everything they ask. That’s not always bad, but if you don’t understand why they ask for certain things or feel they are painting you in a corner, take a step back. Please don’t give in without understanding what they are asking and why. Why do they want to know who your customers are? Why do they ask about customer-owned licenses? Software Assurance? Historical information? If you can’t answer “why,” maybe you need help. In walks SPLA Man. Nah, in walks Mrs. SPLA Man, every auditor’s worst nightmare. She put together the following list on how to better prepare yourself for the unexpected.
Mrs. SPLA Man’s List
Don’t be fearful – no matter what, it’s your business and YOUR customers.
Have a plan. Know what’s in your customer agreements. If you need to refresh your agreement language, do it. Software licensing rules change daily; if you have not updated your contracts on license mobility or datacenter outsourcing, update it now.
Don’t bring unwanted attention to your organization. Always report usage on time and pay on time. 80% of all delinquent reporting has nothing to do with the reseller or Microsoft. It has everything to do with an SPLA partner’s account payable dept.
Don’t have one person manage your usage reporting. In many cases, a person leaves a company who was the only one who worked with the reseller directly. When that person leaves, who is responsible for reporting?
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Tags: Audit Support, Azure, Cloud Solution Provider Program, CSP, Microsoft Audit, Microsoft Auditors, MS Audit, SAM, Software Asset Management, Software audit, SPLA Audit
You have questions…We have answers. Another month, and another list of licensing questions asked by the hosting community.
- I have a small hosting company that runs primarily Linux machines with a few Windows VM’s mixed in. The only thing we do customer facing with Windows systems is a small number of users access our application via a published app over RDP Web. Do I need SPLA?
Yes. You have Windows running in your cloud environment. It does not matter how small or large the environment is. One thing you might want to check out is the Cloud Platform Suite. You must run Hyper-V and System Center but it could lower your costs.
- I get CSP from one reseller and SPLA from another. Do I qualify for the new QMTH addendum or do I need to get it all from one source? Totally confused.
In QMTH, you are the CSP partner, not someone else. I am guessing you are using the CSP reseller to go indirect. If that is the case, you must become CSP Direct authorized. Purchasing CSP from a third-party does not qualify you for QMH. That being said, your customer can purchase CSP from any organization and you can host it for them (if you are QMH authorized).
- The audit bug got me. I think it’s because my reseller refuses to submit my usage report even though I sent it to them several times. Any advice?
Microsoft can audit any partner they choose. There’s not one factor that triggers an audit. More eyes will be watching if you are continually delinquent on your monthly report. The biggest reason why a reseller does not submit a usage report is because the provider is delinquent on their payments. Are you up to date? All payments paid to the reseller?
- Can I rent a PC using the QMTH addendum? I know in the past I could rent a Windows desktop license in SPLA. Can I do it now?
I think it makes sense to do so but unfortunately it is not part of the addendum. I would love feedback here. Section C of the QMTH addendum states” “This Amendment does not authorize Customer to resell, distribute, or otherwise provide End User or CSP Licensees direct access to Windows 10 Software” In order to lease a PC to a third-party you need to follow the Microsoft Leasing Agreement.
- I report Office, Exchange, SharePoint and Skype. I heard rumors of a price increase coming in the pipeline from various resellers that I reached out to. Any truth?
Let me put it to you this way – The products you just mentioned happen to be part of Office 365. I don’t foresee Microsoft lowering pricing in SPLA for the same products offered by Microsoft.
Thanks for reading,
SPLA Man
PS – What was the SPLA partner’s response to my answer for question 5? “That’s BS Mate!” My response? “Don’t shoot the messenger.” Have a question? Email info@splalicensing.com
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Tags: Cloud, Cloud Solution Provider Program, CSP, CSP Direct, CSP Indirect, Exchange Online, Hosting, Lease Agreement, Microsoft Cloud, Microsoft Compliance, Microsoft Office, Microsoft Server Licensing, Microsoft SPLA Pricing, QMH, Qualified Multitenant Hosting, SharePoint Online, SPLA Audit, spla licensing, SPLA Reporting, SPLA Reseller
SPLA Licensing 