Many CSP Direct partners who also have an SPLA agreement have asked if their SPLA usage reporting will go towards the 300k requirement to remain CSP Direct authorized. Unfortunately, they are two separate programs, and one does not affect the other.
The other question we get asked is: Can CSP replace SPLA for Windows, RDS, and SQL? The answer again is no. You are not allowed to host CSP products from your datacenter. You can; however, license CSP products on-premise for your customers or in Azure.
Whenever you license CSP for on-premise deployments, the software will follow the Product Terms, which (A) Prohibits hosting, and (B) Requires CALs. When you deploy in Azure, you can host to third-parties, and there’s no CAL requirement.
What is a service provider to do? If you already invested in a platform, services, and billing systems to enable CSP Direct sales and still feel nervous about achieving the 300k requirement, here’s a quick list of things you may want to consider.
- Microsoft recently discontinued the Open licensing program. In doing so, they added perpetual licensing to the CSP program. Do not think of CSP as a cloud-only solution, rather an opportunity to maybe expand your sales to include on-premise licensing sales. On-premise CSP sales will go towards your 300k number.
- If you are only CSP Direct authorized to have the QMTH addendum, make a cost comparison of running the same solution in Azure versus investing in sales and other activities to reach the 300k mark. Is it worth it, or can you forgo the CSP authorization and use Azure?
- Lower your cost for certain CSP products. You do not make money from the sale of CSP licensing anyway. Stop thinking your Exchange Online price increase is going to grow your bottom line. Lower your cost to win customers and raise it later. You can add services such as migration and cloud support to increase margins. The 300k will not be based on your margin; it is based on Microsoft’s revenue billed.
Those are only suggestions, and a lot of this requires a change in business strategy, not just licensing. Many service providers have asked about the future of SPLA. I recently wrote an article regarding the future of the SPLA program. You can download it here https://mscloudlicensing.com/product/whitepaper/ Some of the proceeds will go towards our charity, Mow Down Cancer, Inc.
Thanks for reading,
SPLA Man
Tags: CSP Direct, CSP Requirement, Hosting, Microsoft SPLA, Open Licensing, QMTH, Service Provider License Agreement, spla
As if 2020 wasn’t hard enough for service providers and MSPs, Microsoft is making new eligibility requirements for CSP Direct partners starting January, 2021. This was announced to all partners earlier this week.
What are the new eligibility requirements?
New revenue target of 300K (USD) in CSP sales during the preceding twelve months is one of the major changes. CSP partners will need to meet this new requirement at the anniversary date of their support plan. In other words, if you have a support plan coming up for renewal soon and do not meet this requirement, you must put on your selling shoes and get to work or look at other alternatives. Active support plan (Premiere Support as an example) is also another requirement.
I think it is important to understand your options. If you don’t meet the requirements you must move to the CSP Indirect program. If you are close to hitting your 300k in sales, start looking at CSP perpetual licenses as a new revenue stream. Open licensing is going away, maybe perpetual licenses could be an option?
If you are CSP Direct authorized for the QMTH program only, this change will be significant. As part of QMTH, you must be CSP Direct authorized.
If you have questions on how this change will impact you, please email info@splalicensing.com
Thanks for reading,
CSP Man
Tags: CSP Direct, CSP Indirect, Multitenant Hosting Rights, New CSP Direct Requirements, QMTH
No. How about that for a short answer?
We have been asked multiple times on this topic. It is not impossible, but not really viable either. Let me explain.
If you are CSP Direct authorized (or CSP Reseller), you could resell your end customer Windows and/or SQL Server subscriptions through CSP and host it in a dedicated infrastructure. I do not think it is really worth the time and effort just to host Windows and SQL. The cost in licensing is not that substantial from SPLA. If Microsoft allowed a service provider to host it on shared infrastructure than that would be a different story. You cannot purchase Windows through CSP and host it. Remember, Server Subscriptions for on premise deployments follow the Product Terms, which of course prohibits hosting.
If you are an ISV and want to host your application from your own datacenter, I would consider CSP Servers. Under the current Product Terms, Microsoft will allow Self-Hosted rights. I think this reduces your compliance risk since SPLA is tricky to license to begin with.
Isn’t licensing fun? We provide consulting services around these offerings. If you have questions, feel free to email us at info@splalicensing.com
Thanks for reading.
SPLA Man
Tags: Azure, CSP, CSP Direct, CSP Indirect, Hosting, Self Hosted, Server Subscriptions, spla
Recently, Microsoft announced a new offering for CSP Indirect providers who are also Microsoft Authorized Distributors for the Open License program. In January 2021 (If he world is still around) Microsoft will extend this to both CSP Direct bill partners, indirect providers, and indirect resellers.
The breakdown:
- It’s a perpetual license. Unlike other solutions through CSP, this is not a subscription. It requires a single, upfront payment.
- No volume discounts. There’s no minimum requirement and to no one’s surprise, no maximum either.
- Software Assurance (SA) is not available. One key element, no SA benefits are included either such a license mobility. With SPLA as an example, SA was not included but part of the program benefit was pay as you go. CSP for on-premise, there is no such benefit.
- The use rights are outlined in the Product Terms, not the SPUR or Online Services Terms.
Available Products
- Windows Desktop and Servers
- Windows 10 Pro
- Windows 10 Enterprise LTSC Upgrade
- Windows STD and DC core licenses
- Windows CALs and External Connector
- RDS CALS and External Connector
- RMS CALs and External Connector
- SQL
- Standard Server licenses and CALs
- Standard and Enterprise Core licenses
- Productivity Servers
- Exchange Server and STD/Ent CALs
- SharePoint Server and STD/Ent CALs
- Skype for Business – Server and STD/ENT Plus CALs
- Project Server 2019 Server and CALs
- Office
- Standard 2019 and Pro Plus 2019
- Mac STD 2019
- Project and Visio
- Standard and Professional 2019
- Visio Standard and Professional 2019
Deployment Options * See last paragraph for additional information
- Physical or virtual environments
- 90 days License reassignment
Upgrade Rights
- No upgrade rights
- Any prior version can be licensed.
Accessing Software Keys
Microsoft 365 Admin Center – Like other CSP licenses, everything is deployed through the admin portal. The current version and two previous versions are available. If the customer has media from earlier versions, they can legally license it with their CSP on premise license.
If you are a SPLA Provider, you cannot license CSP on-premise and host. The CSP for on-premise follows the Product Terms not the SPUR. Secondly, you cannot have your end customers buy CSP for on-premise and host it on your shared infrastructure. Last, because there’s no SA with these licenses, you cannot self-host (for ISVs) using this solution. An alternative, would be to use Windows and SQL Server Subscriptions and host in Azure.
Confused yet? Email info@splalicensing.com to learn more.
Thanks for reading,
SPLA Man
Tags: Cloud Solution Provider, CSP Direct, CSP Indirect, CSP Licensing, CSP On -Premise
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
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
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
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
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
Tags: Amazon Web Services, AWS, Azure, Cloud Solution Program, CSP, CSP Direct, CSP Tier 1, IaaS, Microsoft Azure, Microsoft Cloud, microsoft CSP, Microsoft SPLA, MS Hosting, Multienant Hosting Rights, QMH Addendum, QMTH, Service Provider License Agreement, shared computer activation, Windows 10
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
Tags: audits, CRM, CSP, CSP Direct, CSP Tier 1, desktop as a service, Dynamics 365, Microsoft, Microsoft Cloud, microsoft CSP, Microsoft SPLA, VDI, Zimbra
There’s a rumor that Microsoft will allow a service provider the ability to host Office licenses under Office 365 in a shared cloud environment. Is the rumor true? Yes, it’s true. But with everything in the world of licensing there’s always a catch.
For those that have read my blog for a while know that this blog is not a news source, but an education source. I don’t care about late breaking news, I just want you to get the licensing right, the information right, and be profitable.
So what does Office under Office 365 really mean? Some time ago, Microsoft created a use right titled “Shared Computer Activation” For those playing at home this is code for installing end user Office license from O365 in a shared cloud infrastructure similar to license mobility. In the past, this was only available in Azure. (imagine that). Fast forward to today and Microsoft is opening it up to the service provider channel as well. Good news for you, and even better news for Microsoft. If you would like to use this use right (SCA) you must meet the following criteria:
- You must be authorized for Cloud Solution Provider Program (CSP Tier 1). Thats why it’s good news for Microsoft.
- You must be managed by a Microsoft hosting team member.
- You must be an authorized SCA partner. (Licensing Addendum)
If you don’t know if you are managed, let me know – I can see if you are. Typically this is for SPLA partners that report not only high SPLA revenue (although not necessarily), but are also strategic in marketing activities with Microsoft. If you are international, let me know and we can look into getting US authorized as well. You can email me at info@splalicensing.com to learn more. I also have a cool powerpoint. (well, about as cool as powerpoint’s can go). Although a bit out dated, here is a good overview as well on SCA: https://technet.microsoft.com/library/dn782860(v=office.15).aspx
Last, I sit on a licensing panel and would love to review the different use cases for this program. Let me know how you may/may not benefit from Shared Computer Activation and we can voice our collective opinion to Microsoft. info@splalicensing.com
There’s also a big change for rental PC’s. Little teaser for an upcoming blog post.
Thanks for reading,
SPLA Man
Tags: Cloud, CSP Direct, CSP Indirect, CSP Tier 1, Hosting, Microsoft addendum, Microsoft Cloud, microsoft CSP, Microsoft Hosting, Microsoft SPLA, Office 365, Office 365 E3, RDS, SCA, shared computer activation
One of the biggest roadblocks hoster’s have is around Office. Want to provide a integrated SharePoint solution? Must include Office. Have an application that reports back through Excel? Must use Office. Want to provide users the ability to create, edit, and view a Word document? Must include Office. In this article I focus on what’s happening around Office including the good, the bad, and possibly the ugly.
Let’s start with the ugly and bad. I hate bad news, so let’s get this out of the way. I think the ugly is Office under Office 365. Surprise! We all know about installing on up to 5 devices and installing on RDS right/shared computer activation..right? You can learn more about it here http://blogs.technet.com/b/uspartner_ts2team/archive/2014/09/03/office-365-shared-computer-activation.aspx
Pay attention to what is happening with Azure. There’s a lot of changes in the way in which Office will be deployed in this environment. More to come.
So there’s the ugly. The bad is just the overall cost of deploying Office in a shared environment. Office is expensive. You not only have to report Office, but RDS and Windows as well and with currently no option for mobility, service providers have few options. Remember, if you are providing Office remotely, your RDS licenses should match. Last, if you think using Office Web apps is a good alternative you may have to think again. To fully use Office Web Apps a copy of Office must also be licensed.
Here’s some good links around this topic including RDS, Azure and Office 365, as well as my own blog post “SPLA and Office 365”
Azure and RDS – http://technet.microsoft.com/en-us/library/dn782858(v=office.15).aspx
Overview of Azure/Office 365 from my friends at Code Magazine http://www.codemag.com/Article/1108021
SPLA and Office 365 https://splalicensing.com/category/office-365/
Now it’s time for the good. Did you know you know you can report the Office components instead of the entire suite? Did you know Office is a user based license which means if not all users need Office Pro, by all means do not report all users with Office Pro. SPLA Man needs Office Pro but SPLA Girl only needs the features of Office Standard, make sure to report us accordingly. Here is a good link that compares the features within Office as well as the features of Office Pro and Office 365.
http://office.microsoft.com/en-001/buy/compare-microsoft-office-products-FX102898564.aspx
There’s a lot of information to digest in these links. To summarize my point, you must get creative and you must pay attention to updates (especially Office 365) Your customers will ask.
Thanks for reading,
SPLA Man
Tags: Azure, Cloud Solution Program, CSP, CSP Direct, CSP Tier 1, hosting office, Microsoft Cloud, Microsoft Hosting, Microsoft Licensing, Office 2013, Office 365, Office Pro, Office Professional, Office Web Apps, RDS, shared computer activation, spla
SPLA Licensing 