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Tag Archives: CSP Indirect

How the Microsoft CSP Program Indirect Program Works…Directly

The CSP Indirect program is a quick and relatively painless way to get started with Office 365 and other cloud solutions.  In this article, we will review how it works, how it doesn’t work, and things to consider before signing up.

The point of this blog is to make things simple; let’s stay with that concept for a moment.  In the simplest terms, CSP Indirect means you are “indirectly” selling solutions to your end customers.  Why indirect?  In this model, you do not hold (perhaps you do but don’t want to mess with it) the qualifications/authorizations to sell Microsoft cloud solutions directly to your end customers from Microsoft, you must purchase through a distributor and then sell to your customers.  This could mean higher pricing, working with third-party systems instead of your own, and procurement.  One of the biggest disadvantage (sometimes an advantage) is there’s no direct support line to Microsoft.  If something goes wrong, you contact your distributor, who works directly with Microsoft.

As a cloud provider, you are also limited in some of the solutions you can sell to your customer from your datacenter environment.  Take as an example, the Qualified Multitenant Hosting Addendum (QMH).   If you are currently purchasing licenses through an indirect partner, you cannot host Windows 10 E3/E5 from your shared cloud environment. Only authorized CSP Direct partners have that luxury.  The same is true for Office Pro Plus and other desktop applications.

The advantage of CSP Indirect is you do not have to spend resources (including investing in additional staff and funding a platform) That’s all on the distributor.  You can think of CSP Indirect as white labeling Office 365.  It’s not technically white labeled (your end customer knows they are getting Office 365) but the billing comes from you.  CSP Indirect means you are leveraging someone else’s resources to deliver a solution to your end customers.  You still bill your customer and can provide basic support, which has its benefits.

Is CSP Indirect right for your business?  If you are just getting started in selling Office 365 or are currently purchasing Office 365 licenses on behalf of your customers from the Microsoft portal, CSP Indirect is the way to go.  If you are a large provider who has the resources, personnel, and funds to support CSP Direct solution, I would recommend going CSP Direct over Indirect.

In either program, you do not get off without knowing the licensing.  That’s for another article.

Thanks for reading,

SPLA Man

 

 

 
 

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Top 5 Licensing Questions….Answered

You have questions…We have answers.  Another month, and another list of licensing questions asked by the hosting community.

  1. 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. 

  1. I get CSP from one reseller and SPLA from another.  Do I qualify for the new QMH addendum or do I need to get it all from one source?  Totally confused.

In QMH, 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).

  1. 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?

  1. Can I rent a PC using the QMH 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 QMH 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. 

  1. 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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Posted by on August 5, 2017 in Top 5 Licensing Questions

 

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How service providers can use Azure Stack in their datacenter environment

Azure stack is what Microsoft describes as an “extension of Microsoft Azure…”  to on premise (or partner hosted) datacenter environments.  In this article, we will review what it takes to deploy Azure Stack and best practices for partner hosted scenarios.

How a Service Provider Acquires Azure Stack

Azure Stack is available through the Cloud Solution Program (CSP) for service providers. Just like any other CSP relationship, the service provider will ultimately own the billing, the support (if Direct/Tier 1) or through your authorized distributor who will manage the support (Indirect/Tier 2).  Usage can be purchased through CSP or through the Azure hosting exception leveraging your existing Enterprise Agreement.  One thing to note is the actual Windows license.  In my humble opinion Windows Server in SPLA is less expensive and has the flexibility of month/month licensing.  Let’s use a couple examples to illustrate this further:

Scenario 1:  Bill sells Jennifer Azure Stack services through CSP.  Bill is Direct authorized and has a SPLA agreement in place.

  • Bill will purchase Azure Stack from an authorized hardware vendor.
  • Bill licenses Windows Server via his own SPLA agreement.
  • Jennifer will pay Bill for her consumption through CSP at a lower rate because Bill is already providing the Windows Licenses.
  • Bill is responsible for all the support and billing because he is CSP Direct authorized.

Scenario 2 – Bill sells Jennifer Azure Stack services through CSP.  Jennifer decides to transfer her Windows Server licenses through her own Enterprise Agreement.  

  • Bill will purchase Azure Stack from an authorized hardware vendor.
  • Bill would have to completely isolate the hardware for Jennifer if she wants to transfer her existing licenses to Bill’s datacenter environment.  As with other hosting scenarios, Windows is not license mobility eligible and therefore the Windows licenses must be deployed in a 100% dedicated cloud environment.
  • Bill will sell the consumption via his CSP Direct agreement.  Since she is using Windows licenses that were already purchased, he will only pay the base consumption rate.
  • Bill will provide the support since he is providing this as a service to Jennifer as part of the CSP program.

Scenario 3 – Bill deployed Azure Stack in his datacenter.  He’s running Jennifer’s SQL Server she purchased with SA from her Open agreement.  She will also pay Bill for the Azure Stack consumption through Bill’s indirect CSP agreement.

  • Bill will purchase Azure Stack from an authorized hardware vendor.
  • Bill will have an agreement with his authorized Indirect distributor to resell Azure Stack through CSP.  (Bill is not Direct authorized, he must use a distributor to enable him to resell CSP to his end customers.  The distributor will provide all the support and billing platform).
  • Jennifer will transfer her SQL Server licenses and CAL’s she purchased with Software Assurance over to Bill’s shared cloud environment through license mobility.

Conclusion

These are all hypothetical scenarios used to illustrate the different licensing options available to SPLA partners.  As you can see, the licensing can be complex as you are crossing multiple licensing programs – CSP, Enterprise Agreement, and SPLA.  I am always interested in different scenarios.  Have one?  Email me at info@splalicensing.com

Thanks for reading,

SPLA Man

 
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Posted by on July 18, 2017 in Azure, Uncategorized

 

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Office Under Office 365 and Shared Environments…Can we do it or not?

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:

  1. You must be authorized for  Cloud Solution Provider Program (CSP Tier 1).  Thats why it’s good news for Microsoft.
  2. You must be managed by a Microsoft hosting team member.
  3. 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

 

 

 

 

 

 

 

 
3 Comments

Posted by on January 25, 2016 in Office 365

 

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