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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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More SPLA Questions…More Answers.

Here is a list of some of the questions we received this month.  Enjoy!

Why does Microsoft not allow a SPLA SQL VM to be installed in a public cloud?  I understand if you were licensing the physical layer, but if you want to install on a VM, you can easily allocate the number of cores and report accordingly.  Any ideas?

No.  Honestly there is no reason outside of it’s just prohibited.  You cannot license SPLA cores/processors in public clouds even if the VM is dedicated.

What can be installed in Azure through SPLA licensing?

Anything that is licensed by SAL can be moved to Azure.  For your end customers, anything that has Software Assurance and is license mobility eligible can be transferred including: Windows 10 E3  (QMTH), Office 365 Pro Plus (QMTH) and MSDN.  Your end customers can also leverage Azure HUB to get discounted pricing for the Windows Servers they purchased with SA.   Check out the Azure FAQ site https://azure.microsoft.com/en-us/pricing/licensing-faq/

Is Microsoft going to discontinue SPLA?

Nah.  I bet it will be merged into a new program though.  Just a hunch.

I received a compliance notification the other day.  Am I in trouble?

Depends on the type of notification and if you are out of compliant :).  If you have questions, we can review it with you.  Just email info@splalicensing.com

Can I report Windows 2016 but run Windows 2012?

Yes.  No problem there.  What you cannot do is license Windows 2012 and run 2016.  Don’t do that.

Thanks for reading,

SPLA Man

 

 

 

 

 
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Posted by on October 13, 2017 in Top 5 Licensing Questions

 

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Opinion – Microsoft audits will skyrocket in 2018

Microsoft compliance programs are not going away and will increase significantly in the coming years.  Why such a doom and gloom outlook?  In this article, I will highlight some of the reasons but more importantly the ways to stay ahead of the game before Mr. Audit comes knocking on your door.

This past week, most of my articles had to do with CSP, Azure, and more CSP.   To no surprise, CSP is the direction Microsoft is moving towards for the partner community.  Check out my friend www.csplicensing.com 🙂 Licensing is not getting easier, in fact it’s getting harder.  Check out my Azure Stack article if you don’t believe me.  That article will either put you to sleep or give you a headache.

In today’s world, a service provider is not just licensing SPLA, they are combining on premise licenses, different cloud vendors, and hybrid licenses.   Unless you focus full-time on licensing, one misstep can ruin an organization.  In the coming weeks and months, I will focus heavily on all the cloud transitions and as the title of this blog site states ‘uncover the complexities of SPLA licensing.”

So why will audits rise?   There’s two reasons: 1) Licensing is confusing.  Publishers know there’s no “one-size fits all” solution to solving all licensing complexities and scenarios.  2).  With the push towards the public cloud (such as Azure), CFO’s and owners will start to wonder why they mess with the licensing at all, especially after a large compliance settlement  from an audit.  The goal will be to move to AWS or move to Azure and let them deal with the complexities licensing.

What do you do?   Throw in the towel and say, “they win” or develop a strategy to maintain compliance and create a solution to help your customers?  My advice? Don’t throw in the towel.

  1. Develop a license management practice.  Licensing is a full-time commitment (Full-time job).
  2. Don’t cave in.  I get it, that’s easier said than done – even for SPLA Man.  I HATE confrontation in all areas of my life but compliance.  I always like to see the underdog win the audit battles.  When SPLA started, I felt it was the rest of the world v. the SPLA community.  ABS – Anything But SPLA.  I still feel that way today (even stronger).  When was the last time you talked to a representative or were offered advice to help grow your business?  I am an advocate for the hosting community and the primary reason I started this blog in the first place.  Checkout my “About” section written over 4 years ago.  Don’t get bullied into the tricks of the audit.  If you need help, ask.
  3. Eliminate risk before it becomes a risk during the audit.  Going back to point #1, create a practice, understand the areas of concern, and correct it before the auditors force you to.  The time is now.
  4. I promote 3rd party advocacy for support.  I like to say, “there’s the publisher’s way and then there’s the real way” both are compliant, but one will cost you a lot more than the other.

Will audits be on the rise in 2018?  Yes. And 2019, 2020, and 2021.  After that who knows, we might be flying around the moon and vacationing on Mars.  Licensing is a dangerous game but everyone can win – if they have the right strategy in place.

Thanks for reading,

SPLA Man

 
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Posted by on July 19, 2017 in Compliance, Uncategorized

 

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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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What is a Service Provider?

The year 2017 has brought on A LOT of change for the hosting community.  A hosting company used to be an organization that hosted Exchange – fast forward to today and a service provider takes on a whole new meaning.  In this article, we will take a look at defining a service provider and how it applies to licensing.   Let’s play a little game called “Do they qualify”  Have a question?  Email info@splalicensing.com

An organization that provides or extends  litigation software (that they leased from the publisher) to law firms and other legal entities who are not wholly owned by the organization providing the solution. Does this organization qualify for SPLA?

Yes.  If you are an avid reader of splalciensing.com, you probably read my article on EMR Software The same holds true for any software (not just EMR) that runs on Microsoft technology that you do not own, but lease from a third-party.   Remember “AS”  If you are providing software AS a service that’s hosted from your datacenter environment,  SPLA must be part of the equation.  Why does this solution qualify for SPLA?

#1 they don’t own the software they are hosting

#2 they do not own the organization(s) who are consuming (using) the software for their benefit.

An organization who sells a product on a website to external users –   do they qualify for SPLA?

No.  Although they are selling something to consumers via the internet, the software used to deploy the solution benefits the e-commerce company, not the end-user.   Where SPLA does fit is if the web company decides to host a website on behalf of another organization.  The web company would fall under the SPLA rules.  Who benefits from the access is a key question to ask yourself.  Second question – is the access used to run their business or my own?

An organization who provides SharePoint to end users to share information.  Do they qualify?

No.  Simply sharing information does not qualify.  If the organization was hosting SharePoint on behalf of another organization, that’s SPLA.

A company hosts Exchange on behalf of another organization but does not charge for this access.  Does this qualify for SPLA?

Yes.  Microsoft doesn’t care how much money you make from the solution.  The question remains – are you providing this “as a service” for a third-party?

A company decides to use AWS as their datacenter provider to host an application they use internally.  Do they need SPLA?

No.  In this example, you are the end-user.  AWS has a SPLA to cover all infrastructure products they host on your behalf.  If you were to use AWS as a datacenter provider to host SharePoint to your end customers employees; you would pay AWS for Windows and SQL and report on your SPLA SharePoint SAL licenses.

 

I have 25 Linux machines that I host for my customers.   Do I need SPLA? 

No.  You have 25 Linux machines.  If you had 24 Linux machines and 1 Windows VM, you would have to license the host machine to cover that Windows VM through SPLA.

My reseller told me I didn’t need SPLA because the access qualifies for Self-Hosted.  The auditors told me it does not qualify.  Why?

All software used to deploy the solution has to be self-hosted eligible.  I bet you are running an application that does not qualify as part of your solution.  This would be SPLA.  Secondly, if you did not buy the software with software assurance, that is out of compliant.

Thanks for reading,

SPLA Man

 
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Posted by on July 18, 2017 in Compliance, Uncategorized

 

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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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