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Dynamics 365 Licensing for SPLA

Over the past several weeks, I’ve received several inquiries around Dynamics 365 what it means for CRM SPLA partners.  In this article, we will review the changes and when the changes will take effect.

Dynamics 365 for SPLA

In today’s SPLA licensing model, there are three products available –  CRM Essential, CRM Basic, and CRM Professional.  All come with different functionality and all come with different price points.  Those products will remain up until your agreement expires.  As with other products, once your agreement expires, you should report or license the new products.  In some cases, you are allowed to downgrade and run previous versions, but you must report the latest and greatest.  As an example, SQL 2016 is the latest edition of SQL, but that doesn’t mean you have to deploy SQL 2016; you can run 2012 or 2014 or God forbid 2008.  However, once you sign a new SPLA, you must follow the terms in the SPUR at the time of signing.  In this example, even though you deployed 2008, doesn’t mean you can license SQL 2008 by processor, you must still report it by core.  Dynamics CRM works the same way.   With Dynamics, the new products are Dynamics 365 Sales, Customer Service, and Team Members.  All come with bells and whistles and all come with higher pricing.  If you have an active SPLA prior to the announcement (November, 2016) you can continue to report the old products up until your agreement expires.  Once you sign a new agreement, you must report the higher priced products.

What are the options?

I’ve worked with a couple of Dynamics CRM hosters who had their agreement expire two months after Microsoft made this announcement.  In other words, Microsoft announced these changes in September (give or take – most widely known to resellers and partners in November) but their agreement expired in October.  The poor CRM providers are really in a pickle.  Microsoft dropped the bomb on them and two months later their pricing almost doubled!  What are they supposed to do?  Blame their reseller? Sure.  Everyone does.  Blame Microsoft?  Yes.  But that only gets you so far.  Cry?  Always.

Microsoft made some adjustments and offered “transition pricing”.  Transition pricing allows SPLA partners who have an active SPLA prior to November, 2016, the ability to report lower transition pricing up until their agreement expires.  The transition pricing is lower than new pricing but still doesn’t offer much of a discount.  When your agreement does expire, Microsoft will force you to license the under the new licensing and pricing model.

My Opinion

In my opinion, CRM provider are the old Exchange provider.   When Office 365/BPOS came about, small Exchange providers found it very difficult to compete.  It wasn’t just from a licensing perspective but also managing and deploying Exchange became too costly.  What happened?  Smaller Exchange providers are now CSP or out of business.  Dynamics CRM is now the old Exchange.  Microsoft is not going to lower SPLA pricing for Dynamics CRM.  It is not in their best interest to do so.  Harsh reality?  Yes.

Allow me to put on my Microsoft hat. What do you do?  There’s a couple of ways to think about it.  On one hand, Dynamics 365 isn’t all that bad.  I do think Microsoft rushed to market with the product.  I also think there are ways to up sell customers into the latest product.  There are opportunities to offer Dynamics CRM and deploy CRM and manage CRM.  For many organizations, CRM is the lifeblood of their sales.  CRM goes down, it’s bad for their business.  In speaking to a colleague, the LinkedIN acquisition makes Dynamics 365 an interesting proposition.  If you are able to seamlessly host Dynamics 365 on your platform and integrate their LinkedIN contacts as well, there could be a compelling reason to transition to the latest and greatest.

Ok, now my Microsoft hat is off.  I think Microsoft should be more patient and lengthen the transition pricing to make it more compelling for CRM hosters and to their customers.  I think service providers are the bread and butter to Microsoft hosted offerings.  SPLA is the one program that differentiates Microsoft v. Amazon v. Google.  Thirty thousand service providers worldwide who are willing to host Microsoft technology.  You don’t want to abruptly interrupt their business.  After all, no matter if they get Dynamics from a Microsoft datacenter or from a partner, Microsoft wins.  Amazon can’t say the same thing.

Would love to hear comments.  You can email me at info@splalicensing.com or leave a comment below.

Thanks for reading,

SPLA Man

 

 

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Posted by on May 9, 2017 in Dynamics 365

 

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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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SPLA Discontinued??

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Posted by on March 20, 2017 in In My Opinion

 

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Hybrid Use Benefit – HUB

Our friend Azure is at it again.  He’s offering Windows license mobility without calling it license mobility.  It’s called HUB – Hybrid Use Benefit.  And yes, it’s only available in Azure.

What is it exactly?  Well let’s say an organization purchased Windows Datacenter with Software Assurance.  Because they purchased the server with Software Assurance, Microsoft will allow them to run a separate instance in Azure and only pay the Linux VM rate.

This same customer can now deploy an image in Azure, pay a non Windows rate (in Azure), and still run an on premise server in their own datacenter to make a true hybrid scenario.  They can do this with Datacenter edition only, since Datacenter allows unlimited virtual instances.  They cannot run a true hybrid with Standard.  They must either run on premise or in Azure with Standard edition.  If you are on the fence about which version to purchase, Datacenter might just win out.

A couple of things to consider.  1) You have to pay attention to the number of licenses you purchased for your on premise servers.  If you purchased Datacenter that has two processor licenses, this will all you to run two instances up to 8 cores or 1 instance up to 16 cores in Azure.  In other words, you cannot exceed the number of licenses you purchased. 2) If you do decide to run Datacenter on premise as well as in Azure, you must maintain CALs for your on premise solution.  Azure does not require CALs, but that doesn’t mean your on premise CAL requirement goes away.

So there you have it.  Confused yet?  If not, wait until I write more about Office 365!  Questions?  Email me at info@splalicensing.com

Thanks for reading

SPLA Man

 

 
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Posted by on April 6, 2016 in Azure

 

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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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More SQL 2012 Questions…..ANSWERED

Q. “When am I supposed to report SQL core licenses?”

A. When you sign a new SPLA or you deploy SQL 2012 you will be forced to license by cores

Q. “If we leverage SQL Server Enterprise, are we able to launch multiple VM instances of database across the enterprise?”

A. SQL 2012 Enterprise allows unlimited virtual instances.  In order to this with the 2008 version you would of had to license Datacenter edition.  (way expensive btw).  SQL 2012 does allow license mobility within server farms as well.  Check out the SPUR for details.

Q. “Does SQL 2012 Enterprise edition allow for downgrade rights?  In other words, can I have 2008 SQL servers and 2012 SQL servers running virtualized on the same host?”

A. Yes, as long as you are reporting SQL 2012 cores, you can run 2008 and prior.  Keep in mind, it has to match version.  For example, if you license Standard, you cannot run Enterprise.  If you license Enterprise, you can run Enterprise or Standard. 

Q. Can I just license the virtual, not the physical machine?

Yes. SQL does allow you to license just the virtual machines.  You would report the number of cores you assign to the server. (minimum of 4 cores). 

Q.  Can I license SQL Enterprise by user?

A.  No. Unfortunately SQL Enterprise can only be licensed by core.  SQL Standard and SQL Business Intelligence SKU can be licensed by user.

Thanks,

SPLA Man

 
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Posted by on March 27, 2014 in Uncategorized

 

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