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License Mobility With Software Assurance – the facts

Here’s another post on license mobility.  I am not purposely trying to be redundant, but majority of compliance issues come from customer owned licenses.  It’s important that you, your sellers, and more importantly your customers understand this program in its entirety. So here we go!

License Mobility, in its simplest terms, is a software assurance benefit that allows customers to migrate their existing licenses to a third-party data center.  Third party data center is a service provider.  (Amazon, Azure, Joe’s Hosting, etc).  Primarily this applies to application servers – Lync, Exchange, SharePoint, and CRM.  It also will include products such as System Center, SQL, and Remote Desktop Services.  I encourage you to check out the Microsoft website http://www.microsoft.com/licensing/software-assurance/license-mobility.aspx for more information.  Since this website is dedicated to the service provider community, I thought I would put together some common mistakes service providers make when deploying license mobility.  Fasten your seat belt, there might be a few surprises in this list.

Fact #1

License Mobility is an addendum to your SPLA.  This is NOT automatically granted.  If your company is not on this list, make sure you sign the addendum!  Download the list here  At a hosting summit several years ago, Microsoft announced this program to a room full of service providers.  You should have seen the look on everyone’s face as they made the announcement; almost hear the thoughts running through their minds “Wait a minute, this wasn’t legal before this announcement!!, We were doing this for years!”  That’s right, if you are hosting customer owned licenses in a shared hardware infrastructure/dedicated VM, make sure the products are license mobility eligible (see the SPUR) and make sure you sign the addendum!  I said this before, if Microsoft allowed all products to be installed on a shared hardware infrastructure, why would they have license mobility?  If you have customers that are bringing licenses into your data center and are not mobility eligible, make sure it’s dedicated.  (VM and hardware)

Fact #2

You need to make sure your end customer submits the verification form.  Why?  It’s a requirement by Microsoft.   Essentially there are three times your end customer should complete and submit a License Verification form:  (This is from the verification form guide).

1. “When you deploy eligible licenses with an Authorized Mobility Partner. A new form is required each time you deploy additional licenses.”

2.” When you renew your Software Assurance.”

3.” When you renew your Volume Licensing Agreement.”

“The form can include multiple enrollments or license numbers under a single agreement, provided that they are supported by the same channel partner. However, you should complete a License Verification form for each agreement under which you are using License Mobility (for example, an Enterprise Agreement and a Select Plus agreement).”

How many verification’s forms have been completed?  Very few if any.  Since this is not completed, you (the service provider) can be on the hook.  If anything else, please make sure you make this mobility guide available to your customer to review.  Check it out here

Fact #3

When end customer use license mobility, they are transferring the licenses into your data center.  When you transfer licenses, they can only transfer the licenses away from your data center once every 90 days.  Good news – you keep the customer for a minimum of 90 days!  So let’s say they decide to go back to their own data center; same story – once every 90 days.  From the License Mobility FAQ Guide.

“Customers must assign licenses for a minimum of 90 days, after which they may move their licensed software from a service provider’s shared servers back to their local servers or to another service provider’s shared servers.  Instances run under a particular license must be run in a single server farm and can be moved to another server farm, but not on a short-term basis (90 days or less). A server farm includes up to two data centers each physically located either in a time zone that is within four hours of the local time zone of the other [Coordinated Universal Time (UTC) and not Daylight Savings Time (DST)], and/or within the European Union (EU) and/or European Free Trade Association (EFTA).”

Fact #4

You need to include educational materials to your customers during the purchasing process.  I did not make this up, it’s part of the addendum you need to sign to take part in the program.  Azure does this via their website http://azure.microsoft.com/en-us/pricing/license-mobility.  Amazon does this as well http://aws.amazon.com/windows/mslicensemobility/ Very few on the partner list makes this readily available on their website.  In fact, out of 10 random selected partners on the list, none have a written statement on mobility.  Perhaps you make this as part of your agreement with your customer; but not sure why you wouldn’t make this as part of your marketing strategy.  If you look up “authorized mobility partners” why wouldn’t you want them directed to your site? To prove my point  I looked up “authorized mobility partners” and only a handful of actual hosters show up in the top searches.  Make it your company.

Fact #5

I’ll make this one short; Windows does not have mobility rights.  You need to report Windows server via SPLA.

I know I am beating a dead horse with license mobility.  I just feel this is a big miss by providers and customers.  The bigger miss is SAL for SA  – check out my old post here

I hope you find these articles helpful.  Have any concerns, questions, or just want a second opinion – feel free to email me at blaforge@splalicensing.com

 

 

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Posted by on June 24, 2014 in License Mobility

 

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300 Level SPLA Licensing

Now it’s time to get into the fun part; the licensing scenarios that can literally drive you NUTS because if interpreted wrong, it can cost you and your company money.  Based on experience, here’s a list of the top confusing scenarios….simplified.

Customer Owned Licenses

Let’s say you have a customer that would like to bring their license into your datacenter.  You first ask them if the licenses are legit and if they have software assurance for those licenses.  Why ask if they have software assurance (SA).  If they have SA on certain software applications, they could be eligible for license mobility (shared hardware, dedicated VM).  If they do not have software assurance, now you have to consider dedicating (see dedicated v shared in this post) a server and VM for that customer and that customer only.  Without software assurance, they do not qualify for license mobility.  So keep this in mind – no software assurance = 100% dedicated hosting.

Now let’s say the end customer owns 100 Exchange licenses (CAL) without SA and they would like you to host Exchange for them using these licenses. No problem, you just dedicate a server for those users. But what happens if they hire 50 more employees that need Exchange?  Do you simply add those additional 50 users via SPLA or do they have to buy those additional 50 licenses from their volume licensing agreement?  If you picked the latter, you would be correct.

You cannot mix server/CALs on a product-by-product basis. This means the end customer CAL’s for a particular product cannot be used to access servers deployed with that product and which are licensed by the service provider under SPLA. It is ok for a service provider to rely on end customer owned licenses for one particular product (like SQL) but acquire licenses for a different product (like Windows) via their SPLA as long as they dedicate the server.  It also means that if an end customer has Servers/CALs for a particular product(s) and chooses to move to a hosted model with a service provider, they will need to acquire any additional licenses for that product(s) under their volume licensing agreement (i.e. if they increase the number of seats or need more servers for deployment or load balancing). It’s not ok for the service provider to acquire SAL’s under SPLA when the number of seats goes up for the end customer or when additional servers is required. This is because the licensing construct of internal use doesn’t match that of SPLA ,and therefore needs to be separate.

Dedicated v Shared

So what does “dedicated” and what is “shared mean?”  In short, it means one customer per server/VM for dedicated, and multiple customers using the same server/VM for shared.  But what about the other components of a hosted offering?  You have a SAN, does that need to be dedicated?  No, according to this document it doesn’t (download it  here)

“Any hardware running an instance of Microsoft software (OS or application) must be dedicated to a single customer. For example, a SAN device that is not running any Microsoft software may be shared by more than one customer; whereas, a server or SAN device that runs Microsoft software may only be used by one customer.”

So ask yourself “is this running Microsoft software on this device?”

SQL Virtualization

SQL virtualization boils down to five options

1) License per virtual machine (if nothing is running physical)

2) License the physical cores on the host and report SQL Enterprise. (allows you to run unlimited VMs)

3) License both physical and virtual (if reporting Standard or Web and it’s running both physically and virtually)

4) Report SQL Business Intelligence (BI) which is licensed per user and can access multiple servers (physical and virtual)

5) Report SQL Standard per user.  Same story as BI.

Don’t forget about license mobility within server farms.  A server farm by Microsoft’s definition consists up to two datacenter located within 4 hours of each other.  So if you have a datacenter in Seattle and another datacenter in New Jersey; that does not qualify.  Likewise if you are in Europe; the datacenter must be “within the European Union (EU) and/or European Free Trade Association (EFTA)

One benefit of license mobility within server farms is it will allow a qualified VM to migrate from one host to the next within the same server farm without adding additional licensing costs.  You have to license the machine with the most processors or cores to be compliant.  In the Service Provider Use Rights (SPUR) it shows you if the product is license mobility within server farms eligible.  Pay attention to this use right; there’s a lot of service providers who are reporting license mobility without license mobility.

Hope this brings some clarity.  If  you have additional questions contact me at blaforge@splalicensing.com

Thanks for reading,

SPLA Man

 

 
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Posted by on June 2, 2014 in Uncategorized

 

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