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Tag Archives: ESU

Licensing Microsoft Workloads in AWS

29 Sep

If you have followed me for some time, you may know that I always like to refer to the AWS model as an example for hosters in handling licensing and educating customers. AWS has a SPLA, they have end customers, they report usage, and they have to manage Microsoft licenses.   Sound familiar? 

AWS has more complexities than the average hoster because they are a Listed Provider. There’s no Flexible Virtualization or CSP-Hoster option; they are also restricted by the Hyperscaler definition in the SPLA Agreement, limiting certain use rights for specific products. So how do they win?

If you take one thing away from this article, please educate your end customers on licensing. AWS does a phenomenal job at that as compared to Microsoft. They have very informative licensing videos and a dedicated webpage specifically for Microsoft licensing inquiries. You can check it out here. I would do the same for your organization. Need help? You can email info@splalicensing.com

What are the licensing rules for running Microsoft workloads using AWS? Glad you asked. As mentioned, AWS is a Listed Provider, which means they have restrictions on workloads end customers can bring into their datacenters. For example, they cannot host a Windows 10 Operating System from their datacenter in shared environments because they are not authorized outsourcers. Let’s review some licensing challenges and options for end customers using AWS.

October 2019 Microsoft Licensing Changes

Changes were announced on October 1, 2019, that prohibited software without License Mobility to be installed in a Listed Providers datacenter regardless of whether it is dedicated (single-tenant) or shared. A good example of this is Windows Server. If you purchased Windows Server after 10/1/2019, you can no longer bring that Windows license to AWS. You can still install it on dedicated infrastructure if you purchased it before 10/1/2019 and the version was publicly available. Once you upgrade, you can no longer leverage your existing Windows licenses.   As a regular hoster (non Listed Provider), you can still run workloads in dedicated environments without issue. 

It seems unfair, especially since Azure has Hybrid-Use-Benefits.  One way AWS solves this issue for customers who want to upgrade or maybe purchase the Windows license after 10/1/2019 is to offer the “License Included” option. The end customer will lease (through SPLA) the Windows Server license. In many cases, end customers no longer want to mess with the licenses; they can purchase them from AWS and move on.

No Flexible Virtualization Benefit 

Microsoft does allow AWS customers to bring their M365 apps for Enterprise (workspace only) to their environment. They also can provide Windows desktops on dedicated infrastructure only, but with restrictions, they have to pay for the VDA license (M365 VDA E3 or E5). That is an increased cost for end users to use AWS versus an authorized outsourcer. However, they offer Windows Server + RDS to emulate a desktop and offer it as a service. This is a less expensive option, and end users would not know the difference. Using Windows Server + RDS + M365 apps for Enterprise makes a good bundled solution. As a hoster, you can offer the same thing.

End of Security Updates

I get asked a lot about this in the community.   Windows Server 2012/2012R2 support will end on October 10, 2023. That’s a big deal. What is ESU? This means Microsoft no longer offers patch security updates for products that reached their expiration (Windows 2012 – October 10 and SQL 2012 – July 12). Customers can bring their licenses (with SA) that are ESU eligible to AWS. Quick note: SPLA licenses are eligible. You purchase the ESU SKU from CSP or Microsoft directly.

What does AWS think of the new licensing rules? Flexible Virtualization/CSP Hoster/Listed Provider?

Are they happy? No. But one of AWS’s big advantages is they are not Microsoft. The cloud space is minimal right now. It seems odd to say that, but there are a lot of on-premise workloads not in the cloud. There’s an opportunity for everyone, including you (SPLA provider).   One thing that is consistent with Microsoft is change. No matter what Microsoft does, how will you help win customers and keep the ones you already have? I think AWS does a great job at both. With all the new changes, I believe, brings opportunities. Help your customers understand the licensing rules, and you will win.

Thanks for reading,

SPLA Man

 
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Posted by on September 29, 2023 in Outsourcing Scenarios

 

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CSP Replaces SPLA! The CSP Hoster Program: Pros and cons.

25 Sep

CSP Hoster replaces SPLA. In the words of Lee Corso (College football commentator for those unaware): “Not so fast, my friend.”

I like to think of CSP-Hoster as an entity who hosts CSP Products. That’s deep. The CSP Hoster is indeed an organization that hosts CSP solutions, however, there are some things to consider. Let’s dive into the pros and cons of going the CSP Hoster route.

Pros

CSP Direct partners who are also hosters (essentially all QMTH hosters) the ability to control the entire end-end solution for their end customers. They procure (sell the CSP licenses through their CSP Direct authorization), they install using media/keys, they can help ensure compliance since end – customer licensing is becoming more and more complex, and finally they host the solution for the customer.

Increased incentives. In one example, a CSP Direct provider increased margin by 15% and increased rebates +4%. This is pretty common in the CSP Direct space. There’s no middle man like there is in the CSP Indirect program and the SPLA program (buy from a reseller who then buys it from Microsoft) with CSP Hoster you buy from Microsoft and sell to the end user.

More options especially with End of Security Updates (ESU). Eligible in CSP, it is an add on license to help extend the life line of a specific product. (Such as SQL 2012/Windows 2016, etc.)

Relaxed licensing rules. As an example, if a CSP Hoster wants to sell Windows Server through the CSP program there are no CALs required. Another cost savings for the end customer. If they use the flexible virtualization benefit, CALs are required.

Separates you from competition. Every entity (outside of Listed Provider) can be an authorized outsourcer who can leverage the Flexible Virtualization Benefit. But not every entity can be a CSP Hoster.

Cons

CSP Direct authorization. Microsoft wanted to roll this out to a small subset of customers first and that is the reason for the CSP Direct requirement. If you are not CSP Direct authorized, use the Flexible Virtualization Benefit. CSP Direct authorization is a massive undertaking, support, platform, and commitments. No thank you.

Microsoft has access. That’s right. Microsoft will know who your customers are, where they are from, and what they are buying. This is often overlooked. Especially in an audit.

Incentives are better than SPLA, but one thing consistent with Microsoft, incentives only go one direction. Down.

Summary

If you are not CSP Direct authorized, don’t worry about it. Use Flexible Virtualization and educate your customers on the different license options. That is the best way to differentiate yourself. If you are CSP Direct authorized, CSP Hoster is a good way to not only differentiate yourself but also look at different revenue streams. Take a look at my article, Azure Arc There’s just a lot of options you can take a look at.

 
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Posted by on September 25, 2023 in Uncategorized

 

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More ESU fun

24 Dec

A question came up the other day regarding installing ESU licenses on a shared platform if the service provider (under a SPLA agreement) is licensed for Windows Datacenter but installed Windows STD VM.   That’s pretty common and though I would address it today.

One should not be confused over what is installed v what is actually licensed.  As the SPLA Provider is licensed for Windows Server Datacenter, the server should be covered with ESU Datacenter.  Running a Windows Standard VM when licensed for Windows Server Datacenter does not change the license requirement.

It is also important to note that ESU is not available in SPLA, but is available through CSP, EA, and SCE agreements.  The Service Provider will not be licensing ESU, but the end customer.  Think of it as license mobility without the need for Software Assurance.

I would recommend checking out the Product Terms page 93. https://www.microsoft.com/en-us/licensing/product-licensing/products

 
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Posted by on December 24, 2019 in Uncategorized

 

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Licensing Options to Meet the ESU (End Security Update) Deadline.

19 Nov

Holidays are right around the corner, chill in the air, and a looming end of security update for Windows 7 and Windows 2008 is right around the corner.  What is a MSP going to do?  Luckily for you, there’s SPLA Man, or MSP Man, or CSP Man (whatever acronym Microsoft calls me these days), any of which can provide you options.  In this article, we’ll review these options and how each one can fit into your business.

Windows Server 2008

If you are hosting software under SPLA, the good news is you already have access to the latest version as part of your agreement.   If you are not licensing SPLA and want to provide Windows Servers to your clients, you have a couple options:

  1. Under the Cloud Solution Provider Program (CSP) you can license Windows Servers through your indirect provider or through your own authorization.  This will allow you access to the latest version, pay annually for the subscription, and allow you to install the software on your customers datacenter or in Azure.  You will not be allowed to host Windows Server subscription licenses in CSP and host it from your datacenter.  Whenever you install CSP Server Subscriptions on premise, it follows the Product Terms (which prohibits hosting).  This also means you must buy CALs if installed on premise as well.  CALs are available through CSP or through the end customers volume licensing agreement.
  2.  You can have your end customers buy the new version of Windows Server licenses through their own volume licensing agreement.  Under this model, you (as a service provider) would need to isolate the hardware for that customer (dedicated hardware).  CALs would also be required.  You cannot have the end customer buy the licenses and host it in AWS or other “Listed Provider” as mentioned in the Product Terms.  Microsoft prohibits anything outside of license mobility to be installed on shared servers from a Listed Provider.
  3. You can have the end customer buy ESU through their own volume licensing agreement (I believe only the Enterprise Agreement qualifies).  This is a fairly expensive option.

Windows 7

Many organizations must upgrade their PCs and end devices running Windows 7 to a newer version.  Here are the 3 options available.

  1. Windows 10 through CSP.  You receive the latest version rights which will allow the end customer to upgrade from Windows 7 to Windows 10.  Couple things to keep in mind: 1) Windows 7 Pro can upgrade to Windows 10 Pro included with the subscription.  2) Windows 7 Home can upgrade to Windows 10 Home (Home only).  CSP is a channel program that allows a service provider to buy licenses from an authorized CSP provider and resell it to their end users.  (Same process as SPLA in essence).
  2. Buy ESU.  Similar to servers, ESU is available through the Enterprise Agreement.  (Should be avaialble through CSP in December).  This is only a viable option if the end customer does not have plans to upgrade to a newer version.
  3. Buy Windows 10 through a Volume Licensing agreement.  There is a rental addendum through VL that allows an organization to rent PCs to end users.  More details can be found here

The good news is there are options.  The bad news is time is running out.  If you have any questions, please let us know info@splalicensing.com

Thanks for reading,

SPLA Man

 

 
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Posted by on November 19, 2019 in DaaS, Uncategorized

 

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