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Tag Archives: License Mobility

Licensing Microsoft Workloads in AWS

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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Is License Mobility Dead?

Note – When we discuss License Mobility, we mean leveraging end customer licensing in shared environments.

With the new Flexible Virtualization Benefit, what is the reason for License Mobility? Great question. There is no need for License Mobility. However, if you use a Listed Provider (Google, AWS, Alibaba, and kind of Azure), you must use the License Mobility form. If you are a non-listed provider or an authorized outsourcer) you can use the Flexible Virtualization Benefit. There is no form to complete, no authorization. 

What about compliance? Contrary to what Microsoft or maybe a consultant will tell you, if you are hosting anything, you need to track it. In an audit, you have to prove the way you are licensing. If you are not reporting the product in SPLA, how are you reselling it? If you say, “Hey, it’s my customer’s license,”  they will ask you to prove it. I also think this is a huge opportunity to educate your customers. Imagine getting audited. Auditors ask you to verify the licenses, and you go back to your customers and tell them they are out of compliance. What is your customer going to do? That’s right. They are going to Joe’s Hosting down the street, can careless about compliance, and report only ten dollars a month to stay “under the radar.”  On the other hand, if you educate your customers and look at different ways to reduce their licensing spend, Joe’s Hosting will be out of business. Take care of your customers; they will take care of you.

Thanks for reading,

SPLA Man

 
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Posted by on September 20, 2023 in Uncategorized

 

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Top Licensing Questions…Answered


What is a CSP – Hoster?

CSP Hoster allows a CSP Direct provider (Who has SPLA) to install, manage, and host CSP products to third parties.  Currently, you have to be authorized by Microsoft.  My take?  Don’t worry about #CSPHoster if you are not authorized.  Flexible Virtualization is your better option.

What is Flexible Virtualization?

Flexible Virtualization (Sometimes not so flexible..haha) allows end customers to bring licenses with SA or subscriptions to an authorized outsourcer.  Similar to license mobility without the forms.  The only issue I see with Flexible Virtualization is that there are so many ways to purchase licenses.

What is an Authorized Outsourcer?

Glad you asked.  EVERYONE can be an authorized outsourcer.  My 90-year-old neighbor (Sorry, Helen) can be an authorized outsourcer, and so can most hosters.  You DO NOT have to have a SPLA agreement to be an authorized outsourcer.  An authorized outsourcer is not a Listed Provider.  The bad news is competition has grown exponentially with this definition.  Since you do not have to have a SPLA, now SPLA and Managed Service Providers (MSP) are competing.  Differentiate yourself.

How do you differentiate yourself?

Know the licensing.  Think of a simple product like Windows Server.  SPLA, you license the physical cores.  EA, you license server, and CALs.  Flexible Virtualization: you can license by virtual core.  There’s a lot of confusion.  When there is confusion, there is opportunity.

Is License Mobility dead?

Like my neighbor, Helen, it does appear license mobility has one foot in the grave, doesn’t it?  License Mobility exists because of Listed Providers.  Since listed providers are not allowed to be an authorized outsourcers, license mobility is required in those scenarios where end customers are using AWS and the like.

What about QMTH?

Unlike Helen, she’s dead.

What about SPLA?

SPLA will never die.  In fact, Microsoft has incentives for hosters who report over 2 million a year in licensing.  If you have a question on that, email info@splalicensing.com

Can I mix SPLA and BYOL?

Yes.  But not for the same product.  For example, you can’t license Windows by SPLA and Windows by EA. 

SPLA Audits dead?

No.  It’s kind of like the 80’s Simple Minds song; they are alive and kicking.  It’s a great song, by the way.    https://www.youtube.com/watch?v=ljIQo1OHkTI                     

Anything else?

Licensing questions are endless.  Have a question?  Email or leave a message.  Together, we can uncover the complexities of Microsoft licensing.

Thanks for reading,

SPLA Man

PS – I was being goofy. I do not have a neighbor Helen.

 
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Posted by on September 18, 2023 in Uncategorized

 

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More insight into the new Qualified Multitenant Program for CSP and SPLA

Over the course of the past week in a half, a lot of misleading information came about as a result of Microsoft’s announcement of the new QMTH program for hosting providers.  In this article, I will try to set the record straight and answer questions you may have.  Keep in mind, this is still developing, and the addendum is not available yet.  Please use this article as a general understanding, not a replacement for the Microsoft terms and conditions.  More information to come!  You can always email at info@splalicensing.com as well.

How do you I grasp QMTH in the simplest terms possible for my sellers?

Shared Computer Activation has been out for a long time, if your sellers understand SCA, QMH works in a very similar way.

Similarities to SCA 

  • Must be under SPLA to qualify and have the addendum
  • Must be CSP Direct authorized – check out qualifications and SCA here
  • Do not have to purchase Windows 10 directly from the hoster (the CSP Direct partner) they can purchase Windows 10 E3/E5 from other CSP partners but host it from your datacenter (as long as you are QMTH authorized)
  • Install on up to 5 devices.

Is SCA replaced with QMTH?

Yes.

If I’m SCA authorized, am I automatically authorzied for QMTH?

Yes/No.  You will need to update your landing page and you will need to sign the new addendum.  You will already be CSP Direct authorized if you are SCA authorized, it makes it a lot easier to transition.

Do I have to sell Office 365 with Windows 10?

No.  You can sell Windows 10 as a standalone product.

Can I still offer Windows/RDS for SPLA?

Yes.  Windows and RDS in SPLA is still available.  I would make it clear to the customer that you are not offering full Windows desktop but Windows Server.  I always liked Windows Server + RDS.  Shared environments, unlimited virtualization, etc. etc.

How does the activation and the licensing work? 

The base license for Windows 10 Enterprise is Windows 10 Pro.  It’s per user licensing, but the underlying qualified device needs Windows Pro.  The Windows 10 Enterprise features/bits is included with the Windows 10 Pro installation.  In other words, you install Windows 10 Pro, the Enterprise features are automatically turned off.  When your end customer subscribes to Windows 10 Enterprise E3/E5, those features will turn on.  When they unsubscribe, you guessed it – they are automatically turned off and the user goes back to Windows 10 Pro.  Check out this post from the Microsoft team Windows 10 Enterprise E3 in CSP

What happens if I work in a hospital with a dummy terminal that has no underlying/qualified OS.  Are you saying I must buy a Windows Pro license even if I don’t need it?

No.  You can buy Windows 10 Enterprise with VDA.  (Virtual Desktop Access), it provides a user access to a VDI session on a device that cannot run a qualified OS.  If an end-user has a dummy terminal, that user can still access a virtual desktop through VDA.

Can I just sell the customer Windows 10 E3 without virtualization rights?  They don’t need a virtual desktop.  

Yes.  Windows 10 E3 can be purchased with or without VDI rights (with is more expensive than without).  If they have Windows E5 the virtual rights are included but that doesn’t mean they have to install it virtually.

What happens if I use Azure as my datacenter provider?  Do I still need the addendum?

You do not need to be QMTH authorized to use Azure.  QMTH just provides you the ability to host Windows 10 E3/E5 in a shared environment from your datacenter.

When is this available?

August 1, 2017 for Azure.  September 1, 2017 for third-party hosting providers.

I am sure you have more questions.  I am always looking to learn more and learn your specific scenario.  If you do have a specific question, let me know and I can update this post accordingly.  It’s also worth mentioning that this program isn’t available yet.  I am sure there will be more information and updates as we move along.

Other articles of interest

Windows BlogWindows virtualization rights coming to CSP…

ZDnet – Microsoft’ plan to move more small-business users to Windows 10…

Thanks for reading,

SPLA Man

 

 

 

 
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Posted by on July 26, 2017 in VDI

 

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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 Compliance Trends for MSP’s and SPLA

There are so many license changes and gotchas with SPLA, Azure, AWS, and all the others that I thought I would highlight for you some of the trends we see when it comes to compliance.

  1. Licensing Office Standard when Office Professional is installed.  In many cases, an IT administrator will inadvertently install Office Pro, report Office Standard to their procurement team who in return reports it to the reseller.  The IT admin will leave the company, and the procurement team continues to report Standard not knowing Pro is installed until audit time.  In this situation, Microsoft will check when Office was installed, and take the delta of what was reported (STD) v. what should be reported (Pro).  Don’t make this mistake.  Many partners are only charging their customers for Standard pricing!
  2. Not reporting SPLA at all.  Sounds silly, but many providers focus on developing software and not on the licensing.  We have found instances in which the procurement manager (who was in charge of reporting SPLA) left the organization and no one else took over their responsibility.   The reseller continues to email the procurement manager but obviously the email goes unnoticed.  After many months, their SPLA will be terminated and all licenses will have to be trued up.  The problem with this scenario is not just unexpected licensing expense, but when your SPLA terminates, you must sign a new one.  When you sign a new SPLA, you must adhere to the latest SPUR use rights.  As an example, if you had a SPLA prior to the Windows core licensing change, you could continue to report processors.  If your SPLA terminates, you would be forced to license by core now instead of later when your previous agreement (that is now terminated) expired.
  3. Using a VL copy of Office to deploy Shared Computer Activation (SCA).   SCA is specific to Office 365.  If you install Office Pro Plus VL, it goes against the product use rights in which Office (without SCA) cannot be installed on shared hardware.  It takes a lot of negotiation power and time to prove you are SCA eligible, the customer purchased Office 365, and you inadvertently installed the wrong product.
  4. Using License Mobility without License Mobility.  This is by far the most popular compliance trend.  Many organizations do not know what is installed in their datacenter when it comes to customer owned licenses.  Be sure to have the right documentation, addendum, and licensing to ensure compliance.
  5. Leasing an application, hosting the application, and purchasing volume licensing agreement to offer software as a service.   A healthcare company may lease an EMR application, host the application to other healthcare organizations, and license the infrastructure through volume licensing.  If your organization does not own the application you are hosting, you must license it through SPLA.  Self-Hosted for ISV is only eligible for providers who develop and own the application.  This means the code, the rights, everything must be owned by the organization.  Leasing the application and using other plugins you may have developed does not qualify.

I hope this provides you a little insight into the world of compliance.  If you find yourself out of compliant, let us know and we can connect you to the right resource.  info@splalicensing.com

Thanks for reading,

SPLA Man

 
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Posted by on July 5, 2017 in Compliance

 

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Microsoft Online Services Terms – What you need to pay attention to before signing your Azure agreement

Article update (April, 2018 ) We created a new website called MSCloudlicensing to help SPLA and CSP partners understand the different program options and use rights available to them. The new website is www.mscloudlicensing.com it’s designed to be a collaborative platform that includes a forum to ask and answer licensing questions, document library, and licensing articles.  Check it out, it’s free. 

There’s a lot of benefits to moving to Azure, I’ll let your Microsoft account team review them with you.  On this website, we are not that concerned about the benefits, all we care about is the licensing.  In this article, we will review the Microsoft Online Services Terms.

What is the Microsoft Online Services Terms?  First starters, it used to be called Microsoft Online Services Use Rights or MOLSUR for short (or long).   It is now called OST pronounced OAST when speaking to Microsoft.  Basically the OST defines how you may consume online services through Microsoft.  You can download a copy here.  Although your legal team should review the document in its entirety, below are some of the highlights I think you will find relevant and are often overlooked.

License Reassignment 

“Most, but not all, SLs may be reassigned. Except as permitted in this paragraph or in the Online Service-specific Terms, Customer may not reassign an SL on a short-term basis (i.e., within 90 days of the last assignment). Customer may reassign an SL on a short-term basis to cover a user’s absence or the unavailability of a device that is out of service. Reassignment of an SL for any other purpose must be permanent. When Customer reassigns an SL from one device or user to another, Customer must block access and remove any related software from the former device or from the former user’s device.” (April, 2017 OST)

What does this mean?

Most Microsoft products cannot be reassigned on a short-term basis, that’s why Microsoft has the use right called license mobility.  In short, pay attention to which users are assigned a license and if/when they no longer need the service.

Hosting Exception “Customer may create and maintain a Customer Solution and, despite anything to the contrary in Customer’s volume licensing agreement, combine Microsoft Azure Services with Customer Data owned or licensed by Customer or a third party, to create a Customer Solution using the Microsoft Azure Service and the Customer Data together. Customer may permit third parties to access and use the Microsoft Azure Services in connection with the use of that Customer Solution. Customer is responsible for that use and for ensuring that these terms and the terms and conditions of Customer’s volume licensing agreement are met by that use.” (April, 2017)

What does this mean?

It allows you (a service provider) the right to use Azure as a datacenter provider.  The last sentence is very important in the above definition “Customer is responsible for that use and for ensuring that these terms and the terms and conditions of Customer’s volume licensing agreement are met by that use.”  In the above definition,  “customer” is you.  If you use Azure as a datacenter provider, purchase Azure via your own volume licensing agreement, and use SPLA for user based products (e.g. RDS) you must follow the OST, Product Terms, and the SPUR!

Azure Services Limitations

Customer may not “Allow multiple users to directly or indirectly access any Microsoft Azure Service feature that is made available on a per user basis (e.g., Active Directory Premium). Specific reassignment terms applicable to a Microsoft Azure Service feature may be provided in supplemental documentation for that feature.” (April, 2017 OST)

What does this mean?

Sounds similar to a SAL license right? “Directly or Indirectly access any Microsoft Azure Service.”  Although if you are using Azure as your datacenter provider, the likelihood of you consuming user based licensing through Azure is not very high.

Security

I encourage you to read the security measures and policy’s set forth by Microsoft for their online services.  You can read it here.  I included a breakdown of the difference compliance and security certifications below:

Microsoft Online Information Security Policy (as of April, 2017)

Online Service ISO 27001 ISO 27002

Code of Practice

ISO 27018

Code of Practice

SSAE 16 SOC 1 Type II SSAE 16 SOC 2 Type II
Office 365 Services Yes Yes Yes Yes Yes
Microsoft Dynamics 365 Core Services Yes Yes Yes Yes* Yes*
Microsoft Azure Core Services Yes Yes Yes Varies** Varies**
Microsoft Cloud App Security Yes Yes Yes No No
Microsoft Intune Online Services Yes Yes Yes Yes Yes
Microsoft Power BI Services Yes Yes Yes No No

 

Last and certainly not least, I get asked A LOT about language that you should include as a service provider.  I would encourage you to create your own online services terms for your hosted offerings.  Too many providers do not have basic language around compliance, licensing, and overall use rights.  At a minimum, you should include a copy of the End User License Terms for SPLA.  If you do not have a copy, please contact your reseller.  If you forget to include licensing terms and conditions, you could be on the hook during an audit.  Don’t be on the hook.

Thanks for reading,

SPLA Man

 
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Posted by on April 24, 2017 in Uncategorized

 

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Core Licensing for Windows and SQL

Article update (April, 2018 ) This article can be found at https://mscloudlicensing.com/2018/03/06/licensing-sql-2016-and-windows-2016/  We review best practices in reducing audit exposure, use rights and guidelines for SPLA licensing.

 

 

 
 

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If you could change ONE thing in SPLA…What would it be?

If you were THE Microsoft SPLA MGR in charge of the entire program, what would you change to help grow the SPLA business? (more importantly, YOUR SPLA business)  If you have multiple that’s ok.

Here’s a list from a colleague to get you started:

  • Allow Windows Desktop OS to be included in the unlimited virtualization rights of Windows Server DC
  • Allow MSDN to have License Mobility Rights.
  • Remove the SharePoint Enterprise SALs additive requirement.  Just make Enterprise more expensive.
  • Create cores for Excel and Access for ISV’s.
  • Expand the Productivity Suite and have O365 equivalents to align with O365 pricing.
  • Bring back SQL Enterprise SALs.
  • Add Power BI as a product
  • Reduce Office SPLA pricing!
  • Have the resellers require an End Customer Enrollment for deploying customer owned hardware, and open it up to include Windows PC’s.
  • Bring better clarity to RDS licensing.
  • Create a better way for Microsoft field reps to get credit for SPLA consumption.

You can tweet me at @SPLA_man or send me an email info@splalicensing.com

Thanks for reading,

SPLA Man

 
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Posted by on March 2, 2017 in SPLA General

 

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Disaster Recovery Rights and License Mobility

 April 2015 PUR

Fail-over server rights do not apply in the case of software moved to shared third party servers under License Mobility through Software Assurance.

Example

Let’s say an end customer purchased a license with software assurance that qualifies for license mobility.  Since SA allows failover rights, most service providers (if not all) are under the impression they would get the same benefit in their datacenter as they would on premise.  In this example, the end customer transfers a SQL license over to the hoster, the hoster spins up a secondary SQL fail-over server.  Given the statement above from the PUR, If they are enabling SQL fail-over they would need a second license under SPLA.

 Why is this important?

For starters, compliance.  If that secondary server is not properly licensed or your under the assumption that if it exists on premise it must also exist in the cloud you are mistaken.

What about Cold DR?

Doesn’t exist anymore.

What about SQL Failover for SPLA specifically?

SQL SPLA licenses have fail-over rights.  Read the SPUR

What about other products for disaster recovery?

The SPUR has specific language around DR, how long the server can be active (non-production), when Windows would need to be reported, etc.

Any workarounds?

SAL for SA – I think this would fit well for DR.  Customer can still run the software on premise and spin up a second server in the cloud.

Normal SALs- 1 user SAL license can access multiple servers.  Could be another option if the customer is against license mobility.

In the words of a famous hoster “it’s not how you license…it’s how long can you get away with not licensing that really matters”  He was audited immediately following that statement.

Thanks for reading,

SPLA Man

 
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Posted by on April 30, 2015 in Disaster Recovery

 

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