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Top 5 Licensing questions…Answered

  1. If a customer has 4 x SQL Server Standard (8 cores), does that mean I will also need to have 4 x SQL-SAL?

There’s no server + CAL model in SPLA.  You license either per core or per user depending on the product.  Remember, SAL is not licensed per server, but for each user that has access to that server.  Your question indicates you might believe a SAL is licensed per server which is not true.

2.  Is MSDN available through SPLA?  Is it through Azure?

MSDN is not available in SPLA, but you can license the individual components through SPLA.   If an end-user would like to bring their MSDN license over to your datacenter, you must dedicate the solution for your customer.  Yes, Amazon must play by the same rules.  Oddly enough, Azure (which is shared) does allow MSDN to be transferred over to their datacenter.

3. I received an audit notification.  Should I respond?

Yes. But don’t work on their time, work on yours.

4.  If I signed the SCA addendum, do I need to sign the new QMTH addendum?

Unless you are planning on hosting Windows 10 you do not need to sign the new addendum.

5.  If I buy from a CSP indirect partner, do I qualify for QMTH?

No.  Your company must be CSP 1 tier authorized in order to qualify.

Thanks  for reading,

SPLA Man

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Posted by on September 11, 2017 in Top 5 Licensing Questions

 

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Do you have SA? Why this question really matters.

Brett’s Hosting’s sales director is consistently looking on the web to see what competition is advertising.  It drives him nuts to see other “hoster’s” advertise SharePoint for less than what he can get directly from his reseller.  He’s upset..big time.   How can this be?  Then he stumbles upon the Microsoft Office 365 website.  He blew a gasket.  “There is no way I can compete!  I am going to go out of business!”

So the sales director decided to get creative.  “I will forgo SPLA and just have my customers purchase SharePoint.  They bring it into my datacenter, I won’t report SPLA anymore.”  So that’s what he did.  He started selling SharePoint by the truckload.  Their reseller kept placing orders for him as they’d joyfully ask  “how many CAL’s do you need?” and they would order it; never once asking what it was for.

Brett’s Hosting did a tremendous job marketing their SharePoint offering.  “No SharePoint…No Problem!” It was marvelous.  The CEO of Brett’s Hosting vociferously announced at the World Partner Conference “We are hosting over 10,000 SharePoint sites!”  The celebration continued.  Then one foggy October morning, the office manager for Brett’s Hosting received a letter from Microsoft.  She excitedly opened it thinking they were being promoted as ‘SharePoint Partner of the Year’ but was severely disappointed.  It was an audit letter.  The story turns.

Brett’s Hosting CEO reviewed the letter and then called in their sales director (now sales VP).  The CEO threatened him with his job unless he fixed this mess.  The sales director/VP was at a loss.  “Where did I go wrong.”

To be continued….

Where do you think he went wrong?  Have you ever been given wrong licensing advice?  You don’t need to answer that, I already know.

Hosting industry has changed.  Competition has changed.  End users have changed.  In my experience, the conversation has changed from “how do I license Windows” to “what are ways I can optimize my licensing spend?”  I’ve written about license mobility; I also reviewed SAL for SA.  Those two programs have a common theme – Software Assurance (SA).  In the above fictitious story, the sales person should’ve asked his customer “do you have SA on these licenses”  That question is important because if they do not have SA, the entire environment (hardware/VM) must be dedicated.

I can’t stress this enough.  The hosting game is getting brutal.  Every service provider is looking for a way to cut/reduce costs.  Getting in compliance hot water is not a good way to do that.  If the customer does not have SA, you can certainly use SPLA in its place.  If you go this route, be sure to make it a bundled solution.  Telling customers they must pay for something they already own is not an easy conversation.

The customer can also purchase SA.  You just have to be ready to clearly explain their options. That’s why it’s important to work with a reseller that understand SA benefits to help educate and coach you through the process; not all products are eligible.  Be prepared.

Story continued…

The sales vp went back to his customers and asked them to purchase Software Assurance.  When the customer asked “why?” all the sales vp could say is “because Microsoft told me you needed it.” (he clearly couldn’t explain why…it only made the customer more upset).  The customer simultaneously yelled and slammed the door –  “I’m going to Joe’s Hosting! They advertise VDI too!”

The sales vp went back to his CEO and was forced to resign.  The customer went to Joe’s Hosting and was very happy for over a year. When out of the blue he received a call from his sale rep from Joe’s Hosting.  The sales rep frantically told him they could no longer offer VDI; it apparently is not available under SPLA.  The sales rep also asked him to buy SA for his SharePoint…”Microsoft told me you needed it!” The customer loses again!

Moral of the story – read the SPUR, read the PUR, and don’t be afraid to ask “Do you want SA with that?”

Thanks for reading

SPLA Man

 

 

 

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How to reduce your SPLA reporting

It’s easier than you think.  ( and no, I am not saying you should be out of compliant).  The goal of this blog is to educate and help the service provider community with their licensing decisions.  Keep in mind that I do this as a hobby.  I also try not to solicit, as that can be frustrating to the reader. 

That being said, I do know the reseller channel well, I also know the agreement better than most lawyers.  If you are looking to potentially reduce your spend from a reporting perspective, reduce compliance risk, or just simply want to chat about a licensing scenario that can be unnerving, let me know.  Send me a message on LinkedIn or shoot over an email – blaforge@splalicensing.com

So how do you reduce your spend?  That’s a tough question without a quick answer.  I would have to review your report to understand exactly how you can potentially reduce costs.  Nonetheless, I’ll give her a try. Here’s my top 3 ways service providers can reduce their licensing costs –

1. Run multiple instances of SQL on the same VM.  A little blurb in the SPUR states “For each virtual OSE for which you have assigned the required number of licenses….you have the right to run any number of instances of the software in that virtual OSE”  (page 23 of the SPUR for your boredom).  Keep in mind, there’s a difference between running an “instance” and running a VM. 

2. License the Core Infrastructure Suite (CIS) to run Windows and System Center Servers.  If you are reporting System Center and Windows separately….STOP!  System Center needs Windows.  In other words, you have to report Windows regardless; might as well pay less. 

3. Do not report Windows Standard….report Windows Datacenter.  You have the option of running unlimited VM’s with Datacenter edition.  If you are reporting Windows Standard, that means you are not virtualized. Get virtualized.

One more for good measure…

4.  SAL for SA – I still don’t understand why service providers do not report this SKU.  It’s less expensive, your customer can still deploy on premise and in your cloud, and you will be unique.  (I’ve only seen it reported once). 

There are many more ways to reduce spend. (even outside of simply licensing/virtualizing, etc.) There’s too many scenarios to review on a blog post. How about this trade off – If I can reduce your spend, you owe me a beer at a hosting conference. (joke for the record). If I can’t, at least you know your reporting correctly.

Thanks,

SPLA Man

 

 

 

 
1 Comment

Posted by on July 9, 2014 in In My Opinion

 

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