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Tag Archives: Microsoft

What’s your AI Strategy?

07 Jan

The other day, I listened to Bill Gates explain the Internet to David Letterman in a 1995 YouTube clip. Letterman asked him, “Are you familiar with this internet thing? What the hell is that exactly?” Gates explained that it has become a place where people publish information. You can even have your own homepage! The clip is hilarious but shows how far the world has come in 30 years. You can check out the clip here. So here we are today. Artificial intelligence (AI) is a hotter topic than the cloud was in the early 2000s. A stock skyrockets to oblivion if a company mentions “AI” on their conference call. Don’t believe me, check out the 2-year chart on Nivida.

This site is dedicated to licensing, strategy, and, of course, service providers. As a service provider, what do you think of AI? What are Microsoft’s plans around AI? What are some steps you can do now to prepare for whatever or wherever AI may lead us?

Microsoft announced earlier that they will spend approximately $80 BILLION on AI-enabled data centers. That pretty much sums up the question on what Microsoft plans to do around AI.

I came across several organizations that are now offering AI as a Service (AAS for short, close to ASS but…) It’s interesting how an organization can adapt, create a new service offering, and still continue to offer the same solution as they did prior. As a cloud partner or CSP Partner, you can join the AI Cloud Partner Program, allowing you to access enhanced skilling, specializations, co-sell marketing funds, and incentives. They defined this as your “foundation for success.” I get it, I sound like a Microsoft commercial, but It is available through the Microsoft partner center if you want to learn more. It’s also a way to connect with other providers in this area.

That’s all great, but AI is only as good as the data and information it collects. I would argue that the first step to your AI journey (or the foundation for success) is understanding how and where you collect your data? Azure solutions, such as Purview, can help identify and solve data sprawl if implemented correctly. AWS has a similar solution called Amazon Macie. Whichever partner you work with, make sure your data is collected, protected, and relevant.

If your strategy is status quo, good for you. I don’t blame you. I’m SPLA Man. But I wonder what role AI will play as we are literally in the infancy phases of this new technology. Will we sound as silly as David Letterman when he asked about the internet thirty years from now? I welcome your thoughts.

Thanks for reading,

SPLA Man

or is it SPLA Man? Maybe it’s an AI generated form of SPLA Man.

 
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Posted by on January 7, 2025 in Uncategorized

 

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Welcome to 2025: What’s your licensing resolution?

02 Jan

Some people make resolutions to lose weight, go to the gym more, and maybe give up late-night snacks; for guys like me, I want to correct licensing woes for customers and partners. Imagine not having to worry about license compliance. Imagine going through an audit and not being concerned about it. Imagine billing your customers correctly and accurately, all the while gaining profitability. When working with managed service providers or hosters, sometimes licensing gets in the way of strategy. They are so focused on the service or solution, and the licensing is an afterthought until audit time. Here’s a list of resolutions to consider reducing costs, gaining profitability, and maintaining compliance. Curious about your thoughts?

SPLA Man’s Resolution Checklist

  1. SPLA reporting or any reporting should be considered business intelligence, not just a requirement by Microsoft. If you are underreporting, what that tells me is you are not charging your customers accurately either. And of course, you are also out of compliance. In essence, you are losing out on additional revenue all along and you have to pay for the licensing anyway for not reporting accurately.
  2. Understand your end customer options. This is a big one for a lot of companies. In every audit engagement I have ever been a part of, the question is asked: “The licenses are my clients; I have no idea what is installed or even care.” The reality is Microsoft auditor’s care. You have to prove or provide evidence that what you are doing is accurate. No evidence? You could be on the hook. As a resolution, I would understand all the different licensing programs available for customers. Take a look at Flexible Virtualization or outsourcing scenarios. Not only can you reduce your costs but you can provide an added value for your customers. Licensing knowledge is a differentiator.
  3. Understand your agreement. You are allowed 20 users per data center to access the software and not be out of compliance. There are ways you can provide testing or demonstrations without licensing costs. There is also language in the agreement about audits. What must you provide to the auditors, and what servers are you required to give them access to?
  4. Have strong contractual language with your customers about who is responsible for what. AWS does a great job of this. They tell their customers “We are responsible for everything under our Microsoft agreement, but you are responsible for everything under yours.” End-customer licensing has separate terms and conditions. All the new program updates involve end-customer licensing, not SPLA. Think Flexible Virtualization, Authorized Outsourcer, CSP, etc.
  5. Perform your own risk assessment. During an audit, Microsoft will perform an Effective License Position Report (ELP). This report shows everything installed and then compares it against everything you reported. It is critical to perform this assessment before an audit occurs. This is the key to resolution 1, which is mentioned above, regarding business intelligence. This report will show where you have license gaps, but also ways you can reduce your reporting. Did you know an engineer installed Visio, and ALL of your users have access? Did you know you can consolidate your SQL Server footprint significantly?

If you are interested in the above resolutions, how do you perform them? We developed a team of licensing experts, including ex-auditors who know the programs and can create this ELP report for you. It is not uncommon to find millions of dollars of risk, but our goal is to help you identify and correct the licensing gap before it becomes a risk to the auditor. If you want to learn more, email info@splalicensing.com. Together, we can make 2025 the best year ever.

Thanks for reading,

SPLA Man

 
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Posted by on January 2, 2025 in Uncategorized

 

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CISPE and Microsoft Settlement – Good or Bad?

24 Jul

You might have heard that the Cloud Infrastructure Services Providers in Europe (CISPE), which has 27 members, filed a complaint against Microsoft in November 2022. If you recall, its complaint concerns the unfair advantage of running Microsoft workloads in public clouds that are not in Microsoft Azure.

Microsoft “settled” (use of quotation marks because they have nine months to adhere to their commitment) that will allow a more enhanced version of Azure Stack HCI for European hosters. What’s interesting to me is Azure Stack HCI forces customers to run Hyper V. Does this enhanced version allow those hosters (almost every hoster I work with) who deployed VMWare the opportunity to partake in this offer? Does it lower licensing costs? What about the USA? We’re a mess already. Can we at least get this Azure Stack HCI?

I am not sure this settlement matters as much. I spoke to one hoster who asked about Listed Providers (Google, AWS, Alibaba). What options will Microsoft provide to them? We kind of laughed at the question because we knew the answer—not much.

Here’s my take on this for what it’s worth. For the past 24 months, Microsoft has been promoting Azure to hosters, whether it’s Azure Stack to monitor everything from one panel to CSP Hoster or Flexible Virtualization. Although there are many different programs and options for hosters and end customers to participate in, licensing is increasingly becoming more difficult. Regardless of the settlement, my recommendation for hosters is to get your own house in order before considering whatever Microsoft and the European courts decide. Here’s a small list of things to consider:

  1. How do you know what is installed? (the process to report or purchase licensing each month)
  2. Are you aware that different programs have different use rights? Flexible Virtualization requires CALs, but CSP Hoster does not.
  3. Flexible Virtualization requires ACTIVE Software Assurance. How do you track end-customer licensing?
  4. What kind of language is in your agreement with your customers around software audits?
  5. How do you know which cloud provider is the most economical?
  6. An end customer can have a CSP agreement, EA Agreement, SPLA through the Hoster, Open Value, and PAYG (Pay as you go) through publishers directly. How are you tracking this?

Need help or have a licensing question? Email me at info@splalicensing.com. Don’t wait for things to happen; make them happen. Do it. If you license 100 or 5 million dollars a month, don’t you want to ensure it is right?

Thanks for reading,

SPLA Man

 
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Posted by on July 24, 2024 in Uncategorized

 

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CSP Hoster Assessment

15 May

The CSP Hoster Assessment: Microsoft launched a new initiative to ensure compliance within the CSP Hoster Program. Just because you are not using SPLA does not mean you are immune to compliance risk.

What do you need to do?

The first thing you should do, is take a breath. You will be fine. (maybe) Nah, the world does not end because of an audit, but you do need to prepare. Here is a checklist to ensure what you are doing is accurate. Have a question? email info@splalicensing.com to learn more.

  1. Are you a CSP Hoster? Dumb question, but this is for CSP Hoster only, not the Flexible Virtualization Benefit.
  2. Are you providing the customer with the licenses? Meaning you are not using your own licensing, correct? Remember in the CSP Hoster program, the end customer is the licensee.
  3. When was your last audit? This is important because usually there is a settlement date.
  4. Are you reporting the licenses accurately to Microsoft?
  5. How are you tracking the licenses and deployments? Do you have a way to track SPLA and CSP?

Remember, in any engagement, Microsoft is trying to verify what you are doing is accurate and fits withing the licensing terms. Unfortunately, with hosting, there are several different terms and conditions to adhere to. There’s the SPLA (SPUR) there’s volume licensing (EA’s) and now CSP and Flexible Virtualization. If you are not sure what the rules are, let’s set up some time to review in greater detail. This is a great opportunity to eliminate any risk before it becomes a risk.

Thanks for reading,

SPLA Man (or maybe CSP Man)

info@splalicensing.com

 
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Posted by on May 15, 2024 in Uncategorized

 

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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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Re: License Compliance Verification of Software Services

26 Sep

Sound familiar? If it does, you just received (or received in the past) an audit notification. What does this mean? As I mentioned in previous articles, the first step is to take a deep breath. Don’t rush, don’t scream (especially with Microsoft) and don’t ignore the email/notification. As an example, Microsoft will ask for a response within 10 days. I would do it. I’ll explain later why this is important. Second step? Talk to someone who can walk you through the audit and provide guidance on ways to communicate with the auditor and/or Microsoft. Email info@splalicensing.com to assist. The reason you received the notification can vary. You did sign a Microsoft Business and Services Agreement with Microsoft as part of your SPLA. They should mention this in the originally notification. They will also highlight the dates of the audit. As an example, from 3/31/2021 to the end of the last reporting month prior to the date of validation. In this example, roughly 2+ years. Knowing the dates in scope is super important when collecting data.

What does a “verification of software services” entail? You would be required to collect raw data – server installations, reporting, access rights, AD reporting, etc. This can take a long time, especially if you do things manually. The audit team will share with Microsoft the “Effective License Position” report with all aforementioned data (software type, quantity). For an overview of an audit, check out my post “SPLA Audit Survival Guide. I think it is important for you to do your own due diligence and put together your own position report to be able to compare the report the auditors put together versus the report you collect. Most successful service providers download the Octopus platform to collect this information.

Back to the original question on why you need to communicate. The goal of the audit for you is to have limited penalties. The goal of the auditor is to complete the audit as quickly as possible. The goal for Microsoft is to have a settlement. With that in mind, if you are disrespectful, rude, or completely ignore the notification, that only hurts you. You have to keep the conversation open and you have to keep the conversation more business related than legal related. Nothing you can change legally, the SPUR is the SPUR, but if you keep a sales orientated the better off you will ultimately be. Knowing the auditor wants it completed quickly doesn’t mean you rush on your end. I firmly believe you need to work on your timeframe not someone else’s but be respectful. Again, if you have questions on the SPLA audit process, feel free to shoot me an email, happy to help answer. Audits can be challenging, scary, and fun. (maybe not the latter) but you will get through it. I promise.

Thanks for reading,

SPLA Man

info@splalicensing.com

 
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Posted by on September 26, 2023 in Uncategorized

 

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Top News in September

25 Sep

Here’s the latest news of the month for all MSP’s and SPLA providers.  Enjoy!

SQL 2017

This month is a month we will remember for the rest of our lives.  That’s right, today SQL 2017 is available to run on…a non-Microsoft system?

From the licensing guide: “SQL Server 2017 now supports deployment on RedHat Enterprise Linux (RHEL), Ubuntu, and SUSE Linux Enterprise Server (SLES). The SQL Server 2017 SKUs are platform agnostic, so customers can run the software on either Windows or Linux.” (check it out here)

What this means for those anti-Microsoft lovers is a customer who demands SQL can now install SQL 2017 on a Linux machine and not report Windows.  The machine cannot run any Windows guest VM’s for it not to be reported.  Pay attention to that last sentence as we get asked a lot about licensing individual VM’s instead of the actual host.  In Windows licensing, you license the physical host, not the VM’s.  If there are 100 Linux VM’s and only 1 Windows VM, you must license the host with Windows Datacenter to be in compliant.

Azure Stack Availability

The long await is over – Azure Stack is now shipping through the OEM channel (Dell, Lenovo, HPE)  You can read more about this announce here  From a licensing perspective, I think it is less expensive to license Windows through SPLA than pay as you use model.  It’s more of a predictable cost in my opinion.  This is one way Microsoft is attempting to extend Azure (public cloud) into your private cloud and have the best of both worlds.

“Hit Refresh”

Satya Nadella “Hit Refresh” book is available at a time when we are all in a strange way, hitting refresh.  The cloud transformation is only getting more complex – hybrid, dedicated, Google, AWS, Azure, every company is transforming to try and get the slightest edge over their competitors.  I look forward to reading it and every dollar goes to Microsoft charities.  Regardless of what you think of Microsoft, Satya seems like one of the good guys.  You can check out more about the book here

More to come –

Thanks for reading,

SPLA Man

 

 

 

 
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Posted by on September 25, 2017 in In My Opinion, Uncategorized

 

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More Dynamics 365 Fun

01 Jun

Quick update for those interested in Dynamics 365 for SPLA and what you should remember when selling to your customers.

  1. No Enterprise Plans in SPLA
  2. No PowerApps in SPLA
  3. Transitions SKU’s are available in SPLA
  4. More differences found here

Not all bad news but not all good either.  You can read more about my opinion here

Thanks for reading,

SPLA Man

 
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Posted by on June 1, 2017 in Dynamics 365

 

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Top 5 Questions…Answered

24 Apr

Where can I get my license keys for CRM?  My Microsoft contact can’t seem to find the answer and my reseller doesn’t know either.  Any ideas?

For CRM and D365 you can download them directly from the VLSC website.  All other Dynamics products need to go through the License Key Creator Tool.

If I am a CSP Tier 1/direct provider, can I sell CSP to another CSP Tier 1 provider? 

Yes. There are no limitations as to who you can sell to.  Good luck!

Is CSP replacing SPLA?

Not entirely.  I am not Microsoft but I can see the similarities.  In the end, they are both Microsoft programs, how they consume it doesn’t really matter.  The only drawback to SPLA (In Microsoft’s eyes) is the service provider has the option of offering other software outside of Microsoft.  Exchange as an example, could technically be replaced with Zimbra.  If they use Office 365, the customer is using Office 365.

I offer desktop as a service.  When can we expect VDI to be available in SPLA?

Never.

Will I get audited?

Yes.  Make sure to read the MBSA agreement that you signed.

Thanks for reading,

SPLA Man

 
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Posted by on April 24, 2017 in Top 5 Licensing Questions

 

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The Cloud Insider Times

20 Apr
In this edition of The Cloud Insider Times, you will find articles on the likes of Google, Amazon, IBM, Veeam, and the infamous Shared Computer Activation (among others) If your company would like to be included in future articles, please email info@splalicensing.com
DZone –Azure vs. AWS: Which One Is Better?
Computer Business Review – Three Private Cloud Myths Busted!
 
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Posted by on April 20, 2017 in The Cloud Insider Times

 

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