Last month, Microsoft held their annual Hosting Summit in Bellevue, WA. The good news is SPLA is not going away. Last quarter marked the 20th straight QTR of double digit growth for Microsoft SPLA. What is changing is the competitive landscape. Microsoft does not see SPLA partners as a competitor per se, they see SPLA as one of the biggest competitive advantages over other cloud offerings (IBM, AWS, Google, etc). They have over 30,000 SPLA partners worldwide, and they believe they can leverage those 30,000 partners to offer different cloud solutions.
Microsoft is betting big on what they define as “hybrid cloud” and that’s where they see service providers (SPLA) playing a significant part. Hybrid cloud is not just offloading workloads from on premise to another datacenter, it’s about leveraging different technologies to deliver solutions. As an example, late last year Microsoft offered solution called “Azure Stack” You can read about it here.
It’s the same APIs and same code as what Microsoft delivers through Azure. From a licensing perspective, Azure Stack is cheaper through SPLA (Windows) than it would be to pay through consumption. It will be available to offer this summer through the hardware manufacturers but you can download it now to test out.
The other big bet is SQL, and especially around the feature of stretch database. In laymen terms, it’s taking data that is not often consumed and offloading it to the cloud, reducing resources and consumption on servers locally. You can read more about stretch database from our friends at MSDN
All said, it was good to meet old friends and say hello to new ones at this event. If you were at the hosting summit and you did not have the chance to meet the infamous SPLA Man, email me at info@splalicensing.com. Would love to learn more about your offerings and how we can work together to make licensing simple.
Thanks for reading,
SPLA Man
Tags: AWA, Azure stack, CSP, Google, google cloud, Hosting Summit, Hybrid cloud, IBM, Microsoft Hosting, Microsoft Hosting Summit, Microsoft SPLA, Microsoft SQL, MSDN, Office 365, spla, SQL, SQL Server, SQL virtualization, Stretch Database, Windows 2016, Windows Server
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
Tags: Hosting, License Mobility, Microsoft SPLA, Mobility, MSDN, SharePoint, spla licensing, SPLA Resellers, SPLA Updates, SQL Enterprise, windows datacenter
The healthcare community has increased concerns with the way they have deployed (and licensed) their electronic medical record (EMR) software such as Epic Community Connect and others. As a reader of this blog, you know that when you deploy software for the benefit of a third party (non employee) SPLA must be part of the conversation. The only exception to this rule is if you actually own the code to the software you are hosting. In other words, if you developed the software, you can use your own volume licenses to host your software. If you host a third party software (such as Epic) you must license this in SPLA. In most cases, many healthcare companies do not own the application, but lease it from the EMR vendor.
Rewind a few years and let’s pretend you are a large hospital who partnered with Epic to provide best in class patient record management for your clients, doctors, and other clinics. Your Epic deployment resides on a Windows Server, SQL Server, and RDS. As the IT director, you purchased several server licenses and hundreds of Client Access Licenses (CAL) to cover all the external users. You think you are covered; no one mentions you need to license this via SPLA. Your reseller didn’t tell you, Microsoft didn’t tell you, and for that matter the vendor didn’t tell you. You think all is well based off the information you received. Fast forward 3 years and your volume licensing agreement is up for renewal. Someone on the licensing side informs you that you shouldn’t true-up licenses or renew your agreement under volume licensing, you need to license SPLA. You think that’s fine, if you must license under a different program who are you to argue. But what about all those license you already purchased and own? Unfortunately, you cannot return them, you must allocate those internally. You think to yourself that’s fine, except for one minor detail…. you purchased hundreds of CALs and you do not have hundreds of employees; those license you own are essentially worthless. On top of everything else, you just received an audit notification.
Why would they receive an audit notification? Once a vendor recognizes you have been under-licensed, the vendor might want to dig in deeper to see how long you have been out of compliant and if you purchased enough licenses to cover all the users. In 90% of all audits, the customer is under-licensed. Now you own licenses you don’t need, but should’ve purchased more because you don’t own enough licenses to cover all external users initially. The vendor will want you to pay the delta of what you should’ve paid under SPLA and what you purchased under volume licensing (plus an audit fee).
If you are a healthcare provider and have been notified by Microsoft or any other vendor, please contact us. We have found that in many cases the licenses report is not always 100% accurate.
Thanks for reading,
SPLA Man
Tags: 3rd party software, Client Access Licenses, Datacenter outsourcing, EMR Hosting, Epic Community Connect, Epic Software, Hosting, Microsoft, Microsoft Audit, Microsoft Azure, Microsoft Cloud, Microsoft Compliance, Microsoft SPLA, Office 365, self Hosted, spla, SQL Server
Microsoft made a pretty big announcement around Windows 10 and CSP. Here’s a breakdown for those that are interested:
- Software Assurance is not included
- Windows 10 is available E3 and in CSP only
- Customers need a qualified OS license. In other words, this is an upgrade license only.
- Not available under SPLA
- Not available in the shared computer activation model.
- Per user licensing with the ability to license on up to 5 devices per license.
- No minimum and surprise…no maximum either.
- Subscription is 1 year
- Pricing varies
- New use rights highlighted in the Product Terms
So why does this stink now but could be great later? Pay attention to number 1, 4, and 5 in the list above. That’s what stinks. Think this will allow VDI? Think again.
So why not? Why the mystery around VDI and SPLA? If I was Microsoft, I would go ahead and allow it but for only a select few SPLA providers. Those providers are:
- Report on time. Not one late payment/report during their agreement no matter what the excuse – “My reseller sucks” is not an excuse. It’s a good reason to work with me though 🙂
- Deployed Hyper V (they must have some incentive to do this)
- Joined CSP program.
There you have it. Microsoft wins big time – all that missed revenue from non reporters will get reported. Now you, the compliant service provider, will be allowed VDI in SPLA.
The likelihood of this happening is slim to none. I do think Microsoft is missing out with the Windows 10/VDI restriction. Ever since I started in SPLA, I’ve been asked about VDI (or the lack thereof). That was 11 years ago.
Thanks for reading,
SPLA Man
Tags: Cloud Solution Program, CSP, E3, Hosting, hyper-V, Microsoft Cloud, microsoft CSP, Microsoft Software Assurance, Microsoft SPLA, Office 365, Product Terms, RDS, Service Provider, Service Provider Licensing Agreement, Software Assurance, spla, SPLA Reporting, SPUR, VDI, Virtual Desktop Infrastructure, Windows 10, Windows Licensing
Our friend Azure is at it again. He’s offering Windows license mobility without calling it license mobility. It’s called HUB – Hybrid Use Benefit. And yes, it’s only available in Azure.
What is it exactly? Well let’s say an organization purchased Windows Datacenter with Software Assurance. Because they purchased the server with Software Assurance, Microsoft will allow them to run a separate instance in Azure and only pay the Linux VM rate.
This same customer can now deploy an image in Azure, pay a non Windows rate (in Azure), and still run an on premise server in their own datacenter to make a true hybrid scenario. They can do this with Datacenter edition only, since Datacenter allows unlimited virtual instances. They cannot run a true hybrid with Standard. They must either run on premise or in Azure with Standard edition. If you are on the fence about which version to purchase, Datacenter might just win out.
A couple of things to consider. 1) You have to pay attention to the number of licenses you purchased for your on premise servers. If you purchased Datacenter that has two processor licenses, this will all you to run two instances up to 8 cores or 1 instance up to 16 cores in Azure. In other words, you cannot exceed the number of licenses you purchased. 2) If you do decide to run Datacenter on premise as well as in Azure, you must maintain CALs for your on premise solution. Azure does not require CALs, but that doesn’t mean your on premise CAL requirement goes away.
So there you have it. Confused yet? If not, wait until I write more about Office 365! Questions? Email me at info@splalicensing.com
Thanks for reading
SPLA Man
Tags: Azure, CAL, Client Access License, Datacenter, HUB, Hybrid Use Benefit, Linux, Microsoft Azure, Microsoft Cloud, Microsoft SPLA, Software Assurance, windows datacenter, Windows Server, windows standard
You probably have said that a thousand times as a service provider. The truth is it’s still not available in SPLA. If I was a betting man (big if by the way for those that work for the IRS) I would wager they would allow VDI in SPLA. Why not…right? Everything else is changing why not this? Before you get too carried away as to why Microsoft will not allow VDI in shared environments, let me ask…do you REALLY want VDI? Just as SQL is complex in SPLA (and VL for that matter) so is VDI. In this article I will review the licensing rules with VDI/VDA and what exactly needs to happen if you were to host this from your datacenter.
Let’s take scenario 1. Bill has a PC that can run a qualified operating system but the PC itself has been running slow recently. He get’s his email from Joe’s Hosting so logically he asked good ole’ Joe if he could host a virtual desktop as well. Joe tells him “Sure” but it MUST be dedicated and his cost will go up. Bill tells him that’s not issue, his wife won the lottery recently. You would think the last thing Bill would be worried about is a virtual desktop. Just buy a new computer Billy and head to the beach! Nonetheless, Bill wants VDI and wants it now. Joe’s Hosting tells him to go to the store, buy a Windows 10 license, and bring that disc over to their datacenter. Joe will host it on a server solely dedicated to Bill. Problem solved. Joe is happy he just won over a customer, Bill is happy he gets his virtual desktop. The compliance police call, Joe is in trouble. Why?
In order to host VDI 3 things must happen.
- The PC must have VDI use rights. This means the desktop license itself (Windows 10 as an example) must be Enterprise and have active Software Assurance (SA). Think of VDI as a Software Assurance benefit. Without SA, no chance of having VDI. In order to buy Software Assurance, I would need a volume licensing agreement; not a retail version.
- The service provider must indeed host it in a dedicated infrastructure. This means the hardware, not just the VM.
- If the PC is incapable of running a full version of Windows 10 (such as a tablet) the customer must purchase a VDA license. VDA is a use right that allows the end user the right to access a virtual desktop from a server environment.
The 3 items mentioned above is really just the beginning of the licensing roller coaster. You must also license Windows Server, RDS, and any other applications by your SPLA or be purchased by your end customer. If they are purchased by the end customer, they would transfer that license into your datacenter, which means they can no longer run it on premise.
Now I ask you this question – is VDI worth it? Some say “yes” as this is what the customer wants and mean old Microsoft licensing rules just keep getting in the way. Most complain about dedicated environments, but as mentioned earlier, dedicated environments is just the beginning. Last, you may say the licensing of the VDI environment is not your problem, it’s your customers. You have it hosted in a dedicated environment. As far as SPLA is concerned, you are covered. Or are you?
Maybe I’ve been doing this too long and I am just an old fogey. But if I was a customer and my service provider (you) told me I could receive my VDI dedicated infrastructure and all I need was a desktop OS license, I would be all in. Fast forward a couple years and you tell me you are going through an audit and apparently I (not you) had licensed VDI incorrectly and it’s my fault; I think I would be a little upset. Yeah I would ditch you faster than that girl in 9th grade who ditched me at the dance (apparently when I told her my future involved SPLA licensing it turned her off…what a fool) but I would also make sure if any other organizations were looking at you as a service provider, I would tell them to stay away. As any marketing organization would tell you, recommendations and word of mouth is the best way to advertise.
Moral of this story? Like all the rest, know the licensing first, sell it second. Stay tuned for scenario 2. Your customers will thank you.
Thanks for reading,
SPLA Man
Tags: Azure, Cloud Solution Program, CSP, Microsoft Cloud, Microsoft SPLA, Microsoft VDI, Service Provider License Agreement, spla, VDI, Virtual Desktop Infrastructure, Virtualization, Windows 10, Windows Licensing, Windows Server
There’s a rumor that Microsoft will allow a service provider the ability to host Office licenses under Office 365 in a shared cloud environment. Is the rumor true? Yes, it’s true. But with everything in the world of licensing there’s always a catch.
For those that have read my blog for a while know that this blog is not a news source, but an education source. I don’t care about late breaking news, I just want you to get the licensing right, the information right, and be profitable.
So what does Office under Office 365 really mean? Some time ago, Microsoft created a use right titled “Shared Computer Activation” For those playing at home this is code for installing end user Office license from O365 in a shared cloud infrastructure similar to license mobility. In the past, this was only available in Azure. (imagine that). Fast forward to today and Microsoft is opening it up to the service provider channel as well. Good news for you, and even better news for Microsoft. If you would like to use this use right (SCA) you must meet the following criteria:
- You must be authorized for Cloud Solution Provider Program (CSP Tier 1). Thats why it’s good news for Microsoft.
- You must be managed by a Microsoft hosting team member.
- You must be an authorized SCA partner. (Licensing Addendum)
If you don’t know if you are managed, let me know – I can see if you are. Typically this is for SPLA partners that report not only high SPLA revenue (although not necessarily), but are also strategic in marketing activities with Microsoft. If you are international, let me know and we can look into getting US authorized as well. You can email me at info@splalicensing.com to learn more. I also have a cool powerpoint. (well, about as cool as powerpoint’s can go). Although a bit out dated, here is a good overview as well on SCA: https://technet.microsoft.com/library/dn782860(v=office.15).aspx
Last, I sit on a licensing panel and would love to review the different use cases for this program. Let me know how you may/may not benefit from Shared Computer Activation and we can voice our collective opinion to Microsoft. info@splalicensing.com
There’s also a big change for rental PC’s. Little teaser for an upcoming blog post.
Thanks for reading,
SPLA Man
Tags: Cloud, CSP Direct, CSP Indirect, CSP Tier 1, Hosting, Microsoft addendum, Microsoft Cloud, microsoft CSP, Microsoft Hosting, Microsoft SPLA, Office 365, Office 365 E3, RDS, SCA, shared computer activation
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
Tags: Azure, Datacenter outsourcing, Disaster Recovery, DR, License Mobility, Microsoft Azure, Microsoft Cloud, Microsoft Compliance, Microsoft Hosting, Microsoft Product Terms, Microsoft Server Licensing, Microsoft SPLA, Product Terms, SAL for SA, Service Provider User Rights, Software Assurance, spla, SQL Fail-Over, SQL License Mobility, SQL Server
In this post I will highlight new (and not so new) compliance gotchas as it pertains to providing infrastructure as a service.
Let’s start with a common example and go from there. You provide the infrastructure such as Windows/SQL, your customer provides the applications. Sound familiar? You license Windows Datacenter, SQL Enterprise in a shared (aka public cloud) environment under SPLA. You have no idea or really care what applications your customer’s are installing right? You just provide the support of the infrastructure. That’s not your concern. It’s their application, why should you care? Ahhh…but maybe you should.
Have you ever wondered how they’re accessing the applications? Are all applications web-based? I will answer that question for you…no. So how are they accessing the applications? Do they use Citrix? Do they remote into the application somehow? There’s that word…remote.
If you enable the Remote Desktop Services role within Windows Server – you guessed it…you need to report RDS licenses. The number of IaaS providers who just report Windows and SQL is astronomical. The number of IaaS providers now reporting RDS is also rapidly growing. Did they wake up one day and decide they should start reporting RDS? Unfortunately no. They were audited. Shoot me over an email and I will forward the guide that explains RDS and when it applies. Remember when you license RDS, you need to license each user that HAS access to RDS – not who does access.
Let me provide an example of how easily you could be underreporting RDS. Let’s say your customer has an application from another vendor (outside Microsoft) that’s hosted in your datacenter. That same vendor provides support to the application. You are not hosting the application for the vendor but for your customer, you just provide the vendor access to support the application via remote connection. SPLA allows 20 users to provide support and administration per datacenter. If you exceed that limit, you are going to have to report those additional users. Yes, even if you are not charging them.
Other IaaS Gotchas –
While we’re on the topic of customer owned applications, do you have it written in your agreement with the customer that you are not responsible for the applications they install? What would happen if they install applications that you are not aware of and they don’t have the appropriate licenses…who’s responsible you or the end customer? Kind of a trick question, it’s both. You will get audited, it’s installed in your datacenter, you are ultimately responsible. You need to ensure you have it written in your agreement that you’re not responsible so you can have a nice chat with your customer. All the big boys do it…you should too.
What about SQL? Are you virtualizing? Why aren’t you reporting SQL Enterprise? Are you utilizing all the use rights that come with SQL Enterprise – unlimited virtualization, DR, mobility within server farms, etc? What about smaller environments? Have you considered licensing by user instead of by core for SQL Standard edition?
SQL Web is tempting isn’t it? Less expensive option but no one really understands what it is. Here’s a quick synopsis – if you do not host public facing websites, SQL Web is not an option.
How are you managing your datacenter? Do you have System Center installed? You should report the Core Infrastructure Suite. Running Hyper V with few VM’s, license CPS. Both products include Windows. You need Windows to run System Center, so you kill two birds with one stone so to speak.
Ask your customers if they have Software Assurance. It’s no longer about latest version rights and annual payments. It’s about moving to the cloud. Let’s make sure it’s your cloud and not someone else’s.
Conclusion –
I’ve been around this game of SPLA for a long time. The best advice I can give is to listen to your customers and don’t be afraid to change. Cloud is evolving, you should evolve too. Don’t report out of convenience, look into ways you can optimize what you are reporting. It’s competitive out there, let’s make sure you are getting the most value out of your agreement.
Thanks for reading,
SPLA Man
Tags: audit, compliance, Datacenter outsourcing, hyper-V, IaaS, Infrastructure as a service, License Mobility, Microsoft Audit, Microsoft Cloud, Microsoft SPLA, Office 365, RDS, Service Provider Use Rights, Software Assurance, SPUR, SQL Enterprise, System Center, windows datacenter, Windows Server
SPLA Licensing 