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Tag Archives: Qualified Multi-tenant addendum

How the Microsoft CSP Program Indirect Program Works…Directly

The CSP Indirect program is a quick and relatively painless way to get started with Office 365 and other cloud solutions.  In this article, we will review how it works, how it doesn’t work, and things to consider before signing up.

The point of this blog is to make things simple; let’s stay with that concept for a moment.  In the simplest terms, CSP Indirect means you are “indirectly” selling solutions to your end customers.  Why indirect?  In this model, you do not hold (perhaps you do but don’t want to mess with it) the qualifications/authorizations to sell Microsoft cloud solutions directly to your end customers from Microsoft, you must purchase through a distributor and then sell to your customers.  This could mean higher pricing, working with third-party systems instead of your own, and procurement.  One of the biggest disadvantage (sometimes an advantage) is there’s no direct support line to Microsoft.  If something goes wrong, you contact your distributor, who works directly with Microsoft.

As a cloud provider, you are also limited in some of the solutions you can sell to your customer from your datacenter environment.  Take as an example, the Qualified Multitenant Hosting Addendum (QMH).   If you are currently purchasing licenses through an indirect partner, you cannot host Windows 10 E3/E5 from your shared cloud environment. Only authorized CSP Direct partners have that luxury.  The same is true for Office Pro Plus and other desktop applications.

The advantage of CSP Indirect is you do not have to spend resources (including investing in additional staff and funding a platform) That’s all on the distributor.  You can think of CSP Indirect as white labeling Office 365.  It’s not technically white labeled (your end customer knows they are getting Office 365) but the billing comes from you.  CSP Indirect means you are leveraging someone else’s resources to deliver a solution to your end customers.  You still bill your customer and can provide basic support, which has its benefits.

Is CSP Indirect right for your business?  If you are just getting started in selling Office 365 or are currently purchasing Office 365 licenses on behalf of your customers from the Microsoft portal, CSP Indirect is the way to go.  If you are a large provider who has the resources, personnel, and funds to support CSP Direct solution, I would recommend going CSP Direct over Indirect.

In either program, you do not get off without knowing the licensing.  That’s for another article.

Thanks for reading,

SPLA Man

 

 

 
 

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Details of the Qualified Multitenant Addendum

There’s been a lot of talk as of late about the new QMH addendum.  I’ve written a couple of articles on the topic here  In this article, we will summarize what is written in the addendum so there’s no surprises.  I listed some (not all) of terms and conditions to ensure you are up to speed on the latest developments.

  • CSP Membership – You (or affiliates) must be a Direct CSP partner.  This means you cannot leverage an Indirect CSP partner for this program.  In other words, if you receive CSP licensing from Ingram Micro or SherWeb (as an example) your partnership with those distributors/partner does not qualify for QMH.  Your organization must be CSP Direct authorized, not your partner.
  • Must meet the system requirements – System Requirements can be found here
  • Have an active SPLA agreement.
  • Reporting Requirements – You will always need to report underlying licenses in SPLA.  Those underlying licenses could be any software to deploy a VDI solution – (Windows Server and RDS).   In addition, you must report (by the last calendar day of each month) the Windows 10/O365 licenses deployed.  This is manual, meaning you will send an email to the QMH alias for submission.  Once automated reporting is available, you must enable Microsoft’s automated reporting tool.  Microsoft will use the tool to collect your customer’s organization ID and tenant ID as well as the total number of users accessing the software.
  • As the provider, you must report to your SPLA Reseller the program administrative fee.  If you are currently in the SCA program, you will be familiar with this SKU.
  • As the provider, you must make all education materials publicly available.  You cannot just sign up for CSP, the education material should be like what’s on the QMH website.
  • For each per user subscription to Windows 10 Enterprise, the end-user can only access up to four (4) instances of Windows 10 either on Azure or you, the QMH hoster.  This is like the SCA program in which the end user has five (5) instances of Office Pro Plus, Windows 10 works the same way.

Listed above is a summary.  I encourage you to reach out to your Microsoft rep for additional information.  I am happy to review it further, it’s a new program with pluses and minuses.  Be sure to understand the minuses first 🙂

Thanks for reading,

SPLA Man

 

 
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Posted by on August 3, 2017 in Office 365

 

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Deep thoughts with SPLA Man

As we enter the new FY at Microsoft, I thought I would put together a list of topics that’s on everyone’s mind.

  • SPLA going away?  I don’t think so.  There’s too many SPLA partners to make an entire program disappear.  I also think this is one of the benefits Microsoft has over all it’s competitors.  If a customer wants to have an application hosted in one datacenter and use Azure for disaster recovery – Microsoft wins.  If Amazon is running Windows workloads (which they are) they must pay Microsoft for that usage through SPLA.  I also think SPLA is a way to move customers to Azure.  If you are a SPLA customer who just went through an audit, the SPLA customer might ask themselves why they continue to host at all?  Let’s use Azure and my compliance problems go away.  (they don’t but that’s for another article).
  • Is CSP/QMH really a must?   I guess the jury is still out (it hasn’t even launched yet for the partner community – September 2017).  There are a lot of restrictions to this program to consider – underlying Windows Pro licenses, becoming CSP direct authorized, not using CSP Indirect, RDS licenses when deploying VDI, etc.  If you decide to go down this route, pay close attention to what you can and cannot do.
  • Will SPLA pricing increase?  Yes.  No doubt about it.  Nothing stays the same for too long.
  • How can AWS win the cloud war?   Amazon has a revenue first, profit second mentality in my opinion.  Just look at their last earnings report (2017).  They can buy their way into the SaaS market at any cost.  They are not just a cloud company, they are an everything company.  They have the leverage to really get creative with their marketing and win businesses over.
  • How can Google beat AWS and Microsoft?  Google hasn’t scratched the surface with their footprint in the enterprise space.  One slip up by the other cloud powerhouses and Google becomes a very attractive offering.  Google has the power, the money, and the brand to make headway. Like AWS, they are not just a cloud/software company, they are an everything company.  I really think Google will surprise a lot of analyst in the near future with their cloud growth.
  • How can Microsoft beat them all?  Any organization that uses Microsoft software in a hosted environment must pay Microsoft for that luxury.  They already have a large footprint and very large customer base to move to Azure.  They also have 30k + SPLA partners (estimate) that are being used to sell their solution.
  • Will SPLA Man be able to afford a nice piece of jewelry for Mrs. SPLA Man?  For all the single women who read SPLAlicensing.com, don’t make the same mistake Mrs. SPLA Man made.  Poor Mrs. SPLA Man, when I first met her at the bar, she thought SPLA was something I created for the space station. Space Program Living Association.  S.P.L.A. – kind of like a home owner’s association but for space.  (I am not sure where she got that idea).  I do have a cool blog??!

Thanks for reading,

SPLA Man

 
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Posted by on August 2, 2017 in In My Opinion

 

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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 QMH 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 QMH 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 QMH authorized)
  • Install on up to 5 devices.

Is SCA replaced with QMH?

Yes.

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

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 QMH authorized to use Azure.  QMH 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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Breaking down Microsoft’s Q4 and what it means for your business.

Microsoft reported earnings last night that surpassed expectations and gave us insight into their cloud business. I am not a stock analysts, but I thought I would spend some time reviewing some of the highlights and my opinion for what’s next for the software (I mean cloud, actually, no -I meant Intelligent Cloud) giant.

Azure – Microsoft did not provide specific revenue numbers for Azure, but did say revenue grew 97% y/y.  Although exact numbers for Azure revenue is not specified, Azure is part of the all-important commercial space, which includes Dynamics 365, Azure, and a little program called Office 365.  That revenue number combined was over 18B which more than doubled last year’s number.

Office/Dynamics and Competition – Office 365 subscription business just surpassed the traditional Office model with revenue up 43%.  When was the last time you went to a box retailer and purchased software?  That’s a telling sign that more and more organizations prefer subscription pricing over box products.   Dynamics 365 was up 74%, probably because Dynamics in SPLA is about as complex as it can possibly get.  Need help with a Dynamics licensing question?  Ask your reseller.  The reseller will ask Microsoft – and then it goes into a big, dark, black hole until someone loses their mind.  Nothing happens.  Microsoft also revamped Dynamics in SPLA to make it very difficult to compete.  The same can be said for Office.  Where I see concern for Microsoft is with Google, who is just getting their foot in the door in the enterprise space.  If they make traction (and they will) it will be interesting to see the two giants go at it.  Google’s cloud platform is growing exponentially as well.

Surface Sales – I guess you can say is one of the low points of the conference call.  Surface revenue dropped 2%.  Xbox sales also dropped and became less profitable with price drops and competition.  That’s the bad news – the good news?  Maybe with the new CSP Windows 10 thing Microsoft will include Surface as part of the program to those not already a Surface Authorized Distributor, or make Surface authorization available to every CSP Direct partner.

LinkedIN – Only Microsoft can spend over 26B for an acquisition and investors are still wondering what it is they bought; and more importantly, not hurt their quarterly earnings.  Yeah, they can tie it in for Dynamics and Yammer/Teams with all those users.   They also have a pretty impressive data list of users to sell additional collaboration products and services to.  I guess the jury is still out on this.

Opinion – Microsoft recently announced a major change in their sales organization. Their sales teams that were focused on the enterprise need to focus more on solution type selling.  A lot of organizations in the industry are going through the same transformation.  It’s also not an easy thing to do.  Time will tell.

I wrote an entire article without mentioning Amazon, they report earnings next week.  It will be interesting to see how they compare to Microsoft and how much they grew year of year in comparison.  Lots of analysis say Microsoft will surpass AWS as the king of the cloud.  I still think Google is lurking in the background and might surprise some people as well.

What does all this mean for SPLA?  In my humble opinion, I think Microsoft better be careful with the way they are handling their third-party hosters.  Those numbers they threw out yesterday were great, but they can get even better.

Microsoft built a program for partners who have their own datacenters, relationships, and sales resources to promote Microsoft products and technology.   There are close to 30,000 SPLA partners (rough estimate) that have datacenters spread throughout the globe.  Nobody, can have the reach like your SPLA partners.  Google and Amazon do not have 30,000 datacenters, why disrupt it?  Don’t audit them, partner with them and help grow this business to build a true hybrid cloud ecosystem.  The strategy should be their cloud – our cloud, and customers will thank you.  Teaming with Walmart makes sense too.  Say what!

Thanks for reading,

SPLA Man

 
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Posted by on July 21, 2017 in In My Opinion, Uncategorized

 

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Top 5 CSP Questions….Answered!

  1. Is the SCA addendum removed now that Microsoft announced the Qualified Multitenant Hoster addendum?  Yes.  SCA has been removed and replaced with the QMH addendum.
  2. If I have a CSP Indirect/Tier 1 authorization, can I resell Azure Stack but license Windows Server through SPLA?  Yes.  You will pay the base consumption rate because you A) Purchased the hardware through an authorized dealer and 2) paid for the Windows license through SPLA.
  3. If I am not authorized for CSP, can I still sell Office 365 to my end users?  Not in the general sense.  What you can do is resell CSP through a distributor or authorized CSP Indirect/Tier 2 partner. You can also partner with a CSP Direct partner to offer the solution.  They would resell the actual license but you can provide services on top of it.
  4. I am a SPLA partner who wants to resell Office to my end users.  What are my options?  You can sell Office through SPLA and include RDS and Windows.  You can become CSP Direct authorized and use the QMH addendum mentioned above.  You can also use end customer owned Office licenses and host it in a dedicated environment.
  5. Will Microsoft offer QMH for Indirect partners as well?  Not at this time.  You must be CSP Direct to qualify, not Indirect.

Lots more on this.

Thanks for reading,

SPLA Man

 
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Posted by on July 17, 2017 in Office 365

 

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