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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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SPLA Paused!

SPLA Paused!

In certain markets, Ukraine, Turkey, Iraq, Brazil, India, Poland, and a handful of others SPLA is paused. What does “pause” mean and what impact does this have if I am a hoster in the US or UK?

Well, kind of like an audit. take a breath. SPLA is not dead. In fact, globally, SPLA continues to grow. This pause is for net new hosters who want to sign up in the program. If you are an existing hoster, there’s no impact. You can continue to use SPLA and even renew SPLA with updated terms. I think the bigger question is SPLA moving forward, and what changes do I see happening. To answer that question, let me share an example.

This morning I had the pleasure of speaking to a large hoster in Europe. We discussed SPLA and his thoughts on CSP. He’s an infrastructure provider, mainly hosting Windows, RDS, and a little SQL. Most customers bring licenses into their datacenter. He’s not interested in using Azure or AWS, he wants to host out of his datacenter, and uses it to differentiate amongst the larger providers. End customers bring licenses into their datacenter and they host it.

Wow SPLA Man, that’s a turn pager of a story. Tell me more!! Sure. I think this hoster is what SPLA is about. No one is a SaaS provider using SPLA. Hosters don’t provide Office as a service through the SPLA program. They provide Windows Server (it’s cheap) and they provide SQL (it’s expensive). What he likes about SPLA is the flexibility. He controls the customer end-to-end. Unlike CSP hoster, Microsoft does not know who the end customer is in SPLA. That’s where I see SPLA changing. In fact, with this latest announcement, they state “change is the first in a series of changes evolving the SPLA program. Future changes, including new SPLA agreement templates and a new process of reporting and submitting END CUSTOMER USER DATA for compliance verification are also planned”

End customer data has and always will be the problem with SPLA for Microsoft. They want to control the end customer and know why and how they are purchasing their software. Other than that, SPLA is a huge benefit to Microsoft. Differentiates Microsoft from AWS and the like.

If you are an infrastructure provider (like in the story above) what should you do now? I will keep saying it, start with education. Arm yourself with the best licensing practice around. This licensing environment in which we live is changing rapidly. Second, I would communicate these changes to your customer and how they may impact the way they purchase Microsoft products. All the changes that happened over the last few years, has zero impact to SPLA. It is all about the end customer. Last, I would start developing a SAM practice internally. You need to clean up your own mess before you do anything else. You should look into using OctopusCloud

More to come on this. I am also doing an interview with AWS and Microsoft. Stay tuned for more.

Thanks for reading,

SPLA Man

 
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Posted by on September 28, 2023 in Uncategorized

 

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SPLA Audits: Survival Guide

SPLA Audits: Survival Guide

Here’s an example of an unsuccessful audit and what this Company could have done differently. True story. Don’t waste a failure. 

Customer A

Background

The Company reports roughly 75,000 USD a month in SPLA revenue. At one point, it was almost double that amount, but over the years, they moved workloads away from SPLA and into Azure. Although their SPLA has decreased, their CSP spend has increased significantly.

Five years ago, Company A went through an audit. They owed a small amount of money but were not nearly as large as now. Most of their growth has come by the way of acquisitions. Last year, Company A received another audit notification.   They were not as worried about the audit because they expected the same outcome as the previous one. 

The Process

The CEO received an audit notification specifying the audit process. A kick-off meeting would outline the requirements and what information they (auditors) would need to complete the project. This was conducted by a third-party audit firm, not Microsoft directly. Once the kick-off meeting was completed, they would move on to the data collection phase. They ran a scan of their entire infrastructure using the MAP tool and produced a raw data report. Once received, the auditors will compare Company A’s past usage reports and what was discovered during the audit. Whatever the delta is, ultimately, is what they would owe. 

The Outcome

This process was completely different than the original audit several years ago. Company A worked directly with Microsoft, not an audit firm. It was easier and completed on time. This new audit took a long time to complete. More assets (Servers/VMs) to uncover resulted in a longer time to perform the analysis. The longer it dragged out, the more uncomfortable senior management became. The Board wanted to move past this audit quickly to budget for the upcoming fiscal year. The auditors obliged; they didn’t want to spend too much time on the audit either. So, the auditors delivered a settlement letter with the total amount owed. The CEO was shocked. They initially thought they might owe about a month’s worth of licensing, but they owe well into seven figures. Completely unbudgeted, heads were going to roll. They pleaded with Microsoft, but the only option was to inquire about financing. Company A settled at the direction of their Board. Audit complete.

What did Company A do right?

They were responsive to the auditor’s request. I think this is a good thing. You shouldn’t ignore them, and your response is always appreciated.

What did Company A do wrong?

Everything outside of being responsive. Here’s what they should have done differently.

They have worked on their timeline, not the auditors. Company A should have taken a deep breath to respond but not rushed into something they were unprepared for. They knew their licensing wasn’t 100% accurate. They should have performed their risk assessment to understand their exposure.

Hired a consultant such as SPLA Man. You need to interpret and translate the data into a SPLA licensing report. This is also a great way to identify software you may have installed but never turned off or removed access. It’s good to get this information before the kick-off call.

They barely negotiated. The best Company A came up with is financing. When you negotiate with a major publisher, they must keep the conversation sales-oriented. When you don’t, it becomes very black and white. The product terms are the product terms, and you can’t change them. But leverage what you do have. In this example, Company A has a lot of CSP spend, leverage that. They also moved workloads to Azure. Guess what’s a top priority at Microsoft? Yes, Azure. 

They need a go-forward strategy. Maybe find a tool such as Octopus. Cloud to help manage installations more efficiently. Find your risk before it becomes a risk.

The key thing to remember is not only did Company A have to spend seven figures on an audit, but it also tells me they are not charging their customers accurately either. That’s the more significant issue, in my opinion.

So there you have it. What am I missing? Have a question? Going through an audit? Email info@splaicensing.com, and we can help.

Thanks for reading,

SPLA Man

 
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Posted by on September 19, 2023 in Uncategorized

 

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New SPLA Price Announcements Coming! Are you ready?

Ahhh…..Microsoft. If you haven’t heard the news, there is an update coming for SPLA regarding pricing and new announcements to the program. Some of these changes include Windows Server, CIS, and the Office Suite. Suppose you want an opportunity to review these changes and how it directly affects your business. In that case, we can certainly set up a time to review and how other service providers are handling this impact. You can reach us at info@splalicensing.com Why the changes, and what precisely are they? The change has a lot to do with the direction Microsoft is going with its programs. SPLA is a mature program, with other solutions such as CSP, an emerging program for Microsoft.  That doesn’t mean SPLA is going away, but it does mean there will be changes, updates, and pricing increases.  If you would like to learn more, we can assist.  Do not keep licensing the same each month, expecting different results.  If you are frustrated and want an opportunity to optimize and, in some cases, reduce your costs, let SPLA Man come to the rescue! Let’s set up some time and review what these updates mean for you!  Please email us at info@splalicensing.com Thanks for reading, SPLA Man
 
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Posted by on October 18, 2021 in Uncategorized

 

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Top 5 Licensing Questions….Answered

You have questions…We have answers.  Another month, and another list of licensing questions asked by the hosting community.

  1. I have a small hosting company that runs primarily Linux machines with a few Windows VM’s mixed in.  The only thing we do customer facing with Windows systems is a small number of users access our application via a published app over RDP Web.  Do I need SPLA?

Yes.  You have Windows running in your cloud environment.  It does not matter how small or large the environment is.  One thing you might want to check out is the Cloud Platform Suite.  You must run Hyper-V and System Center but it could lower your costs. 

  1. I get CSP from one reseller and SPLA from another.  Do I qualify for the new QMTH addendum or do I need to get it all from one source?  Totally confused.

In QMTH, you are the CSP partner, not someone else.  I am guessing you are using the CSP reseller to go indirect.  If that is the case, you must become CSP Direct authorized.  Purchasing CSP from a third-party does not qualify you for QMH.  That being said, your customer can purchase CSP from any organization and you can host it for them (if you are QMH authorized).

  1. The audit bug got me. I think it’s because my reseller refuses to submit my usage report even though I sent it to them several times.  Any advice?

Microsoft can audit any partner they choose.  There’s not one factor that triggers an audit.  More eyes will be watching if you are continually delinquent on your monthly report.  The biggest reason why a reseller does not submit a usage report is because the provider is delinquent on their payments. Are you up to date? All payments paid to the reseller?

  1. Can I rent a PC using the QMTH addendum? I know in the past I could rent a Windows desktop license in SPLA.  Can I do it now?

I think it makes sense to do so but unfortunately it is not part of the addendum.  I would love feedback here.  Section C of the QMTH addendum states” “This Amendment does not authorize Customer to resell, distribute, or otherwise provide End User or CSP Licensees direct access to Windows 10 Software” In order to lease a PC to a third-party you need to follow the Microsoft Leasing Agreement. 

  1. I report Office, Exchange, SharePoint and Skype. I heard rumors of a price increase coming in the pipeline from various resellers that I reached out to.  Any truth?

Let me put it to you this way – The products you just mentioned happen to be part of Office 365.  I don’t foresee Microsoft lowering pricing in SPLA for the same products offered by Microsoft.

Thanks for reading,

SPLA Man

PS – What was the SPLA partner’s response to my answer for question 5?  “That’s BS Mate!”  My response?  “Don’t shoot the messenger.”  Have a question?  Email info@splalicensing.com

 
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Posted by on August 5, 2017 in Top 5 Licensing Questions

 

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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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SQL Enterprise – it’s more than virtualization

I sat in on a webinar this afternoon and was really impressed with the different capabilities within SQL Enterprise.  I always sold SQL based off virtualization needs.  What a goof. Although important, there are several other factors that go into licensing SQL Enterprise as to Standard or Web.

Let’s first break the different components down to better understand the differences.

SQL Web – Basic SKU.  Designed for hosting web apps and websites.  Many hosting providers try to license SQL Web to support line of business applications. (which you cannot do by the way) Think of line of business applications as applications to run your business.  (very poetic by the way).

SQL Standard – The most common reported SKU in SPLA but also the one that gets service providers in trouble; especially as it pertains to virtualization and mobility within server farms.  Offers some high availability, although not as complete as Enterprise.  Database size is also an issue as it only supports up to 64GB.  Sounds like a lot, but ask a SQL admin how much that really is.  Newer editions offer mobility rights, and can be licensed on a per VM basis.  Not a bad thing.

SQL Enterprise – Ahh…SQL Enterprise.  This cost a lot doesn’t it?  Man, how can someone afford this month end and month out?  Ask your reseller what’s the difference between Enterprise and Standard and the first thing they will say is virtualization. (that’s what I did too for the record) Although true, there’s more to this than just virtualization.  For starters, the size alone is more than Standard.  (See chart below).  High availability with Enterprise is truly high availability.  It’s always on (Failover cluster instances and availability groups).  Although costs seem high, if data is lost, how much will that cost you?

SQL BI – The in between SKU, meaning its similar to Standard, but not as robust as Enterprise. In the SPLA world, it is licensed by user only.  This “Jan Brady” of SQL has…..you guessed it….BI features.  This SKU is very rarely reported.  If I had to guess, she will be merged or have licensing changes with future releases. No basis or knowledge, just an educated guess.

So back to SQL Enterprise.  I think the service provider community should listen to what other hosters have to say about SQL. Let’s look at the real IT wizards  (also known as ISV’s – those that develop applications) do with SQL Enterprise.  If you look at the chart below, this illustrates the features they use within Enterprise the most (Source: Microsoft)

Picture1

You can see (kind of unclearly) that scale and performance outweighs everything else. “Scale and Performance” means data compression, table partitioning, etc.  Over 23% say HA/DR is the most important feature. (always on).  I like to listen to these guys (ISV’s) since their business (their application) is only as good as the technology it resides on.  If they rely on a certain product over the other, I would like to better understand…why?  From the chart, it’s no surprise that performance ranks #1.  Imagine if performance was bad?  How good will their application look then?  So if they trust SQL Enterprise based off performance and HA…maybe you should give it a second glance.

From Microsoft, here’s the top 10 reasons hoster’s should consider Enterprise.  Oddly enough, virtualization wasn’t one of them.

1.More than 64GB memory

2.Online Re-Indexing

3.In-Memory OLTP

4.Always On Availability Groups

5.Partition Switching

6.Columnstore Indexes

7.Resource Governor

8.Change Data Capture

9.Transparent Database Encryption

10.Data Compression

Here are some good links on the topic below.  Feel free to check out.

SQL 2014 Overview

http://technet.microsoft.com/en-us/sqlserver/dn135309.aspx

SQL under SPLA

https://splalicensing.com/category/sql-2012/

SQL throughout the years – downloadable documents

http://www.microsoft.com/en-us/search/Results.aspx?q=sql&form=DLC

Thanks for reading,

SPLA Man

 

 

 

 
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Posted by on October 28, 2014 in SQL 2012

 

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Hybrid, Dedicated, and Shared Scenarios…

There are three deployment options for service providers – Hybrid (mix of on premise and cloud) Dedicated, and Shared.  In this article, we will break each one down to explain how they work and the options available.

Dedicated Scenario – (3 options available)

Option 1
Your customer decides to bring their own software (such as Exchange) and infrastructure (Windows) via their own volume licensing agreement. They do not have software assurance on the software. Can they do this?

Yes. Why? Everything is dedicated. Server, virtual machine all dedicated to one single organization. Software Assurance is NOT required.

Option 2
Your customer decides to bring the software but the hoster will provide the infrastructure in a dedicated environment. Again, customer does not need Software Assurance if it’s a dedicated environment. In this scenario, the hoster (you) will provide the Windows license via SPLA and not report the other applications the customer brings over since it is already covered via their own volume licensing agreement. This is applicable, it’s dedicated (VM and physical servers)

Option 3
Your customer is a healthcare company that needs a dedicated environment due to regulatory compliance. They do not own any software; they would need the hoster to supply the software licenses. Can they (the hoster) do this? Yes, the hoster would report everything under SPLA. The hoster (you) CANNOT use your own volume licensing agreement to provide the solution but you can certainly provide SPLA. Please be aware that if you own a volume licensing agreement, you cannot use the same hardware your volume licensing agreement resides as your hosted solution.

Also keep in mind that SPLA is non perpetual, when the customer leaves, they can no longer use the software they were accessing.

Summary of Dedicated –
Dedicated is applicable for both SPLA and end customer owned volume licensing. Dedicated also means dedicated hardware and dedicated VM’s. In dedicated environments, the end customer DOES NOT need software assurance. From a compliance perspective, it is defined as the following:

“Any hardware running an instance of Microsoft software (OS or application) must be dedicated to a single customer. For example, a SAN device that is not running any Microsoft software may be shared by more than one customer; since, a server or SAN device that runs Microsoft software may only be used by one customer.” (source: Microsoft VDA FAQ)

Hybrid Scenarios – 3 options available

Option 1
You decide to offer your customer a shared infrastructure but they want the same applications to run on premise. A good option would be to have the customer purchase the server applications (think Exchange, SharePoint, Lync) with software assurance (SA) and run them on premise. You (the service provider) would run the same applications in your shared environment BUT report the SAL for SA SKU. Much cheaper option than standard SPLA prices. I wrote about this here This also works well for Disaster Recovery options.

Option 2 (not really a hybrid but just go with it)
You can use license mobility. Microsoft likes to define this as a “hybrid option” but to me, hybrid insinuates the ability to run on premise and in your cloud. License mobility is a SA benefit for certain applications (SQL, CRM, SharePoint, Exchange, Lync) that allows customers to leverage their investment in SA and transfer those licenses into a hosters shared infrastructure. Reason why I don’t think this is truly a hybrid is the customer is TRANSFERRING licenses into your datacenter. This means that if a customer wants to move back to their own datacenter, they have to wait 90 days. (transfer license rule). With SAL for SA, nothing is being transferred. Windows does not have mobility rights, this will need to be reported under your own SPLA. I wrote about license mobility many times – here’s an article for your review – here You can also check out the Microsoft site for more of a definitive definition http://www.microsoft.com/licensing/software-assurance/license-mobility.aspx

Option 3
Good Ole’ SPLA. Customer can run their own servers on premise, you just report SPLA licensing in your shared environment. The new SPLA agreement even allows you to run SPLA software on customer owned hardware as long as you still manage it.

Shared Scenarios – 2 options

Option 1
License Mobility – see above

Option 2
SPLA. We all know what that is.

Summary

I hope this brings a bit more clarity. Sorry if some things are redundant but at the same time, some things are simply worth repeating. Here’s the takeaway – customer’s can always bring licenses into your datacenter. There is no law of the land that prohibits this. What is prohibited is the way you deploy the technology. There is only one option to install customer owned licenses in a shared environment and that is license mobility. Again, (here I go being repetitive) if Microsoft allowed customer owned licenses to be installed in shared environments than why would they create license mobility?

If you still have trouble comprehending all this, shoot me an email located at the top right of this page. One general rule of thumb – if it’s shared – 90% of the time SPLA is required.

Thanks for reading

SPLA Man

 
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Posted by on August 27, 2014 in Compliance, License Mobility

 

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Help me SAM!

I was on a call the other day and the customer was pleasantly surprised to learn about the SPLA program. Although I do not manage the program in its entirety like the old days, I will say this was a refreshing surprise. When you mention SPLA to a customer, account manager, or even Microsoft, more times than not you here a groan. ABS – Anything But SPLA! I am sure if there are resellers reading this, they would probably agree. Why no love for a program that is growing exponentially year/year? What are better alternatives…buy the licenses outright?

I don’t think the issue is with the program itself; after all, the ability to get started with zero upfront costs from a licensing perspective is pretty cool! I don’t even think the licensing is all that difficult once you get started. The pain point is understanding all the “gotcha’s” and the “in’s” as well as all the “outs” to make sure what you are doing is both compliant and cost-effective.  SPLA is an honor based system, but if you are found dishonest, it will cost you.

One of the biggest hurdles is tracking licenses. With the release of Azure, license mobility, and regular SPLA licenses, the ability to track licenses is becoming more complex.  End customers do not want to double pay for licenses already purchased and service providers don’t want to report SPLA if they don’t have to.  So what do you do?

That’s where my old friend named Sammy comes in. On premise customers have used SAM (Software Asset Management) for years as a mechanism to track licenses purchased and/or deployed.  This is not a one time snapshot, (although I guess it could be if you want it to be) but an ongoing strategy to make sure licenses are being consumed properly.  If they are not, at least they catch the problem before they get audited.

Service providers are different; very few have a SAM strategy.  Most service providers are taking part in license mobility and customer owned licenses more regularly. If you don’t believe me check out all the license mobility partners on Microsoft’s website.  If you thought SPLA is complex, try combining on premise licensing and SPLA and see what you have!

What does SAM really do? It’s a strategy. It will give you tools and a team of experts to help guide you through the ever-changing license use rights (SPUR or PUR for those playing at home).  In most cases, it provides you with the necessary resources to help protect you from vendor audits.  There are different levels of SAM to cater towards different types of environments.  Just like service providers, no two environments are the same.

Here’s my advice (if you are wondering) – if you are a service provider, get a SAM strategy in place.  There’s a saying I read somewhere ( I believe LinkedIn) that said if you think audit prevention is expensive, try being audited.  (paraphrased here but you get my point).

If you don’t have a SAM resource, email me, (blaforge@splalicensing.com) I can be your SPLA/SAM resource.  I guarantee I know the program better than most.  You can also check out our SAM services at SoftwareONE here

As always,  hope you find this helpful and gives you some ideas.

Thanks for reading,

SPLA Man

 
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Posted by on August 11, 2014 in Compliance

 

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Datacenter Outsourcing

I’ve written before on how partnering with an established provider can save you money, especially as a short term solution to get your hosting business started.  What I haven’t really addressed is the licensing.

Data Center Outsourcing is essentially what the name applies.  “Data Center” and “Outsourcing”; you outsource your data center. Amazing how that works.  Microsoft definition is a bit more confusing – amazing how that works too. From the outsourcing guide:

  1. “A Data Center Provider is a Service Provider that provides Software Services, usually IaaS, to another Service Provider using Products licensed from Microsoft through its own SPLA..”

Microsoft Azure is a good example of a data center outsourcing company.  When you sign up for Azure, Windows will be included in the service.  They are essentially providing the infrastructure (Windows and/or SQL cores) and you provide the application licenses via your own SPLA.  When you leverage another service provider who provides the infrastructure, they must be providing the Windows licenses. Hmmm…here’s why.

Let’s say you have a signed SPLA agreement to offer Exchange to your clients and you decide to use Brett’s Hosting to provide the infrastructure.  Brett’s Hosting offers a public cloud environment (multiple customers sharing same resources).  Under this model, you will report Exchange licenses for each user that HAS access to the software and NOT report Windows under your own SPLA; Brett’s Hosting would report Windows via their own SPLA.  Why?  If it is a shared environment, there is no way Brett’s Hosting can allocate processors for you to report it.  SQL cores works the same way.  Still don’t believe me?  Check out the FAQ guide from Azure here. Notice under SQL it states you can purchase a VM or use SAL licenses.  Notice under Windows it states Windows is included with your agreement.

Here’s the bottom line, if you decide to outsource your data center to a public cloud provider, ask them how they manage the Windows OS.  If they say it is not included in the cost of the service and you should be providing the licenses, they are out of compliant.

Want more proof?  Download the outsourcing guide here

That being said, if you provide data center outsourcing services, I think you are in the right business. This is the fastest growing area within the hosting industry.  Windows is relatively inexpensive from a licensing perspective, especially as you add more VM’s and can capitalize on the Data Center edition.  (remember…unlimited VM’s).  SQL can get a bit more complex, but if you understand it I think that could be an added value over your competition.  Last, because you report Windows and SQL only and let the service provider control the user based licensing; it limits your compliance exposure.  (processors/cores are easier to track).

So are you a data center outsource or a service provider?  Do you work with someone to resell your solution or do it alone?  Would love to learn more about your offerings. If you need guidance or best practices or just want a second opinion from a licensing perspective you can email me at blaforge@splalicensing.com.

Thanks for reading,

SPLA Man

 
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Posted by on August 7, 2014 in Data Center Outsourcing

 

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