RSS

Tag Archives: spla licensing

What’s Your Licensing Strategy?

I love the question “What’s your cloud strategy?” It’s the new ice breaker for salespeople around the globe. My thoughts? Why bother asking customers about their cloud strategy if it does not include licensing?  The BIGGEST mistake service providers (SPLA’s) make is selling a solution first and worrying about the licensing impact later. They build data centers, talk about virtualizing, even talk about the savings of cap ex vs. op ex, but never talk about the licensing until someone brings it up or they get audited. Just because the technology enables something, does not mean you can license that way.

VDI is a prime example of this. “You can host virtual desktops as a service right? Install the desktop OS on a server and stream it? Why not? The concept has been around for years. I ‘Googled’ VDI as a service and several companies are doing this…it must be right…right?” Wrong! Yes, technically speaking you can host virtual desktops using Windows 7/8. Licensing gurus and the product user rights and the audit team will disagree with you. Unfortunately there’s no way to do this under SPLA. Next question that comes up is “why?” Wish I knew the answer, perhaps Microsoft is looking out after the OEM manufactures, but then again they launched Surface.

Microsoft is auditing everyone. There are few guarantees in life, but one guarantee is not everyone under the SPLA program is licensing correctly. Just a word of advice, know the licensing before implementing a solution.

Thanks for reading,

SPLA Man

 
 

Tags: , , , , ,

Why Timing is Everything

Whether you’re signing a new SPLA or renewing your old one, timing is everything.  When you sign an agreement, you are bound by the use rights at the time of sigining.  For example, if you sign a new SPLA in April, 2013 you will be bound by the SPUR (product use rights) for April 2013. 

Why is this important?  As with technology, licensing is always evolving.  As an example, with the release of SQL 2012, Microsoft switched from a processor based licensing structure to a core based licensing structure.  Since the 2013 SPUR only has core licensing (not processor), you will be forced to license by core when you sign a new SPLA regardless of which version you have installed. In other words, anyone (whether renewing or new) who signs an agreement after December 31st, 2012 will be forced to license by core. 

Windows 2012 is another change that can impact your usage reporting.  With the release of Windows 2012 last August, anyone who signs a new SPLA after August 31st, 2012 will be forced to license by the 2012 use rights.  You can run previous versions such as 2008, but you will need to license by the current SPUR. 

What happens if you sign a new SPLA in August before the license change?  You will have 3 years (SPLA is a 3 year agreement) to license the old way.  The catch? If you migrate any servers to the 2012 version you will have to license those servers by the 2012 use rights.  For example, if you are running SQL 2008 R2 Standard edition and decide to migrate to SQL 2012 Standard edition, the new server will need to be reported by the core not by processor!

Ask in advance for the licensing impact before renewing your SPLA agreement.  Better yet, follow this blog for the latest updates and you will be well prepared!

Thanks for reading-

SPLA Man

 
17 Comments

Posted by on May 29, 2013 in Compliance, SPLA General

 

Tags: , , , ,

Why I Love License Mobility (Farm Edition)

Life is full of little surprises, license mobility within server farms happens to be one of them. License mobility within server farms allows a service provider to take advantage of virtualization without the worry of over licensing or for that matter; under licensing.

Let’s say you have a host machine and that has (2) 6 core procs running 10 virtual machines. You want to run SQL Enterprise. You also have a second host, within the same server farm. The VMs on one machine can migrate to the other. You have to license both hosts right? Wrong! Here’s why.

The old licensing methodology would require you to license both hosts. The new methodology, would allow you to license 1. In the above example, you would need to license 12 cores of SQL Enterprise. You have to license the host with the most cores, but at least it is just the one host! What’ the caveat? You cannot have both hosts running VMs at the same time. If you do, you must license both hosts. Check out the SPUR. Not all products allow license mobility so be sure to check!

The definition of a server farm is as follows:

Assigning Licenses and Using Software within a Server Farm

You may determine the number of licenses you need, assign those licenses, and use the server software as provided in the General License Terms.  Alternatively, you may apply the use rights below.

Server Farm. A server farm consists of up to two data centers each physically located:

  • in a time zone that is within four hours of the local time zone of the other (Coordinated Universal Time (UTC) and not DST), and/or
  • within the European Union (EU) and/or European Free Trade Association (EFTA).

Each data center may be part of only one server farm. You may reassign a data center from one server farm to another, but not on a short-term basis (i.e., not within 30 days of the last assignment).

Please check out the products in the SPUR to ensure the mobility rights apply. Keep in mind, not all products are eligible.  For example, SQL Web does not have mobility rights, but SQL Enterprise does.  Be Careful!

In my opinion, this is a great way to take advantage of virtualization, reduce licensing costs, but more importantly…be compliant.  If an auditor were to come knocking on the door to your datacenter, there’s not much they can say if you take advantage of unlimited virtualization rights such as Windows Datacenter and SQL Enterprise 2012.

Thanks for reading,

SPLA Man

 
2 Comments

Posted by on May 15, 2013 in License Mobility

 

Tags: , , , , ,

Office 365 Under SPLA

Article update: We created a new website called MSCloudlicensing to help SPLA and CSP partners understand the different program options and use rights available to them. The site is designed to be a collaborative platform,  which includes a forum to ask and answer licensing questions, document library, and licensing articles.  It’s more in depth than a simple blog.  www.mscloudlicensing.com 

Document Library: Easy to read white papers on licensing and best practices. What really happens in an audit? How are other service providers handling CSP and Azure? AWS licensing? https://mscloudlicensing.com/document-library/
Forum: Experts always review and answer your licensing questions. https://mscloudlicensing.com/forum/
Articles: Most of the splalicensing.com articles you are used to reading and many more on CSP, Azure, AWS, and other cloud providers.
https://mscloudlicensing.com/subscription/

imagesCA78WN65

With the release of Office 365, the Microsoft hosting community has been asking “What’s in it for us?”   At a glance, I would agree, especially when it comes to Office.   Office can be installed on up to 5 devices with Office 365, under SPLA, you have to install it on a server and have remote access into the server.  This would require not only Office, but RDS and Windows Server!  Microsoft did recently (January, 2014) announce RDS mobility rights. More details found here. I also wrote why Office needs to have mobility rights or else the entire “Office 365” type experience (from a licensing perspective) won’t work. Check it out here
If I was in the hosting business, I would not try to compete against Office 365 from a licensing perspective; I would embrace it.  The most successful service providers offer Office 365 as part of their solution.  For example, if you host SharePoint, like it or not the end customer is going to look at Office 365.  They will want to compare your solution to Microsoft’s. What differentiates your offering to Microsoft’s?  There’s the obvious – you are regional or local, you can offer customization, you can also offer dedicated or multitenant environments; but more importantly you can offer services. Customers want to move to the cloud, the question is “how do they get there?”  This is what you do.  This is what you are great at.  This is where you can increase your margins. Back to my SharePoint example, if you say to your customer – “here’s Microsoft’s SharePoint and here’s ours.  We will help you facilitate to Office 365 if you choose (become the partner of record) but here is what you will be missing.”  You are promoting your brand and not shunning Microsoft’s.  I like what FP Web is doing.  They are the SharePoint experts and are wiling to compare their solution to Microsoft’s on their website.  Check it out for yourself http://www.fpweb.net/why-us/compare-o365-fpweb/

From a SPLA licensing perspective, the only bundled SKU is the productivity suite.  This includes Lync Enterprise, SharePoint Standard, and Exchange Standard.  It does not include Windows, SQL, or Office. Windows processor licenses allows unlimited number of users to access, the more users, the less expensive it is. Eventually all you will be quoting is the Exchange license.  (if you are an Exchange only provider) That is how large service providers are able to hold down their costs.

Other option to Office 365 is to offer License Mobility.  License Mobility allows your end customers to purchase licenses (with Software Assurance) and bring it into your environment.  The advantage for the customer is volume discounts, and the advantage for the service provider is the ability to offer this in a multitenant hardware infrastructure.  The virtual instance has to be dedicated, but the hardware it resides on can be multitenant.  This is only if the customer has Software Assurance and the service provider signs the license mobility addendum.  Windows is not included and would have to be reported under SPLA.  I will write another blog on license mobility.  Stay tuned.

Thanks for reading,

SPLA Man

 
22 Comments

Posted by on February 26, 2013 in Office 365

 

Tags: , , , ,