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Tag Archives: SPLA Pricing

SPLA Pricing Going Up? Not on my watch

I hate when other partners promote a SPLA price increase to gain business.  Yeah, no one can control what the publisher will ultimately do and pricing is never consistent (just look at your local gas pump) but that doesn’t mean you cannot leverage use rights and other factors to lower your SPLA bill.  In this article, we will look at how SPLA partners can lower their bill regardless what Microsoft may or may not do in the future.  Here are a quick (some easy, some not so easy) ways to accomplish this.

  1. SQL Server:  How confident are you that you are licensing the most expensive product in SPLA correctly?  Let me provide an example, reporting SQL Web because of price is not a sound strategy.  Auditors look at licensing historically, when you license incorrectly for a product like SQL Web and it should’ve been Standard, you will pay an astronomically higher price in the long run.  Pay attention to your given use rights to uncover cost savings, such as SQL Enterprise for unlimited virtualization, Standard SAL licenses for multiple VM’s and Servers, etc.
  2. Administration Access:  Why report administrators?  As part of your signed SPLA agreement, you are allowed 20 admins per datacenter without the need for SPLA.  Doing a demo for your customer?  Don’t report it.  Pay attention to the use rights in your SPLA agreement, not just the SPUR.
  3. SPLA Internal Use:  If you have more external users than internal users, perhaps you should use SPLA to cover both.  As an example, if you host Exchange for 10 users, you can use up to 5 internally.  Those licenses are not free, you would report a total of 15 on your SPLA moving forward.  This entitlement is called the 50% rule which states that you cannot license more than 50% of what you are hosting, internally.  I like this because it eliminates two things: 1) if a user leaves your company, you simply do not license the user the next month.  In Volume Licensing, you own the licenses which would force you to either reassign the license to another user internally or it goes unused.  2).  You would not be required to have separate hardware for this solution.  In traditional SPLA, you must have separate hardware from what you are hosting.  If using SPLA for internal consumption, it can be on the same hardware since it follows the same use rights.
  4. Leveraging Skype for Business through Office 365:  Yeah, in many cases O365 is the big bad wolf; in other cases, it’s your best friend.  If you want to host Skype, you can sell your customers who purchased Skype O365 licenses, host it from your datacenter environment, and leverage the SAL for SA SKU.  Skype USL (Office 365 licenses) is the only product that qualifies for SAL for SA in SPLA.  If your customer purchased Skype USL licenses and are unhappy with migrating it to Microsoft datacenter, you can tell the customer that you can host it for them for little cost.  It’s much cheaper than licensing/reporting the regular Skype for Business SAL.  On the flip side, let’s say your customer purchased Exchange Online USL license, they would just need to purchase the Exchange Server with Software Assurance to leverage license mobility.   Exchange Online does not qualify for SAL for SA.
  5. Private Cloud: When the public cloud is taking up all the headlines, maybe it’s time to differentiate and create a new headline.  No one gets ahead by doing the same thing others are doing.   If Azure offers public cloud, maybe you should start offering private cloud.  In this example, private cloud is fully dedicated, isolated hardware for each individual customer.  Here are three ways this could be beneficial:
    1. Dedicated hardware does not require Software Assurance.  Your customer owns SQL 2000 or still stuck on Windows 2003?  No problem, move it to your cloud.  Try doing the same in Azure or other fully public clouds, they would need SA for those licenses.
    2. Unlimited Virtualization.  Windows does not have mobility rights, but if you were to offer dedicated servers, an end customer can transfer their Windows licenses without issue.  More importantly, if they purchased Windows Datacenter because of virtualization (which they did), they can still have unlimited virtualization rights as if they were running it on premise (still dependent upon the size of the server).  Do the same in Azure HUB, and it doesn’t quite add up.
    3. No SPLA licenses, no VDI restrictions, no CSP requirement and ease of security concerns. Kind of speaks for itself.

I understand that in many situations transitioning to a private cloud is easier said than done, but it does have tremendous licensing advantages over public clouds.  Worried about SPLA price increases or CSP?  Private cloud might be your answer.

As always, have a question on SPLA pricing, licensing, or anything else that comes to mind, email info@splalicensing.com

Thanks for reading,

SPLA Man

 

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Posted by on October 5, 2017 in In My Opinion

 

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Predicting the future of SPLA

The one thing consistent with Microsoft is change.  Attempting to predict what will happen tomorrow is just as difficult as predicting what will happen two years from now. That being said, Microsoft is giving hints as to what the landscape of SPLA and CSP will look like in the not so distance future.   Without further delay, here’s my predictions:

  • Microsoft will increase SPLA pricing at some point.  It’s inevitable.  See point number 2.
  • There will be a big push to move SPLA providers to CSP and it’s happening now.   CSP pricing is not going up any time soon.
  • CSP membership will be part of the requirement to join SPLA.  Going out on a limb here, but if the goal is to move SPLA to CSP, I think this would be a good way to do it.
  • CSP requirements will be more streamlined and easier to obtain.  See point number 2.
  • SPLA compliance will increase.  See point number 2.
  • SPLA Resellers will put more focus on CSP than SPLA.  See point number 2.

Good news?  I think it’s time for SPLAlicensing.com to get a facelift.  It’s been several years using the same format.  What features would you like to see?  What topics interest you?  What do you think will happen in SPLA?  Email info@splalicensing.com and would love any suggestions.

Thanks for reading,

SPLA Man

 

 

 
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Posted by on September 14, 2017 in In My Opinion

 

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Transition SKU’s for CRM Hoster’s Available Thru October, 2019

For Dynamics hosters worried about all the changes with CRM have until October 31, 2019 to license the transition SKU’s in SPLA.

Although good news and provides some flexibility, the transition pricing is still higher than current CRM licenses.  As an example, Basic CRM SKU transition pricing for Customer Service is almost double!

Transition pricing is available to ease transition to the new Dynamics 365 pricing model.  It is also designed for current CRM customers, not new customers.  To learn more about Dynamics 365, please check out Dynamics 365 Licensing for SPLA

Thanks for reading,

SPLA Man

PS- Dont forget to license SQL and Windows with CRM!

 

 
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Posted by on May 15, 2017 in CRM, Dynamics 365

 

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Dynamics 365 Licensing for SPLA

Over the past several weeks, I’ve received several inquiries around Dynamics 365 what it means for CRM SPLA partners.  In this article, we will review the changes and when the changes will take effect.

Dynamics 365 for SPLA

In today’s SPLA licensing model, there are three products available –  CRM Essential, CRM Basic, and CRM Professional.  All come with different functionality and all come with different price points.  Those products will remain up until your agreement expires.  As with other products, once your agreement expires, you should report or license the new products.  In some cases, you are allowed to downgrade and run previous versions, but you must report the latest and greatest.  As an example, SQL 2016 is the latest edition of SQL, but that doesn’t mean you have to deploy SQL 2016; you can run 2012 or 2014 or God forbid 2008.  However, once you sign a new SPLA, you must follow the terms in the SPUR at the time of signing.  In this example, even though you deployed 2008, doesn’t mean you can license SQL 2008 by processor, you must still report it by core.  Dynamics CRM works the same way.   With Dynamics, the new products are Dynamics 365 Sales, Customer Service, and Team Members.  All come with bells and whistles and all come with higher pricing.  If you have an active SPLA prior to the announcement (November, 2016) you can continue to report the old products up until your agreement expires.  Once you sign a new agreement, you must report the higher priced products.

What are the options?

I’ve worked with a couple of Dynamics CRM hosters who had their agreement expire two months after Microsoft made this announcement.  In other words, Microsoft announced these changes in September (give or take – most widely known to resellers and partners in November) but their agreement expired in October.  The poor CRM providers are really in a pickle.  Microsoft dropped the bomb on them and two months later their pricing almost doubled!  What are they supposed to do?  Blame their reseller? Sure.  Everyone does.  Blame Microsoft?  Yes.  But that only gets you so far.  Cry?  Always.

Microsoft made some adjustments and offered “transition pricing”.  Transition pricing allows SPLA partners who have an active SPLA prior to November, 2016, the ability to report lower transition pricing up until their agreement expires.  The transition pricing is lower than new pricing but still doesn’t offer much of a discount.  When your agreement does expire, Microsoft will force you to license the under the new licensing and pricing model.

My Opinion

In my opinion, CRM provider are the old Exchange provider.   When Office 365/BPOS came about, small Exchange providers found it very difficult to compete.  It wasn’t just from a licensing perspective but also managing and deploying Exchange became too costly.  What happened?  Smaller Exchange providers are now CSP or out of business.  Dynamics CRM is now the old Exchange.  Microsoft is not going to lower SPLA pricing for Dynamics CRM.  It is not in their best interest to do so.  Harsh reality?  Yes.

Allow me to put on my Microsoft hat. What do you do?  There’s a couple of ways to think about it.  On one hand, Dynamics 365 isn’t all that bad.  I do think Microsoft rushed to market with the product.  I also think there are ways to up sell customers into the latest product.  There are opportunities to offer Dynamics CRM and deploy CRM and manage CRM.  For many organizations, CRM is the lifeblood of their sales.  CRM goes down, it’s bad for their business.  In speaking to a colleague, the LinkedIN acquisition makes Dynamics 365 an interesting proposition.  If you are able to seamlessly host Dynamics 365 on your platform and integrate their LinkedIN contacts as well, there could be a compelling reason to transition to the latest and greatest.

Ok, now my Microsoft hat is off.  I think Microsoft should be more patient and lengthen the transition pricing to make it more compelling for CRM hosters and to their customers.  I think service providers are the bread and butter to Microsoft hosted offerings.  SPLA is the one program that differentiates Microsoft v. Amazon v. Google.  Thirty thousand service providers worldwide who are willing to host Microsoft technology.  You don’t want to abruptly interrupt their business.  After all, no matter if they get Dynamics from a Microsoft datacenter or from a partner, Microsoft wins.  Amazon can’t say the same thing.

Would love to hear comments.  You can email me at info@splalicensing.com or leave a comment below.

Thanks for reading,

SPLA Man

 

 

 
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Posted by on May 9, 2017 in Dynamics 365

 

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