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Why I Love License Mobility (Farm Edition)

15 May

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

 

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How to License Exchange

04 May

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. Check it out, it’s free!  www.mscloudlicensing.com 

 

 

 

In my years of managing the SPLA program, I came to the conclusion that no one likes to babysit an Exchange server.  Organizations do not have the resources or the time to constantly monitor a server, and hosters (if that’s a word) feel the pressure of managing a mission critical application such as email.  If it goes down, not only can you lose a customer, but the customer might lose business as well!

For those hosters that feel up to the challenge, Exchange can be a very profitable opportunity.  Whenever there is complexity, along comes value…which every hoster needs to run a business. What’s the downside? As always, there’s a concern over licensing.

Exchange for SPLA partners (hosters) comes in five flavors: Exchange Basic, Standard, Standard Plus, Enterprise, and Enterprise Plus. Each comes with different functionality as well as price. From experience, 90% of what is being reported is the Exchange Standard SKU. The breakdown of each SKU is as follows:

Exchange Basic – Think of OWA/POP Mail only
Exchange Standard – Features of Exchange Basic as well as shared calendaring and mobile device synchronization
Exchange Standard Plus – Features of Exchange Standard plus the full Outlook client
Exchange Enterprise – Includes all the features of Exchange Standard as well as unified messaging and anti virus/spam features
Exchange Enterprise Plus – All the features listed above plus the full Outlook client

The list above is just an overview, for a full feature list check out the SPUR (user section). The way you license Exchange is by user. Every user that HAS access to the software will need a license; not who does access. Think of your cable company, they will charge you regardless if you turn your TV on or not. User licenses works the same way.

In my opinion, the key to a successful Exchange launch is to offer a multi-tenant (shared) environment. If you license Windows by processor (Exchange runs on a Windows OS) and Exchange by user, the more users you have on that particular server the less expensive it is for the user. Eventually all you are charging is the cost of the Exchange license. That’s how large service providers are able to seemingly charge less. They have thousands of users accessing a limited number of servers in a shared environment.

If a customer wants a dedicated environment (one server hosting one client) the end customer can bring their licenses to you and you host it for them, or provide the licenses via SPLA, but the cost per user is going to be higher (unless it’s a large enterprise).

Once you offer Exchange, it makes it easier to offer other collaboration applications as well; such as SharePoint, CRM, and Lync. Who knows, you might become the next Amazon or Rackspace.

Thanks for reading!

SPLA Man

 
14 Comments

Posted by on May 4, 2013 in Exchange

 

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Hosting SharePoint 2013

29 Apr

The newest addition to the SharePoint family has features that are built off it’s younger sibling; SharePoint 2010, but offers cool/semi cool new features as well.   For a full list check out Microsoft.com/sharepoint.

Personally, we don’t care about the features, all we care about is how to license it!  SharePoint 2013 for Hosting Providers is not overly complicated, and if you knew how to license SharePoint 2010, chances are you will know how to license the 2013 version.

To license SharePoint 2013, you will either need to license by user (intranet sites) or by processor (extranet site).  If it’s for your customers employees or contractors, you have to license by user (SAL).  If you require Enterprise functionality, you will need to license SharePoint Standard and Enterprise together. (SharePoint Enterprise is an additive license to Standard).

Some things did change with the new edition.  For starters, I noticed the lnaguage in the SPUR has changed for the processor based license.  It now reads:

All content, information, and applications accessible by internal users must also be accessible to external users. Access to servers that provide content, information, and applications that are limited to internal users, must be licensed under SharePoint Server 2013 SALs. “External users” means users that are not either (i) your customer’s employees, or (ii) your customer’s onsite contractors or agents. All other users are “internal users.”

In other words, if you have users that are external and internal, you can license by processor for both scenarios.  The trick is this – the same information has to be accessible to both groups.  If it’s not, you would have to license internal users by SAL and external users by processor. If you are running this in a virtual environment – you will have to license the virtual processors.

To recap:

1. If you license SharePoint by user (internal employees only) you need to report SharePoint Standard Sals.  If you need SharePoint Enterprise, you need to report SharePoint Standard + SharePoint Enterprise

2. SharePoint requres SQL  (either Standard or Enterprise)

3. SharePoint Foundation is free.

4. Always report Windows

5. External users = processor.

6. Virtual environment? – Must license virtual procs (if external)

I wrote a new blog post that tells a fictitious story about a SPLA licensing SharePoint incorrectly. You can check it out

Don’t be Dave – Hosting SharePoint 2013

Hope this helps!  Thanks for reading.

SPLA Man

 
13 Comments

Posted by on April 29, 2013 in SharePoint

 

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What CAN I do with my SPLA Licenses?

04 Apr

When it comes to licensing, most of the time we discuss what you cannot do with the licenses.  Today I thought I would touch on what you CAN do with Microsoft licenses as it pertains to the SPLA program.   I came up with a list of ideas that you can take advantage of being a Microsoft hosting partner.

  • Use SPLA licenses internally.  There is a 50% rule with SPLA that states you can use 50% of what you are hosting for your internal employees.  Let’s say you are hosting 10 Exchange licenses externally, the terms of the agreement states you can use up to 5 licenses internally.  These licenses are not free, you would still need to report those 5 licenses on your monthly report (report a total of 15 licenses to your reseller).  One way of reducing your volume licensing count.
  • 60 Day Evaluation – This allows a service provider to host an application as a trial for up to 60 days per customer!  Trick is you cannot receive a fee during this period.
  • Customer Owned Licenses – Customers can bring their own licenses into your data center and you can host the software for them.  The issue: you must host it in a physical dedicated environment (nothing shared amongst other customers).
  • Install Servers on Customers Premise – As long as you own the hardware, you can locate the server at your customers location.
  • Receive the latest version. As new technology is released, you will have access. (check SPUR for availability)
  • Partner with another service providers to host the software.  This is especially important for customers looking to deploy a Dynamics solution but are not Dynamics authorized.

It’s refreshing to write about what you can do. Microsoft is not always the bad guy!

Thanks for reading!

SPLA Man

 
8 Comments

Posted by on April 4, 2013 in Compliance

 

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Windows Virtualization for SPLA Partners

15 Mar

If you were to ask me “What’s the number one question I receive day in and day out in managing the SPLA program?” Without hesitation my answer would be “Windows virtualization.” Windows is not overwhelming complex, but it is the most reported/licensed SKU in the program. All Microsoft software runs on a Windows operating system and is required to be licensed!

With the release of Windows 2012, there are only two SKUs that allow virtualization; Windows Datacenter and the ever so popular Windows Standard. With Windows, you must license each physical processor (not core) on the host machine that will allow “x” number of virtual instances. For example,if you have a (2)processor box with (1) virtual instance licensing Windows Standard; how many processors do you need to report? The answer is (2). Another example, let’s say you are running the same server (2 processors) with (2) VMs. How many do you need to report? The answer is (4). The SPUR (Service Provider Use Rights) for Windows Standard edition states you must license each physical processor that allows (1) virtual instance. If you run a second instance, you must license each processor on the host machine again. This can add up pretty quickly!

What happens if you are licensing Windows Datacenter on a (2) processor box with (4) virtual instances? You would only need to report (2). Windows Datacenter allows unlimited virtual instances. You must license each physical processor on the host machine (regardless which virtual technology you are running. i.e. VM Ware or Hyper V) that will allow you to run unlimited virtual instances. This by far is the less complicated way to go and in a lot of ways, the most cost effective. Most service providers are virtualizing to lower hardware costs, this is one way of reducing your overall licensing spend as well.

Hope this helps and thank you for reading!

SPLA Man

 
15 Comments

Posted by on March 15, 2013 in Windows Virtualization

 

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SPLA Compliance Audit- How Not to be the Chosen One!

05 Mar

If you recently went through an audit or just nervous about being notified, I outlined ten steps that service providers can take to arm themselves more efficiently and be compliant.

  1. If you are running Microsoft software, you must license Windows.  All Microsoft software runs on a Windows OS.
  2. If you are licensing SharePoint- SharePoint requires SQL and Windows.
  3. Reporting SharePoint Enterprise you must license SharePoint Standard
  4. Installing Office on a server requires Remote Desktop (RDS) licenses.  Office and RDS licenses should match (cannot have more Office licenses than RDS licenses)
  5. If you have customers bringing licenses into your hosted environment you need to host it in a physical and dedicated environment.  (nothing shared among other customers)
  6. If you are reporting user licenses (SAL- Subscriber Access License) you need a license for each user that has access.  For example, if you have 10 totals users in the month of May and only 4 actually use or access that software, you must license all 10.  SPLA user licenses are similar to your cable bill; your cable provider is going to charge you regardless if you turn your TV on or not.
  7. If you have customer owned licenses in your environment, you must keep all relevant documentation.  This includes enrollment information, start date, end date, and who they bought the licenses from.
  8. Renting out a PC make sure the PC has an OEM license preinstalled.
  9. No virtualizing/streaming Windows desktop OS from a datacenter.
  10. You can install your server on a customer premise, but do not install SPLA software on your customer’s server!

This is not bulletproof by any means.  Use this as a guide when looking at your own environment.  Look at it from the auditors eyes.  What information would they need to verify that I am compliant? The SPUR (Service Provider Use Rights) is the best reference when it comes to Microsoft SPLA.  You can download a copy here.  If you have trouble sleeping at night; this is a must read.

Thanks for reading,

SPLA Man

 
1 Comment

Posted by on March 5, 2013 in Compliance

 

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