Microsoft Licensing 101

• Programme Licensing– FPP/ESD– Open License– Open Value– O365– Azure– SPLA

• Product Licensing

Agenda

OEM (Original Equipment Manufacturer)FPP (Full Packaged Product)ESD (Electronic Software Delivery)

• Governed by OEM License Terms• SA can be added to Windows Server within 90 days

Advantages: • Already installed (must be pre-installed on new or refurbished machine by a

system builder)• Cheapest way to acquire software

Disadvantages: • Not able to be transferred to another device• Limited selection of products available • Limited downgrade rights • Certificate of Authenticity (COA), disks etc must be stored safely

Original Equipment Manufacturer

• Can be removed from a machine and reinstalled on another (reassignment)• Governed by Retail License Terms

• Boxes often contain the media • Can be expensive (ie Servers)• No reimaging rights• Can only use the version purchased (no downgrade rights)• Certificate of Authenticity (COA), disks etc must be stored safely• Reassignment Rights

**NEW to Dicker Data**Electronic Software Deliver (ESD) follows the same rules as FPP but gives you nearly instant access.

Full Packaged Product (FPP) and Electronic Software Delivery (ESD

Volume License

• Volume License programs offer organisations flexibility, cost advantages and many other supplementary benefits such as:

– Downgrade Rights– Cross-Language Rights– Re-imaging Rights– Portable Use Rights– Reassignment Rights– Media on VLSC

• Governed by Product Terms document and • Online Services Terms (OST)

• Licensing programs vary in length and rules

Why Volume License?

Open License

• Single price level – Corporate, Academic, Charity, Government• Start an agreement with only 5 licenses (or MSDN, some Per Core Packs)

• No electronic agreements for the customer to sign• Order licenses in any combination of products• Open License Agreement - valid for 2 years from initial order• No minimum figure on additional orders during Agreement term• Manage licenses at VLSC website (download software, access Volume License Keys)• Share licenses with legal affiliate in Asia Pacific territory (resellers can only purchase

for NZ and some Pacific Islands)

Open License Agreements

Open License Software Assurance

• Software Assurance - optional

• Has a maximum term of two years as long as it is placed on a new Open License Agreement

• Benefits administered at VLSC website

• Can be renewed within 90 days of expiry into a new or existing Agreement

• 2 years paid for in full at the time of purchase

• SA cannot later be added to licences purchased without SA on the Open agreement

Software Assurance

Open Value

Open Value Features and Benefits

• Single price level – Corporate, Government• Agreement Term - 3 years• Ideal for organisations with 5-250 seats• Share licenses with legal affiliate in Asia Pacific territory (resellers can add to

NZ Agreement for any affiliates in AP territory ie. Licenses for Australian branch)

• Open Value provides customers with two payment types:– Spread payments: spread license costs across the term of the agreement– Pre-payment: pay the entire license cost upfront

• Subsequent acquisitions may be made on an existing Agreement or a new agreement may be initiated

• Automatically included (no L only option)

• Has a term of three years if purchased on new agreement

• Benefits can be administered by accessing the VLSC website

• Can be renewed within 30 days of expiry

• Additional SA Benefits compared to Open License

Open Value Software Assurance

• Initial Order minimum - 5 x Lic/SA or SA

• Customers that sign an Open Value Non-Company Wide agreement just order “Additional Products” in any quantity they like. They are not required to commit to any particular products.

• These customers still receive benefits of Open Value such as Step Ups, additional SA benefits, spread payments etc without being required to make a Platform commitment.

• Best option for customers that would like SA and the ability to spread payments but do not require a standardised platform or budget predictability.

Open Value Non-Company Wide

• Must choose a product from each of the below categories for every Qualified Device within organisation. This is called a Desktop Platform.

• Discount of approx. 23% for new Lic/SA or 9% for renewing SA• Initial Order minimum - 5 x desktops (but must license all QD)• Price protection - for Desktop Platform products only• All other products can be ordered as Additional Products (which can be

purchased in any quantity ie. just 3 x SQL CALs).

Open Value Company Wide Platform

Company Wide Non-Platform• Customers that don’t require the entire Desktop Platform (ie. all 3

components) may license just one or two Desktop Platform components:– Office – Professional Plus and/or– CALs – Core CAL, Enterprise CAL and/or– Operating System – Windows 10 Enterprise Upgrade

Open Value Subscription• To start a new agreement, the customer must purchase at least one of the

following products for every qualified device in their organisation (minimum of 5):

• Systems – Windows Enterprise• Applications – Current version of Office Professional Plus• Servers – Core CAL Suite or Enterprise CAL Suite

Open Value Company Wide Non- Platform

To start a new agreement, the customer must purchase at least one of the following products for every qualified device in their organisation (minimum of 5):• Systems – Windows Enterprise• Applications – Current version of Office Professional Plus• Servers – Core CAL Suite or Enterprise CAL Suite

At the agreement anniversary date the customer pays for L&SA on these products for the total number of qualified devices at that date – this may have gone up or down from the initial number but cannot drop below 5.

Additional Products can be added during the year and removed at the anniversary date.

The customer has 3 options at the end of their OVS agreement. • They can continue with a new OVS agreement.• They can uninstall and stop using the software• They can pay a fee to ‘buy out’ the software they have been subscribing to,

essentially turning it into perpetual licenses.

Open Value Subscription

Office 365

• Direct Model – end user buys direct from Microsoft, pays monthly with credit card (and note you as Partner of Record)

• Open License – reseller buys from distributor on behalf of end user, pays 12 months up-front

• Cloud Solution Provider (CSP) – reseller buys from distributor on behalf of end user, pays monthly.

3 ways to buy Office 365

• No minimum order – 1 x User SL is sufficient to begin new Agreement• Customer pays 12 months upfront• O365 subscription not coterminous with underlying Open Agreement• Retrieve Online Services Activation (OSA) Key from VLSC• Once a OSA Key has been activated Microsoft will not credit, no exceptions• Reseller to ensure they are set up as “Partner of Record” so that reminders,

rebates etc. are sent to them• E3, E5, O365 Pro Plus can all be installed on Remote Desktop Server.

Business/Business Premium can not.• Standalone and E Plan SLs also allow user to access on-premise servers• You can mix/match all plans and standalone services• Coterminous

Licensing O365 through Open

• Place orders with us on behalf of end user• Monthly payments• Change plans/quantities as often as you need• Purchase through Dicker Data website

Licensing O365 through CSP

CSP Portal

CSP Portal

CSP Portal

Office 365 Suites

Azure

• Direct Model – end user buys credits directly from Microsoft, pays via credit card

• Open License – reseller buys credits from distributor on behalf of end user

• Cloud Solution Provider (CSP) – reseller buys from distributor on behalf of end user, pays monthly in arrears based on consumption.

3 ways to buy Azure

Azure via Open

• Monetary commitment valid for 12 months• Can be used against most Azure services within 12 months from the date

of activation• Reseller Buy $131, RRP $149• Customers can purchase additional credit for Azure services at any time• Emergency top-up via credit card possible• Thresholds for alert emails• Each redemption creates a unique consumption period, 12 months long

with a unique “use or lose” deadline• Previous credits are exhausted before next credit is consumed• Consumption period clock starts as soon as credit is activated

Azure via CSP

• Invoiced monthly in arrears• Reseller makes 8%• Classic Portal can not be paid for through CSP model, only New Portal• Migration from Classic Portal to New Portal not straight-forward (some

rebuilding necessary)• Almost all services now available in New Portal (Azure Active Directory still

only available in Classic Portal however)

Azure Pricing Calculator

What licenses can be used in Azure?

SPLAAll SALs can be used in Azure – ie. Office, RDS, SQL, Exchange SALsWindows Server and SQL Server Per Core can not be used in Azure

Office 365“Office Pro Plus” from Office 365 Pro Plus, E3 and E5 can be used in AzureVisio Pro for Office 365 and Project Pro for Office 365

Volume LicenseServer Applications covered with active SA and “verified” by Microsoft through License Mobility through SA processRDS User CALs – as above (Extended Rights)Windows Hybrid Use Benefit (run 2 x 8 core VMs or 1 x 16 cores VM at the “base compute rate”)

SPLA

• You may not “rent, lease, lend or commercially host” software bought through a VL Agreement. Nor may most VL software be used in shared server environments*

• SPLA permits all of these things• Pricing - pay only for products used the previous month• Non-perpetual licenses - if the number of subscribers decreases the number

of licenses can be reduced accordingly• No up-front costs – no long-term commitments, no server licenses to invest in• Ideal for – franchises, fluctuating businesses, test/development, product trials,

disaster recovery, hybrid licensing, short term solutions

* License Mobility through SA and SALs for SA are exceptions to this

Service Provider License Agreement (SPLA)

Basic Partner Hosted Solutions

More Complex Partner Hosted Solutions

• Yes. The SPLA Agreement was amended on 1 October 2013 to say:

“Customers may locate servers (“Servers”) containing Products on an End User’s premises (“End User Facility”) solely to provide Software Services to the End User, provided that the Servers remain under the day to day management and control of the Customer”

• This gives partners flexibility to offer SPLA licensing for end users that wish to continue using their own servers

• It also opens up options for hybrid licensing ie. Infrastructure is licensed through SPLA and applications can be licensed through Volume License

Can SPLA be installed on end user’s own servers?

No. Office does not have License Mobility rights.

Therefore the only type of Office license that can be installed on a shared server environment is SPLA Office. Customers that wish to use their own Volume License or Office 365 Pro Plus/E3/E5 licenses on a Remote Desktop Server must have a server that is physically dedicated to them (not just a dedicated virtual server).

The only shared environment that Office 365 Pro Plus/E3/E5 can be run in is Azure or a SCA partner’s datacenter

Can customers bring their own Office licenses into the hosted environment?

• Customers with active SA on certain Server Applications can “give” these to a SPLA partner to run in a dedicated VM on their shared server platform – this is called License Mobility through SA

• Exchange Server/CALs• SQL Server/CALs/Per Core• CRM Server/CALs• RDS CALs

• Customers want flexibility with their licenses and to preserve their licensing investments. The ability to deploy server workloads both on-premises and in the cloud is important

• Office and Windows Server can not be run in a shared server environment even if they are covered with active SA

Can end user licenses be installed in a datacentre?

Product Licensing

Volume License• Office, Project, Visio – licensed Per Device• Downgrade Rights• Reassignment rights (to another device every 90 days)• Portable use rights + Home Use Rights (if have SA)• Rights to install on a Remote Desktop Server

O365• Office, Project, Visio – licensed Per User• No downgrade Rights• Reassignment rights (to another user every 90 days)• 5 PCs + 5 tablets + 5 smartphones + Office Online• O365 Pro Plus only has rights to install on a Remote Desktop Server

Volume Licensing Apps vs O365 Apps

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Windows Server 2016

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• Windows Server:– Standard – up to 2 virtual servers– Datacenter – unlimited virtual servers

• All physical cores in the server must be licensed• A minimum of 16 core licenses is required for each server• A minimum of 8 core licenses is required for each physical processor• Core licenses are sold in packs of two• 8 x 2-core packs are the minimum required to license each physical server• CALs are required for all users/devices (the only time a CAL is not required is

when a user is accessing a server running a “web workload”)• External Connector = unlimited CALs for external users for a single server

(breakeven: 70 x Windows CALs = 1 x Windows EC)

• Each device that accesses a Windows Remote Desktop Server must be licensed with:– A Windows CAL– A Windows RDS CAL– A license for any Microsoft application they access

• Remote Desktop Server can not be licensed concurrently• “Traditional Office” (non O365) is licensed Per Device. The server itself does

not need a license but each device accessing it from a Remote Desktop Server must have a License

• Group policies can be applied so that only those devices requiring that particular Application require a license even though other devices may access the Remote Desktop Server for other reasons or Applications

Remote Desktop Services

Windows 10

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• OEM or FPP are the only way to purchase a “Full” Windows desktop operating system licence

• FPP – no downgrade rights• GGWA - Get Genuine Windows Advantage, includes downgrade rights• The Windows 10 Pro and Enterprise Upgrade licenses sold through Volume

Agreements are “Upgrade” licenses only – a qualifying base license is required• Editions

– Windows 10 Pro Upgrade (need prior version of Pro)– Windows Enterprise E3/E5 Upgrade (any prior version of Pro/Enterprise)– Windows Enterprise E3/E5 Upgrade via CSP (need Windows 10 Pro/Enterprise)

• There are 2 types of CALs to choose from:– Device CALs you can choose to acquire a CAL for each specific device (used by any

user) accessing your servers. Most economical and simplest option for organizations with multiple users sharing one device, such as shift workers.

– User CALs acquire a CAL for every named user accessing your servers (from any device). Best option for organizations with many roaming employees needing access to the corporate network from unknown devices and/or employees who access the network via multiple devices.

• Only CALs covered with SA can switch from one type to another• CALs can access any sever of that same type owned by the customer• You can have a mixture of Device and User CALs• CALs must be the same edition or higher as the server

User vs Device CALs

User vs Device CALs

vs

Server & CAL Licensing Model

• Assign a license to a server which permits you to run one instance of the software (in either physical or virtual)

• License Mobility within Server Farms (SA needed)• License Mobility through SA (“license portability”)• A CAL is required for each user/device that accesses the server:

“All server software access requires CALs”

• Exceptions to CALs– Up to 2 devices/users to administer the software– Some products allow external users to access “free” ie. Exchange Server

Standard, Skype Server and CRM Server

Server & CAL Licensing Model

• Exchange Server 2016– Server Editions

• Standard – small/midsize organisations with fewer users/limited scalability requirements• Enterprise – larger orgs with larger user numbers or for high availability requirements

– CAL Editions• Standard – base CAL permits access to email/calendar info• Enterprise – optional additive CAL provides Unified Messaging capability• Enterprise with Services – anti-malware and anti-spam via Exchange Online Protection

• SharePoint Server 2016– CAL Editions

• Standard – base CAL• Enterprise – optional additive CAL provides Enterprise functionality ie. BI

• Skype for Business Server 2016– CAL Editions

• Standard – base CAL provides IM and Presence• Enterprise – Audio, Video and Web Conferencing (Optional, Additive)• Plus – Enterprise Voice and Telephony (Optional, Additive)

– Users can access Skype for Business Server via:• Skype for Business Client – Included in Office Pro Plus or standalone• Skype for Business Basic – no charge, less feature-rich• Mobile clients – ie. Windows Store app• Skype for Business Web App – attend a meeting via a browser

SQL Server 2016 Standard

• SQL Server Standard can be licensed in two ways:– Server/CAL - requires a Server license for each server plus a CAL for each

device/user accessing the software– Per Core - a license is required for each physical or virtual core accessed

by an operating system environment running SQL Server. CALs are not required. A minimum of 4 cores per processor must be licensed.

• The best option for the customer will depend on how many users/devices access the server (or will do in the future), how many SQL Servers are within the organisation and how many cores are in the server

• Breakeven: 1 x SQL Server + 30 CALs = 2 x SQL Per Core Licenses:– 1 x virtual SQL Server assigned 4 x cores and 30 users - best option 2 x

SQL 2 Core Packs– 2 x physical SQL Servers (with dual quad core CPUs) and 30 x users - best

option 2 x SQL Servers + 30 x SQL CALs

• SQL Enterprise can only be licensed Per Core• Failover – from SQL Server 2014 onward only active servers licensed with SA

permit the installation of a passive instance for failover• SQL Components ie. Reporting Services – if run in the same server as the

database no additional licenses are required. If run in separate server(s) all servers must be fully licensed

• Dynamic Migration – need SA

SQL Server 2016

• All MSDN and Visual Studio licenses are licensed Per User• Permits developer to run any number of instances of the software on any

number of devices for test/development purposes only• End Users can do User Acceptance Testing (UAT) “free”• Enterprise with MSDN includes production use Office Pro Plus license

Developer Tools

• www.modernbiz.co.nz• Get Licensing Ready - https://getlicensingready.com/login.aspx• You Tube Channel – Dicker Data, lots of videos• Dicker Data Pricelist

Extra Resources

• Note: the information in this presentation is accurate at the day of publication (4th November 2016). Information contained within is a guide only and there may be further detail required on some points. Please contact Dicker Data should you require any clarification.

Disclaimer

Thank you!