Spotlight On…download.microsoft.com/documents/uk/.../Spotlight... · •A customer is starting an SCE on Application Platform (SharePoint Server). They don’t meet the minimums

Spotlight On…

A Recap

Implications for EAP and ECI Customers

Customer Scenarios

A Recap


Customer Scenarios

Previously on Enrollments…

Inconsistent terms, pricing, requirements &

strategies….

TODAY

Enterprise

Agreement

Windows, Office

CAL Suites

Enterprise

Enrollment

SQL Server

Developer Tools

EAP

Window Server &

System Center

ECI

Windows Azure

EWA

And now…

Best program for committed customers

TOMORROW

Enterprise

Agreement

Windows, Office

CAL Suites

Enterprise

Enrollment

SQL Server, WinServer

& SysCtr, Developer

Tools, Windows Azure

SCE

And now…

Good program for transactional customers

Best program for committed customers

TOMORROW

Enterprise

Agreement

Windows, Office

CAL Suites

Enterprise

Enrollment

SQL Server, WinServer

& SysCtr, Developer

Tools, Windows Azure

SCE

CIS SKUs at 5%

discounts

Additional

Products

The Server & Cloud Enrollment (SCE)Choose one or more of the available components…

Core

Infrastructure

ProductsCIS SKUs (Windows Server

+ System Center)

RequirementsCIS coverage for all

Windows Servers

Application

Platform

ProductsSQL Server

Optionally Available:

SharePoint Server & BizTalk

Server

RequirementsFull SA coverage

Developer

Platform

ProductsVisual Studio Ultimate and

Premium

RequirementsFull SA coverage

Windows

Azure

ProductsAll Windows Azure Cloud

Services

Available AutomaticallyCan also be licensed

standalone

+Access to Windows Azure

Products

Core

Infrastructure

CIS Datacenter

CIS Standard

CIS Datacenter w/o Windows Server

CIS Datacenter w/o System Center

CIS Standard w/o Windows Server

CIS Standard w/o System Center

All licensed Windows Server

deployments must be covered with

one of the above SKUs

Minimum Order Requirements

50 processors via 25 licenses (each

license covers up to 2 physical

processors) of one or a combination of

CIS Standard or Datacenter

Building Your SCEOptions and minimum requirements for covering your SCE commitment

Products

Application

Platform

SQL Server CAL

SQL Server Enterprise Per Core

SQL Server Business Intelligence Server

SQL Server Standard Per Core

SQL Server Standard Server

SQL Server Parallel Data Warehouse

Per Core

BizTalk Server Enterprise Per Core

BizTalk Server Standard Per Core

BizTalk Server Branch Per Core

SharePoint Server


SQL Server: 50 SQL Server per Core or 5

SQL Server per Server with 250 CALs

SQL Server PDW: 32 Cores

BizTalk: 24 Cores of any edition

SharePoint Server: 5 Servers

Products

Developer

Platform

Visual Studio Ultimate

Visual Studio Premium

Visual Studio Test Professional

Visual Studio Team Foundation

Server CAL

MSDN Platforms

Visual Studio Deployment Standard

Visual Studio Deployment Datacenter


20 Licenses of any combination of

Visual Studio Ultimate and Visual

Studio Premium

Products

Windows

Azure

All Windows Azure Cloud Services


or can be licensed standalone

• A customer is starting an SCE on Application Platform (SQL Server). They have several SQL Server licences without SA that have not been deployed. Do they need to be counted in the footprint?

No, they can be ignored. However they cannot be deployed during the SCE agreement period.

• A customer is starting an SCE on Application Platform (SharePoint Server). They don’t meet the minimums for SQL Server however. Can they still enroll in SCE on just SharePoint?

Yes. SQL is mandatory for the application platform component but the customer can still enroll in another server without SQL if they don’t meet the 50 cores or 5 server/250 CAL minimum.

• A customer is starting an SCE on Core Infrastructure. They have several Windows Server licences with active SA. Do they need to buy full CIS for these?

No, they can purchase “CIS without ..” SKUs which include SA for both products, but only a licence for the product they do not own.

Windows Azure can be

licensed two ways through

the Server & Cloud

Enrollment (SCE)

Server & Cloud Enrollment

Azure-only SCEEA level defined by the upfront commitment a customer makes


Core Infrastructure

Application Platform

Developer Platform

Windows Azure

Available AutomaticallyWith commitment to any of the OTHER pools of the SCE

Azure-only SCEEA level defined by the upfront commitment a customer makes


Azure for Committed SCE Customers


Core Infrastructure


Developer Platform

Windows Azure

If committed to another

SCE component, SCE

customers can just start

using Azure• Another 5% off your EA level pricing

No overage penalties

Billed quarterly

• What does “just start using” mean?

Pay for what you use

Upfront payment not required

• On-boarding help

Azure-only SCEEA level defined by the upfront Azure commitment or existing EA


Windows Azure-Only SCEs


Core Infrastructure


Developer Platform

Windows Azure

Customers can also get Windows Azure alone in an SCE enrollment:• 3 year contract*

• Raise/lower commit annually

• Special LSS empowerment also rewards commitment:

LSS-provided EA

Price Level

Minimum Yearly

Commitment (USD)

A Up to $179,999

B $180,000 - $479,999

C $480,000 - $1,000,799

D $1,000,800 +

* Minimum of $24K is recommended.

Subscription in the SCE

Customers have the option to subscribe

to licenses for committed SCE products

Subscription provides flexibility through: Lower upfront costs when signing an SCE

More purchasing options for new units

Ability to reduce licenses annually when

retiring workloads, consolidating or

migrating to the cloud

Subscription SKUs will be sold via

Monthly Subscription Units (MSUs)

Subscription Overview

Pricing

MSUs allow customers

to pay for each month

deployed; annual price

equal to 35.5% of the

non-SCE license price*

Reductions

Customers can reduce

subscription units no

longer being used for

deployed workloads at

each anniversary date

Buy-outs

If customers do not

renew or wish to own;

buyout pricing will be

set at Year 3 True Up

pricing

*Subscription pricing percentages are set based on non-SCE discounted licenses

(standard waterfall discounts apply). Visual Studio will be priced at 46% of a license

Minimums

Customers must

commit to a minimum

of 12 months

Automatic Annual Billing Automatic Annual Billing

Customer adding MSUs at signing:

Year 1 + 25 CIS SE Subscriptions (via MSUs)25 x MSU price x 12 months

How Subscriptions WorkAdding Subscription at signing

Year 1 Year 2 Year 3

End of Year 3 options:• Renew

• Buy-out

• Stop using

-5 MSU Reduction: Customer pays for 20 MSUs moving forward

Customer reduces subscription licenses:

+ 25 CIS SE Subscriptions (via MSUs)25 x MSU price x 12 months

Year 1

- 5 CIS SE Subscriptions (via MSUs)Year 2

20 (25-5) x MSU

price x 12 months

How Subscriptions WorkLicense Reductions


Automatic Annual Billing

3 mo +12 months

Customer adding MSUs at True Up:

Year 1

True Up+ 5 CIS SE Subscriptions

(Deployed in month 9 of first year)

Automatic Annual Billing

How Subscriptions WorkAdding Subscription Units at True Up in Years 1 & 2


19

5 x MSU price x 15

Microsoft Confidential

Customer adds 5 MSUs: Pays for 15 months at the end of Year 1

• Pay for each month deployed in previous year

• Pay forward 12 months

Customer adds 5 MSUs: Pays for 6 months at the end of Year 3

• End of Year 3 Options: Renew, Buy-out, Stop Using

5 x MSU price x 6 months

How Subscriptions WorkAdding Subscription Units at True Up in Year 3

Customer adding MSUs at True Up:

Year 3

True Up+ 5 CIS SE Subscriptions (Deployed in month 6 of year 3)


6 mo

Additional Products Availability

The following are exclusively available

as Additional Products

Visual Studio Pro

SQL Server Enterprise Edition Server (Non-core)

Software Assurance only

System Center DC and SE (for managing non-

Windows Server deployments)

Additional Products are available in the

SCE with the following stipulations

Products available in SCE components cannot

be added as additional products in any SCE

Subscription is not available for any

additional products

• A customer is starting an SCE on Developer Platform. They have several Visual Studio professional installations. Do they need to upgrade these to Visual Studio Premium?

No, they can be ignored.

A Recap


Customer Scenarios

Potential Impact Areas:

Subscription Replaces Deferred License

Product Edition Availability

Minimal Impact forMost EAP Customers

Discount Changes

Net ChangeEAP Pricing SCE Pricing

Discount Changes for EAP Customers

• 15% Discount on License &

Software Assurance

• 5% Discount

• Subscription Pricing or

L&SA

• 40% premium edition license discount

• 15% standard edition license discount

Discounts on license portion of L&SA only, not SA. For

example; L&SA “Added at Signing” discounts for

premium editions are ~23%. Discounts vary by

purchase period

• No discount

• Non-current licenses deferred at SA

only pricing

New

Purchases

SA

Renewals

Licenses

without SA

• Lower discounts on

premium Editions

• Slightly higher discounts

on standard editions

• Incremental 5% renewal

discount

• Subscription priced 42%

higher than SA; includes

additional flexibility

EAP Product Edition Availability Changes

SQL Server Enterprise Edition Server (non-core)

and Visual Studio Pro licenses are not available

within the SCE components

SQL Server Enterprise Edition Server is no longer

available for new purchases

These are not required in baseline requirements

Customers can renew SA on perpetual licenses in

Additional Products

Not available under subscription

Customers with “Deferred

Licenses”Customers with “deferred licenses” in their EAP can: Buy-out licenses in EAP; renew SA in SCE (5% discount)

Add subscription units for those deployments

Why

Buyout?

Buyout provides lowest cost for ownership Highly discounted license; SA at 5% discount in SCE

SQL Processor buyouts get core grants

SQL Server Enterprise Edition (non-core) Buyout and renew SA (in add’l products)

Or subscribe to core licenses

Why

Subscribe?

Reduce short term costs by avoiding buyout

Flexibility to reduce these licenses annually

EA

P R

en

ew

al E

xam

ple

Example: Customer with Deferred L’s

Perpetual Licenses Under SA

50 SQL Server EE Procs 100 SQL Server SE Procs

EAP License Position

SA: 250 EE Cores

500 SE Cores

“Deferred Licenses” brought in as SA Only

10 SQL Server EE Procs

Subscription:50 EE Cores

Subscription

Buyout & SA: Buyout 10 EE Procs

Renew SA on 50 EE CoresOR

*assume 5 cores per proc average shown through inventory report maintained by the customer

SCE CPS

EA

P R

en

ew

al E

xam

ple


29




SA: 250 EE Cores

500 SE Cores

Renewal Costs in EAP if SCE didn’t existSQL EE Cores SA: $275k/yr

SQL SE Cores SA: $145k/yr

SQL EE Cores SAPriorL: $55k/yr

Total 3yr Cost: $1.43m**

Renewal Cost Comparison




**Pricing estimates based on Level D NET pricing


Subscription




SCE CPS




SA: 250 EE Cores

500 SE Cores

SCE CPS

EA

P R

en

ew

al E

xam

ple


30

SCE Cost w/buyoutSQL EE Cores SA: $314k/yr


Buyout: $107k

Total 3yr Cost: $1.46m

Renewal Costs in EAP if SCE didn’t existSQL EE Cores SA: $275k/yr


SQL EE Cores SAPriorL: $55k/yr

Total 3yr Cost: $1.43m**

Renewal Cost ComparisonSCE Cost w/subs.SQL EE Cores SA: $261k/yr


SQL EE Cores subs.: $78k/yr

Total 3yr Cost: $1.42m




Subscription





**Pricing estimates based on Level D NET pricing

What this Means for ECI Customers

Transition Implications for ECI CustomersThe SCE is not for all ECI customers

Customer

licensing

preference

Partial coverage

Customers who have only

partial coverage

Good coverage

Customers trending

towards full coverage

ECIWindow Server + System

Center

Existing ECI


Customer

licensing

preference

Partial coverage


partial coverage

Good coverage

Customers trending



Center

Existing ECI

Microsoft

renewal offer

Effective

Discount

Levels

Renew CIS SKUs

in Select/EA

5% L&SA Discount

5% SA Renewal Discount

Existing ECI Customer License Footprint

Customer with 335 Windows Servers: 45% SC Coverage, 70% SA Coverage

EC

I Ren

ew

al E

xam

ple

Example: Partial Coverage

CIS Licenses in use with SA

50 CIS Datacenter

100 CIS Standard

Standalone Licenses in use with SA

10 WS Datacenter

75 WS Standard

Licenses in use without SA

100 Windows Server SE

EC

I Ren

ew

al E

xam

ple

Example: Partial CoverageCustomer with 335 Windows Servers: 45% SC Coverage, 70% SA Coverage



50 CIS Datacenter

100 CIS Standard


10 WS Datacenter

75 WS Standard



Option 1: Renew into EA Additional Products/Select

Software Assurance Renewal

50 CIS Datacenter 10 WS DC

100 CIS Standard 75 WS SE

EC

I Ren

ew

al E

xam

ple

Example: Partial Coverage

*Pricing estimates based on level C NET



Guidance: Explain SCE’s role in the Cloud OS Vision; don’t force a deal where customers won’t commit


50 CIS Datacenter

100 CIS Standard


10 WS Datacenter

75 WS Standard



Option 2: Sign SCE, incrementally add:

Option 1: Renew into EA Additional Products/Select


50 CIS Datacenter 10 WS DC

100 CIS Standard 75 WS SE

Estimated SCE Renewal is 61% higher than

renewing CIS SKUs in Select!

New L&SA Purchase

10 CIS DC w/o WS

75 CIS SE w/o WS

Subscription

10 CIS SE

Customer

licensing

preference

Partial coverage


partial coverage

Good coverage

Customers trending



Center

Existing ECI

Microsoft

renewal offer

Renew CIS SKUs

in Select/EA

Effective

Discount

Levels

5% New Unit Discount

5% SA Renewal Discount


Renew into SCE

15% Incremental New Unit

Discount

5% Incremental SA Renewal

Discount

EC

I Ren

ew

al E

xam

ple

Example: Good Coverage





50 CIS Datacenter

100 CIS Standard


5 WS Datacenter

10 WS Standard



Guidance: Renew into SCE

Option 1: Sign SCE

New L&SA Purchase

5 CIS DC w/o WS

10 CIS SE w/o WS


50 CIS Datacenter

100 CIS Standard

Subscription

10 CIS SE

Estimated SCE Renewal is 3% higher than

renewing CIS SKUs in Select

EC

I Ren

ew

al E

xam

ple

Example: Coverage thru ComponentsCustomer with 360 Windows Servers: 96% SC Coverage, 97% SA Coverage



Guidance: Lead with SCE, but prioritize System Center Component renewal


50 CIS Datacenter

100 CIS Standard


200 WS Standard

200 SC OpsMan



Option 2: Renew CIS in Select; Drop SA on SC Comp.

Option 1: Renew into SCE


50 CIS Datacenter 200 WS Standard

100 CIS Standard


50 CIS Datacenter

300 CIS Standard

Subscription

10 CIS SE

Dropping SA on System Center Components

could save 20%

Excess License GrantsAs customers renew into an SCE, excess

license grants may help them meet SCE

requirements. Renewing SA on these

licenses may result in excess grants:

Windows Server Enterprise Edition

System Center Enterprise Edition

System Center Components

CIS Standard Edition & Enterprise Edition

Customers with these licenses will need

extra consideration at renewal

License grants when renewing into Windows Server and System Center 2012

Excess License Grants

Windows Server Enterprise Edition

Current License w/SA

System Center Enterprise Edition

System Center Components

CIS Enterprise Edition (1 Proc)

CIS Standard Edition (1 Proc)

2 Windows Server Standard (2:1)Customers running 2 VM’s or less and/or licensing

servers with 1-2 procs have an excess WS SE

license

License Grant at Renewal

2 System Center Standard (2:1)Customers running 2 VM’s or less and/or licensing

servers with 1-2 procs have an excess SC SE license

System Center Suite (1:1)Customers with multiple components on a server

have an excess license

CIS Standard Edition (2 Proc) (1:1)Customers who needed 2 CIS EE/SE licenses for a 2

proc server, now may only need 1 CIS SE license for

that server, resulting in an excess CIS SE license

SCE Implications

Excess WS SE grants can be used to

meet 100% WS SA requirementSystem Center coverage requirements still apply

Excess SC SE grants can be used to

meet 100% SC coverage

Excess CIS SE grants can be used to

meet SCE coverage requirements

Pricing Changes for ECI Customers

Current

Pricing

L+SA Annualized

Window Server SE

System Center SE

$437

$437

-5%

-20%

EA/Select CIS SE

ECI CIS SE

$830

$699


Current

Pricing

L+SA Annualized

Window Server SE

System Center SE

$437

$437

-5%

-20%

EA/Select CIS SE

ECI CIS SE

$830

$699

Window Server SE

System Center SE

$437

$437

New

Pricing

-5%

-15%

EA/Select CIS SE

SCE CIS SE

$830

$706 ~20% Discount


Current

Pricing

L+SA Annualized

Window Server SE

System Center SE

$437

$437

Window Server SE

System Center SE

$437

$437

New

Pricing

-5%

-20%

-5%

-15%

EA/Select CIS SE

SCE CIS SE

$830

$706

EA/Select CIS SE

ECI CIS SE

$830

$699

Current

Pricing

One Year SA

Window Server SE

System Center SE

$188

$188 -20%

EA/Select CIS SE

ECI CIS SE

$375

$300

0%

~20% Discount


Current

Pricing

L+SA Annualized

Window Server SE

System Center SE

$437

$437

Window Server SE

System Center SE

$437

$437

New

Pricing

Current

Pricing

One Year SA

Window Server SE

System Center SE

$188

$188

-5%

-20%

-5%

-15%

-20%

EA/Select CIS SE

ECI CIS SE

$375

$300

EA/Select CIS SE

SCE CIS SE

$830

$706

EA/Select CIS SE

ECI CIS SE

$830

$699

0%

-5%

EA/Select CIS SE $357Window Server SE

System Center SE

$188

$188

-5%New

Pricing SCE CIS SE $339 ~10% Discount

~20% Discount

Scenario: Enrolling in the Core Infrastructure ComponentSC

E E

nro

llmen

t Exa

mp

le


50 CIS Datacenter 100 CIS Standard



Step 1: Identify the Installed Base

Existing Baseline



SC

E E

nro

llmen

t Exa

mp

le

Scenario: Enrolling in the Core Infrastructure Component


50 CIS Datacenter 100 CIS Standard





Step 2: Renew SA in SCE; Add L&SA or Subscription

Existing Baseline

*Customers can elect to subscribe to units if they want the flexibility to true down (if they plan to retire workloads or move to the cloud for example)

**Customers can choose a combination of L&SA or Subscription

SA*:

50 CIS Datacenter

100 CIS Standard

L&SA*:

50 CIS SE w/out Windows Server

L&SA**:

40 CIS SE

Subscription**:

40 CIS SE

SCE CPS

OR

Cloud Management Benefit

48*Limited to 10 eligible Windows Azure VOSE instances for each CIS license Microsoft Confidential

SCE customers enrolled in the Core

Infrastructure component can use System

Center to manage Windows Azure VOSEs:

Eligible Windows Azure VOSEs instances:*

Windows Virtual Machine instances

Cloud Services instances (Web and

Worker Role)

Storage Accounts

SQL Databases

Websites instances

A Recap


Customer Scenarios

Lice

nsin

g sce

nario

Coterminous agreements

EA

Jun Jul Aug

EAP

Select PlusGuidance: Renew eligible

products SA from EA, EAP and

Select Plus into SCE

Example:

The customer has EA, EAP, and

Select Plus, all of which are expiring

at the end of July SCE

Lice

nsin

g sce

nario

Meeting SCE requirements

Jun Jul Aug

Guidance:

If a customer commits to a

product family that spans multiple

active agreements, then use SA

credit to consolidate into SCE

Completing credits for the EA

should be routed to BDSG due to

complexity around component

percentages

ECI

EA

Lice

nsin

g sce

nario

Jun Jul Aug

ECI

EA

SCEStep1:

Renew ECI enrollment into

SCE at anniversary

Step 2:

Renew EA 1 month early into SCE

and receive 1 month SA credit

1 month SA credit

Meeting SCE requirements

Bringing together EAP and ECI

Jun Jul Aug

Guidance:

Sign and wait for expiry*

Existing agreements may offer

customers more favorable pricing

Customers may opt to wait to

commit to additional product

families

ECI

EAP

*SA credit is also a valid option

Lice

nsin

g sce

nario

Bringing together EAP and ECI

Jun Jul Aug

ECI

EAP

Lice

nsin

g sce

nario

SCEStep1:

Step 2:

Step 3:

Create supplemental CPS to

commit to new product family

and transition to SCE

Supplemental CPS

(shows months remaining)

Committing to a new product family mid-term

Jan Jun Dec

SCE with commitment

to SQL Server

Lice

nsin

g sce

nario

SCE with commitment to

SQL Server and Visual Studio

Step1: Create

a supplemental CPS and update the

product selection form reflecting the

customer’s new footprint

Step 2: A

customer signs an amendment

which will show commitment to

both product families

Supplemental CPS and revised product selection

form and signed amendment

Multiple affiliates with multiple agreements

Guidance

• For non-coterminous agreements, please work with BDSG to calculate the appropriate number of SA credits

• Moving quantities from an enterprise subscription to a SCE subscription will be equivalent

o Customers do have the option to buy out enterprise subscription licenses and then renew the SA into SCE

Lice

nsin

g sce

nario

Agreements

Affiliate 1: Select license position

50 SQL SE licenses only 25 CIS SE L&SA

Affiliate 2: EA additional products position

Affiliate 3: ECI position

50 CIS Datacenter L&SA

50 SQL Core subscriptions or 50 L&SA

SCE license positions

100 SQL Enterprise Core

L&SA

150 Visual Studio

Ultimate L&SA100 SQL Enterprise Core SA

25 CIS SE SA

50 CIS Datacenter SA

150 Visual Studio Ultimate SA

Win

do

ws A

zure

scen

ario

Creating a Windows Azure only SCE

Jan Jun Dec

SCECreate a CPS with Windows Azure

monetary commitment as an

additional product

Supplemental CPS

Windows Azure only SCE with mid-term changes

Jan Jun Dec

SCE with Windows Azure

only

SCE with Windows Azure

and application platform

Step1:

Create a supplemental CPS with an

installed base commitment to

application platform

Step 2:

Include a Windows Azure monetary

commitment SKU under SCE (instead

of additional products) to show the 5%

discount on Windows Azure

Step 3:

Enterprise portal automatically

applies the 5% discount

Win

do

ws A

zure

scen

ario

Supplemental CPS, revised product selection form

and signed amendment

60

Payment scenarios

Resources

Customer-facing SCE resources

http://aka.ms/sce

http://aka.ms/l40v42

SCE on Volume Licensing

http://bit.ly/1dm98bc

Resources

http://bit.ly/1dm98bc

SCE FAQ

http://bit.ly/1exweIo

Resources

http://bit.ly/1exweIo

www.microsoft.com/en-in/licensing/about-licensing/product-licensing.aspx

Resources

http://www.microsoft.com/en-in/licensing/about-licensing/product-licensing.aspx

Resources

Customer Licensing Education

Services

http://aka.ms/cz13p4

When What Where

3rd-4th February Licensing Product & Program Fundamentals

London

25th-26th February Licensing Product & Program Fundamentals

London

24th-25th March Licensing Product & Program Fundamentals

London

30th April-1st May Licensing Product & Program Fundamentals

London

27th-28th May Licensing Product & Program Fundamentals

London

17th-18th June Licensing Product & Program Fundamentals

London

Now 2-day events (optional)

http://aka.ms/cz13p4

David Cattanach

[email protected]

Documents

Spotlight On…download.microsoft.com/documents/uk/.../Spotlight... · •A customer is starting an SCE on Application Platform (SharePoint Server). They don’t meet the minimums