Microsoft License Review – Licensing Articles by Tony Mackelworth. In July 2. 01. 6, Microsoft officially announced a new licensing package called . The new licensing vehicles, incentivise business customers to both upgrade and commit to keystone solutions like Windows and Office, secured by  cloud supported security and ongoing feature updates; tightly packaged with Office. The Secure Productive Enterprise is also a play to usurp competitors, leveraging market predominance in certain keystone solutions, like Windows, Office, AD, and Exchange; to annex market share across security, identity and telecommunications sectors, and Microsoft are betting big that a tightly integrated keystone solutions and services portfolio, with strong feature dependencies across the wider solutions and services stack, will allow Microsoft to move into and secure new markets.

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Microsoft are changing how they work with their global partner ecosystem. The global rebates and incentives programmes, are strongly focused on adoption of cloud services, with limited incentive for advice on licensing. The communication strategy is one of . Microsoft are hoping to focus communication on how cloud can enable business objectives and promote productivity, and talk less about licensing and pricing. The third pillar of this multi faceted strategy is contract simplification. The traditional vehicle for business customers was to buy an Enterprise Agreement (EA) for committed spend Select Plus for transactional software. However, with the organic sprawl of strategic initiatives across client computing, core infrastructure and databases, and cloud Iaa.

S and Paa. S, customers were soon finding themselves signatories to a plethora of contractual documents. The MPSA (Microsoft Products and Services Agreement) represents the contractual .

The  committed spend packages of the Enterprise Agreement, are  consolidated as . The Secure Productive Enterprise enables customers to sign up to cloud services, but maintain access to on- premise applications services (like Exchange, Share.

Point or Skype for Business), or enable the business to access a cloud supported Office (Office. Pro. Plus) but continue to run a traditional install (Office Pro Plus MSI), without paying concurrently for on premise software and cloud.

This is a compelling message, and supports the Microsoft mantra of . The drawback, however,  is that Microsoft haven’t completely trusted their customers to adopt cloud under this model. The on premise software rights are limited by conservative restrictive software use terms and loss of perpetual rights, with caveats as to eligibility. Investors may seen a keen uptake in cloud committed spend, but the actual adoption may be deferred. The advantage to Microsoft is they have secured committed annuity with customers unlikely to renew into more costly on premise annuity models.

The fifth and final pillar is about cost reduction and cloud ecosystem enablement. Microsoft have announced that . This enables two key programme initiatives, firstly, strategic cloud licensing packages can be sold as scale, and supported by an ecosystem of service providers with complimentary digital platforms, solutions, and managed services. Secondly, Microsoft are starting to drive a global cost reduction programmes by passing on the cost of transaction and cloud support services to the channel. A Course for Success.

Microsoft is charting a course, and starting to turn the ship. The decision to move from a direct, to an indirect model will bring the strategy . Simply directing customers towards . I hope you find it of value.

Tony Mackelworth is Head of Microsoft Advisory Services at Software. ONEIf you would like to reach out for a coffee, or a meeting under NDA, Email or connect via Twitter or Linked.

In. Disclaimer. This article is not intended to replace the Product Terms. This article is not intended to replace the Product Use Rights or Product List or Online Service Terms or other binding contractual documents. Please be aware that any licensing, or product information could be subject to change. This document confers no rights and is provided for information purposes only. Please be aware, my own emphasis may have been added to quotations and extracts from 3rd party sources. This is not official guidance from Microsoft or its subsidiaries.

The following article is based on open information shared with Licensing Solutions Providers (LSPs) and based on  personal inference and understanding. This document is provided “as- is”. Information and views expressed in this document, including URL and other Internet Web site references, may change without notice. This document does not provide you with any legal rights to any intellectual property in any Microsoft product.

Please be aware that nothing in this document constitutes specific technical advice. Some of the material in this document may have been prepared some time ago and therefore may have been superseded.

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