Service Provider Licensing Program

FAQ

Service Provider

Licensing Program

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ABOUT THE SERVICE PROVIDER LICENSING PROGRAM

Online Resources

Sample of Microsoft product

families available under the SPLA:

http://www.microsoft.com/serviceproviders/licensing/ howto.mspx

http://www.microsoft.com/serviceproviders/licensing/ default.mspx

Service Provider License Agreement

Other Volume Licensing

(Enterprise Agreement,

Select License, Open

License and Open Value)

Other Volume Licensing

(Outsourcer Enrollment)

Volume Licensing

(External Connector License)

The Service Provider License Agreement (SPLA) under the Service Provider Licensing Program enables an

organization to license Microsoft

products and use them to provide software services to its customers.

Software services are services that an organization provides to its customers to make available, display,

run, access, or otherwise interact with the licensed products. These services may be provided from one or

more data centers through the Internet, a telephony network or a private network on a rental, subscription

or services basis, whether or not the service provider receives a fee. Software services exclude any services

involving an installation of a Microsoft licensed product directly on any device to permit a customer to

interact with the Microsoft licensed product.

Different scenarios when the SPLA is applicable:

Microsoft software products, such as hosted web sites or Line of Business (LOB) applications through Microsoft server software. Direct and indirect access occurs when:

– An organization facilitates its customer’s business (including business transactions with third parties) through software services.

-OR-– An organization provides its customer’s access and uses any application (Microsoft or otherwise), and the application is running on a server and interacts with a licensed Microsoft product on that server.

• You can provide software services that interact with Microsoft licenses to your customers. However, please note that you are the licensee, not your customer.

The benefits of the SPLA include:

Delivery of customized service. The SPLA provides you with the flexibility of licensing Microsoft products to customers on a dedicated hosting environment or shared hosting environment. Your customers can let you manage the services, as well as Microsoft product licensing rights. Flexible cost structure. The SPLA offers a monthly usage-based licensing cost; therefore, you pay only for what was used the previous month.

Zero Start-up costs. With the SPLA, you have near zero start-up costs. Organizations report and pay only for the licenses once the actual usage occurs. There is no minimum commitment up front.

Wide selection of Microsoft software products. You have access to a wide range of Server products, as well as desktop applications.

Worldwide distribution. You can use Microsoft software products to sell your services to customers in any part of the world, regardless of your own location.

Corporate and Academic pricing offering. Service

organizations can sell to academic customers, such as schools and universities. The Service Provider Licensing Program has great offers for academic customers.

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of Microsoft software products, which allows you and your customers to access the software products with the most updated security and other enhanced features.

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period to use the Microsoft software you provide. You may also provide demos to your customers free of charge.

Additional customer benefits:

Is Service Provider Licensing right for your business? The SPLA is applicable for many types of businesses and scenarios. For example:

• Web Hoster

• Application Service Provider (ASP)

• Messaging and/or Collaboration Service Provider • Platform Infrastructure Provider

• Streaming Media Provider • Web/Internet Service Provider

• Software Vendor ISV providing hosted applications • IT Outsourcer providing software licenses

• Business Process Outsourcer (BPO) providing software licenses • Consultant providing software services

SPLA and Other Volume Licensing Programs/Licenses

SPLA and Other Volume Licensing Programs/Licenses

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ABOUT THE SERVICE PROVIDER LICENSING PROGRAM

Online Resources

Sample of Microsoft product

families available under the SPLA:

http://www.microsoft.com/serviceproviders/licensing/ howto.mspx

http://www.microsoft.com/serviceproviders/licensing/ default.mspx

License Model – Products offered through the SPLA can be licensed either:

• Per Subscriber (Subscriber Access License): a Subscriber Access License (SAL) is needed for each unique individual user or device that is authorized to access or otherwise utilize the software. When using the SAL option, there is no need for a separate Server License. Examples of products licensed with a SAL: Microsoft Windows Server™*, SQL Server™*, Exchange Server, Office, Dynamics® CRM.

-OR-

• Per Processor: each Processor License allows an unlimited number of users to access the software that is installed on that processor for products licensed through a per processor model. Examples of products licensed in a per processor model: Microsoft Windows Server*, SQL Server*, BizTalk® Server,

Commerce Server.

*Windows Server and SQL Server are available in both license models.

Details regarding licensing can be found in the Service Provider Use Rights (SPUR) document, which can be found at

http://www.microsoft.com/serviceproviders/licensing/ Agreement Length – 3-year term, which may be extended.

Eligibility

• Enroll in the Microsoft Partner Program as a Microsoft Certified Partner.

-OR-

• Enroll in the Microsoft Partner Program as a Registered Partner—Microsoft Hosting Program (new as of April 2006) Use Rights Protection – The SPUR document details all product use rights for products licensed under the SPLA. Product use rights are specific to each version and will not change for the duration of the program.

Pricing

• SPLA price increases (if any) will only occur on an annual basis in January.

• Academic pricing on selected products is available when you deploy services to Qualified Education Customers.

Reporting

• Customers can use the software before payment. You may provide services to your customers first and report license usage to Microsoft for the previous month.

• Report license usage on a monthly basis.

Service Provider License Agreement (SPLA) Overview

Service Provider License Agreement

Other Volume Licensing

(Enterprise Agreement,

Select License, Open

License and Open Value)

Other Volume Licensing

(Outsourcer Enrollment)

Volume Licensing

(External Connector License)

Pr

ogram Usage Scenarios

• An organization offers software services to its customers through servers connected to the Internet or a private network. Microsoft products are used to provide these services, such as:

– Web site hosting – Applications hosting

– Messaging service (for example, e-mail services)

– Data hosting

• An organization uses Microsoft products for its own business purposes and to create or access its own proprietary information.

• These agreements grant customers perpetual licenses, with the exception of subscription-based agreements.

• Outsourcer Enrollment gives authority to a third party to purchase licenses on behalf of its Enterprise Agreement (EA) or Select License customers. • The outsourcer is the licensee of

the Microsoft products acquired under the Outsourcer Enrollment. • The outsourcer may only

sublicense to the EA or Select License customers.

• An External Connector License is an alternative to Client Access Licenses (CALs). It provides organizations with the right to permit an unlimited number of external users access to certain Microsoft server products.

– External users are users that are neither (i) the entity or the entity’s affiliates’ employees, nor (ii) the entity or the entity’s affiliates’ onsite contractors or agents.

• The External Connector License cannot be used by licensees to provide access to a Microsoft product that solely enables its customers’ business operations, or to otherwise provide access to a Microsoft product where access to the Microsoft product is the primary benefit.

Business Cases

Case I – Company A uses Microsoft SQL Server

and Microsoft Windows Server to store and display its customers’ (Company B) web site content.

Case II – Company C delivers a Line of

Business (LOB) application that runs on Windows Server with a SQL Server database. Such application is made available to Company B’s customers as software services.

Case I – Company A acquires

Window Server products to be used by its internal employees.

Case I – Company C outsources its

IT functions to another organization. When Company C wants that organization to take on the financial obligation of licensing acquisition under Company C’s EA/Select Agreement. Company C may use the Outsourcer Enrollment.

Case I – An online store that allows its customers to purchase a

merchandise through Microsoft products it has licensed under an EA.

Case II – Company A allows Company B access to a Microsoft Project

Server to collaborate on a business project.

The Service Provider License Agreement (SPLA) under the Service Provider Licensing Program enables an

organization to license Microsoft

products and use them to provide software services to its customers.

Software services are services that an organization provides to its customers to make available, display,

run, access, or otherwise interact with the licensed products. These services may be provided from one or

more data centers through the Internet, a telephony network or a private network on a rental, subscription

or services basis, whether or not the service provider receives a fee. Software services exclude any services

involving an installation of a Microsoft licensed product directly on any device to permit a customer to

interact with the Microsoft licensed product.

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ABOUT THE SERVICE PROVIDER LICENSING PROGRAM

Online Resources

Microsoft Volume Licensing: www.microsoft.com/licensing Service Provider License Agreement Program:

www.microsoft.com/licensing/programs/spla/default.mspx Microsoft Hosting Solutions:

www.microsoft.com/serviceproviders/hosters.mspx

Partner Training around SPLA business via the Microsoft Partner Learning Center: https://training.partner.microsoft.com/plc/ register.aspx?publisher=3&courseid=1166

Questions regarding contracts and Program Inquiries, please use: [email protected] (US and Canada)

[email protected] (Asia Pacific and New Zealand) [email protected] (Australia)

[email protected] (Japan) [email protected] (Latin America)

www.microsoft.com/serviceproviders/licensing/acquirespla/ en-us/acquirespla.mspx (Europe, Middle East and Africa) en-us/acquirespla.mspx (Europe, Middle East and Africa) en-us/acquirespla.mspx

You will receive a response within two business days. You will receive a response within two business days.

Sample of Microsoft product

families available under the SPLA:

• Microsoft® BizTalk® Accelerator

• Microsoft® BizTalk® Adaptor

• Microsoft® BizTalk® Server

• Microsoft® Class Server

• Microsoft® Commerce Server

• Microsoft® Content Management Server

• Microsoft® Dynamics CRM

• Microsoft® Exchange Server

• Microsoft® Host Integration Server

• Microsoft® Internet Security and Acceleration (ISA) Server

• Microsoft® Identity Integration Server

• Microsoft® Office

• Microsoft® Office FrontPage®

• Microsoft® Office Live Communications Server

• Microsoft® Office Project

• Microsoft® Office Project Server

• Microsoft® Office SharePoint® Portal Server

• Microsoft® Office Visio®

• Microsoft® Operations Manager

• Microsoft® Provisioning System

• Microsoft® Speech Server

• Microsoft® SQL Server

• Microsoft® System Center Data Protection Manager

• Microsoft® Systems Management Server Systems Management Server • Microsoft® Virtual Server Virtual Server

• Microsoft® Visual Studio Visual Studio® .NET

• Microsoft® Windows Server™ Windows Server™

• Microsoft® Windows Windows® Small Business Server

View a complete list of products available under the SPLA View a complete list of products available under the SPLA at: www.microsoft.com/serviceproviders/licensing www.microsoft.com/serviceproviders/licensing

Click on the Service Provider Use Rights (SPUR) link. Click on the Service Provider Use Rights (SPUR) link.

For information on how to acquire the SPLA

through a Microsoft designated SPLA Reseller:

Visithttp://www.microsoft.com/serviceproviders/licensing/ howto.mspx

To acquire the Service Provider License

Agreement through Microsoft:

Go tohttp://www.microsoft.com/serviceproviders/licensing/ default.mspxand review the information in the “SPLA Resources” section.

Service Provider License Agreement

Other Volume Licensing

(Enterprise Agreement,

Select License, Open

License and Open Value)

Other Volume Licensing

(Outsourcer Enrollment)

Volume Licensing

(External Connector License)

The Service Provider License Agreement (SPLA) under the Service Provider Licensing Program enables an

organization to license Microsoft

products and use them to provide software services to its customers.

Software services are services that an organization provides to its customers to make available, display,

run, access, or otherwise interact with the licensed products. These services may be provided from one or

more data centers through the Internet, a telephony network or a private network on a rental, subscription

or services basis, whether or not the service provider receives a fee. Software services exclude any services

involving an installation of a Microsoft licensed product directly on any device to permit a customer to

interact with the Microsoft licensed product.

FAQ

Service Provider

Licensing Program

QUESTION:

ANSWER:

What are software services? Access to software through data centers via the Internet, telephony network or private network. There is no direct installation of Microsoft software on a PC.

Can I use an Enterprise Agreement, Select License, or Open License to provide software services?

No. There are four key terms and conditions of a Microsoft Volume Licensing agreement: 1) An organization can acquire licenses only for its internal use and own benefit. 2) There is a prohibition on, among other things, hosting, renting, and leasing.

3) Licenses and use rights under volume licensing generally cannot be transferred to third parties. 4) End customers are not licensed to access the server software used by you to deliver the software services.

If you want to use Microsoft software products to deliver software services to your customers (or third parties), you need to sign a Service Provider License Agreement (SPLA). The SPLA allows for the delivery of software services if your customers do not want to acquire their own licenses in a dedicated service environment. The SPLA also provides mechanisms for you to license the server software for commercial purposes and for your customers to access these servers.

Who is responsible for acquiring licenses for customers who will be using the software services?

There are two options:

1) The organization providing the services is responsible for acquiring the licenses through the SPLA program and ensuring that its customers use it in compliance with the Service Provider Use Rights (SPUR);

2) A customer has the option to acquire licenses on its own behalf through volume licensing programs and ask the service organization to manage the licenses under the following circumstances:

• Both the Server licenses and CALs are acquired by the customer. • These licenses can be used only for that customer.

• License usage complies with the Product Use Rights document (PUR). What is the difference between

the PUR and the SPUR?

The Product Use Rights (PUR) document is produced quarterly and provides information about the use rights for products currently offered under the core Microsoft Volume Licensing programs such as the Enterprise Agreement, Select License, and Open License. You can download the most current PUR at www.microsoft.com/licensing. The Service Provider Use Rights (SPUR) document is also produced quarterly and provides product use rights specific to the Service Provider License Agreement program. You can download the current SPUR at http://www.microsoft.com/serviceproviders/licensing/

What type of licenses are acquired under the SPLA program?

Licenses acquired under the SPLA are monthly non-perpetual licenses that can be used during the term of the agreement.

What are the license rights

under the SPLA? The license rights under the SPLA are: 1) The right for the licensee to provide software services.

2) The right for the licensee’s customers (end users) to access or use the Microsoft licensed products running on the service provider’s server. 3) The right for the licensee to provide multi-tenancy (more than one customer) to use the same Microsoft server products.

4) The right to pay for actual usage on a monthly basis (non-perpetual license). 5) The right to no up-front license fees and no minimum commitments. What is an External Connector

license and how should the license be used?

An External Connector License can be acquired as part of your existing volume licensing agreements. External Connector Licenses are alternatives to individual CALs used to permit your vendors, business partners, and other external users to access your server. External Connector Licenses cannot be used by the licensees to provide access to a software application that solely enables your customers’ business operations or to otherwise provide access to a software application where access to a software application is the primary benefit. What are some examples of

when External Connector licenses can be used under volume licensing programs?

1) If the licensee is using its own brand to deliver its own content or data to its customers.

2) An e-commerce licensee that is providing authenticated access to a web site and partner access for collaboration purposes.

What is the difference between e-commerce and a software service?

E-commerce is a transactional relationship where the customer is purchasing a good or service through a web site. As a result of the financial transaction, the customer receives a physical product (for example, buying a book online), information (for example, a bank statement or list of babysitters), or a service (for example, house cleaning or package delivery). The software involved is just a mechanism to enable the acquisition of the good or service.

A software service is when the customer is receiving access to a software application that supports its business operations. Some examples include web site or blog services, e-mail services, content delivery services, and customer relationship services. As a result of the transaction, the customer receives software as a service rather than as a packaged product.

Can my customers purchase their own licenses through volume licensing programs and use them in a hosted environment?

Yes. Your customers may acquire licenses on their own through volume licensing programs and ask the service organization to manage them under the following circumstances:

1) Both Server Licenses and CALs must be acquired by the customers. 2) Those licenses can be used only for that customer.