Recent Changes to Microsoft
Enterprise Agreements:
Impact on Customers
Paul DeGroot Senior Consultant
Who are Software Licensing Advisors?
Who are Software Licensing Advisors?
Mission: “The Customer’s Advocate”
Too many customers rely only on Microsoft or
a reseller, who focus on what they want to sell
Leaves most customers with software they don't
deploy or don't need
While projects or investments with demonstrable ROI
beg for funds
SLA focuses on value and fit
What you need to buy and the best way to buy it Align IT spending and strategies with corporate
objectives and constraints
“"I've learned far more from this engagement than I expected. You really made a difference.." --High-tech manufacturing firm that reduced EA
“"I've learned far more from this engagement than I expected. You really made a difference.." --High-tech manufacturing firm that reduced EA
“"Your team has been absolutely fabulous..." --Fortune 500 consumer products firm that reduced
EA spend by 60% “"Your team has been absolutely fabulous..." --Fortune 500 consumer products firm that reduced
EA spend by 60% “We exceeded our expectations for these negotiations. Because we had your intelligence, we knew what to hang
on for. You really showed us the art of the possible.” --Global 25 resource
company
“We exceeded our expectations for these negotiations. Because we had your intelligence, we knew what to hang
on for. You really showed us the art of the possible.” --Global 25 resource
company
“Your financial models, worksheets, and strategies were invaluable. Outstanding work.” --Global 100 pharmaceutical firm that reduced
3-year EA spend by more than $30 million “Your financial models, worksheets, and strategies were invaluable. Outstanding work.” --Global 100 pharmaceutical firm that reduced
Today's Presenter
Today's Presenter
Paul DeGroot, Senior Consultant, Software Licensing Advisors
Independent analyst and consultant, covering Microsoft licensing for 15 years
Developed licensing practice at Directions on Microsoft
Creator and leader of the most comprehensive workshops on Microsoft
negotiations and licensing
Upcoming workshops in Seattle (April 14-16) and Washington, DC. (April 29-May 2)
More information at http://msftadvisors.com/workshops.html
Advised hundreds of organizations on Microsoft licensing over the last 4 years
300 to 125,000 seats
Realized savings of $250 to $700 per employee, saving companies >$250 million
Author of Microsoft Licensing Concepts
EA Overview
EA Overview
Midmarket through global enterprise customers
A single agreement can cover multiple geographies
Deepest license discounts
Based on count of PCs and/or users in the organization
Easy proxy for licenses
All purchases include Software Assurance
Primarily for perpetual PC software licenses
Servers, subscriptions, & online services also available
3-year agreement
Divides products into Enterprise, Additional, and Online Products
Requires an annual count of licenses and “true-up” payments for any added
Key Microsoft Licensing Documents
Key Microsoft Licensing Documents
Document Description
Product Use Rights
(PUR) Rights granted for on-premises products licensed through volume programs
Online Services Terms Product use rights for online services
Product List Which products are available in which volume programs
Microsoft Business and Services Agreement (“Master Agreement”)
Basic legal terms for most volume licensing agreements; verification of compliance
Enterprise Agreement Definitions, how the EA works; obtaining, transferring, copying, re-imaging software; applicable use rights
Enterprise
Recent Changes to Enrollment Language
Recent Changes to Enrollment Language
More discretion for Microsoft
Enrolled Affiliate may add new Enterprise Products by entering into a new Enrollment or as part of a renewal.
New Enterprise Online Services may be added by contacting a Microsoft Account Manager or Software Advisor.
New Enterprise Products or Enterprise Online Services may be added by contacting a
Microsoft Account Manager or Software Advisor.
[Enterprise products = products that must be licensed for all users or all devices]
If Enrolled Affiliate qualifies for a different price level during the applicable initial or renewal term, Microsoft will establish a new price level for future new orders either upon Enrolled Affiliate’s request or on its own initiative.
If Enrolled Affiliate qualifies for a different price level during the applicable initial or renewal term, Microsoft may at its discretion
establish a new price level for future new orders either upon Enrolled Affiliate’s request or on its own initiative.
Mixing User and Device Licenses
Mixing User and Device Licenses
If ordering any Enterprise Products, Enrolled Affiliate’s order must include coverage for all Qualified Users or Qualified Devices,
depending on the license type, of one or more Enterprise Products or a mix of Enterprise Products and the corresponding Enterprise Online Services.
...Enrolled Affiliate may elect to mix Enterprise Products and the corresponding Enterprise
Online Services within a Product pool as long as all devices not covered by an Enterprise Product are only used by users covered with a per user license.
Previous Terms New Terms
Users of
licensed devices
(Windows and Office in a standard EA) must be
kept away from
devices licensed by user
.
Windows VDA (per user), Enterprise Cloud Suite, Office 365 ProPlus do not supply
device licenses. Users without these online services subscription may not use devices
on which user-licensed software has been installed
True-Up Changes: What to Count
True-Up Changes: What to Count
The word “any” was added to the changes that a true-up must account for
License re-assignments? Movement of virtual machines to different hosts? SA
reassignment?
Enrolled Affiliate must submit an annual true-up order that accounts for changes since the initial order or last true-up order, including: (1) any increase in Licenses, including any
increase in Qualified Devices or Qualified Users and Reserved Licenses; (2) Transitions (if permitted); or (3) Subscription License quantity reductions (if permitted).
Enrolled Affiliate must submit an annual true-up order that accounts for any changes since the initial order or last order.
Enterprise Products.... Additional Products... Online Services.... Transitions...
Subscription License reductions...
True-Up Changes: How Much to Count
True-Up Changes: How Much to Count
Instead of simply counting the difference between servers in use last year and servers in use this
year, customers must count the maximum number of instances reached at any time. Retailers: Server inventory on Black Friday.
Hospitals: inventory during major disaster or flue epidemic.
Everyone else: constantly monitor use of each product to determine the moment usage hits the annual maximum Additional Products. For Products that have
been previously ordered, Enrolled Affiliate must determine the Additional Products used and order the License difference (if any).
For Additional Products that have been previously ordered under this Enrollment, Enrolled Affiliate must determine the
maximum number of Additional Products used since the latter of the intial order, the last true-up order or the prior anniversary date and submit a true-up order that accounts for any increase.
Verification: The Easy Way or the Hard Way?
Verification: The Easy Way or the Hard Way?
Impact
Validation of
true-up
data
Cannot happen before true-up
No penalty except extra ups, at
true-up pricing
Microsoft, at its discretion, may validate the customer true-up data submitted through a formal product deployment assessment using an approved Microsoft partner.
Verifying compliance. Microsoft may, in its discretion and at its expense, verify compliance with this Enrollment as set forth in the Master Agreement.
Previous Terms New Terms
Impact
Validation of all license counts
Can happen at any time on 30 days notice
Auditor may demand access to customer
systems
If unlicensed use > 5%, then..
Customer pays for the auditRequired licenses purchased at 125% of the usual price
What to do?
What to do?
Consider Select Plus or the MPSA
No concept of “Additional” or “Enterprise” Products
No companywide licensing requirement
No SA requirement
“Maximum Use” requirement easier to manage
No need to track “any” change
User licensing still available in the MPSA—if you dare
Contract amendments
Assert prior language where beneficial
Require ALL audits and validation for any product in the EA to happen in the true-up
time frame
Software Licensing Advisors Services
Software Licensing Advisors Services
SoftWatch Software Asset Management
Detailed insight into user interactivity guides negotiations and
purchasing, particularly for Office
Always-on service and real-time dashboards automate compliance
License Reconciliation
Software inventory and reconciliation with Microsoft Licensing
Statement, customer purchasing records
Essential service for audit defense and negotiations
Knowledge Transfer
Corporate Microsoft Licensing Workshops bring your people up to
speed on MS licensing
Retainer Agreements
Ongoing access to Microsoft licensing expertise
Microsoft Services Review
Minimize costs and ensure accurate and relevant reporting from
Microsoft
Audit Defense
Proactively define corporate licensing standards, protocol for audit
requests
Challenge Microsoft compliance demands M&A
Evaluate assets and effective licensing position for due diligence
during corporate merger or acquisition
Microsoft Negotiations and Licensing
Workshops
How Microsoft products are licensing
On-premises, cloud, hosted
Volume licensing agreements
EA, Server and Cloud, Select, MPSA
Negotiation processes and strategies
Special topics
Mobile devices, hosted systems, MSDN, management tools, VDI, virtualization
Seattle (April 14-16)
Washington, DC. (April 29-May 2)
More information atLinks
Links
White Paper
http://msftadvisors.com/SLA2015EAContractChanges.pdf
Or
http://msftadvisors.com/resources.html
