Service Provider Licensing Program

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1 Service Provider Licensing Program

2 ABOUT THE SERVICE PROVIDER LICENSING PROGRAM 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. 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 usagebased 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. Additional customer benefits: + Pay as you go. Customers pay only for what they use on a monthly basis. + Most current product version. The SPLA offers the most current version of Microsoft software products, which allows you and your customers to access the software products with the most updated security and other enhanced features. + Customers can try before they buy. Your customers have a 60-day trial period to use the Microsoft software you provide. You may also provide demos to your customers free of charge. Different scenarios when the SPLA is applicable: You can provide your customers direct or indirect access to 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. 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. 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 Franchisees/Franchises

3 Service Provider License Agreement (SPLA) Overview 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. 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 Agreement Length 3-year term, which may be extended. Eligibility Enroll in the Microsoft Partner Program as a Microsoft Certified Partner. 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. SPLA and Other Volume Licensing Programs/Licenses 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) Program 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, 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.

4 SIGN UP For information on how to acquire the SPLA through a Microsoft designated SPLA Reseller: Visit howto.mspx To acquire the Service Provider License Agreement through Microsoft: Go to default.mspx and review the information in the SPLA Resources section. Online Resources Microsoft Volume Licensing: Service Provider License Agreement Program: Microsoft Hosting Solutions: Partner Training around SPLA business via the Microsoft Partner Learning Center: register.aspx?publisher=3&courseid=1166 Questions regarding contracts and Program Inquiries, please use: (US and Canada) (Asia Pacific and New Zealand) (Australia) (Japan) (Latin America) en-us/acquirespla.mspx (Europe, Middle East and Africa) You will receive a response within two business days. Sample of Microsoft product families available under the SPLA: Microsoft Application Center 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 Microsoft Virtual Server Microsoft Visual Studio.NET Microsoft Windows Server Microsoft Windows Small Business Server View a complete list of products available under the SPLA at: Click on the Service Provider Use Rights (SPUR) link.

5 FAQ QUESTION: What are software services? Can I use an Enterprise Agreement, Select License, or Open License to provide software services? Who is responsible for acquiring licenses for customers who will be using the software services? What is the difference between the PUR and the SPUR? What type of licenses are acquired under the SPLA program? What are the license rights under the SPLA? What is an External Connector license and how should the license be used? What are some examples of when External Connector licenses can be used under volume licensing programs? What is the difference between e-commerce and a software service? Can my customers purchase their own licenses through volume licensing programs and use them in a hosted environment? ANSWER: 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. 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. 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). 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 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 Licenses acquired under the SPLA are monthly non-perpetual licenses that can be used during the term of the agreement. 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. 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. 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. 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, 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. 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. 3) License usage must comply with the PUR.

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