Service Provider License Agreement (SPLA) aka Shared Platform License Agreement. Licensing for Software As A Service (SaaS)

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1 Service Provider License Agreement (SPLA) aka Shared Platform License Agreement Licensing for Software As A Service (SaaS)

2 SaaS Trend More and more customers are buying hosted software rather than packaged applications. 79% of business enterprises have either purchased or are now evaluating hosted offerings Clearly, this level of interest in buying the benefits of software, rather than software itself, will change the rules for many software publishers. Source: "Software on Demand's Impact on the Software Industry: Transformation, Extinction, or Rebirth?" IDC Document #33558

3 SaaS and The Long Tail Dozens of markets of millions or millions of markets of dozens? $ / Customer Your Large Customers What if you lower the costs of consumption (that is, lower barrier to entry) and you also lower cost of operations? Your Typical Customers (Currently) Your non-addressable Customers New addressable market >> current market # of Customers

4 Why End Customers choose SaaS Limited IT skills to manage services to employees and customers Reduce TCO by sharing infrastructure with other businesses Want to stay current with latest hardware and software Need better integration between business applications Messaging linked to CRM, Web site to Line of Business Applications Need access from anywhere, anytime, any device Mobile device integration, telecommuting Outsource the license management burden Move IT from asset based to expense based Place security in the hands of professionals

5 Microsoft Licensing Map Internal Use External Use On-site Remote Access Licensing mechanism OEM, FPP EA/Select Enrollment MBA Open Outsourcer Enrollment ISV External Connector SPLA Authorized User Customer and Customer s Affiliates or appointed agents only (Excludes unauthorized, non-employees) External User : Any person who is not: an employee, temporary personnel, or your customer to whom you provide hosted services Service Provider providing Software Services to its customers Authorized Usage Scenario You may not rent, lease, lend or host products Outsourced scenarios (including Outsourcing, Hosting, Web Services) Third-party licensing programs (ISV Royalty Licensing program, Service Provider Licensing Agreement)

6 Internal & External Use Licensing: HOSTING Scenario A: Dedicated Hosting Option 1 Option 2 Option 3 Scenario B: Shared Hosting Hosting company s server farm Hosting company s server farm Customer A Customer A Customer B Customer C Customer B Customer C Customer Owns & Acquires Licenses Customer owns licenses; Hosting Co. acquires Licenses Hosting Co. Owns & Acquires Licenses Hosting Co. Owns & Acquires Licenses Same options available as under Scenario 1 Internal Use: Customer is licensed via EA/Select Internal Use: Customer is licensed via EA/Select; Hosting Co. signs Outsourcer Enrollment External use: Hosting Co. must sign the SPLA (cannot use their own EA/Select) External use: Hosting Co. must sign the SPLA (cannot use their own EA/Select) Internal or External Use depending upon license Ownership

7 Types of Licenses Internal Use / On-premise: End user is the license owner OEM, FPP, Open, Select, EA End User must own both Server and CAL licenses End User CALs does not have right to access service providers servers External Connector permits non-employees (business partners, suppliers, customers) access Internal Use systems Partner Hosted / Commercial Services (licenses with hosting rights): end users of service do not own licenses, service providers own the licenses (SaaS) SPLA (Service Provider or Shared Platform License Agreement) Ideal for Web/Internet Service Provider/Hoster Application hosting (mail, LOB & office online) Platform infrastructure provider Streaming media provider ISV providing hosted applications IT Outsourcer providing software licenses Franchisers PC Rental companies

8 Useful Links Software As A Service Hosting Solutions SaaS Licensing

9 Backup Slides

10 Desktop Server Dynamics Software Delivery Options Navision Axapta MS CRM Forefront Windows Server System Office Navision Axapta MS CRM Forefront HMC WbH Office Windows On Premise Windows Partner Hosted Software As A Service

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