Building Your IT on Hosted Microsoft Infrastructure

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1 Building Your IT on Hosted Microsoft Infrastructure Demystifying Microsoft licensing rules for organizations that want to tap cloud opportunities with Microsoft IT assets MARCH 2012 MACTUS GROUP

2 Table of Contents Executive Summary Cloud Opportunities and Challenges What Has Changed? How Hosted Licensing Works Virtual Desktop Infrastructure (VDI) Licensing Virtual Desktops Desktop OS: Internal Use Only Hosted Desktops on Windows Server Hosted Application Platforms Using Volume Licenses for Hosted Services Licensing Mobility Rules in Detail Covered Products Software Assurance Requirements Modification of License Rights Hoster Requirements Conclusion Appendix: Products Eligible for License Mobility Through Software Assurance Resources/References The information contained in this document represents the current view of Mactus Group LLC on the issues discussed as of the date of publication. Because Mactus Group LLC must respond to changing market conditions, Mactus Group LLC cannot guarantee the accuracy of any information presented after the date of publication. This white paper is for informational purposes only. MACTUS GROUP LLC MAKES NO WARRANTIES, EXPRESS, IMPLIED, OR STATUTORY, AS TO THE INFORMATION IN THIS DOCUMENT. Complying with all applicable copyright laws is the responsibility of the user. Without limiting the rights under copyright, no part of this document may be reproduced, stored in, or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording, or otherwise), or for any purpose, without the express written permission of Mactus Group LLC. Mactus Group LLC may have patents, patent applications, trademarks, copyrights, or other intellectual property rights covering subject matter in this document. Except as expressly provided in any written license agreement from Mactus Group LLC, the furnishing of this document does not give you any license to these patents, trademarks, copyrights, or other intellectual property MACTUS GROUP LLC. ALL RIGHTS RESERVED mactusgroup.com 2

3 Executive Summary Data center technology, software, and management capabilities have grown exponentially with the growing acceptance of cloud computing. Major cloud infrastructure providers now offer data center reliability at prices even small companies can afford. But many organizations are still wary of the cloud, and licensing uncertainties are one reason for caution. Microsoft has responded to the opportunity and the accompanying concerns with significant changes to its licensing policies that create new options for hybrid and customized IT infrastructures. However, customers need to be aware of the differences between licensing Microsoft software to run in the cloud and software that they purchase through conventional volume licensing programs. Used correctly, cloud solutions offer a flexible and scalable server infrastructure on which customers can deploy Exchange, SharePoint, SQL, line-of-business applications, and remote desktops to meet their rapidly changing needs. In addition they may now leverage their existing investments in MS software as they migrate to the cloud. In this whitepaper, we explain how customers can take advantage of new opportunities for hosted services and what they should watch out for on the licensing front MACTUS GROUP LLC, ALL RIGHTS RESERVED mactusgroup.com 3

4 Cloud Opportunities and Challenges Changes in Microsoft licensing and the development of robust and inexpensive hosting platforms are creating new opportunities for both hosters and customers. Cloud computing shifts some or all of an organization s server, storage, and network infrastructure to an external hoster. It reduces the customer s hardware and management costs and allows an organization to quickly add and subtract server resources, so that server and infrastructure costs match their actual use and requirements at any given time. Hosted virtual desktops with Office give mobile users access to familiar productivity applications that might not run on their mobile device. While simple cloud services often offer little opportunity for customization and configuration to meet specific customer requirements, cloud providers also offer customers low-cost yet reliable hosted platforms that can serve as the foundation for complex, mission-critical, and highly customized IT infrastructure. Such opportunities put more responsibility on customers, particularly when it comes to licensing Microsoft products. Packaged services from hosting providers, such as hosted , rarely pose any problems with licensing compliance. Running more customized systems on top of hosted services gives the customer more responsibility for ensuring compliance. This paper outlines how customers can take advantage of new opportunities for hosted services and what they should watch out for on the licensing front. Microsoft has different rules for on-premises and hosted services, and for the most part, the differences fit their respective environments well, but customers cannot assume that what they know about licensing in one domain automatically applies to the other. (This document is only a summary of the applicable licensing rules. For complete understanding, readers should contact a trusted advisor, such as their reseller or hoster, and review Microsoft licensing documentation, such as Microsoft Product Use Rights and Service Provider Use Rights.) What Has Changed? Changes to Microsoft s licensing rules make it easier for both hosters and end customers to create more diverse hosted environments. The Services Provider Licensing Agreement (SPLA) used by the hosting community to provide Microsoft software to end customers has been streamlined, and fees for hosting Windows Server have been reduced and simplified. Microsoft has also changed its policies on use of customer-owned software by outsourcers. In the past, customers could outsource their licensed software, but hosters could run it only on physical servers dedicated to that customer. This prevented both hosters and customers from taking advantage of virtual machines to share the costs of physical servers. As of July 2011, customers can run software purchased through their volume licensing plan (and covered by Software Assurance) on shared servers supplied by SPLA hosters. These changes come as massive investments in data center capacity make it possible for customers and integrators to tap into hosted server hardware and software, potentially saving them millions on building internal data centers MACTUS GROUP LLC. ALL RIGHTS RESERVED mactusgroup.com 4

5 Cloud providers like Amazon provide high-quality, preconfigured instances of Windows Server and SQL Server that offer greater flexibility than customers can purchase for themselves. For example, if a customer needs to suddenly increase its server or database capacity by 50%, they can instantly provision new capacity from one of these hosters at lower cost and much greater speed than they could by adding space to their own data centers and purchasing new servers and software licenses. If their business requirements go down or they realize greater efficiencies through this scalability, they can reduce their hosted hardware and license costs something that is difficult to achieve with their own hardware and perpetual software licenses purchased through conventional volume programs. The vast capacity of these data centers has also created new opportunities for smaller companies who sell hosting services and provide higher levels of integration and customization. Rather than build their own data centers, these intermediate hosters create higher-level hosted services, such as virtual desktops or collaborative SharePoint sites, on inexpensive infrastructure rented from the large cloud providers, as shown in Figure 1. This minimizes their investment in costly data center facilities and ensures that they incur new costs only when they acquire new customers. FIGURE 1. The modern software hosting ecosystem provides customers with the option to either work with integrators and hosting partners who offer high-level services such as hosted desktops, or build a highly customized, hosted system directly on hosted Windows Servers. How Hosted Licensing Works To understand the significance of the licensing changes, let us examine the basic differences between on-premises and hosted licensing. The basic tool for licensing hosted Microsoft software is the SPLA, which permits hosters to rent Microsoft software on a monthly basis to customers. Unlike other outsourcers who must run it on servers dedicated to specific customers, SPLA hosters can run Microsoft software on multi-tenant systems, allowing multiple customers to share a server. The SPLA has two licensing models and Per Subscriber (via a Subscriber Access License, or SAL). Hosters provide the hardware, services and software their customers need, and pay monthly fees to Microsoft based on how many processors were used to run Microsoft server software and how many users were authorized to access it. Common infrastructure servers, like 2012 MACTUS GROUP LLC. ALL RIGHTS RESERVED mactusgroup.com 5

6 Windows Server and SQL Server, are typically billed per processor, while user access to productivity servers and software, like Exchange, SharePoint, and Office, utilizes SALs assigned to each user who is authorized to access those servers and applications. A Productivity Suite bundles Exchange, Lync, and SharePoint SALs at a significant discount. Customers who own Client Access Licenses (CALs) for on-premises use and have added Software Assurance to those CALs can get a further discount when they buy SALs or the Productivity Suite. End customers will rarely see SALs itemized on their hosting bill. Hosters and cloud providers will typically quote them a price for a package of services that builds in all of the hosting costs, including SALs, hardware, network capacity, and so on. Nevertheless, customers should be aware of SALs, since they are the licensing mechanism for all of the Microsoft software included in the package. Customers familiar with Microsoft licensing for on-premises systems will see a resemblance between SPLA and on-premises licensing. Per processor fees and SALs are roughly analogous to server licenses and CALs for the users or devices that access those servers. The Productivity Suite bears a passing resemblance to the Core CAL Suite. SALs often come in Standard and Professional levels, just as CALs do. However, there are significant differences, such as the following: Hosted products are licensed as monthly subscriptions rather than as perpetual product licenses and CALs Customer usage, and therefore customer costs, can change from month to month with subscription licensing through the SPLA, while on-premises licensing costs are usually fixed Software Assurance, which can be added to on-premises licenses to provide discounted upgrades to new product versions, is built into SPLA pricing customers get upgrades through their subscriptions at no additional cost No server licenses are required for servers that employ SALs. For example, hosters do not pay Microsoft to run Exchange servers, but they are charged for each SAL assigned to a user In addition, conventional licenses for software like Office and Project are assigned to specific devices, often requiring additional licenses for users with multiple devices. SALs license these products for users, enabling a user to access these products from multiple devices (their PC, their ipad, their smart phone) with a single SAL. Virtual Desktop Infrastructure (VDI) One of the most significant changes in IT is the shift to virtual desktops, allowing users to remotely access secure and centrally-managed desktops running in the data center. While hosted desktops offer all the advantages of virtualization generally, such as centralized management of desktops and the ability to upgrade hardware while still running legacy software on older OSs, a major driver is the shift to non-windows hardware, such as ipads. Hosted desktops may also offer better performance than those in corporate data centers. Large databases do not need to be transferred over the network to local devices, but can be viewed and modified from within the data center. Because hosting data centers are usually connected directly to the Internet backbone, Web pages load may load visibly faster on virtual desktops than they do on local devices MACTUS GROUP LLC. ALL RIGHTS RESERVED mactusgroup.com 6

7 Licensing Virtual Desktops Virtual Windows desktops come in three flavors. Some use a Microsoft desktop OS, such as Windows 7. Others access a remote desktop session, a feature enabled by Windows Remote Desktop Services (RDS). Finally, customers can access a full instance of Windows Server and use it as their virtual desktop. Desktop OS: Internal Use Only The first environment, a virtualized Windows desktop OS, is not available from SPLA hosters. It is available only for internal use within an organization and requires additional licenses on user devices. To license remote access to the Windows desktop OS itself, customers need to add Software Assurance to the Windows OS license on any Windows-capable PCs, including portables that access the virtual desktop infrastructure. Alternatively, they can purchase a Virtual Desktop Access (VDA) subscription for any device, including PCs and devices such as tablets. Since Software Assurance must be purchased at the time the customer purchases the original Windows OS as an upgrade or on a new computer any PC that does not already have Software Assurance on the OS needs VDA licensing. Both Software Assurance and VDA are subscriptions, with Software Assurance on Windows running $30-$55 a year depending on the customer s volume agreement and discount, and VDA subscriptions running $75-$100 a year. Microsoft Office is licensed separately. To license access to Office on a virtual desktop, the device used to access it must have a full license for the same version and edition of Office. Other desktop productivity software, such as Visio and Project, have the same requirement to access Project on a remote virtual desktop, for example, the user s device must have the appropriate Project license. These rules make VDI particularly expensive for non-windows devices like ipads in addition to a VDA license, they need full licenses for products like Office and Project, even though the software itself can t be installed or used on an ipad. Hosted Desktops on Windows Server The other two desktop environments, both of which are offered through the SPLA, are based on Windows Server. With Remote Desktop Services (RDS), the user is accessing a session of Windows server, and a single instance of Windows Server can serve up many sessions simultaneously. Alternatively, users access a full instance of Windows Server that is not shared with other users. This offers the user better performance and more control, such as administrative rights to the virtual machine, although the price will generally be higher. The vast majority of Windows desktop applications will run in either environment, and customers can customize the Windows Server desktop to make it look identical to Windows 7. The licensing for server desktops through the SPLA is the same, regardless of whether users are remotely accessing an RDS session or a full Windows Server instance. The customer requires the following: A Windows Server per processor subscription A Remote Desktop Services SAL SALs for any desktop productivity software, such as Office, Visio, or Project MACTUS GROUP LLC. ALL RIGHTS RESERVED mactusgroup.com 7

8 Customers can adjust their subscriptions from month to month, depending on their requirements. For example, many organizations purchase perpetual Project licenses for users involved in a major one-time initiative. When the initiative is completed, those licenses may no longer be used. With hosted desktops, customers can subscribe to Project for the users and the time they need it and then cancel any Project SALs that are no longer required. SALs are counted for any month during which a user has access to these products, regardless of whether they are actually used or not. Customers that license only hosted Office, rather than installing it on local PCs, lose the ability to edit Office documents offline, but customers who have ubiquitous network connectivity and who want to access Office from multiple machines, such as a PC, a portable, and an ipad, could realize significant savings. The reason: Office is licensed per device in regular volume licensing, but by subscriber in hosted environments. One subscriber can access that Office instance from any number of devices, while volume licensing could require the purchase of multiple copies of Office. Some cloud providers, such as Amazon, use the SPLA to offer server platforms on which virtual desktops can be built, but they don t sell the desktop SALs. That task is left for smaller hosters, who purchase server capacity from larger cloud providers and then add Office products. Again, customers should be aware of the underlying licensing requirements and ensure that the hosting company is meeting their Microsoft licensing obligations. Note that, in addition to SALs for Office and other desktop applications, virtual desktop users need SALs for any servers, such as Exchange, Lync, Project, and SharePoint, that they access with these applications. Hosted Application Platforms Hosting customers can also create a more customized experience and build complex solutions on the Microsoft application platform, which includes Windows Server, SQL Server, SharePoint, BizTalk, and Visual Studio. Hosters can provide all of the SQL editions offered through conventional volume licensing. Because these editions are technically identical to the on-premises servers, customers can easily transfer to a hoster s systems any SQL Server applications that they have built or purchased. Amazon Web Services offers servers pre-provisioned with Windows and, optionally, SQL Server, with hourly pricing. A small Windows Server with the free SQL Server Express costs about only a few cents an hour, while an eight-server-cluster-equivalent that can handle databases greater than three terabytes costs less than $5 an hour. Hosters may also use Microsoft s System Center management products and Forefront security tools when running their systems. These products are also licensed through the SPLA, but that licensing may not be evident to customers: it is simply built into the monthly fee that the hoster charges the customer. In some cases, hosted server offerings vary from what s available on customer premises. For example, with SQL Server 2010, the Web edition will be available through hosters, but not for on-premises licensing. SharePoint has new wrinkles as well: SharePoint for Internet Sites, which is aimed at external users and public Web sites, is licensed per processor by hosters, and by instance on customer premises MACTUS GROUP LLC. ALL RIGHTS RESERVED mactusgroup.com 8

9 Using Volume Licenses for Hosted Services Microsoft has for some time given customers the right to transfer licenses they own to a third party who will run the products on behalf of the customer, but the requirement to dedicate entire servers to specific customers ruled out a critical cost-saving measure: using virtual machines to maximize the use of expensive hosting hardware and keep costs down. Very large customers could use this option, since a single customer might require all the virtual machines one or more physical servers can handle. However, the customers who could benefit the most from hosting smaller firms that don t have the skilled IT staff to keep critical servers running couldn t afford the hosting fees for a full server. The SPLA permitted a single physical host to run virtual machines accessed by multiple customers, but only if all the software was rented through the SPLA. That required customers to rent software they already owned and which they had purchased at better discounts than the SPLA offers. In July 2011, Microsoft introduced License Mobility Through Software Assurance, which partially resolves this dilemma, combining some of the benefits of outsourcing with the multitenant features of the SPLA, as illustrated in Figure 2. Using this option, customers can assign application server licenses covered with Software Assurance to virtual machines running in multi-tenant environments on a hoster s hardware. FIGURE 2: License Mobility Through Software Assurance bridges previous outsourcing options for customers to provide a more attractive cost structure. SPLA Hosting Multi-tenant hosting, rental licenses Lower management and hosting costs License Mobility Through Software Assurance Multi-tenant hosting, customer licenses Lower management, hosting, and license costs License Outsourcing Dedicated hosting, customer licenses Lower management and license costs 2012 MACTUS GROUP LLC. ALL RIGHTS RESERVED mactusgroup.com 9

10 Licensing Mobility Rules in Detail Covered Products Many Microsoft server applications are covered by the License Mobility right. These include most editions of BizTalk, Commerce Server, Exchange 2010, Lync 2010, Project Server 2010, SharePoint 2010, SQL Server, and System Center products. For a more complete list, see the Appendix Products Eligible for License Mobility Through Software Assurance on page 15. This list is subject to change; therefore customers should obtain a copy of Microsoft s Product Use Rights document to ensure that the particular server product they would like to move to a hoster is eligible for License Mobility. The specific product rights for each server indicate whether it is eligible for License Mobility Within Server Farms. FIGURE 3: Product use rights for SQL Server 2008 R2 Enterprise show that this product is eligible for both License Mobility Within Server Farms and License Mobility Through Software Assurance. Microsoft uses the term License Mobility to refer to two different rights: whether a product can be moved from one physical server to another at any time when it is running in a virtual machine; and whether a product license can be transferred to a hoster under License Mobility Through Software Assurance. In most cases, the same right applies in both cases (Figure 3), but in a few cases, notably SQL Server Standard, License Mobility Through Software Assurance is allowed, but License Mobility Within Server Farms is not. Such exceptions will be noted in the additional details for those licenses, also found in the Product Use Rights document. Several important licenses are not covered by License Mobility Through Software Assurance. Windows Server licenses may not be moved from the customer to the hoster. Subscriptions to Windows Server licenses must be purchased through the hosting provider s SPLA. However, customers are allowed to transfer a virtual server built for on-premises use to the hoster s site without rebuilding it with a copy of Windows Server supplied by the hoster. In effect, Microsoft allows the hoster s Windows license to supersede the customer s. Amazon Web Services offers many machine images that are already provisioned with Windows Server and, if desired, SQL Server Standard Edition. The company also has special tools to migrate Windows virtual machines to Amazon s service. Remote Desktop Services (RDS), which is part of Windows Server, must also be licensed through RDS SALs, even for employees who already have RDS CALs to access on-premises servers MACTUS GROUP LLC. ALL RIGHTS RESERVED mactusgroup.com 10

11 Desktop applications, such as Office, Visio, and Project, cannot be migrated to the cloud. They can be licensed for cloud use with the appropriate SALs. CALs cannot be migrated to the hoster, but they are still needed. Although the customer can move products that require CALs, such as Exchange or SharePoint, to the hoster, they don t become SPLA-licensed products. They are still governed by the customer s licensing terms and the customer s users or devices still need CALs in order to access them. Software Assurance Requirements Software Assurance is required not only for server licenses that run at the hoster s site, but also for related licenses. For example, many organizations use External Connectors, rather than CALs, to license access to their servers by non-employees, such as onsite contractors. A single External Connector allows any external user to access a server, eliminating the need to assign a CAL to each individual or device that might access it. Customers must maintain Software Assurance on External Connectors that are used to license access to their hosted servers, with the exception of External Connectors for Windows. Since Windows Server is licensed per processor in hosted environments, it is accessible to external and internal users alike. External Connectors with Software Assurance are still required for servers like Exchange and Lync, if the customer chooses to licenses access by external users that way rather than with individual CALs. Customers who want to manage their hosted servers with System Center products like System Center Configuration Manager or System Center Operations Manager can do so if they maintain Software Assurance on System Center Server Management Licenses that they assign to their hosted servers. The customer must maintain Software Assurance on all CALs for users and devices that access servers on the hoster s site. CALs that are not covered by Software Assurance may not be used to access hosted servers. The customer needs to maintain any subscriptions that service the servers in some way. Since many subscriptions (such as Forefront EndPoint Protection) are licensed at the user s PC rather than the server, transferring server licenses to the hoster does not result in any increase in cost to the customer or the hoster, but such subscriptions need to be maintained if Forefront is used on the hosted server. Modification of License Rights Many of the rights that apply when licenses are assigned to the customer s on-premises servers are modified when the licenses are transferred to a hoster under License Mobility Through Software Assurance. These include licenses for external connectors, products licensed per server, and products licensed per processor. External Connector changes. External Connectors allow external users (that is, not the customer s employees or onsite contractors) to access a Microsoft server. External Connectors generally apply to physical devices, and all virtual machines running on a physical server are covered by one External Connector, but the License Mobility Through Software Assurance right limits each External Connector to a single virtual machine. Products licensed per server. Products licensed per server typically require the customer to license each user or device that connects to the server to have a CAL. When used in virtual environments in the customer s own data center, these servers can run in multiple 2012 MACTUS GROUP LLC. ALL RIGHTS RESERVED mactusgroup.com 11

12 virtual machines under a single license. When used with License Mobility Through Software Assurance, however, each server license can be assigned to only one virtual machine. Products licensed per processor. When licensed per processor, certain products allow more than one in some cases unlimited instances to run in virtual machines on one physical device. When used with License Mobility Through Software Assurance, however, a perprocessor license is limited to a single virtual machine, and licenses up to four virtual CPUs in that virtual machine. License Mobility Within Server Farms, the other License Mobility, allows customers to move on-premises virtual servers between two data centers they own that are within four time zones of each other (with special rules for customers in European zones). Two such data centers that meet the criteria comprise a server farm. Moving virtual servers between server farms that is, from one set of data centers to another, or to data centers that fall outside the time-zone limits is subject to Microsoft s general restriction that licenses may not be moved within 90 days of their last assignment to a new server. In the case of License Mobility Through Software Assurance, a hoster s data center and a customer s data center are not considered to be part of the same server farm, even if they fall within the time-zone boundaries. The practical impact: servers moved to a hoster s data center cannot be moved back to the customer s data center for at least 90 days, and vice versa. Hoster Requirements In order to run products licensed by customers pursuant to the License Mobility Through Software Assurance right, a hoster must be a qualified License Mobility Through Software Assurance Partner. The customer must also complete a License Verification form supplied by the partner. (To access a list of License Mobility Partners and the License Verification form, see the resources section at the end of this document.) This form is important for tracking license ownership. The customer needs a record of software they have purchased but are running on the hoster s hardware. That software will not show up in any inventory of software on their premises when they try to reconcile their FIGURE 4: The License Verification form requires customers to identify the Microsoft Agreements and Enrollments through which they purchased the software MACTUS GROUP LLC. ALL RIGHTS RESERVED mactusgroup.com 12

13 purchases with their installed licenses. The hoster needs a record of software on their servers that customers own; that software should not be counted as instances for which the hoster should pay Microsoft. In order to fill out the form correctly, the customer will need to consult their licensing records. For example, Microsoft Enterprise and Select Agreements consist of an Agreement, which covers their entire organization, and an Enrollment that can cover one or more affiliates in the organization. The numbers of both documents are required when filling out the form for licenses purchased through those agreements (Figure 4). Customers also need to indicate, on another part of the form, the type and number of licenses they are transferring to the hoster. Microsoft will verify that the customer owns these licenses, and that they are covered by Software Assurance (Figure 5). FIGURE 5: Customers should indicate in the table below which products (including quantities) with active Software Assurance the entity will deploy with its Authorized Mobility Partner 2012 MACTUS GROUP LLC. ALL RIGHTS RESERVED mactusgroup.com 13

14 Conclusion Changes to Microsoft licensing policies make it easier for customers to build more complex IT on hosted infrastructures. Hosted desktops are a viable option that should be explored by customers who need a lesscostly and more flexible desktop option for users with multiple devices, some of which are unable to run critical products such as Microsoft Office. By extending its License Mobility rights to permit assignment of customer licenses with Software Assurance to hosters, Microsoft lets customers take better advantage of investments they have already made in Microsoft products. However, customers should understand the differences between licenses used on-premises and those used in multi-tenant hosting environments, licensed through the Services Provider Licensing Agreement (SPLA). Licensing models in multi-tenant hosting environments use Subscriber Access Licenses (SALs) for desktops and for some servers, while on-premises desktops use perpetual licenses for desktops and Client Access Licenses (CALs) for many servers. In the shift between on-premises and hosted systems, license use rights and virtualization entitlements change. Most customers will continue to need to assign conventional volume licenses, such as CALs for common Microsoft servers and for Remote Desktop Services, to onpremises devices and to their users. MACTUS GROUP CONSULTING & STAFFING Mactus Group provides consulting and staffing services for Seattle area technology companies. Our licensing practice provides consulting, training, and content delivered by licensing subject matter experts MACTUS GROUP LLC. ALL RIGHTS RESERVED mactusgroup.com 14

15 Appendix: Products Eligible for License Mobility Through Software Assurance The following products can be moved from the licensee s server infrastructure to that of an external hoster, pursuant to the terms of Microsoft s License Mobility Through Software Assurance right. This list is current as of the January 1, 2012 Products Use Rights, which are published quarterly. Server Bing Maps Server BizTalk Server 2010 Branch Edition BizTalk Server 2010 Enterprise Edition BizTalk Server 2010 Standard Edition Commerce Server 2009 R2 Enterprise Edition Commerce Server 2009 R2 Standard Edition Data Protection Manager 2010 for System Center Essentials Duet Enterprise for Microsoft SharePoint and SAP 1.0 Duet for Microsoft Office and SAP 1.5 Exchange Server 2007 Standard for Small Business Exchange Server 2010 Enterprise Exchange Server 2010 Standard FAST Search Server 2010 for SharePoint Forefront Identity Manager 2010 Forefront Threat Management Gateway 2010 Enterprise Edition Forefront Threat Management Gateway 2010 Standard Edition Forefront Unified Access Gateway 2010 Groove Server 2010 Lync Server 2010 Enterprise Lync Server 2010 Standard Microsoft Dynamics CRM 2011 Server Project Server 2010 Search Server 2010 SharePoint Server 2010 SharePoint Server 2010 for Internet Sites Enterprise SharePoint Server 2010 for Internet Sites Standard SQL Server 2008 R2 Datacenter SQL Server 2008 R2 Enterprise SQL Server 2008 R2 Enterprise SQL Server 2008 R2 Standard SQL Server 2008 R2 Standard System Center Configuration Manager 2007 R3 System Center Configuration Manager 2007 R3 with SQL Server 2008 Technology System Center Data Protection Manager 2010 System Center Essentials 2010 System Center Essentials 2010 with SQL Server 2008 Technology System Center Operations Manager 2007 R2 System Center Operations Manager 2007 R2 with SQL Server 2008 Technology System Center Server Management Licenses and Suites (all, including SMSE and SMSD) System Center Service Manager 2010 System Center Service Manager 2010 with SQL Server 2008 Technology System Center Virtual Machine Manager 2008 R2 Visual Studio Team Foundation Server 2010 with SQL Server 2008 Technology Windows Embedded Device Manager 2011 Windows Embedded Device Manager 2011 with SQL Server 2008 Technology Licensing Model Specialty Servers Specialty Servers Specialty Servers Specialty Servers 2012 MACTUS GROUP CONSULTING & STAFFING, ALL RIGHTS RESERVED mactusgroup.com 15

16 Resources/References Microsoft Product Use Rights Microsoft License Mobility Through Software Assurance Microsoft Virtual Desktop Infrastructure (VDI) License Mobility Partners License Verification Form for License Mobility Through Software Assurance Microsoft Service Provider Use Rights Microsoft Services Provider License Agreement (SPLA) SPLA resources for hosting providers The information contained in this document represents the current view of Mactus Group LLC on the issues discussed as of the date of publication. Because Mactus Group LLC must respond to changing market conditions, Mactus Group LLC cannot guarantee the accuracy of any information presented after the date of publication. This white paper is for informational purposes only. MACTUS GROUP LLC MAKES NO WARRANTIES, EXPRESS, IMPLIED, OR STATUTORY, AS TO THE INFORMATION IN THIS DOCUMENT. Complying with all applicable copyright laws is the responsibility of the user. Without limiting the rights under copyright, no part of this document may be reproduced, stored in, or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording, or otherwise), or for any purpose, without the express written permission of Mactus Group LLC. Mactus Group LLC may have patents, patent applications, trademarks, copyrights, or other intellectual property rights covering subject matter in this document. Except as expressly provided in any written license agreement from Mactus Group LLC, the furnishing of this document does not give you any license to these patents, trademarks, copyrights, or other intellectual property MACTUS GROUP LLC. ALL RIGHTS RESERVED mactusgroup.com 16

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