Microsoft Product And Services Agreement. Paul DeGroot Senior Consultant Software Licensing Advisors
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1 Microsoft Product And Services Agreement Paul DeGroot Senior Consultant Software Licensing Advisors
2 Who are Software Licensing Advisors? Mission: Too The Customer s Advocate 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 "Your "Yourteam teamhas hasbeen been absolutely absolutelyfabulous..." fabulous..." --Fortune --Fortune consumer consumer products productsfirm firmthat thatreduced reduced EA EAspend spendby by60% 60% We Weexceeded exceededour ourexpectations expectationsfor for these thesenegotiations. negotiations.because Becausewe wehad had your intelligence, we knew what to hang your intelligence, we knew what to hang on onfor. for.you Youreally reallyshowed showedus usthe theart artofof the thepossible. possible. --Global --Global25 25resource resource company company Your Yourfinancial financialmodels, models,worksheets, worksheets,and and strategies strategieswere wereinvaluable. invaluable.outstanding Outstandingwork. work. --Global --Global pharmaceutical pharmaceuticalfirm firmthat thatreduced reduced3-3year EA spend by more than $30 million year EA spend by more than $30 million "I've "I'velearned learnedfar farmore morefrom fromthis thisengagement engagement than thani Iexpected. expected.you Youreally reallymade madeaadifference.." difference.." --High-tech manufacturing firm that reduced --High-tech manufacturing firm that reducedea EA spend by 50% spend by 50% 2
3 Experience Microsoft Savings Some of the firms our consultants have worked with: 3
4 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 Enter code MPSAwebinar for an additional $100 off (for the first 20 to respond) Advised 300 hundreds of organizations on Microsoft licensing over the last 4 years to 125,000 seats Realized savings of $250 to $700 per employee, saving companies >$250 million Author of Microsoft Licensing Concepts Available on Amazon 4
5 Overview of the MPSA Replaces Select Plus as of July 1, 2015 Like Select: Software Assurance is optional Purchase license-only (L), license with Software Assurance (LSA), renew Software Assurance (SA) SA purchases can be prorated to coincide with agreement anniversaries Discounts are based on points in pools Points can be aggregated from multiple purchasing entities to get better discounts Unlike Online Select: services purchases are available Purchasing Accounts replace Affiliates Microsoft Volume Licensing Center (MVLC), not Volume Licensing Services Center (VLSC)
6 Agreement Structure Simpler agreement structure Greater flexibility Some duplication with both an EA and the MPSA Purchasing Accounts can mix Commercial, Government, Academic Master Business and Services Agreement Enterprise Agreement Enterprise Enrolment Microsoft Product and Services Agreement Purchasing Account (Commercial) Purchasing Account (Commercial) Purchasing Account (Academic) Enterprise Enterprise Enrolment Enrolment 6
7 Agreement Documentation Microsoft Replaces the Master Business and Services Agreement used in EAs, Select+ Licensing Program Manual details and rules. Updated periodically (at least 3x so far) Microsoft Sets Product and Services Agreement Products & Services Agreement Registration up a Purchasing Account Identifies the PA Contact and Domain Admininstrator Microsoft Enables Partner MVLC access for PA Contacts and their delegates Election Form Identifies Multiple Others License Volume Licensing Center Access Request partner(s) connected to a PA partners can be connected to a single PA transfers, Price Level Qualification, Administrator Change, etc. 7
8 Purchasing Accounts More Can One The granular than Select Affiliates be a single department, a legal entity, a functional unit, a geography, etc. PA is always required administrator of the master PA is the Agreement Administrator Can create other PAs Can view licensing transactions in all PAs, but has no power to control purchasing in other PAs Other PA administrators can only see transactions in their own PAs Domain Administrator Technical role for setting up Office 365 domains Link PAs with MVLC 8
9 Purchasing Account Variables Centralized vs. decentralized purchasing Centralized a Price Price SA SA few PAs. Decentralized many PAs list choice list is determined by where the PA is located (billing address) benefits benefits are calculated per PA, but can be shared with other PAs Many small PAs make it difficult to get enough SA points for some services But in some cases, several smaller PAs can get more benefits than a few large PAs Multiple Choose partner choices one partner for online services; another for CRM; another for application platform Anniversary The date agreement anniversary is determined by the signing date of the first PA but other PAs can select a different anniversary date 9
10 Multiple Account Types A single agreement can incorporate multiple entity types, each in its own PA Commercial Public Sector Academic Each type has its own price list Commercial accounts have four discount levels Government and Academic each have only one Useful E.g. in some scenarios a hospital organization with a teaching hospital associated with a university may have an academic PA, while a separate for-profit hospital is covered by a commercial agreement
11 Transferring Licenses Licenses MSPA Licenses with SA can be transferred from Open, Select, or an EA to will no longer be visible in the VLSC, but will now appear in the MVLC Discount levels can be transferred from other agreements Transferring licenses from a Select Plus agreement with a B discount will give the customer that discount (if its own discount is A) Agreements E.g., can be consolidated in the MPSA subscriptions in Microsoft Online Services Agreement can be renewed in MPSA rather than MOSA Licenses can be transferred between PAs 11
12 License Purchases and Anniversary Dates Licenses that have a defined term SA, Office 365, CRM Online, etc. are pro-rated to the PA's anniversary data at purchase Online Services are renewed at each PA anniversary 4 months 12 months Renew 12month sub for 100 O365 E3 4-month sub for 100 O365 E3 12 months Renew 12month sub for 250 O365 E3 12 months Renew 12month sub for 250 O365 E3 12 months Renew 12month sub for 250 O365 E3 4-month sub for 150 O365 E3 12
13 Purchasing Licenses with SA Licenses with SA are eligible for spread payments Payments Add can be aligned to anniversary dates, but pricing is complex a SQL Server core with SA four months before PA anniversary License: $11,243.52, annual SA: $2, SA pro-rated for 4 months of year 1, 12 months of years 2 and 3 4 months 12 months 1st payment: 4/28=1/7 L 4/12=1/3 SA =$1, $ =$2, months 2nd & 3rd payments: 12/28=3/7 L 12/12= 1 yr SA =$4,818,65 + $2,810,88 =$7, months 12 months Resellers must do manual calculations Actual prices are available only when a quotation is generated 13
14 Calculating Discounts: Pools Pools combine similar products Three pools Some antitrust protection against illegal tying of products Helps Microsoft organize licensing models and rights Systems: Windows desktop OS, Windows Intune, Virtual Desktop Access Applications: Desktop applications (Office, Project, Visio, Visual Studio) and online services that include them (Office 365 Office Pro Plus, Office 365 E3, Visio or Project Online, etc.) Servers: Client Access Licenses (CALs) and server applications and online services that include them (Office 365, Exchange Online, Azure, Bing Maps, etc.) Discount levels are defined per pool Customer can have A discount in Systems, B in Applications, D in Servers 14
15 Calculating Discounts: Points In Select Plus and the MPSA, each license is assigned a point value Pool Systems Product Points $/Point $187 2 $89 $508 2 $252 $116.40/yr 1 $116 $ $59 Windows Server CAL $31 1 $31 SQL Server Standard $ $60 BizTalk Server Enterprise $44, $220 Office 365 E4 Subscription $256/yr 1 $256 Windows Upgrade Applications Office Pro Plus Office 365 Pro Plus Subscription Servers Price Windows Server 15
16 Calculating Discounts Select and MPSA discounts are based on points and pools Determined by the number of points earned within a pool, each year Points Per Year Discount Level % of Open NL price 500 A 99% 4,000 B 92.5% 10,000 C 85% D 77.5% 25,000 Discount can vary during the year First year's purchases gets an A discount regardless of points Any purchase that contains enough points to bring the total in that pool to the next discount level will get the better discount Discounts Discount Unused in any pool are based on purchases by all PAs level is reset on each anniversary of the master agreement (not each PA) points can be carried forward to the next year 16
17 Software Assurance Benefits Calculations In other agreements, some SA benefits depend on quantities ordered or SA spending Planning Services Training Vouchers Problem Resolution phone support In the MPSA all benefits are based on points, with each license ordered providing one or more points SA benefit points cannot be combined across Purchasing Accounts 17
18 How PA Size Can Affect SA Benefits Small PAs may generate few benefits Example, 10 PAs each have 100 points toward Planning Services Days Minimum for 1 PSD is 200 points 1,000 points provide 3 PSDs Result: Customer gets no PSDs from these PAs none meet the minimum But If in some cases, a middle-of-the-road choice is better each of 10 PAs had 200 points, they would collectively be eligible for 10 PSDs, while the sum of their points, 2,000, merits only five PSDs in a single PA If the 10 PAs were 3 PAs with 600 points each, they would get nine PSDs (3 each at 500-1,999 points) 18
19 The Future of the MPSA At some point in the future the MPSA may replace Enterprise Agreements Some slide decks show Committed Offers, with are likely to be enterprise-wide commitments, like those in the EA Partners have been told that Enterprise offerings will be piloted in late 2015 A work in progress, with missing pieces Some products not available MSDN subscriptions SA Step-Ups Consumption-based Azure services Some Select-type government and academic agreements not available (Framework, Consortia, Government Partner agreements) Some SA benefits missing Can't days convert SA 24x7 support incidents to premier, or training vouchers to planning services
20 Next Generation Volume Licensing Agreement? Myth: Fewer A Simpler Agreement pages than Select? MPSA: More 41 pages; Select: 37 pages complex than Select Plus, the most complex legacy agreement Inclusion of online services with annual commitments Continuation of point and pool calculations and discounts that can vary during the year Pro-rated pricing for SA purchases and online services Multiple PA anniversaries Dozens of new SKU acronyms: SL, SLSA, SSA, ECL, CALSA, MLSA, CSS, MSHS, etc. How Add will EAs be incorporated? Qualified User counts? Terminate true-ups?
21 Some Recommendations If you don't have a Select Plus agreement, get one now No new Select Plus agreements after July 1 Rationale MPSA will not have global coverage until late 2015 or 2016 Some products are not yet available in the MPSA and you will want more options than just the EA or SCE Be careful in determining PA strategy Make sure that purchasing ability and financial accountability are linked Software Consider asset management processes are watertight a full-time Agreement Administrator Compliance is measured across all PAs, and the administrator has the best view of what is happening across the company End-to-end review of pre-purchase planning, requisitions, license allocations, deployment counts, harvesting
22 Software Licensing Advisors Services SoftWatch Detailed Software Asset Management 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 Corporate Transfer Microsoft Licensing Workshops bring your people up to speed on MS licensing Retainer Ongoing Agreements access to Microsoft licensing expertise Microsoft Minimize Microsoft Audit Services Review costs and ensure accurate and relevant reporting from 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, Volume EA, cloud, hosted licensing agreements 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 at 22
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