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- 1. ONLINE SERVICES LICENSING HOWIT WORKS, DUAL USE RIGHTS, FROM SA PRICING, CONTRACTUAL POSSIBILITIES & MORE
- 2. AGENDA: WHAT WILL WEDISCUSS TODAY? INTRODUCTION CLOUD LICENSING – THE BASICS CONTRACTUAL POSSIBILITIES DUAL USE RIGHTS FROM SA PRICING MICROSOFT AZURE DYNAMICS 365 POWER PLATFORM
- 3. WHY THIS PRESENTATION? MicrosoftLicensing for Cloud services is COMPLEX! CLOUD LICENSING LicenseQ often encounters clients struggling to understand Microsoft cloud licensing Much different from old fashioned on- premises licensing! Cloud licensing, though already in existence for a long time, is still considered difficult Cloud licensing has ramped up quickly, and Microsoft is moving increasingly towards subscription-based licensing The “old way” of on-premises licensing had been the status quo for decades, but is being overtaken (or already has overtaken?) Microsoft approaches both on premises and online services licensing in a completely different way, this does not make it easier
- 4. WHY THIS PRESENTATION? •With cloud subscription licensing, you get a lot of rights for on-premises use; • Business as usual is often possible, by licensing cloud subscriptions; • Don’t immediately dive head-first into cloud subscriptions, first understand what you need; • We help clients create an overview of the need, and make sure not to over license! Microsoft Licensing for Cloud services is COMPLEX! CLOUD LICENSING What are your rights when you switch from on-premises to cloud? And what are the pitfalls you should watch out for? What is important to understand:
- 5. CLOUD LICENSING THE BASICSOF MICROSOFT CLOUD
- 6. Microsoft’s Online Servicesinclude: These Services are typically licensed with User Subscription Licenses (User SLs or USLs). A license is assigned to an individual, named user. Procuring a User Subscription License will offer access to the use of the online service. Generally: no license, no access. CLOUD LICENSING LICENSING Online Services: BUYING Online Services: THE BASICS WEB DIRECT CLOUD SOLUTION PROGRAM VOLUME LICENSING AGREEMENTS Purchased of the MSFT website Paid upfront annually of monthly Purchased through authorized MSFT partners Paid upfront annually of monthly Purchased through Microsoft directly or through specific partners (LSPs) Paid for upfront annually Windows 10 OS license; can be installed on up to 5 devices Office 365 Productivity license; the client can be installed on up to 5 devices Enterprise Mobility+ Security security and compliance Microsoft 365 suite of above 3 items Dynamics 365 CRM or ERP *the new Microsoft Customer Agreement (MCA) is handled in our Volume Licensing training
- 7. WHAT ARE ENTERPRISEONLINE SERVICES? MICROSOFT ENTERPRISE OLS Microsoft defines Enterprise Online Services Office 365 E3/E5 Enterprise Mobility + Security E3/E5 Windows E3 (per user) MICROSOFT 365 E3/E5 The suite of products is called Microsoft 365 Enterprise It is a suite of suites – sound strange? Variations of E3 and E5 – the difference is in the functionality and the components included In order to license these in an EA, a minimum commitment is needed of 500 users (see VL training) – that is why they have the connotation of Enterprise Online Services Move from E3 to E5 by using step-up licenses (also for the component suites Let’s look into the different suites within the suite!
- 8. https://github.com/AaronDinnage/Licensing Office 365 E1is also an Enterprise Service, but consists of less functionality (and is not included in any M365 Enterprise suites) In yellow you will find the most noticeable services of the suite Note: watch out for tenant wide services! OFFICE 365 ENTERPRISE MICROSOFT ENTERPRISE OLS Office 365 Enterprise – Creation and Collaboration Services Anti-Phishing Real-Time Reports Safe Attachments Safe Links Microsoft Defender for Office 365 Plan 1 Attack Simulator Automated Investigation & Response Campaign Views Compromise d User Detection Threat Explorer Threat Trackers Microsoft Defender for Office 365 Plan 2 Advanced Audit Advanced eDiscovery Advanced Message Encryption Auto Conferencing Comm Compliance Customer Key Customer Lockbox Double Key Encryption Information Barriers Information Governance My Analytics (Full) Office 365 Cloud App Security Phone System Power BI Pro Privileged Access Management Recording Management Rules-Based Classification (Office 365) Teams Data Loss Prevention Alert Policies Audit Logging Bookings Data Loss Prevention Delve eDiscovery Exchange Online Plan 2 Exchange Online Protection InfoPath App Information Protection (Office 365) Insights by MyAnalytics Kaizala Pro (retiring) Live Events Microsoft 365 Apps for Enterprise Microsoft Dataverse for Teams Microsoft Forms Microsoft Lists Microsoft Teams Microsoft To-Do Microsoft Whiteboard Office for the Web Office Mobile App OneDrive for Business Plan 2 Planner Power Apps for Office 365 Power Automate for Office 365 Power Virtual Agents for Teams Retention Policy SharePoint Online Plan 2 Skype for Business Plan 2 (retiring) Stream for Office 365 Sway Yammer Enterprise Office 365 E3 Office 365 E5 MICROSOFT DEFINES THIS AS: Office 365 and Microsoft 365 Apps enables you to create, share, and collaborate from anywhere on any device with a cloud-based suite of productivity apps and services.
- 9. ENTERPRISE MOBILITY ANDSECURITY MICROSOFT ENTERPRISE OLS Enterprise Mobility + Security – identity and intelligence driven security The blue items are an overview of everything included in Azure Active Directory Premium P1 (light) and P2 (dark) In yellow you will find the most noticeable services of the suite Note: watch out for tenant wide services! MICROSOFT DEFINES THIS AS: Microsoft Enterprise Mobility + Security (EMS) is an intelligent mobility management and security platform. It helps protect and secure your organization and empowers your employees to work in new and flexible ways. Azure Identity Protection Entitlement Management Privileged Identity Management Risk-Based Conditional Access Microsoft Defender for Identity Microsoft Cloud App Security Rules-Based Classification (AIP Client & Scanner) Access Reviews Advanced Security Reports & Alerts App Proxy, including Ping Access Azure AD B2B 5 guests per user Azure AD Connect Health Active Directory RMS Advanced Threat Analytics (retiring) Azure RMS Azure AD Password Protection Cloud App Discovery Conditional Access Enterprise State Roaming Endpoint Analytics Information Protection Intune MDM & MAM Microsoft Identity Management Multi-Factor Auth (MFA) Self-Service Password Reset in AD Self-Service Group Management Microsoft Endpoint Config Manager System Center Endpoint Protection Windows Server CAL Rights Shared Account Password Roll-Over Single-Sign- On to other SaaS Terms of Use 3rd Party MFA Integration Enterprise Mobility + Security E5 (EMS 35) Enterprise Mobility + Security (EMS 3) https://github.com/AaronDinnage/Licensing
- 10. WHAT ARE ENTERPRISEONLINE SERVICES? MICROSOFT ENTERPRISE OLS Windows E3/E5 – also know as Windows Enterprise Operation System These Windows versions are bought as User subscription licenses – allow installs on up to 5 devices Windows E3 is the full OS experience as you know it E5 is the additional security also known as Defender for Endpoint Like the on-premises version, the rights here are upgrade licenses – you need to have a qualifying license (see right side – Product Terms page 42) The E3 and E5 subscriptions give you the same Software Assurance rights as an on-premises version with SA For more info check out our Product Licensing basics session Qualifying Operating Systems Enterprise Agreement, Microsoft Products and Services Agreement, Select, Select Plus Microsoft Cloud Agreement and Microsoft Customer Agreement Windows 10 Enterprise, IoT Enterprise, Pro, Pro for Workstations, Pro in S mode X X Education, Home, Home in S mode (Academic licenses only) Windows 7 / 8 / 8.1 Enterprise, Pro, Professional, Ultimate, Windows 7 Professional/Ultimate for Embedded Systems, Windows Embedded 8/8.1 Pro, Industry Pro X
- 11. HOW ON-PREMISES TRANSLATESTO CLOUD ON PREM TO CLOUD The basics to how licensing of Microsoft on- premise stack relates to cloud subscription licensing. License suites do not overlap 1:1, so differences in moving from on-prem to cloud. Moving one part to cloud does not mean you have to move all parts Many models possible, never one-size fits all To find your ideal licensing configuration, LicenseQ can help in doing a deep dive optimization of your contract Office 365 E3/E5 Enterprise Mobility + Security E3/E5 Windows E3 (per user) MICROSOFT 365 E3/E5 Office Profession al Plus Core CAL suite / E CAL suite Windows Upgrade (DVC) PRO/ENT DESKTOP On-premises Licensing Cloud subscription Licensing LICENSING IMPORTANT TO UNDERSTAND: CAL equivalent licensing and on- premises use rights – this will be handled further on in the slides
- 12. O N L I N E S E R V I C E S The following cloudservice portions of Microsoft Defender Advanced Threat Protection: Attack Surface Reduction, Next Generation Protection, Endpoint Detection & Response, Auto Investigation & Remediation, Threat & Vulnerability Management, SmartScreen. The cloud service portion of Microsoft Intune such as the Microsoft Intune Add-on Product or a management service provided by Microsoft Intune such as Mobile Device Management for Office 365. Microsoft Dynamics 365 Core Services The following services, each as a standalone service or as included in a Dynamics 365 branded plan or application: Dynamics 365 Customer Service Enterprise, Dynamics 365 Customer Insights, Dynamics 365 Customer Service Professional, Dynamics 365 Customer Service Insights, Dynamics 365 Field Service, Dynamics 365 Business Central, Dynamics 365 Supply Chain Management, Dynamics 365 Finance, Dynamics 365 Marketing, Dynamics 365 Commerce, Dynamics 365 Human Resources, Dynamics 365 Sales Enterprise, and Dynamics 365 Sales Professional. Dynamics 365 Core Services do not include (1) Dynamics 365 Services for supported devices or software, which includes but is not limited to Dynamics 365 for apps, tablets, phones, or any of these; (2) LinkedIn Sales Navigator; or (3) except as expressly defined in the licensing terms for the corresponding service, any other separately-branded service made available with or connected to Dynamics 365 Core Services. Office 365 Services The following services, each as a standalone service or as included in an Office 365-branded plan or suite: Compliance Manager, Cortana, Customer Lockbox, Exchange Online Archiving, Exchange Online Protection, Exchange Online, Microsoft Bookings, Microsoft Forms, Microsoft MyAnalytics, Microsoft Planner, Microsoft StaffHub, Microsoft Stream, Microsoft Teams (including Bookings, Lists, and Shifts), Microsoft To-Do, Office 365 Advanced Threat Protection, Office 365 Video, Office for the web, OneDrive for Business, Project, SharePoint Online, Skype for Business Online, Sway, Whiteboard, Yammer Enterprise and, for Kaizala Pro, Customer’s organizational groups managed through the admin portal and chats between two members of Customer’s organization. Office 365 Services do not include Microsoft 365 Apps for enterprise, any portion of PSTN Services that operate outside of Microsoft’s control, any client software, or any separately branded service made available with an Office 365-branded plan or suite, such as a Bing or a service branded “for Office 365.” Microsoft Azure Core Services API Management, App Service (API Apps, Logic Apps, Mobile Apps, Web Apps), Application Gateway, Application Insights, Automation, Azure Active Directory (including Multi-Factor Authentication), Azure API for FHIR, Azure Cache for Redis, Azure Container Registry (ACR), Azure Container Service, Azure Cosmos DB (formerly DocumentDB), Azure Database for MySQL, Azure Database for PostgreSQL, Azure Databricks, Azure DevOps Services, Azure DevTest Labs, Azure DNS, Azure Information Protection (including Azure Rights Management), Azure Kubernetes Service, Azure NetApp Files, Azure Resource Manager, Azure Search, Backup, Batch, BizTalk Services, Cloud Services, Computer Vision, Content Moderator, Data Catalog, Data Factory, Data Lake Analytics, Data Lake Store, Event Hubs, Express Route, Face, Functions, HDInsight, Import/Export, IoT Hub, Key Vault, Load Balancer, Log Analytics (formerly Operational Insights), Azure Machine Learning Studio, Media Services, Microsoft Azure Portal, Notification Hubs, Power BI Embedded, QnA Maker, Scheduler, Security Center, Service Bus, Service Fabric, SignalR Service, Site Recovery, SQL Data Warehouse, SQL Database, SQL Server Stretch Database, Storage, StorSimple, Stream Analytics, Synapse Analytics, Text Analytics, Traffic Manager, Video Indexer, Virtual Machines, Virtual Machine Scale Sets, Virtual Network, and VPN Gateway Microsoft Intune Online Services Microsoft Power Platform Core Services The following services, each as a standalone service or as included in an Office 365 or Microsoft Dynamics 365 branded plan or suite: Microsoft Power BI, Microsoft Power Apps, Microsoft Power Automate, and Microsoft Power Virtual Agents. Microsoft Power Platform Core Services do not include any client software, including but not limited to Power BI Report Server, the Power BI, PowerApps or Microsoft Power Automate mobile applications, Power BI Desktop, or Power Apps Studio. Microsoft Defender Advanced Threat Protection Services Microsoft Threat Protection The cloud service portion of Microsoft Threat Protection. THE MICROSOFT CLOUD BASICS CLOUD LICENSING Below is an overview of all current Microsoft cloud products…….
- 13. This often leadsto organizations buying more than they need What we often see: “we use M365 E5 for all our users!” This generally is not true Know what is in the suite and know what you need from this suite! Don’t over-license, not even when the price is very attractive You can easily calculate a break-even point of when a suite might be more cost optimal to licensing components We tend to analyze customer data and move into COMPONENT LICENSING instead of full suites (differs per case) MICROSOFT LOVES TO LICENSE SUITES! THE MICROSOFT CLOUD BASICS CLOUD LICENSING - SUITES
- 14. A SMALL SIDESTEP MICROSOFT365 FIRSTLINE F3 What is Microsoft 365 F3? https://github.com/AaronDinnage/Licensing This is for specific user scenario’s: • Uses a primary work device with a single screen smaller than 10.1” • Shares their primary work device with other qualifying Microsoft 365 or Office 365 Firstline Worker licensed users, during or across shifts. Translation: your blue-collar workers or non-desk employees Specific to F3: • Rights to use Windows 10 Enterprise LTSC do not apply. • Rights to install and use MDOP do not apply. • Other than the use of Windows Virtual Desktop, rights to access and use virtualized instances of Windows only apply to Licensed Users of a shared device with a Qualifying Operating System Alert Policies Exchange Online Kiosk (2GB) Exchange Online Protection Kaizala Pro (retiring) Microsoft Dataverse for Teams Microsoft Forms Microsoft Teams Microsoft To-Do Microsoft Whiteboard Office Web & Mobile Apps One Drive for Business (2GB) Planner Power Apps for Office 365 Power Automate (2000 step/day) Power Virtual Agents for Teams Share Point Online Kiosk Skype for Business Plan 1 (retiring) Stream (Consume) Sway Yammer Enterprise Limitations: • Users cannot be administrators. • No Skype desktop or app sharing. • Cannot schedule Skype meetings. • No access to productivity servers. • No Outlook Desktop access. • No Voicemail. • No OneDrive for Business sync. Active Directory & Azure AD RMS Advanced Threat Analytics (retiring) Endpoint Analytics Information Protection Intune MDM & MAM Microsoft Endpoint Config Manager System Center Endpoint Protection Windows Server CAL Rights Advanced Security Reports & Alerts App Proxy, including Ping- Access Azure AD B2B 5 guests per user Azure AD Connect Health Azure AD Password Protection Cloud App Discovery Conditional Access Enterprise State Roaming Microsoft Identity Manager Multi- Factor Auth (MFA) Self- Service Password Reset in AD Self- Service Group Manage- ment Shared Account Password Roll-Over Simple- Sign-On to other SaaS Terms of Use 3rd Party MFA Integration Azure AD Premium Plan 1 Always ON VPN Application Control Application Guard AppLocker App Assure App-V Attack Surface Reduction Azure AD & Domain Join BitLocker & BitLocker to Go Branch- Cache Cortana Credential Guard Desktop Analytics Device Guard Direct- Access Edge for Business Long Term Servicing Channel MDM MDOP Microsoft Defender Antivirus Microsoft Store for Business Persistent Memory Resilient File System (ReFS) SMB Direct Unified Write Filter Universal Print User Experience Virtualisation Window Autopilot Windows Conditiona l Access Windows Firewall Windows Hello for Business Windows Information Protection Windows to Go Windows Update for Business Windows Virtual Desktop Office 365 F3 Enterprise Mobility + Security E3 (EMS E3) Windows 10 E3 for Microsoft 365 F3 Microsoft 365 F3 includes Windows 10 E3 except Long Term Servicing Channel and Microsoft Desktop Optimization Pack Microsoft 365 F3 https://github.com/AaronDinnage/Licensing
- 15. A SMALL SIDESTEP MICROSOFT365 FIRSTLINE F1 This is for specific user scenario’s: • Uses a primary work device with a single screen smaller than 10.1” • Shares their primary work device with other qualifying Microsoft 365 or Office 365 Firstline Worker licensed users, during or across shifts. Translation: your blue-collar workers or non-desk employees Specific to F1: • M365 F1 does not include rights to an Exchange mailbox. In order to enable a full Teams experience, M365 F1 licenses may come with the Exchange Online K1 service plan enabled. Although the Exchange Online K1 service plan will provision a mailbox for the user, M365 F1 users are not entitled to use the mailbox. What is Microsoft 365 F1? https://github.com/AaronDinnage/Licensing Microsoft Forms (Consume) Microsoft Teams Office for the Web (read- only) Office Mobile Apps (read only) Planner SharePoint Online Kiosk Skype for Business Plan 1 (retiring) Stream (Consume) Sway Yammer Enterprise Limitations: • Users cannot be administrators. • No Skype desktop or app sharing. • Cannot schedule Skype meetings. • No access to productivity servers. Active Directory & Azure AD RMS Advanced Threat Analytics (retiring) Endpoint Analytics Information Protection Intune MDM & MAM Microsoft Endpoint Config Manager System Center Endpoint Protection Windows Server CAL Rights Advanced Security Reports & Alerts App Proxy, including Ping- Access Azure AD B2B 5 guests per user Azure AD Connect Health Azure AD Password Protection Cloud App Discovery Conditional Access Enterprise State Roaming Microsoft Identity Manager Multi- Factor Auth (MFA) Self- Service Password Reset in AD Self- Service Group Manage- ment Shared Account Password Roll-Over Simple- Sign-On to other SaaS Terms of Use 3rd Party MFA Integration Azure AD Premium Plan 1 Office 365 for Microsoft 365 F1 Enterprise Mobility + Security E3 (EMS E3) Windows Microsoft 365 F1 does not include Windows. Microsoft 365 F1
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- 17. As stated, OnlineServices should be procured in order to have access, this holds true for adding licenses of certain services. No license, no possibility for assignment • This does not mean that you need to create a purchase order for all additional licenses. • There is a process available called Online Services Reservations. • Basically, reserving a license means the license will immediately become available to you, but payment will not have to be done until the EA anniversary (EA true- up or EAS annual report period) CONTRACTUAL POSSIBILITIES WHAT IS IN THE EA? From the Enterprise Enrollment: Minimum order requirements: if you order only Enterprise Online Services a minimum of 500 seats need to be licensed in order to qualify • This means that you can have a contract with a minimum of 500 Windows E3 licenses included • For a list of Enterprise Online Services, see next slide 1 2
- 18. IMPORTANT TO NOTEON THIS CLAUSE: Microsoft labels certain services as Enterprise Online Services. These are: • These services can be reduced upon anniversary to a minimum of 500 • In combination with on-premises licenses (like CoreCAL, Windows Device license, or even Office 365 Pro plus) you are not able to reduce to the minimum requirements of 500, but need to maintain the level at the start of the contract as a minimum • Microsoft labels other products as Additional Online Services, this is anything not listed above – so also components of the suites • These licenses can be reduced at the anniversary to a minimum of 0, as such cancelling an order if all licenses under that order are set to 0. You are able to reduce Subscription licenses upon anniversary! CONTRACTUAL POSSIBILITIES WHAT IS IN THE EA? Microsoft 365 suites excluding M365 F1 and M365 F3 Office 365 suites Enterprise Mobility + Security suites Windows E3 or E5
- 19. (i) Online Serviceseligible for an Extended Term. For Online Services identified as eligible for an Extended Term in the Product Terms, the following options are available at the end of the Enrollment initial or renewal term. 1) Extended Term. If Enrolled Affiliate does not renew prior to the Expiration Date, access to the Online Services will automatically continue month-to-month in accordance with the terms of the Enrollment (“Extended Term”) for up to one year unless designated in the Product Terms to continue until cancelled. For the first twelve months of the Extended Term, Online Services will be invoiced monthly at the then-current published price for Enrolled Affiliate’s price level as of the Expiration Date plus a 3% administrative fee. As of the first day of the thirteenth month of the Extended Term, Online Services that continue until cancelled will be invoiced at the then-current published price for price level A plus a 3% administrative fee. During the Extended Term, the then-current Online Services Terms and Product Terms will apply to Enrolled Affiliate’s use. If Enrolled Affiliate does not want an Extended Term, Enrolled Affiliate must submit a request to Microsoft at least 30 days prior to the Expiration Date. 2) Cancellation during Extended Term. At any time during the first year of the Extended Term, Enrolled Affiliate may terminate the Extended Term by submitting a notice of cancellation to Microsoft for each Online Service. Thereafter, either party may terminate the Extended Term by providing the other with a notice of cancellation for each Online Service. Cancellation will be effective at the end of the month following 30 days after Microsoft has received or issued the notice. (ii) Subscription Licenses and Online Services without an Extended Term. If Enrolled Affiliate elects not to renew, the Licenses will be cancelled and will terminate as of the Expiration Date. Any associated media must be uninstalled and destroyed and Enrolled Affiliate’s Enterprise must discontinue use. Microsoft may request written certification to verify compliance. EXTENDED TERM is an important aspect of understanding Cloud LIcensing for a couple of reasons: • Mergers and acquisitions: If you renew under a new name or with a new company, you might continue to pay for subscriptions under your expired (old) contract • If you decide to discontinue cloud services: not renewing your cloud services at end of term may cause invoices to be automatically generated • If you are still negotiating with Microsoft: your contract is expired, but the new contract is not in place Always check your EXTENDED TERM STATUS with Microsoft! It may cause unwanted invoices and discussions CONTRACTUAL POSSIBILITIES WHAT IS IN THE EA? From the Enterprise Enrollment:
- 20. THE ONLINE SERVICESTERMS is a document that govern a Microsoft customer’s use of their Online Services This is a dynamic document added to all Microsoft Volume Licensing Contracts – updated monthly If you have an Enterprise Agreement, the OST version in effect is the one released at the date of signing the EA If Microsoft makes changes to the OST that are more restrictive, you do not have to accept these until your contract renewal Tied to the OST is a Data Processing Agreement – when you sign a contract with Microsoft, always review both OST and DPA and see if they are in line with your organization’s policies Cloud Services specifics are detailed in this document – know what you use, and how you are allowed to use it! This is additional to the Product Terms, that may hold similar clauses to what is present in the OST The Online Services Terms: CONTRACTUAL POSSIBILITIES WHAT IS IN THE EA?
- 21. FROM SA PRICING BUSINESSAS USUAL, WITH SIMPLER LICENSING
- 22. Remember the belowpicture from earlier? An old school Ent Desktop + AddOn to M365 is considered to be about the same price as a Microsoft 365 license BENEFICIAL PRICING FOR ON-PREM TRANSITIONS FROM SA PRICING Office 365 E3/E5 Enterprise Mobility + Security E3/E5 Windows E3 (per user) MICROSOFT 365 E3/E5 Office Professio nal Plus Core CAL suite / E CAL suite Windows Upgrade (DVC) PRO/ENT DESKTOP On-premises Licensing Cloud subscription Licensing LICENSING Office 365 E3/E5 Enterprise Mobility + Security E3/E5 Windows E3 (per user) MICROSOFT 365 E3/E5 Office Professio nal Plus Core CAL suite / E CAL suite Windows Upgrade (DVC) PRO/ENT DESKTOP ADD-ON TO M365 / O365 / EM+S / WIN E5 Looking at this from a financial perspective – comparing cloud and on premises licensing shows quite a big change
- 23. Office 365 E3/E5 Enterprise Mobility + Security E3/E5 Windows E3 (peruser) MICROSOFT 365 E3/E5 Office Professio nal Plus Core CAL suite / E CAL suite Windows Upgrade (DVC) PRO/ENT DESKTOP Office 365 E3/E5 From SA Enterpris e Mobility + Security E3/E5 From SA Windows E3 From SA (per user MICROSOFT 365 E3/E5 From SA From SA pricing is for customers that paid Software Assurance on the “old” Enterprise Products for their on premises use It is a 15% decrease from Full USL pricing (non-From SA) It benefits customers who have invested in Microsoft technology for a long time BENEFICIAL PRICING FOR ON-PREM TRANSITIONS FROM SA PRICING Microsoft introduced From SA Pricing: 15% ADD-ON TO M365 / O365 / EM+S / WIN E5
- 24. FROM SA PRICINGis available for all Microsoft Online Services that have an on- premises counterpart Appendix C of the Product Terms state all From SA entitled licenses Leverage the From SA pricing for all software you are using! Microsoft is sometimes able to grant more From SA than you are entitled to, be sure to always discuss your options For some services, there are options to From SA that might not be apparent: i.e. CoreCAL can grant an EM+S E5 From SA price The Product Terms document states: THE PRODUCT TERMS FROM SA PRICING
- 25. DUAL USE RIGHTS EXPLAINED BUSINESSAS USUAL, WITH SIMPLER LICENSING
- 26. AS A STARTINGPOINT, the picture on the left shows a great deal of information: • The Product Terms Appendix A shows an overview of what Microsoft calls CAL/ML Equivalent Licensing • Every CAL you currently use, has an equivalent Online Service license This means that when you license yourself with an Online Service, you have the rights to use the license to access an on-premises server AS AN EXAMPLE: • You purchase Microsoft 365 E/A3 • You now have the right to access all relevant Application Servers for Exchange, Sharepoint and Skype for Business -> Office 365 E3 gives you this use right • Have the rights to Windows Server access -> Enterprise Mobility + Security E3 gives you this use right NB. Dual Use Rights is also available for Dynamics 365 HOW TO MOVE CAL SUITE LICENSING TO CLOUD SUBSCRIPTIONS CAL EQUIVALENT LICENSING
- 27. The above specificallystates what your rights are in case you are licensing Microsoft 365 E3/E5 for your entire organization When licensing Microsoft 365, you have the added benefit to no longer license Application Servers WHAT ABOUT APPLICATION SERVER LICENSES? CAL EQUIVALENT LICENSING WHAT TO LOOK OUT FOR: When not standardizing on Microsoft 365 E3/E5 for everyone, you need to have a license for the Server Applications F1/F3 is never included, as this is a license for Firstline workers. These licenses do not have CAL equivalency either
- 28. • Typically, asa long time Microsoft customer, you most likely have invested in Office Pro Plus Software Assurance for years • In moving to the cloud, your License + Software Assurance investments will grant you a “From SA” license (discussed before) • From SA is important here, and this benefit as such does not apply to all organizations • Additional benefits, like the one below, apply as well! 2.2.2 Office Professional Plus 2.2.2.1 Microsoft 365 From SA User SLs: For each Licensed User to whom customer assigns a Microsoft 365 From SA User SL, Customer may install: one local copy of Office Professional Plus for the sole use of the Licensed User for the duration of the subscription; and one local copy of Office Professional Plus for new User SLs added to the same volume license agreement for the sole use of the Licensed User for the duration of the subscription. The number of new User SLs granted those user rights may not exceed the number of From SA User SLs initially covered under the agreement. 2.2.2.2 Microsoft 365 User SLs acquired in MPSA For each Licensed User with a device covered with Software Assurance for Office Professional Plus to whom Customer assigns a Microsoft 365 User SL, Customer may install one local copy of Office Professional Plus for the sole use of the Licensed User for the duration of the subscription. UNDERSTANDING YOUR POSSIBILITIES FOR MICROSOFT 365 APPS DUAL USE RIGHT FOR OFFICE Office Pro Plus – the expensive one. There are options here as well! Basically, this means that alongside your Microsoft 365 E3/E5 (From SA) subscription, you have the right to use a local dopy of Office Professional Plus CAVEAT: not entitled to From SA pricing? This is not for you, and if you need on prem licensed Office Pro Plus, different scenario’s would apply
- 29. HOW DO THEYCOMPARE? WINDOWS PER DEVICE & PER USER Windows per Device versus per User: both Device and User licenses Per User: as it states, assign the license to a user – user is allowed to use Windows on multiple devices Per Device: as it states, assign the license to your qualified devices. There is a 1:1 relation You can mix and match PER DEVICE is usually bought as an Upgrade and Software Assurance license in an Enterprise Agreement PER USER is usually bought as a Subscription license in an Enterprise Agreement
- 30. Licensing cloud insteadof on-premises can have many benefits HOW CAN YOU BENEFIT? DUAL USE RIGHTS The previous slides showed the HOW, now we are discussing the WHY: Focus of Microsoft is on selling cloud licenses! WHY Don’t state to Microsoft “I do not and will not move to the cloud” Instead tell them “I want to move, but in due time – how can I best do this?” Find your perfect fit in cloud licenses! Don’t let Microsoft persuade you into their one-size-fits- all approach Do reach out to us in case you want help to identify your ideal configuration! + LICENSING MADE SIMPLER one license instead of multiple (depending on solution needed) + INCENTIVE FOR MICROSOFT their sellers rather sell cloud, on-prem does not fill their targets + MOVE TO THE CLOUD AT YOUR PACE business as usual, but innovation is possible
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- 32. Dynamics applications are licensedunder a variety of models consisting of assigned licenses that are dedicated to a named user or device and unassigned licenses that provide access to a feature or service at tenant level. HOW TO LICENSE DYNAMICS 365 Licensing overview: ASSIGNED licenses are (not an exhaustive list): • Enterprise users or principal users, such as salespeople, customer service representatives, finance employees, controllers, human resources, and supply chain managers are licensed with: Sales Enterprise, Customer Service Enterprise, Field Service, Human Resources, Finance, Supply Chain Management, Commerce, Project Operations, Remote Assist, Guides, Business Central Premium, and Business Central Essentials. • Professional users whose work scenarios are generally less complex with streamlined capabilities to provide core support functionality are licensed with: Sales Professional and Customer Service Professional. • Device Licenses: perfect for users sharing devices – though there is a break even point usually • Team Members: users without a specific function, but who require basic access to the Dynamics 365 environment UNASSIGNED Licenses are: • Full application access Licenses: applications that are not assigned per user but tenant level – like D365 Marketing • Capacity licenses: add-ons that offer additional storage or environments Note around Team Members: As stated on the right, for basic access like reading data across all applications. If you have custom apps, Team members is not a good solution!
- 33. Note: Base andattach license provide access to same application functionality Single App User Two App User Three App User HOW TO LICENSE DYNAMICS 365 CRM & ERP Sales Customer Service Field Service BASE LICENSE: the first Business Application purchased at the standard price ATTACH LICENSE(S): incremental Business Application (USL) purchased after the Base license at a heavily discounted ‘Attach price’ Sales Sales Customer Service How to license D365 applications:
- 34. Main Apps OperationActivity HR Self Serve HOW TO LICENSE DYNAMICS 365 ERP Per User Per User Per User D365 ERP Additional Licenses: For users that need full access For instance: headquarters and central operations users Light use license – includes Team Members functionality and additionally: - Approve activity related transactions - Create or Edit items related to special activities - Operate point of sale devices For users like store employees Applies to the HR Application only and provides additional use rights. For instance: - Update employee info - Report sick leave - View employee info as a manager Team members grant these same rights, plus rights to use functionality in other apps
- 35. Overview of attachlicenses: Commerce CS Ent CS Pro Field Svc Finance HR Proj Ops RA Sales Ent Sales Pro SCM Business Central Essentials x x Business Central Premium x x Commerce x x x x x x x x x Customer Service Enterprise x x x Customer Service Professional x Field Service x x x x x Finance x x x x x x x x x Guides Human Resources x x x x x x Microsoft Relationship Sales solution Plus x x x x x Project Operations x x x x x x Remote Assist (RA) Sales Enterprise x x x Sales Premium x x x x x Sales Professional x Supply Chain Management (SCM) x x x x x x x x x Dynamics 365 Attach Licenses per user Dynamics 365 Base licenses per user How to read: If you purchase a Customer Service Enterprise base license, you can add Field Service and/or Sales Ent or Sales Pro as attach licenses IMPORTANT NOTES: • You cannot have Pro and Ent licenses in the same environment and needs to be spread over tenants • Attach licenses can only be assigned to users with a correct base license • In EA, if incorrectly purchasing attach licenses, you can step up the license to a base • In CSP and MPSA the attach license would need to be swapped for correct base license • Dual use rights apply! HOW TO LICENSE DYNAMICS 365
- 36. Understanding storage (it’scomplicated!): IMPORTANT NOTES: • First license gives you default capacity and is shared per tenant • Additional base licenses give you incremental storage • Attach licenses use the same entitlements as your base license and don’t increase capacity • Additional capacity, if needed, is bought through specific Capacity licenses (see snippet below) • In order to add environments, you will always need to have a minimum of 1 GB space available • Calculate your storage need correctly! Again, this is where we can help your organization in optimally licensing your estate HOW TO LICENSE DYNAMICS 365
- 37. Additional items tonote: Product Minimum Quantity Marketing Additional Contracts Tier 3:2 Tier 3:2 Tier 3:2 Microsoft Relationship Sales Solution 10 Dynamic 365 Commerce* Dynamic 365 Finance* Dynamic 365 Supply Chain Management* Dynamic 365 Project Operations* 20 Dynamic 365 Human Resources 5 Dynamic 365 Customer insight Attach 20 20 1 Professional Direct Support 20 *250 maximum once met all remaining users are covered with no additional licenses required* HOW TO LICENSE DYNAMICS 365 Minimum quantity requirements: Product Terms page 67 states minimum requirements External users don’t need licenses Multiplexing (pooling connections), as with all Microsoft licensing, is not allowed Dual use rights are available for Dynamics 365 Look at your storage requirements! These minimums can be mixed and matched in EA, but not in CSP! All apps grant Team Member functionality
- 38. Dynamics 365 Plan Full Users Plans Applications Marketing FieldService Project Service Automation Retail Sales Customer Service Talent Finance and Operations Customer Engagement Plan Unified Operations Plan 2K contacts Included with 10 seats of Dynamics 365 or Customer Engagement Plans Included with Unified Operations Plan 20 seat min 5 seat min 20 seat min If you are on the Customer Engagement Plan, Unified Ops Plan or Dynamics 365 Plan, you need to: • know which apps are in use • investigate how many environments are in use • check the amount of storage you are currently using The old model had tiered pricing, the new model has not… This means pricing in the new model can be 4/5x higher! Investigate your options early, and negotiate your discounts HOW TO LICENSE DYNAMICS 365 Old Licensing model to new Licensing model: $210 $95 $95 $95 $95 $115 $190 $40 $170
- 39. MICROSOFT AZURE THE ODDONE OUT?
- 40. Buying Azure: COMPLEX INLICENSING MICROSOFT AZURE How does it DIFFER to other cloud licensing programs? • Initiate the full potential (all services) by setting up a subscription. This can be done by purchasing via one of the listed routes on the left • When the subscription is set up, you initially don’t have to pay • When setting up resources and use of resources start, then charges are incurred Resources can differ in their unit of measure: VMs can go by hour, Storage per $/GB or $/transaction, databases $/GB • On one tenant, you can have multiple subscriptions for different parts of the company This means you can create an organizational structure and cost management for retrieving cost within your org • Payment is done monthly in arrears, based upon the actual consumption of services Azure is Microsoft’s growing set of integrated services to help customers move faster, do more and save money Via a partner through the CSP program Through a Volume Licensing Agreement Direct from Microsoft through an internal sales person Direct from Microsoft through Azure.com MICROSOFT AZURE – Cloud Computing Services
- 41. IMPORTANT NOTICE! MICROSOFT AZURE MCAis handled in our other training around Volume Licensing programs Changes for customer buying Azure through the EA 2019 Nov 1 Beginning on November 1, 2019 commercial customers in direct* markets may not initiate or renew an Azure-only SCE or introduce Azure to an Enterprise Enrollment that did not previously include Azure *Argentina, Australia, Belgium, Canada, Chile, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Jamaica, Italy, Lichtenstein, Luxemburg, Netherlands, Norway, Portugal, Puerto Rico, South Africa, Spain, Sweden, Switzerland, Trinidad & Tobago, U.K., and Uruguay
- 42. IMPORTANT TO UNDERSTAND MICROSOFTAZURE UNDERSTANDING PAYMENT OPTIONS & COMMITMENTS IN EA: COMMITMENT LEVEL IMPORTANCE TO MICROSOFT Pay as you go (PAYG) Microsoft Azure Consumption Commitment (MACC) Prepayment Benefit of the EA: Pricing Threshold! Not available in MCA at the moment PAYG: use services in your contract, get invoiced in arrears on actual consumption MACC: paper commitment. State consumption amount over term of contract. Not spend? Microsoft reserves right to bill In case of prepayment: What happens if you spend more? This will be charged separately as overage against same pricing
- 43. Azure Hybrid Benefit: •Use on premises Windows Server and/or SQL Server with Software Assurance licenses to reduce the cost of VMs and Databases in the Azure cloud • Most Microsoft customers have Software Assurance on Windows Server and/or SQL Server – use your entitlements on prem and/or in the cloud • Don’t cannibalize on your past investments – reduce spend on Azure Services by leveraging investments in the past • Easy to set up – you can start saving right now! • With AHB there is no need for Extended Security Updates (ESU) – move your environment to the cloud, get free ESU Reserved Instances: • Lock-in a certain VM type in a specific datacenter to get significant cost savings on the prices • 1-year or 3-year Reserved Instance possible • Potentially save up to 72% on certain VMs (towards 80% with AHB) • Cost of the RI will be effectuated in your monthly bill, or immediately reduced from your total in case of prepayment • Potential to either: − Cancel an RI: termination fee applies and there is a cap towards total value to be returned − Exchange an RI: choose different region and/or VM type – total cost is calculated for the new term minus the remaining cost of the exchanged RI • Can be assigned at enrollment level or subscription level, so you can manage organizational or department level use Find more in-depth training on AHB here: https://youtu.be/FVdqMgKppxw COMPLEX IN LICENSING MICROSOFT AZURE MICROSOFT AZURE – Programmatic Cost Reduction Possibilities:
- 44. MICROSOFT AZURE WHAT AREYOU ABLE TO NEGOTIATE? Concessions Azure 1. Azure Commitment Discount (ACD) – This is depending on your current consumption level and roadmap and consumption plan towards to the future – have this clear and ready! 2. Flexibility – preferably keep away from the monetary/upfront commit model; Often it seems very practical to prepay but we strongly recommend not to 3. Agreements spanning > 3 years – Microsoft is willing to have you commit for longer periods 4. Line item discounts: • ACD is applied on any and all line items except Reserved Instance – ask for same discount on RI • There are items where you can request larger discounts – if it makes sense for you, do request it! 5. Azure Credits – in certain scenario’s Microsoft might be willing to grant free Azure consmption credits 6. Be considerate which contract model you choose, we advise to stay in EA, EAS or SCE at this time • SCE provides pricing thresholds for your consumption – the new MCA does not (yet?) 7. Azure Hybrid benefit – if you are able to standardize on Windows Server, adding your entitlements as subscription to an SCE will lower your pricing and will help you with flexbility 8. If you are negotiating a new contract and are currently consuming in overage – request to not pay the overage but deduct this from your new commitment! 1 2 3 4 5 6 7 licenseq.com 8
- 45. COMPLEX IN LICENSING MICROSOFTAZURE MICROSOFT AZURE – Takeaways Set up an account free of charge Set up a good Cloud Cost Management framework before you start consumption – this will save you money in the long term Pay only for what you use 1 2 3 Review your spend on a monthly basis, look for easy optimizations. Ask questions like: • Is there a newer version of the VMs I currently use? It will most likely be cheaper • Do I need to run my VMs 24/7? If so, can I use a Reserved Instance? • Am I using the right type of storage? Can I use a cheaper version If usage grows month over month, decide if you want to work towards price commitment and its added incentives as discussed on the previous slide Leverage items that save you money: Reserved Instance and Azure Hybrid Benefit 4 5 6
- 46.
- 47. PowerApps: Low-code and no-codeapp development Licensing can be difficult to understand, due to the model being different License Users or Apps, and license for additional capacity and portals How to deal with External users? PowerAutomate: DPA uses PowerAutomate to enable automation of modern systems through APIs – 350 first- and third-party connectors RPA enables automation of legacy apps where there aren’t any connectors available (like with DPA) RPA desktop flows can be categorized in Attended RPA (human involvement) and Unattended RPA (without user involvement). FOCUSING ON POWERAPPS & POWERAUTOMATE MICROSOFT POWERPLATFORM Select Microsoft 365 and Office 365 licenses include Power Apps and Power Automate functionality So what is PowerApps & PowerAutomate? Microsoft states: Increase agility across your organization by rapidly building low-code apps that modernize processes and solve tough challenges. Microsoft states: Streamline repetitive tasks and paperless processes with Microsoft Power Automate — so you can focus your attention where it’s needed most.
- 48. POWERAPPS PER USERPLANS: • Named User license to enable a user to access any number of apps and portals across any environment • Licenses are assigned through the Microsoft 365 Admin Center Typically used for organizations that are using many applications across many environments POWERAPPS PER APP PLANS: • A single license enables a user to access 2 apps within 1 portal within an environment • Licenses are allocated to users when an app in an environment is shared with a user • Licenses are stackable – meaning if you need a user to access more than 2 apps in an environment, you can (and should) allocate more licenses to that app • Licenses are assigned to apps via the Power Platform Admin Center Best for business with limited apps and environments – when the number of environments and apps grows, should switch to user based licensing THE LICENSING MODEL MICROSOFT POWERAPPS There are 2 licensing motions for PowerApps Note: at this moment there are no step-ups from per App licenses to per User
- 49. THE LICENSING MODEL MICROSOFTPOWERAPPS Use portals to allow access for users. Portals need not be licensed, only access to the portals! External use, portals and additional capacity: Three scenarios: INTERNAL, AUTHENTICATED USE: license according to previous slide EXTERNAL, AUTHENTICATED USE: license with PowerApps Portals login capacity Add-On – buy license for the required amount of monthly logins Note: multiple logins in a 24-hour period by 1 authenticated user are counted as one billable login ANONYMOUS USERS: acquire license for PowerApps Portals page view capacity add-on (100k page views ~$100 per month)
- 50. POWERAUTOMATE PER USERPLANS: • Named User license to enable a user to access any number of flows across any environment • Licenses are assigned through the Microsoft 365 Admin Center Typically used for organizations that are using many applications across many environments POWERAUTOMATE PER FLOW PLANS: • A single license enables an unlimited number of users to use a single flow across an organization • Minimum quantity of 5 per Flow plans licenses needed • Licenses are stackable – meaning if you need a user to access more than 2 apps in an environment, you can (and should) allocate more licenses to that app • Licenses are assigned to apps via the Power Platform Admin Center Best for businesses that want to have all users access the created flows within the organization THE LICENSING MODEL MICROSOFT POWERAUTOMATE There are 2 licensing motions for PowerAutomate (DPA): DPA
- 51. POWERAUTOMATE PER USERWITH ATTENDED RPA: • Base license is the same as the PowerAutomate per User license • Includes ability to create desktop flows for automation • The desktop flows must run on the device of the licensed user • If there are multiple flows, they must be run sequentially Attended scenarios are triggered by explicit user action POWERAUTOMATE UNATTENDED RPA ADD-ON: • Add-on license to PowerAutomate per Flow License or PowerAutomate per User with Attended RPA license • Licenses are assigned to apps via the Power Platform Admin Center Unattended scenarios are triggered in the background THE LICENSING MODEL MICROSOFT POWERAUTOMATE There are 2 ADDITIONAL licensing motions for PowerAutomate (RPA): RPA
- 52. CONCLUSIONS As stated initially:Microsoft Licensing for Cloud services is COMPLEX! CLOUD LICENSING LicenseQ often encounters clients struggling to understand Microsoft cloud licensing We can help you make sense of this!!! Profiling is important! Look at all the suites there are, this means a one size fits all approach is usually costing you money! Our optimization projects usually deliver a minimum of 10% of savings on your cloud spend. Do not say “no I don’t need cloud licenses”. Rather say “interesting, what are my benefits?” We live and breathe this, allow us or companies like us to help you with your optimal configuration! Reach out to us and request a free consultation. We are always happy to help! floris.klaver@licenseq.com
- 53. MICROSOFT NEGOTIATIONS Follow usOnline! Follow us on LinkedIn Follow us on YouTube
Editor's Notes
- #3 Note: this session will have a strong focus on cloud licensing models for the Enterprise Agreement Licensing alternative scenario’s like CSP and MCA is covered in our Volume Licensing Basics series
- #6 Drag Picture and Send to Back
- #11 Microsoft Desktop Optimization Pack is a suite of utilities for Microsoft Windows customers who have subscribed to Microsoft Software Assurance program. It aims at bringing easier manageability and monitoring of enterprise desktops, emergency recovery, desktop virtualization and application virtualization. Technologies for virtualization, management and restore: App-V, Micvrosoft Bitlocker Administration and Monitoring (MBAM), Diagnostics and Recovery Toolset (DaRT)
- #17 Drag Picture and Send to Back
- #22 Drag Picture and Send to Back
- #26 Drag Picture and Send to Back
- #32 Drag Picture and Send to Back
- #40 Not discussing User Licensed Services like Azure Active Directory
- #43 Describe annual prepayments (not done anymore, but discuss anyway)
- #45 Floris Theses concessions are very specific for the Microsoft Azure platform. A lot of different items here, as this model works very different. It is however, the most interesting aspect for Microsoft to focus on! They really want this business In order to benefit from these concessions, you would need to work towards some sort of commitment with Microsoft. Pay as you go generally can get you some incentives, but working towards a committed value (either prepayment or paper commitment) will get you easier access to these benefits
- #47 Not discussing User Licensed Services like Azure Active Directory
- #48 PowerAutomate: Users can connect to more than 350 first- and third-party services with built-in API connectors for everything from Adobe to Zendesk to on-premises products. There are hundreds of triggers for them to initiate workflows in whatever way is most convenient – whether that’s with a button, through connected cloud apps, or on a schedule, and they can automate thousands of actions choosing from built-in actions or creating their own. It’s easy for all users to get started because there’s a large set of curated, prebuilt templates that make it easier for users to start automating immediately and customize as their needs evolve.