Renewing Microsoft Software Assurance - Know the Implications

Upgrade rights are included but so are updated rule requirements

 A frequently misunderstood area of Microsoft licensing is knowing what rules apply when you are utilizing downgrade rights (the right to install an earlier version of the product under a newer license).

The version purchased determines the use rights regardless of what version is installed.

However; this gets a little more confusing for companies who maintain Software Assurance on their products.  For example if a customer bought a license for Microsoft SQL Server Enterprise in July of 2011 with Software Assurance (we’ll assume 3 full years of Software Assurance) they would have bought the rights to Microsoft SQL Server 2008R2 Enterprise (either per server or per processor) and enjoyed upgrade rights to later versions of that product. If they choose to run 2008R2 (or an older edition), then the 2008R2 rules would apply. If they choose to upgrade to 2012 then the 2012 rules would apply.

In July 2014 that customer will need to decide if they are going to renew Software Assurance.  As soon as they renew Software Assurance they are in essence refreshing the license version of all products with Software Assurance to the current edition.  Therefore, they would no longer get to leverage the rules from 2008R2 they would now have to follow the rules for Microsoft SQL Server 2014.

There are both advantages and disadvantages for customers but the important thing for customers to remember is that renewing Software Assurance has a licensing impact which should be considered so that you are not accidentally put in a position of being non-compliant.

Just one more thing to consider in your due diligence when determining what products to renew Software Assurance on at your next renewal.  Let us know if we can help!

Microsoft Enterprise Agreements - Microsoft SQL Server Strategies

In case you haven't heard it yet, Microsoft SQL Server 2012 is going to contain some major licensing changes. Customers with existing (or new prior to the release of SQL Server 2012) Enterprise Agreements (EA) or Enrollment for Application Platforms (EAP) with SQL Server included on those agreements have some great opportunities right now but should be working out a strategy to meet their current and projected needs.

If you're unaware of the changes, check out our blog on Network World to find out more details.

If you have SQL Server Enterprise on your EA or EAP before the release of the 2012 version you can continue to purchase the same licensing model until the end of your agreement. In other words, even though the SQL Server Enterprise server and Client Access License (CAL) model will disappear with the release of 2012, if you already have that model on your EA or EAP you can continue buying under that model until your agreement ends. Additionally, if you have SQL Server Enterprise processor licenses on your EA or EAP, you can continue to purchase processor licenses (rather than core licenses) through the end of your agreement.

This presents a number of opportunities for organizations to save money moving forward but having a strategy will be key! If you don't already have these products on your EA or EAP, you might want to consider if you should add them prior to the release of Microsoft SQL Server 2012 (as opposed to waiting until your next true-up which might mean you miss an opportunity). 

As always, let us know if we can help you create a Microsoft licensing strategy that is most beneficial to your organization!

Walking Away From a Microsoft Licensing Agreement

When finances are tight it's not uncommon for companies to start expiring their maintenance contracts, including software maintenance. As with any maintenance agreement that is allowed to expire, it's important that an organization understand the full implications of their actions so that it is a strategic event rather than a reactionary one. 

This is a big topic so will cover several postings - check back for more updates or e-mail us with specific questions. 

Microsoft has three primary ways for an organization to acquire licensing rights - subscription licensing (Microsoft Desktop Optimization Pack aka MDOP is an example), perpetual licensing (their traditional model where once you buy it you own the rights forever), or perpetual with maintenance (Microsoft Software Assurance aka SA). 

Subscription licensing expires at the end of the subscription agreement (unless there is a buy-out option). I'm not going into details on this type for this article. 

Perpetual licensing does not expire but also does not have upgrade rights. So again will not be discussed in this article. 

Perpetual licensing with Software Assurance includes upgrade rights until the SA expires. When SA expires, your organization is entitled to the latest version of the product which has been released to volume licensing customers. Those licenses then become perpetual licenses but inherit the licensing terms from the agreement under which they were acquired. 

For example, a customer who had a full platform Microsoft Enterprise Agreement (which automatically includes SA) which they allowed to expire at the end of May 2010 would walk away with perpetual licenses for the following Microsoft products: Office Professional Plus 2010, Windows Server 2008 Client Access License (CAL), Exchange Server 2010 Standard CAL, SharePoint Server 2010 Standard CAL, System Center Configuration Manager 2007 R2 Client Management License and Windows 7 Enterprise (but be aware of any subscription components, those are not perpetual). However; those perpetual licenses will always be restricted to the licensing rights under the Enterprise Agreement (for example, no secondary use rights for Microsoft Office which means if a user has a desktop and a laptop each would require its own license). 

While a license is covered under SA, it is at it's most flexible. Consider your future plans prior to allowing SA to expire. A couple of things to think about: 1) Will you be using any of the enhanced functionality of the Microsoft Enterprise CAL Suite? 2) Will you be increasing your server virtualization efforts and will Microsoft Windows Enterprise Server or Microsoft Windows Datacenter edition provide you with a more cost effective solution? 3) Are you licensed under Device CALs when User CALs might be more effective or vice versa - these can only be changed at time of renewal and guess what...you're not renewing. 

However; now is still the time to push the envelope on this (before expiration) as there are ways of getting this changed as long as you still have active SA. The first two scenario's would be covered by "Step-up" licenses from lower versions carrying SA. This allows you to leverage the monies you've already spent on the lesser edition by paying a reduced price for the higher edition but can only be completed while you have active SA on the product. 

Watch for more to come...or if you're considering walking away from a Microsoft Licensing Agreement talk to us first, it can help you avoid future costs and headaches!