Microsoft Product Terms: June 2020

June is the last month of Microsoft’s financial year but they’re still made a few changes worth noting in this month’s Product Terms:

  • 5 year reservations for Azure VMs are added – with a 35% early termination fee
  • Azure Hybrid Rights for SQL have been expanded so now:
    • on-premises SQL Server Standard licenses can be used to run SQL Server Enterprise VMs in Azure
    • on-premises SQL Server Enterprise licenses can be used to run SQL Server Standard VMs in Azure
  • Changes to the eligibility for Office 365 and Microsoft 365 F1 & F3 licenses

SQL Server

The core conversion ratio is different for the two new scenarios:

4 x SQL Server Std on-prem cores w/SA = 1 x SQL Server Ent Azure core

1 x SQL Server Ent on-prem core w/SA = 4 x SQL Server Std Azure core

You can see the above table, and the info, on pages 54-54 of the June 2020 Product Terms.

F1/F3 changes

Microsoft have again changed the rules around who is eligible for a “Firstline” SKU. The new requirements are that to qualify for an F1/F3 license a worker must satisfy at least one of these conditions:

  • 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
    • Other licensed Microsoft Firstline Worker users must also use the device as their primary work device
    • Any software or services accessed from the shared device requires the device or users to be assigned a license that includes use of those software or services

The previous guidance, updated in November 2019, was:

“A Dedicated Device is a computing device used for work with a 10.1” screen or larger, used by the user more than 60% of the user’s total work time during any 90-day period.”

These new rules should make it a bit easier for everyone to police but, for organisations already licensed for F1/F3 prior to June 1, 2020, you can continue to license based on the previous rules until your next renewal.

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