Added “hidden offer products” to MCA Availability tables – these seem to include:
M365 Cross-tenant User Data Migration
Microsoft Defender Vulnerability Management Add-on to Microsoft Defender for Endpoint for Servers
Viva Glint
VDA Add-on for M365 E3/E5 USL
M365 Apps for Enterprise
Workplace Analytics
Numbers 2, 4, and 7 may not be available “in all sales channels and geos” and may also require “engaging with a Microsoft representative to place an order“.
A new Remote Network Bandwidth SKU has been added to the M365 section (this relates to Global Secure Access via Entra).
Microsoft Dragon Copilot has been added – this is a healthcare focused product from their Nuance acquisition.
Microsoft have announced 3-year subscription terms on CSP for:
1) Microsoft 365 E3 (with and without Teams)
2) Microsoft 365 E5 (with and without Teams)
3) Microsoft Teams Enterprise
4) Microsoft 365 E5 Security
5) Microsoft 365 E5 Compliance
Numbers 1, 2, and 3 will be available from June 1, 2025 while 4 & 5 will come on July 1, 2025.
The price will be the same as 3 x 12-month subscriptions but of course, with the price protection against increases that a longer commit brings. It seems there will be a 100 SKU minimum for these 3-year SKUs.
This strengthens the push for smaller EA customers to move across to CSP and comes hot on the heels of the “channel transfers interface” to that launched in April to help partners renew Enterprise Agreements (EAs) into CSP and retain their existing rights to bundled Teams.
Microsoft have also announced enhanced investment in, and incentives for, CSP partners moving into FY26 from July 1st.
October 2022 will see some Microsoft price changes and new options added to the Server Subscriptions for Azure on the CSP program:
Windows Server 2022 Std 8-core license pack (1yr) drops from $272 to $213.60
Windows Server 2022 RDS User CAL (1yr) increases from $56.04 to $77.04
They are also adding Windows Server Datacenter 8-core license packs in 1 & 3 year variants, to complement the existing Windows Server Std offering.
Microsoft also state that, “over time”, the 1-year software subscriptions via CSP will be aligned with pricing on SPLA – meaning some products will increase while others decrease.
Back in May 2022, Microsoft announced a range of upcoming changes to licensing in cloud environments and now, September 2022, we have more details.
Flexible Virtualization
This new benefit will allow customers with Software Assurance or subscription licenses to use their existing licenses to install and run on any (but not Listed Provider) infrastructure – whether it’s dedicated or shared.
Windows Server virtual cores
Customers will be able to license Windows Server by virtual core on 3rd party infrastructure. There will, of course (!), be a per VM minimum. The Microsoft announcements don’t mention Listed Providers for this element so perhaps this new licensing option will be available with Amazon, Google, and Alibaba…although it seems unlikely!
Desktop virtualization
Microsoft 365 E3/E5/F3 users without a primary device with a Qualifying Operating System (QoS) will be able to virtualize Windows 10/11 on 3rd-party infrastructure (but not Listed Providers) without needing the VDA add-on.
Cloud Solution Provider – Hoster
This new variant of the CSP program replaces the QMTH (Qualified Multi-Tenant Hosting) program. It will enable hosting partners to pre-build hosted desktop & server environments for customers and either provide the licenses or use customer provided licenses – giving greater flexibility for organizations. Customers will need to show proof-of-license for BYOL scenarios – verification of which I assume will be done by the partner. Initially it will only be available for Direct partners but Microsoft “look forward to expanding program eligibility over time“.
Microsoft state these will go live from October 1st so we should see them added to the Product Terms on that date too. I’ll of course be updating on that asap 😊
Microsoft recently announced a range of upcoming changes to CSP via their “New Commerce Experience” and it’s safe to say that it’s caused some consternation among Microsoft partners – and rightly so really.
Westcoast invited me onto their “Cloud Talk” podcast to talk through some of these changes, what they mean for partners, and what the future might look like. We also talk about the Microsoft 365 price increases.
I had a great time talking to Tom about all this and hope you find the podcast useful and interesting – we cover quite a bit in 34 minutes! Check it out on Spotify here:
Microsoft’s upcoming “New Commerce Experience” (NCE) is bringing some changes to the CSP world, which will mean things are different for partners and customers.
Longer term contracts
3 year terms will be available for Microsoft 365 & Dynamics 365 on CSP – a change from the current max. of 12 months. This will enable orgs to protect against price increases over a 36 month period and makes a lot of sense, given Microsoft’s aim to move many Level A Enterprise Agreement (EA) customers to CSP from 2022 onward.
Flexibility costs money
Microsoft say that there will be “new monthly-term offers with a price premium for customers who need term and seat-count flexibility“. One very attractive feature of CSP has always been the ability to reduce/cancel license quantities at a moment’s notice without penalty…the above statement suggests that customers who still want that will have to pay for the privilege.
Customers will be able to combine short/long term licenses, which is great for industries where seasonal fluctuations bring a short term increase to the user base. This is something that was addressed in the MPSA several years ago, before it lost its mantle as the “next big thing” to CSP.
There are various other changes to help partners offer a better service to customers including:
Streamlined trial conversion
Add-ons available separately
Enhanced management capabilities
All changes hit General Availability on October 1, 2021 although some won’t be available in Brazil until February 2022.
Microsoft 365 Education Insights Premium listed as an add-on for Office 365 A1/A3/A5 and Microsoft 365 A3/A5
The “Third Party re-imaging clause” has been added to the Microsoft Customer Agreement (MCA), although I’m not 100% sure why at the moment.
Windows “Get Genuine” licenses have been added to the Microsoft Customer Agreement – is this related to the above addition perhaps?
Various terms and clauses updated – including one which clarifies that Azure Virtual Desktop (AVD) access rights in Window 10 licenses are limited to customers’ own tenant.s
M365 E5 security/compliance add-ons removed as pre-requisites for Premium Assessments.
Professional Direct Support added for Power Platform. Licenses must be acquired for every Dynamics 365 and Power Platform license on the agreement – but has a maximum of 250. Any licenses above that are covered without additional licenses being required.
It seems that Microsoft are gearing up to position CSP (Cloud Solution Provider) as a replacement for Enterprise Agreement Level A.
In a recent blog post from Dan Truax, General Manager for Partner Digital Experiences and Programs, Microsoft revealed some very interesting information. The post talks about how the current purchasing experience across the various licensing programs is “fractured” as each program has its own terms, prices, consoles, sales processes etc. It states that all customers will sign the “Microsoft Customer Agreement” (MCA) which is currently only for CSP and there will be two “motions – Breadth (CSP) and Enterprise. The desire to simplify licensing is far from new but the blog post goes on to state:
“Partner economics in the breadth motion will be optimized for deals below 2400 seats for new commerce seat-based online service offers, or Azure deals below $1M USD annualized consumption”
Now, “Breadth motion” = CSP and 2,400 seats is the starting point for Enterprise Agreement Level B pricing. This seems to indicate that Microsoft will re-level pricing, and partner rebates and incentives, to make CSP the more attractive option for organisations below 2,400 seats. This is a fairly significant change, furthering Microsoft’s move to make Enterprise Agreements the domain of the large customers with more bespoke needs.
A few years ago, they raised the EA Level A entry point from 250 to 500 seats and I’ve long expected it to be increase to 1,000. In the above post, Microsoft state that the new incentives and pricing changes won’t be implemented before March 2022 at the earliest so perhaps we won’t see any changes until then.
Microsoft Open Licensing is (almost) dead. The writing has been on the wall for so long it’s almost been designated a public artwork so this is no surprise but still…it’s a bit of a surprise. Open Licensing or MOLP/OLP has been the mainstay of Microsoft Volume Licensing for decades and the primary licensing vehicle for most SMBs and smaller organisations around the world.
What changed?
A few years ago though, Microsoft introduced the CSP (Cloud Solution Provider) program and it fast became the anointed one, with a huge amount of focus from Microsoft and it’s been clear for a long time that (part of) the eventual plan was to replace Open licensing.
When they stopped adding new products to the Open pricelist, that was a pretty big sign but the clearest indication the end was nigh was in July 2020. Microsoft announced that perpetual software like Office Standard, Exchange Server, Project Professional etc. was coming to CSP. So far, CSP has been all about subscription software so wasn’t an option for organisations who, for whatever reason, preferred to purchase their Microsoft outright; those customers stayed on Open licensing.
What’s happening?
Perpetual software via CSP is in limited availability at the moment with general availability slated for January 2021. Nothing changes on Open licensing until December 31, 2021 – so you can continue to buy & renew licenses, Software Assurance (SA), and Online Services throughout 2021. Come January 1, 2022, commercial* customers will no longer be able to buy or renew licenses or online services via Open licensing.
*The specific mention of “commercial” customers is interesting. From that, one can imply that non-profit and academic customers will not be impacted…at least not at the same time. It’s often the case that changes apply first for commercial customers.
Post Jan 1, 2022:
Software Assurance will continue until it’s expiration, even if that is beyond December 31, 2021.
Online Services tokens can still be assigned and used, even after December 31, 2021 – but it must be within 5 -years of purchase.
For new licenses without SA, the primary (for many, only) option will be to buy via CSP.
Software Assurance isn’t available via CSP so, if that’s a deal breaker, you’ll need to look at one of the two Open Value programs – either:
Open Value Perpetual (OVP) – Perpetual licenses + SA
Open Value Subscription (OVS) – Subscription licenses with SA benefits
If you purchase via Open Licensing, work with your partner to understand which program/s will best serve you in 2022 and what additional costs you may be facing. You can see Microsoft’s announcement here.
Cloudy with a chance of Licensing 