Microsoft announce the end of Open Licensing


Image by Gerd Altmann from Pixabay

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.

Microsoft Product Terms: August 2020


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Nothing too major this month, as expected:

  • The Teams Advanced Communications SKU has been added
  • There are a few updates to SQL Hybrid Benefit info for Server Subscriptions
  • Added extra Power Platforms info covering:
    • Purchase minimums
    • Extended Use Rights for Portals
    • Additional pre-requisites

Nothing new for Power Platform, really just moving key info from the licensing guide to the Product Terms – which is the way it should be.

Microsoft July 2020 licensing changes


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It’s just a few weeks into their new financial year and Microsoft are already making changes.

Perpetual software via CSP

Continuing their focus on the CSP (Cloud Solution Provider) program becoming the primary licensing model for the majority of organisations, Microsoft are now making perpetual software aka ‘software licenses’ available via CSP – although Software Assurance (SA) will not be available. This includes products such as:

  • Office Standard/Professional 2019
  • Exchange Server 2019
  • SharePoint Server 2019

The software must be run on hardware dedicated to the customer and downgrade rights are included.

Aimed primarily at those customers who purchase via Microsoft Open licensing, this new offering is intended to reduce the need for organisations to have CSP and another license agreement. From July 1, 2020, a select set of “indirect providers and their indirect resellers” will be able to transact these new additions and then it will open up to all CSP partners from January 2021.

E5 gets calling minutes

UPDATE AUGUST 1,2020: Microsoft have announced they’re cancelling the introduction of both the Enterprise Voice SKUs AND adding Calling Plans to E5.

Shoutout to Rob Quickenden for highlighting this change in Twitter.

Microsoft say in their updated post that they’re no longer launching ” due to rapidly evolving market conditions” and that they will “continue to assess the market and sales data to determine whether the launch will be rescheduled”.

This seems like a strange move. The additions made a lot of sense and have been well received by most people that have already heard about it! I wonder what Microsoft’s logic is?

See more here: https://docs.microsoft.com/en-us/partner-center/announcements/2020-july#10

August 1, 2020 will see the introduction of “Microsoft 365 Enterprise Voice” – a combination of:

  • Phone System
  • Audio Conferencing
  • Domestic Calling Plans

Which will be available in ‘Plan 1’ and ‘Plan 2’ flavours – ‘Plan 1’ will include 120 minutes of domestic outbound calling while the number of minutes in ‘Plan 2’ is still to be revealed.

These will be available via Enterprise Agreement (EA & EAS), CSP, and Web Direct for all countries where Calling Plans are currently available – except for the United States and Puerto Rico. License pre-requisites are M365 F3/E3 or O365 F3/E1/E3.

Additionally, 120 minutes of domestic outbound calling will be added to:

  • Microsoft 365 E5/A5
  • Office 365 E5/A5

At no additional cost – although it will require a new SKU.

Further Reading

https://docs.microsoft.com/en-us/partner-center/announcements/2020-july

Microsoft Dynamics 365 Business Central


Microsoft have announced the upcoming release of Dynamics 365 Business Central, with general availability from April 2, 2018 for 14 countries:

  • USA
  • Canada
  • UK
  • Denmark
  • Netherlands
  • Germany
  • Spain
  • Italy
  • France
  • Austria
  • Switzerland
  • Belgium
  • Sweden
  • Finland

with Australia and New Zealand following on July 1, 2018.

What does it do?

Microsoft say this product “brings the full power of Dynamics NAV” to the cloud and covers:

  • Managing finances
  • Operations
  • Sales
  • Customer Service

Licensing

There will be 2 editions available:

  • Dynamics 365 Business Central Essentials
  • Dynamics 365 Business Central Premium

and, although I haven’t seen it confirmed, it’s likely it will have the 300 user limit that applies to the Office 365 Business products.

Interestingly, this product will be available ONLY via the CSP (Cloud Solution Provider) program…there is no volume licensing availability announced.

Further Reading

Microsoft Blog