Microsoft Product Terms: November 2022


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This month we’ve 2 new M365 data related SKUs:


M365 Advanced Data Residency
M365 Cross-tenant User Data Migration

There is also the removal of:
Microsoft Threat Experts
SharePoint Advanced Management Plan 1

The SharePoint SKU was only added last month but there was very little info available, so it seems likely it was added in error. Let’s see if/when it reappears.

A nice addition – Azure Active Directory Basic now allows unlimited SSO (Single Sign On) – the previous limit was 10 apps so à really significant change.

There is a 50% off promo for Defender for Endpoint on EA from Nov 1, 2023 to June 30, 2023

Microsoft Financial Results: Q1 FY23


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Let’s take a look at Microsoft’s financial results for the first quarter of FY23.

  • Overall revenue was $50.1 billion, an increase of 11%.
  • Operating income was $21.5 billion, up 6%…
  • but Net income was down 14% to $17.6 billion
  • Operating expenses were up 15% to $13.2 billion.

Looking at the individual divisions we see:

Productivity & Business Processes

Overall revenue up 9% to $16.5 billion and within that:

  • Office 365 Commercial revenue up 11%
  • LinkedIn revenue up 17%
  • Dynamics 365 revenue up 24%

Intelligent Cloud

Overall revenue was up 20% to $20.3 billion and within that:

  • Azure growth of 35%

Still a good increase but noticeably slowing down from previous quarters. Microsoft note that cloud margins are down primarily due to increased energy bills.

More Personal Computing

Overall revenue decreased slightly to $13.3 billion and within that:

  • Windows OEM revenue decreased 15%
  • Devices revenue increased 2%

Earnings Call

  • Satya Nadella was quick to point out the hybrid/multi-vendor approaches possible with Azure – talking about SAP & Oracle in the first couple of paragraphs.
  • PowerApps has almost 15 million monthly active users (MAU), a 50% year on year increase, and Power Automate has reached 7 million MAU.
  • Nadella also talked about Teams and how chat has overtaken email as where the average user spends their time. He also said:

“Teams is becoming a ubiquitous platform for business process.”

and shared that the number of enterprise users running 3rd party/custom apps has increased 60% year over year.

  • Microsoft Viva already has 20 million MAU – just the start of things for this line-up I’m sure.
  • Amy Hood spoke about strong E5 momentum being driven by security, compliance, and voice products and an increase in Average Revenue Per User (ARPU) too.
  • Nadella also stated:

we are going to optimize for long-term customer loyalty by proactively helping them optimize [Azure] spend

This follows on from what he said last quarter (and also matches what AWS recently said) that helping customers waste less will ultimately help them spend more.

Further Reading

See all the info, slides, and transcripts here.

Microsoft Intune Premium Suite


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Microsoft, somewhat confusingly, “introduced” Intune at Ignite 2022…despite it having existed for what – at least a decade at this point?! It’s more of a Jay-Z style “allow me to re-introduce myself” as it seems Microsoft have decided to make Intune the primary brand for endpoint management going forwards…say goodbye to Microsoft Endpoint Management (MEM) as part of this.

The new suite will include:

  • Remote Help for Windows & Android
  • Microsoft Tunnel for Mobile App Management
  • Endpoint Privilege Management
  • Advanced endpoint analytics

as well as more features to be announced in 2023.

The add-on license will be available for Microsoft 365 E3/E5 and any licenses that include Intune and will, not surprisingly, be cheaper than buying all the individual components separately. This is another example of where organisations licensed with M365 E5 must still acquire additional licenses – something I know many are not happy with.

Further Reading

See more details on the features here.

Microsoft Teams Premium


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Announced at Ignite 2022, Microsoft have introduced a Teams Premium add-on SKU – giving more benefits to organisations as hybrid working becomes more common and continues to evolve. Given the huge success of Teams, and how integral it has become to so many organisations, it makes sense that Microsoft will look to monetize this with a focus on hybrid features. These new options include:

Meeting Guides

This gives a set of pre-built options for different types of meetings i.e. client calls, brainstorming, help desk calls etc. that will set the length and best practices.

Customised branding

Again, the option to have customised meeting lobbies appears as well as custom backgrounds and together modes.

Intelligent Recap

This sounds like it could genuinely be a game changer.

It will use AI to pick out action items and assign owners during meetings and then create recordings which show key events such as where your name was mentioned or when a screen was shared – making it easier, and faster, to cover what you missed. It will also highlight speakers based on who you work most closely with, so you can skip through the transcripts to find relevant sections more easily.

Live translated captions

This is very cool for international companies and partnerships. An organiser having Teams Premium will mean all attendees get live captions in one of 40 languages.

Advanced Meeting Protections

New options around the security of meetings and recordings include watermarking and, for E5 customers, the ability to use Purview Information Protection sensitivity labels.

Appointment management

Teams Premium will offer advanced Virtual Appointments with better end to end management, text reminders, appointment access without the Teams app, a dashboard to see appointment overviews, and analytics. See more here.

Advanced webinar features

There are also some new features that help enhance the Teams webinar offering – something I’m particularly interested in. These include:

  • Registration waitlist
  • Automated branded reminder emails
  • Virtual green room – this gives a space for speakers to chat, monitor Q&A, check content etc. separate to attendees
See more here

Teams Premium also gives control over which speakers, videos etc. attendees can see – which can be very useful when you have multiple presenters at once.

Pricing is currently expected to be $10 per user per month. The Preview will begin in December 2022 and General Availability with be February 2023, although intelligent recap features will be “first half of 2023”.

Further Reading

Microsoft announcement

Teams Premium site

Teams Premium info for Admins

Microsoft Product Terms: October 2022


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Most of the focus is on the changes that Microsoft have made to cloud and virtualisation licensing for Windows Server, Windows 11, Office and more – you can check out my analysis of that here – but there are other changes this month too.

Three new products are added:

Viva Sales

I cover this in more depth here but it is now in the Product Terms and there’s a clause that organisations must use a Viva Sales connector to link it to their CRM…so no 3rd-party or in-house connectors.

SharePoint Advanced Management Plan 1

I’ve not seen any info about this and am still looking for details – let me know if you have any info!

Workload Identities

Again, no info about these yet. Looking at Microsoft Learn/Docs, workload identities are “applications, service principals, and managed identities” but I’m not sure how this relates to the new SKU.

There was also:

The removal of Intune for EDU (device) from MCA

Windows 11 Home to Pro availability expanded to Central and South America

Microsoft cloud and virtualisation licensing changes


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Microsoft first announced these changes in May 2022 and, after an update in September, we’ve now got the majority of the info in the October 2022 Product Terms document. Let’s take a look at what’s changed and what it means for us all.

First things first, the Listed Providers:

  • Microsoft Azure
  • Amazon AWS
  • Google Cloud Platform
  • Alibaba Cloud

are not included in any of these changes.

Outsourcing Software Management clause

This is in the “Universal license terms for all Software” which means it applies to all products under this category. There are 3 new elements within this clause:

Flexible Virtualisation Benefit

The Microsoft wording:

Customers with subscription licenses or Licenses with active Software Assurance (including CALs) may use licensed copies of the software on devices, including shared Servers, that are under the day-to-day management and control of Authorized Outsourcers.”

This is similar to the existing “License Mobility through Software Assurance” benefit but doesn’t have the requirement to use an “Authorized Mobility Partner” -rather, you can use any “Authorized Outsourcer” partner…which is any partner that isn’t a Listed Provider.

While much of the focus here is on Windows Server, this new benefit applies to other products such as SQL Server too.

CSP Hoster

The Microsoft wording:

Customers with subscription licenses or Licenses with active Software Assurance (including CALs) may access their licensed copies of software that is provided by a Cloud Solution Provider-Hoster and installed on that partner’s devices.”

Dedicated device outsourcing

The Microsoft wording:

Customers may use licensed copies of the software on devices that are under the day-to-day management and control of Authorized Outsourcers, provided all such devices are and remain fully dedicated to Customer’s use.”

As I say, these apply to all Microsoft Software products and, as we’ll see, individual products may have their own additional terms.

Windows Server – license individual VMs

You are now able to license individual Windows Server virtual machines rather than licensing the underlying physical hardware. As expected, there are a few rules you need to follow:

  • Minimum of 8 core licenses per VM
  • Minimum of 16 core licenses per customer
  • Licenses must have active SA or be active subscriptions – this includes CALs used to access the Windows Server instances
  • Licenses can be re-assigned with the same server farm as often as needed.
  • 90-day rule applies if moving to another server farm/cloud provider

Windows 11

Customers with per-user licenses for Windows 11:

  • Enterprise
  • Education
  • VDA

install Windows 10 Creators Update or later in an Azure VM or a server that meets the requirements in the “Outsourcing Software Management” clause. The QMTH language has been removed from this section too, opening this up to the wider pool of Authorized Outsourcers.

Reading the terms, it appears that the restriction on local virtualisation with CSP licenses has been removed too – bringing them even closer to parity with volume licenses. The language now states that customers can install Windows in a VM running on their Azure or “a server” – which I read as including their own servers as well as those of an authorized outsourcer.

Desktop Applications

For Office/Project/Visio, the word “dedicated” has been removed from the terms which means hosting on shared servers is now possible:

Remote use of the software running on a Server is permitted for any user from a Licensed Device

Microsoft 365

There have been changes to the use rights for the Windows component of Microsoft 365 too. The previous language was:

rights to access and use remote virtualized instances of Windows only apply to Licensed Users that are the Primary User of a device licensed with a Qualifying Operating System.

While it now says:

Licensed Users may only run Windows Enterprise locally on devices with a Qualifying Operating System.”

Removing the primary user requirement to access remote virtual instances. Microsoft say:

Essentially, when licensed as part of Microsoft 365, the requirement to use VDA rights for remote access from desktops without Qualifying Operating Systems no longer applies

There is also a change for Microsoft 365 F3 to loosen the remote virtualisation restriction. The previous clause:

rights to access and use virtualized instances of Windows only apply to Licensed Users of a shared device with a Qualifying Operating System

has been removed.

Microsoft 365 Apps

There is definitely some further clarification needed here. Microsoft released a new licensing guide “Using software products under the Flexible Virtualization Benefit” this month and that document states that the Flexible Virtualisation Benefit applies to Microsoft 365 Apps (formerly Office 365 Pro Plus).

With the introduction of the Flexible Virtualization Benefit, customers’ options for using Microsoft 365 Apps…outside their own data centers are expanded to include any Authorized Outsourcer’s shared servers

However, I can’t find language which clearly states this in the current Product Terms, so for now I’d advise not to get too carried away! I expect we’ll see an update to the Product Terms soon to add that language in – but I’ll update either way once we see something from Microsoft.

Thoughts

This is all pretty exciting for a licensing fan like myself – lots of new language and terms and things to check and understand. Also lots of training presentations to update!

For customers though, I’m not sure how much impact this will really have. Yes, it enables organisations to work with a much larger pool of potential hosting providers…but, in my experience at least, most orgs that are struggling want to work with Amazon AWS…and they’re not included in these changes as they’re a Listed Provider. I’m keen to see what real world impact these changes have and who wins (and loses) from it all.

PS: I’m still processing all this new info so will update with corrections as/if needed!

Further Reading

New Flexible Virtualisation Benefit licensing guide

Windows Server 2022 licensing guide

Product Terms

Microsoft Teams Rooms licensing: September 2022


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The September Product Terms revealed that Microsoft have replaced Teams Rooms Standard & Premium with Teams Rooms Basic & Pro, and we now have more information on feature differences and licensing.

Teams Rooms Basic

This is the free entry level license, included with certified Teams Devices and available via the Microsoft 365 Amin Center (not via resellers etc.). It is limited to 25 licensed devices within an organisation, if devices are needed they must be covered with Pro licenses. Furthermore, it is limited to 1 device per room with the same resource account – if 2 or more devices are needed, this again requires a Pro license.

You’ll notice below that Basic does not include a Teams Phone license, preventing the room from making/receiving PSTN calls.

Teams Rooms Pro

These are $40 per device per month and offer a much wider range of features than the Basic license.

It seems Microsoft have removed access to in-person engineers as part of the management features offered, with the Docs page stating “Microsoft Service engineers will no longer serve as intermediaries to incident response starting October 1, 2022“.

How do they compare to their predecessors?

Teams Rooms Basic is missing many of the features that were present in Teams Room Standard which means organisations may find themselves having to move from the $15 per month Standard license to the $40 per month Pro license at renewal – a significant increase. Equally, although probably much less likely, some organisations could drop from Standard ($15) to Basic ($0) and save money each month.

Basic v Pro

https://docs.microsoft.com/en-gb/microsoftteams/rooms/rooms-licensing#switching-from-teams-rooms-standard-and-teams-rooms-premium

This link here gives a detailed comparison of the differences between Basic & Pro in various different use areas. I would recommend also comparing the new functionality to your existing licenses to identify if you’ll need the Pro option going forwards.

Further Reading

Microsoft announcement

Teams Rooms licensing

New Teams Rooms pricing

Old Teams Rooms pricing

Tom Talks blog for more in-depth telephony info

Microsoft cloud licensing changes coming October 2022


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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 😊

Check out the Microsoft post here.

Microsoft Product Terms: July 2022


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After a bit of a wait for Redmond to publish, the latest update is here. Not surprisingly, given the time of year, there’s nothing major – mainly just a bit of tidying up this month:

Added/updated terms for:

Windows AutoPatch
MCA cancellations
Azure Limited Access Services

Removed old references for:

Business Voice
GitHub Learning Lab for Organizations
Office 365 Add-ons

Change to show 3.5K AI Builder Credits are included per SharePoint Syntex license

Academic plans added to Cloud for Non-profit qualifying licenses

Microsoft Viva Sales – another new member


Hot on the heels of Viva Goals, Microsoft have introduced Viva Sales. This latest family member is a “new seller experience” that brings Microsoft 365 & Teams together with “any” CRM system to streamline processes for salespeople…it also adds a hint of AI into the mix.

Areas it helps with include:

  • AI organised data and tasks
  • Inbuilt sentiment analysis
  • Surfacing unstructured data from Office documents
  • Automated data capture
  • Reminders

and more, with Microsoft describing it as a sales coach that helps move deals along. It will also surface “business context” data within Outlook and Teams and allow salespeople to update their CRM from those platforms too.

Much of this is, as with many other products, about keeping people within Teams as much as possible – making it the “collaboration hub” for users across organisations.

A feature called Sales Conversation Intelligence (SCI) will help sellers byl:

  • Generating meeting summaries
  • Tracking customer sentiment
  • Suggesting action items

all to keep deals on track and moving along.

Licensing and pricing

Viva Sales is free for users already licensed with Dynamics 365 Enterprise and Premium – for everyone else it will be $40 per user per month. It hits General Availability on October 3rd, 2022 and is NOT part of the Viva Suite.

I like the sound of what Viva Sales can do and am keen to check it out further – as anything that makes sales and customer management easier is a good thing. No matter the CRM you use, it’s never as intuitive and easy to use as users would like…perhaps Viva Sales will go some way to alleviating that. Or perhaps it will just be one more thing to add to the mix?!

Further Reading

Microsoft Announcement

Microsoft Viva Sales page

More info on features and pricing

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