We have confirmation of Windows 365 Enterprise base license requirements:
Windows 10 Enterprise
Intune
Azure AD P1
and the bundles that count too:
Microsoft 365 F3/E3/E5/A3/A5/Biz Prem/Student Use
Microsoft note that swapping a user’s Win365 license (by “resizing”) is not “license reassignment” and so can be done as frequently as required.
Also, you can’t use it for “digital asset transaction validation workloads” (aka Bitcoin mining I assume).
We also get confirmation that Windows 365 Business has no license pre-requisites (unlike Enterprise) although Windows 365 Business w/Windows Hybrid Benefit requires a Windows 10 Pro primary device (which is used periodically).
Azure Arc SQL has been added and Hybrid Benefit can be used…but prevents use on Listed Providers infrastructure.
There is a $0 license offer for Azure Virtual Desktop (until December 31, 2021) where you “serve Azure Virtual Desktop Customer Solutions to third parties on Azure”.
That was Microsoft’s revenue for FY21, which ended June 30, 2021, and it is a pretty staggering number! In fact, it’s about 40% bigger than the revenues of Oracle, SAP, and IBM combined!
Equally impressive was their Operating Income number of $69.9 billion but let’s dive a bit deeper and look at the numbers for Q4 FY21 (April – June 2021).
Q4 FY21
Overall for the final quarter, Microsoft saw:
Revenue = $46.2 billion – up 21%
Operating Income = $19.2 billion – up 42%
(As a comparison – Microsoft’s Q4 revenue was bigger than the individual total year revenue for both Oracle and SAP!)
Productivity & Business Processes
This division had revenue of $14.7 billion, an increase of 25% and within that:
Office 365 Commercial increased 25%
LinkedIn increased 46%
Dynamics 365 increased 49%
Intelligent Cloud
Here Microsoft saw revenue of $17.4 billion, a 30% increase, which was mainly driven by a 51% increase in Azure revenue.
More Personal Computing
This section saw a 9% increase to $14.1 billion with Windows Commercial products rising by 20%; however – Surface revenue dropped 20%…likely impacted by the ongoing chip shortage.
Other areas
The investor calls and information can give great insights beyond simply revenue figures, some of these tidbits include:
Another increase in long term Azure deals
Office 365 E5 comprises 8% of the total commercial installed base
Almost 250 million monthly active users on Teams
Almost 80 million monthly active Teams phone users
Over 1 billion Teams calls in a single month
Almost 600,000 orgs using Microsoft security products – with a 70% increase in SMB
Microsoft continue to grow and Satya Nadella seems confident they will be able to keep this up going forward. It certainly feels that there is a lot of expansion space available for Microsoft across several product areas – both winning business from rivals but, probably more so, creating brand new sectors in the cloud and across business applications too.
A new member of the 365 family has joined us – alongside Office 365, Microsoft 365, and Dynamics 365 – we now have Windows 365.
Formerly known as Cloud PC, this latest offering enables you to stream an entire PC – including the OS, apps, and settings – from the cloud to any device. This means Windows 10 and 11 will be easily available on any device – including MacOS and Linux.
Although clearly driven by the COVID-19 pandemic and the rapid, global shift to hybrid working, something like this has been a long time coming in many regards. It’s also driven by the changing security landscape…Microsoft also see this as a way to help organisations combat the rise of security threats – let Microsoft take care of securing your desktops so you don’t have to.
Although specific pricing information hasn’t been released yet, it’s expected there will be a range of pre-set options, making it more of an “off the shelf” SaaS offering than the current Azure Virtual Desktop (AVD). Different SKUs and plans will offer different amounts of storage, processing power, memory etc. for organisations to choose from, with Satya Nadella stating this offering would be applicable to businesses of any size.
while users with non-Windows Pro endpoints require:
Windows VDA E3 + EMS E3
Alternatively, both scenarios can be covered by licenses for:
Microsoft 365 F3/E3/E5/Business Premium
Technical requirements
It’s not quite as straightforward as just having those licenses, you will also need:
Azure subscription
Azure Virtual Network
Azure Active Directory sync
Certain ports open
to ensure that everything works optimally.
More information on the requirements and how to provision can be found here.
Finally…
Not surprisingly, there will be 2 flavours available:
Windows 365 Business
Windows 365 Enterprise
and it is set to launch on August 2, 2021. I look forward to seeing more information as it becomes available…and hopefully trying it out myself!
Update
While Microsoft are yet to announce official pricing, pricing for 1 SKU has been revealed. For a desktop with 2vCPU/4GB RAM/128GB storage it will $31 per user per month ($372 per year) – which strikes me as quite expensive…
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.
Microsoft are adding a cut down version of Visio directly into Teams, enabling users to create, edit, and share diagrams without leaving the ever growing central location for productivity. The new app will be available to users with the following licenses:
Microsoft 365 Business Basic
Microsoft 365 Business Standard
Microsoft 365 Business Premium
Microsoft 365 Apps for business
Office 365 E1
Office 365 E3
Office 365 E5
Office 365 F3
Microsoft 365 F3 (includes Office 365 F3)
Microsoft 365 E3 (includes Office 365 E3)
Microsoft 365 E5 (includes Office 365 E5)
Microsoft 365 Apps for enterprise
Office 365 A1
Office 365 A3
Office 365 E5
Microsoft 365 A1 (one-time, per-device license with free Office 365 A1 per user licenses)
Microsoft 365 A3 (includes Office 365 A3)
Microsoft 365 A5 (includes Office 365 A5)
You can see more info, and sign up for early access (not EU), here.
There was a pretty big change this month as Microsoft removed a key requirement for “From SA” licenses. These allow organisations that have on-premises licenses with Software Assurance (SA) to migrate to Microsoft 365 at a reduced price – taking into account the investment in SA.
Back in early 2020, Microsoft added a clause that customers had to retain their existing on-premises licenses throughout the “From SA” subscription period. This presented a barrier for organisations in Europe looking to engage in the 2nd-hand software market and re-sell their (now unwanted) on-premises licenses.
However, in June 2021 Microsoft said:
For customers who choose to purchase “From SA” licenses, we removed the requirement that customer retain the corresponding Qualifying Licenses throughout its From SA license subscription period
It’s a very interesting move from Microsoft and I am keen to see what related announcements we might see at their Inspire conference in July.
Further changes include:
Windows 10 Enterprise/E3 has been removed as a pre-requisite for the M365 F5 add-on SKUs.
Remote Work Starter Plan added to CSP <– This seems to have launched in Japan in August 2020 and looks to be basically a “Teams+OneDrive” SKU
Customers with Microsoft Project Plan 1/3/5 are only permitted to use Universal Resource Scheduling to schedule Project and Task tables within the context of a project
Here are the Microsoft Product Terms changes for May 2021:
M365 Business Basic/Standard/Premium added as pre-requisite licenses for Audio Conferencing and Phone System
Microsoft 365 Career Coach USL has been added for Academic customers
Microsoft 365 Scheduler has been added. This includes a “human-assisted AI Service” for complex scheduling requests.
Microsoft Teams: Terms added to confirm licenses are not required to join meetings/live events hosted by licensed users. Also that external users don’t need a license for Guest access via AAD External Identity.
Power Platform: All Power Platform licenses now have “extended term eligibility” under EA/EAS/SCE
A relaxing of the terms around Project for the web and how the data can be viewed.
Microsoft’s financial results for Q3 FY21 (Jan – Mar 21) are in and, as usual, they’re pretty impressive.
Revenue = $41.7 billion – up 19%
Operating income = $17 billion – up 31%
Looking at the different product divisions we can see:
Productivity & Business Processes
Revenue = $13.6 billion – up 15%
Office 365 Commercial was up 22%, LinkedIn increased 25%, and Dynamics 365 was up 45%.
Microsoft Teams is up to 145 million daily active users, almost doubling YoY and Office 365 Commercial has nearly 300 million paid seats. Office Commercial products (on-premises Office) was down 25% – continuing its downwards trend as organisations continue to move to the cloud.
Satya Nadella revealed that Power Platform now has almost 16 million monthly active users, an increase of 97%, and revenue has increased by 84%. Amy Hood (CFO) called out Power Apps and Dynamics 365 Finance & Operations as strong performers.
Intelligent Cloud
Revenue = $15.1 billion – up 23%
Azure growth was 50% yet again, with Amy Hood highlighting an increase in the number of large, long-term Azure contracts.
On-premises server products grew 3%, although that seems to largely be due to year on year currency fluctuations, and the EMS install base grew again, now sitting at 174 million seats.
SQL Server on Azure VMs grew 129% YoY alongside Cosmos DB growth too.
More Personal Computing
Revenue = $13 billion – up 19%
Again there was a big difference in Windows OEM as Pro revenue declined 2% but non-Pro grew 44%.
Microsoft are adding a raft of new features to both EMS (Enterprise Mobility & Security) and Intune, these include:
Microsoft Tunnel VPN features for Android and iOS devices
Enhanced MacOS management capabilities
New endpoint analytics features
Various enhancements to Microsoft Endpoint Manager
These, and other, additions mean that Microsoft are putting the prices up. From July 1, 2021:
EMS E3 will increase from $9 pupm to $11
Intune will increase from $6 pupm to $8
However, the price for Microsoft 365 E3 won’t increase (and so one must assume that neither will E5) – making the bundle option that little bit more attractive.
Back in May 2020, Microsoft announced Cloud for Healthcare – their first vertical specific cloud offering and it launched in October that year. Microsoft Cloud for Retail was announced in January 2021 and now, following Ignite 2021, they have announced three more:
Microsoft Cloud for Financial Services
Microsoft Cloud for Manufacturing
Microsoft Cloud for Non-profit
Why ?
One of the great benefits of public cloud – the ability to pick and choose from an almost endless array of options and combine them in a seemingly infinite number of combinations – can also be a huge weakness. For some industries, it’s more important to have an “Out of the Box” offering that does what they need and, most importantly these days, be super secure while it’s doing it.
Plugging various different cloud services together is often where security gaps start to appear – a slight misconfiguration here, a forgotten port there – and that can means certain industries are less enamoured with the cloud. Equally, from a portfolio perspective, knowing which different products do exactly what you need and which ones can be combined to help you achieve your goals can be perplexing and overwhelming.
These pre-built cloud packages for different verticals aim to address both of those issues as well as introducing brand new features aimed at vertical specific issues.
Microsoft Cloud for Retail
A combination of Microsoft products including Azure, Dynamics 365, Power Platform, Teams, Bing, Advertising among others, this is largely driven by changes brought about by COVID-19 and the (even greater) shift to online shopping. It focuses on areas of importance to Retail such as:
This combines products including Microsoft 365, Dynamics 365, Azure, and Power Platform in a solution designed to comply with regulatory and compliance frameworks in what is a highly regulated industry. It offers functionality in key areas including:
This vertical offering combines Azure, Dynamics 365, Microsoft 365, Power Platform, AI, HoloLens and more to address manufacturing specific needs such as:
This combines Microsoft 365, Dynamics 365, Azure, Power Platform, and LinkedIn to help charities better connect with their supporters and volunteers, make better decisions, and reach their goals faster.
There’s not as much info available for this offering yet but you can see more here and register for a webinar to learn more about this offering on March 30th here.
Cloudy with a chance of Licensing 