3 more Microsoft products fell out of support on October 13, 2020:
Office 2010
Office 2016 for Mac
Exchange Server 2010
If you’re on these older versions, upgrading should certainly be on your roadmap. If not to Office 365, then to a more recent on-premises release. As corporate security becomes an ever greater focus, and ransomware becomes an ever greater threat, now is not the time to be running unsupported software that’s over a decade old!
The changes for access to Office 365 have kicked in too, meaning the only releases of Office that are supported to access Office 365 are:
Office 2016
Office 2019
Microsoft 365 Apps (formerly Office365 Pro Plus)
While Microsoft aren’t proactively blocking older versions, they’ve stated that as they fall further behind, performance and/or reliability issues may start to occur.
As I think most of us expected, Microsoft’s strong financial results continued in Q1 FY21.
Headline figures
In July – September 2020, Microsoft saw:
Revenue up 12% to $37.2 billion
Operating Income up 25% to $15.9 billion
Net Income up 30% to $13.9 billion
Operating Expenses grew by 10% (primarily driven by investments in Azure)
This is a fantastic performance as Microsoft – unlike many of their rivals – continue to grow and thrive during the COVID-19 pandemic. While IBM, Oracle, and SAP are all reporting lacklustre numbers – Microsoft are doing very well. This is mainly due to Microsoft’s wide and varied portfolio – if you don’t want one thing, there are plenty of others they can sell you – but also due to the relevance of their product line-up.
Not only are Microsoft 365 and Azure hugely relevant right now, so are products like the Power Platform and Dynamics 365 as they enable new ways of working and digital transformation. This is a strength many of their competitors don’t have – if you don’t want to buy a big database or an ERP system, that dramatically reduces the options for Oracle & SAP for example.
Product Highlights
Office 365 commercial revenue was up 21%
Dynamics 365 again grew by 38%
Azure saw another quarter of 48% growth
LinkedIn was up 16%
Surface revenue rose 37%
Enterprise Mobility & Security install base has grown to 152 million+ seats
On the flip side – Office Commercial was down 30% showing the move away from on-premises perpetual to cloud-based subscriptions continues apace.
Microsoft also called out “continued weakness” in transactional licensing as they saw a 1% drop in “server products” revenue. To be honest, I’m surprised it isn’t a bigger drop than that…
Another drop in Windows Pro OEM sales (22%) while Windows non-Pro OEM grew by 31%. This will partly be due to organisations de-prioritising laptop refreshes right now but also, I suspect, by users working from home buying themselves new “work” devices. That latter aspect opens up some licensing issues – as volume licensing Windows licenses generally can’t be applied to Windows Home licenses.
Microsoft are in a very strong position and it’s further proof that Satya Nadella has overseen one of the greatest corporate turnarounds for a long time!
Microsoft Office 365 Audio Conferencing Extended Dial Out for US and Canada is an add-on license that offers “virtually unlimited” calling minutes for North American users. Although subject to a fair use policy, users with this add-on won’t deduct capacity from their organisation’s pool or Communication Credits.
The license is available via EA/EAS, EES, CSP, and via the web for commercial, Edu, Non-profit and US GCC customers. I haven’t seen pricing info yet but you can see a little more info from Microsoft here.
First of all – we need to consider Project Cortex. This is a Microsoft program to weave Artificial Intelligence (AI) into a range of their products to help users and serves as something of an “umbrella”. SharePoint Syntex is the first product “from” Project Cortex but there are clear plans from Microsoft for several more to follow.
What does SharePoint Syntex do?
Introducing the concept of “topic centers”, SharePoint Syntex aims to automatically replicate the way that humans process documents including recognizing content, extracting information, and applying metadata tags. It works across Office docs, PDFs, and images and is another example of Microsoft’s move towards Robotic Process Automation (RPA) – alongside their advances with the Power Platform and Microsoft 365 E3.
For organisations processing a lot of data within documents – such as CVs, proposals, articles etc. – this could represent a new way for them to work smarter, not harder. Utilising AI to perform many of these tasks will free up human users for higher value projects. Microsoft are working on connectors to enable organisations to pull data from 3rd party systems into the Microsoft Graph and then utilise it within SharePoint Syntex.
At launch, it only supports English and Microsoft plan to add additional languages “in 2021”. They do say however, that you can create bespoke “topics” in any language and that certain functions, such as processing forms content, are language agnostic.
SharePoint Syntex is available as an add-on license for commercial Microsoft 365 customers and costs $5 per user per month. It appears to be available for the Microsoft 365 Business SKUs as well as the Enterprise suites.
Anyone who will be “using, consuming, or otherwise benefitting from” the capabilities of SharePoint Syntex will need a license. Microsoft list out a range of scenarios that require licenses including where users:
Access a Content Center
Create a document understanding model in a Content Center
Upload content to a library where a document understanding model is associated (whether in a Content Center or elsewhere)
Manually execute a document understanding model
View a library where a document understanding model is associated
Create a forms processing model via the entry point in a SharePoint library
Upload content to a library where a forms processing model is associated
View a library where a forms processing model is associated
This creates a whole new set of circumstances for organisations to become under-licensed and to have those wonderful, bordering on the philosophical conversations with Microsoft like “What IS the definition of benefiting?”, “What exactly is a “capability”?” etc 😁
Teams Rooms Standard & Premium Device subscription licenses have been added.
SharePoint Syntex is added. This is “trainable AI” that can help process corporate data and automate some of the tasks involved. See more info on what it is and how it’s licensed here.
Dynamics 365 Project Operations added. As sure as night turns to day, there’s a new D365 SKU 😂 This is a replacement for Project Service Automation (PSA).
The snappily named “Audio Conferencing Extended Dial-out minutes to USA/CAN” is added. This add-on license gives “virtually unlimited” US & Canada dial-out minutes, although there is a “fair use” policy.
The new “Extra Graph Connector Capacity” license enables additional indexing using Microsoft Graph connectors. Graph being Microsoft’s evolving connective layer between various MS products that we will continue to see pop up over the coming months for sure. In my opinion, this is another example of Microsoft moving towards a licensing model reminiscent of IBM/SAP/Salesforce where there are 100s of odd, obscure metrics based around quantity and usage – making them easy to exceed and difficult to track.
None of the recently announced security name changes have been updated though…
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.
To help drive adoption of Teams, Microsoft have announced a couple of customer promotions:
Audio Conferencing for free
For Enterprise Agreement customers, the offer is available immediately until January 21, 2021 and licenses are free until the end of your enrolment.
For purchases via partners and the web portal, you get the licenses free for 12 months. Offer starts October 1, 2020 and ends March 31, 2021 and isn’t available in China or India.
35% off Teams Advanced Communications
Available now for Enterprise Agreement customers (ends January 31, 2021) and “coming soon” if you buy via partners or the web portal. This is available worldwide.
Microsoft have announced a partnership with Nutanix to help organisations develop multi-cloud and hybrid cloud scenarios. Nutanix clusters will be added into Azure datacentres – extending on-premises Nutanix environments into the cloud:
Software and nodes will be paid for via “Microsoft Azure Consumption Commitment (MACC)” or PAYG, as well as existing Nutanix licenses being portable into Azure. Azure Hybrid Benefits can be utilised on the “Nutanix Clusters on Azure” and Microsoft’s Extended Support Updates are available too. Additionally, via Azure ARC, various Azure services – including Kubernetes – can be run in on-premises Nutanix environments.
Microsoft are really working to extend Azure to as many organisations as possible – VMware on Azure, Azure Stack, Azure Arc, and now this. It seems very much the approach they took to Office software on mobile devices – if you allow people to use your service alongside those from competitors, you end up in a better position that forcing them choose one or the other.
The service is currently in public preview – more info is available here and you can sign up to the waiting list here.
What is the future for the on-premises versions of Exchange Server, SharePoint Server, and Skype for Business Server aka the Productivity Servers? Microsoft’s move to the cloud is clear, successful, and accelerating so where does that leave organisations not yet ready to ditch their locally deployed servers? Will there be another release or are the current 2019 versions the end of the road?
available in the 2nd half of 2021 – so still around 12 months away at the time of writing.
Licensing change
These next releases will be on-premises but available only via a subscription model. Does this mean there will a change to the licensing model i.e. will they remove CALs etc. or is it just the same licenses and metrics but with no perpetual license option? I’m not sure yet but I’ll keep an eye out for more info.
Microsoft are treating this as an intermediate step for customers unwilling to move to Office 365. Once the CAPEX v OPEX argument is removed, I’m sure many orgs will find their move to the cloud speeds up significantly – which is a win for Microsoft.
There are plenty of technical improvements coming for all the products, as well as Exchange Online (including “+ addresses” like Gmail which is cool!) – the Ignite videos and the links below will give more info on those.
Microsoft have always enjoyed a good name change and nowhere has this been more true than their rapidly growing security portfolio. You’ll be pleased to know the pace of change continues following Microsoft Ignite 2020!
What’s changed?
Old name
New name
Microsoft Threat Protection
Microsoft 365 Defender
Microsoft Defender Advanced Threat Protection
Microsoft Defender for Endpoint
Office 365 Advanced Threat Protection
Microsoft Defender for Office 365
Azure Advanced Threat Protection
Microsoft Defender for Identity
Azure Security Center Standard Edition
Azure Defender for Servers
Azure Security Center for IoT
Azure Defender for IoT
Advanced Threat Protection for SQL
Azure Defender for SQL
So gone are the various ATPs and Security Centers but now, like Marvel, we’ve got a bunch of Defenders to contend with!
There have also been a range of new features additions which will continue to strengthen Microsoft’s security offering including support for Amazon AWS and Google Cloud.
Cloudy with a chance of Licensing 