Microsoft Product Terms: March 2025


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Removed “without Microsoft’s prior written approval” from the clause preventing using MS service to mine crypto…I guess they realised they were never going to give anyone permission for this!

Changed the Use Rights for Azure Local software from:

Customer may use the Azure Local software only (i) on servers dedicated to Customer’s internal use

to

Customer may use the Azure Local software only (i) on devices dedicated to Customer’s internal use

Microsoft say this represents a move to “include smaller, more affordable devices than traditional servers

They also removed the following clause “Any customer support for Azure Local that may be available from Microsoft requires that Azure Local runs on server hardware that is pre-validated and listed in the Azure Local catalog or any successor.”

Added Microsoft 365 Copilot Chat to the list of EU Data Boundary Services

March 5th

You can now add the Microsoft 365 E5 Security add-on to the Business Premium SKU.

March 12th

Added a section on Data Handling of Query Data with M365 Copilot & M365 Copilot Chat:

  • Microsoft has no rights in Query Data other than as needed to provide the services,
  • Query Data is not used to improve Bing,
  • Query Data is not used to create advertising profiles or track user behavior,
  • Query Data is not shared with advertisers or otherwise beyond Microsoft and its contracted suppliers who are subject to terms no less protective than these provisions,
  • Query Data is not used to train generative AI foundation models, and
  • Query Data is treated as Customer confidential information and protected by appropriate technical and organizational measures.

Clarification that certain concurrent use rights for Defender on up to 5 devices does not include Server OSEs:

  • Eligible Licensed Users may use Microsoft Defender for Business on up to five concurrent devices. Customer may not use a Microsoft Defender for Business User SL with server OSEs.
  • Eligible Licensed Users may use Microsoft Defender Vulnerability Management or Microsoft Defender Vulnerability Management Add-on on up to five concurrent devices. Customer may not use Microsoft Defender Vulnerability Management or Microsoft Defender Vulnerability Management Add-On User SLs with server OSEs.

Microsoft Product Terms: February 2025


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It’s the Microsoft Product Terms for February 2025:

Added Azure Managed Applications, Azure Resource Manager, and Cloud PC to the EU Data Boundary Services…which now also includes storage of Professional Services Data.

Added Microsoft Defender for Business customers can apply Defender for Business to five devices.

Removed Microsoft 365 Information Protection and DLP – Student Use Benefit Add-on from Availability and Prerequisite Tables.

“Audio Services” renamed “PSTN Audio Services”

Microsoft Financial Results: FY25 Q2


Microsoft have announced their Q2 results for FY25 and, not surprisingly at all, they’ve earned a LOT of money and are talking a lot about AI!

Overall results

Revenue was up 125 to $69.6 billion and Net Income was up 10% to $24.1 billion. The over-arching “Microsoft Cloud” segment increased 21% to $40.9 billion while the AI business was approx. $3.25 billion as it had an annual run rate of $13 billion, which is 175% up year on year.

Satya Nadella sad:

“We are innovating across our tech stack and helping customers unlock the full ROI of AI to capture the massive opportunity ahead,”

Productivity & Business Processes

Revenue = $24.9 billion, up 14%

This was driven by a 16% increase in M365 Commercial cloud revenue and 19% revenue growth for Dynamics 365.

Microsoft saw “better-than-expected performance in E5 and M365 Copilot, both of which drove Average Revenue Per User (ARPU).

Intelligent Cloud

Revenue = $25.5 billion, up 19%

31% growth in Azure (and other cloud services)

Earnings Call

  • There were 54 mentions of AI throughout the call.
  • Over 19.000 paying customers for Microsoft Fabric.
  • 30 million+ monthly active users (MAU) for Power BI, which is 40% up year on year.
  • 200,000 MAU for Azure AI Foundry.
  • Over 400,000 custom agents created with Copilot Studio across 160,000 orgs in the last 3 months.
  • Continued growth in the number of $100 million+ contracts for Azure and M365.

More changes to the partner channel?

CFO Amy Hood stated:

“Growth in our non-AI services was slightly lower than expected due to go-to-market execution challenges, particularly with our customers that we primarily reach through our scale motions, as we balance driving near-term non-AI consumption with AI growth.”

She described the “scale motion” as “customers we reach through partners and through more indirect methods of selling” and alluded to changes around where investments, marketing spend, and internal resources would be positioned to help drive sales through the partner channel.

Nadella also said “How do you really tweak the incentives go to market? At a time of platform shifts, you want to make sure you lean into even the new design wins, and you just don’t keep doing the stuff that you did in the previous generation.

This could be partly behind Microsoft’s increasing drive to take more customers direct, that it gives them more control over what’s happening to drive organisations towards new platforms and products.

Check it out here https://www.microsoft.com/en-us/Investor/earnings/FY-2025-Q2/press-release-webcast

Microsoft announce cloud price decrease for GBP


Microsoft announce a price DECREASE!

Yes, you read that right…

From February 1st, 2025 GBP pricing for “commercial cloud services” will drop by 5% to 6%.

Hopefully this will help reduce the impact of some of the recent pricing increases…

Unfortunately…those of you purchasing in Brazilian Real will see a 12% increase on both cloud and on-prem software.

https://news.microsoft.com/2024/12/03/local-currency-price-adjustments-for-microsofts-commercial-cloud/

Microsoft Get Licensing Ready comes to an end


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Microsoft’s Get Licensing Ready (GLR) training platform is being shut down as of December 31st, 2024.

A mainstay of the Microsoft channel and pretty much every reseller salesperson’s introduction to the wonderful world of Microsoft licensing, GLR has been a trusty companion to many for decades. It has been around as long as I can remember (so at least 20 years) but it is now a casualty of Microsoft’s apparent lack of interest in licensing these days.

My post on LinkedIn has been one of the most liked, commented, and reposted for some time -showing the depth of affection for the platform…and also the concern that it’s going to get even more difficult for partners and customers to understand Microsoft licensing.

I haven’t done GLR for a few years but I plan to take them all again and get one last set of certificates for posterity’s sake.

Microsoft price increases for 2025


More Microsoft price rises coming in 2025, following on from several over the last few years:

  • Dynamics 365 pricing increase by 9-17% in October 2024
  • Windows Server 2025 & System Center 2025 are 10% more expensive
  • “Price harmonisation” in 2023 raised prices for most products in several countries
  • Price increases on most products in Japan and South Korea on 2023
  • SQL Server 2022 was 10% more expensive
  • There were non-profit price increases in 2022
  • Various O365/M365 SKUs increased in March 2022 by up to 25%
  • The introduction of CSP NCE increase pay monthly prices by 20% in 2022

Monthly SKUs

All licenses on a pay-Monthly basis on CSP, MCA-E, and Buy Online will increase by 5% from April 1st, 2025. These include:

Microsoft 365
Office 365
Enterprise Mobility + Security
Windows 365
Dynamics 365
Power Platform (Inc. Power BI)

NOT included are Azure RIs, Savings Plans, Marketplace, Github.

Power BI

From April 1st, 2025 Power BI pricing is increasing by up to 40%:

Power BI Pro will be $14 (currently $9.99)
Power BI Premium Per User will be $24 (currently $20)

This won’t increase the price of E5.

Teams Phone

From April 1st, 2025 Teams Phone SKUs are increasing by up to 25%

Teams Phone Standard will be $10 (currently $8)
Teams Phone Frontline will be $5 (currently $4)

Calling plans are increasing too.

See the Microsoft post here – https://techcommunity.microsoft.com/blog/microsoft_365blog/flexible-billing-for-microsoft-365-copilot-pricing-updates-for-annual-subscripti/4288536

Microsoft Enterprise Agreement changes in 2025


So the rumours were true…kind of…to some degree.

Microsoft have announced changes to the Enterprise Agreement but, not unusually, it’s still all a bit unclear.

“Beginning January 1, 2025, a small percentage of cloud Enterprise Agreements (EA) in direct markets will no longer be eligible for renewal under the existing EA framework”

What exactly is a “cloud EA”?
Is it where there is only Azure? Only Azure and M365?

Why not all cloud EAs?

How is that defined?

What will be the alternative?

“For enterprise customers, the Microsoft Customer Agreement for enterprise (MCA-E, the digital evolution of the traditional EA), will provide the optimal, streamlined solution.”

This is direct from Microsoft but is, in many ways, a “bigger” version of CSP rather than a slightly different EA.

So, “evolution” is an interesting choice. That implies a continuation whereas I’d probably us the word “replacement”…

Microsoft will begin notifying impacted customers in Jan 2025 that they cannot renew into the EA.

The post also says:

“Partners will continue to earn incentives when transacting EA renewals”

So they’re not all disappearing…at least not yet!

This marks yet another shift and yet another step towards more licensing business going direct to Microsoft.

To balance this out, they have also announced thst Copilot for M365/Sales/Service will be available on a monthly billing basis from December 1st…but will be 5% more expensive.

As well, all current monthly SKUs will have a 5% price increase from April 2025 and Power BI is increasing. I’ll do a separate post on that shortly.

It is interesting that the final section of the Microsoft post is titled “Microsoft is a partner-led company”…

If you have any questions, feel free to get in touch 😊

You can see the Microsoft post here:

https://partner.microsoft.com/en-gb/blog/article/accelerating-growth-through-partners-in-the-era-of-ai

Microsoft Product Terms: November 2024


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After a delay of several hours where the website wasn’t working (one of the perils of this current format), we can now see the changes this month are:

  • Windows Server 2025 added
  • Windows Server PAYG via Azure Arc is added
  • System Center 2025 added
  • Windows 10 ESU added
  • Various additional/refined terms for Azure Services

  • Let’s take a look at the Win Svr PAYG option in more detail based on the Product Terms:
  • Customer must have a valid Windows Server Standard or Windows Server Datacenter License to use the PAYG option. <– Just one license or all cores in the server?
  • For Licensed Servers running PAYG virtual machines, there are no restrictions on the number of PAYG virtual machines that can be deployed.
  • Additional virtualization rights are not granted. A separate License is required for each guest. <– So you don’t get 2 OSEs for Std and Unlimited for Datacenter…each PAYG VM needs to be paid for.

This, taken from the Microsoft Learn page, is very odd:

Apparently, you can only use Windows Server PAYG if you install a retail copy of Windows Server 2025?!

We have also seen that there will be a 10% price increase for Windows Server 2025 & System Center 2025 from December 1st 2024 and then also for SPLA from January 1st, 2025.

Microsoft Product Terms: October 2024


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The October 2024 Microsoft Product Terms are fairly quiet:

Self-Hosting & Disaster Recovery rights have been added to Windows Server & SQL Server subscription licenses under MCA.

Project is now “Planner & Project Plan 3/5”

GitHub Copilot Enterprise added

LTSC versions of Windows Enterprise and Office 2024 are added

Microsoft Office 365 E1 Plus


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Microsoft have introduced a new SKU: Office 365 E1 Plus. This contains the current E1 features and then adds:

  • Intune P1
  • Entra ID P1
  • O365 Data Loss Prevention (DLP)

Pricing & Licensing

It will be $20 per user per month or $17.75 without Teams. There is a minimum of 100 licenses and a maximum of 2,400.

Currently there is a promotion offering a 30% discount when purchased as an annual subscription.

Availability

This CSP only SKU is restricted to certain global regions:

LATAM, ASEAN, India and select markets in Central Asia, the Middle
East, and Africa