Microsoft Cloud Partner Program: changes for 2022


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Microsoft have announced today a series of updates and changes to their Partner Program, kicking in from October 2022. There’s a LOT of into to go through but below contains a lot of the key changes and an overview of how some of the new elements will work.

New name

It is now known as the “Microsoft Cloud Partner Program” and, according to Microsoft, this “ better reflects the enormous and ongoing transition of business operations to the cloud, and how Microsoft intends to support partners in the future” and “aligns…partners’ go-to-market motions with the way customers buy today“.

From competencies to designations

The various (19) competencies that Microsoft partners have long worked to attain are now “legacy” and have been replaced by 6 “Solutions partner designations”:

  • Solutions partner for Infrastructure (Azure)
  • Solutions partner for Data & AI (Azure)
  • Solutions partner for Digital & App Innovation (Azure)
  • Solutions partner for Modern Work
  • Solutions partner for Security
  • Solutions partner for Business Applications

They map across from legacy to new as follows:

How do they work?

Partners will need to earn at least 70 points, from a potential total of 100.

  1. Performance: Measured by net customer adds.
  2. Skilling: Verifies and demonstrates your dedication to skilling and training. Points are awarded for each person on your team with specified certifications.
  3. Customer success: Measured by usage growth and number of successful deployments.

A Modern Work example

The Solutions partner for Modern Work is split into SMB & Enterprise tracks.

Customer adds

Enterprise

A customer add of 300+ seats = 4 points and partners can accrue 20 points in this manner – so a total of 5 customers.

SMB

Customers must be between 10 & 300 seats and each one = 2 points. Again there is a cap of 20 points, this time equating to 10 customers.

Partner skilling

This section is divided into Intermediate & Advanced certifications, the applicable certifications are:

Intermediate:

Advanced:

Microsoft 365 Certified: Enterprise Administrator expert

Customer Success

This area is also divided into 2 categories – Usage Growth & Deployments. The calculations for points are slightly less than straightforward as this example from Microsoft demonstrates:

If you have 2000 MAU growth from DPOR associations over the past 12 months and 1500 MAU growth from CPOR associations, then this is the way the scoring is decided for the Usage growth metric.

DPOR based growth = 2000 MAU DPOR based points = (actual growth / Threshold growth level) * max points = 2000/4000 * 30 = 15

CPOR based growth = 1500 MAU CPOR based points = (actual growth / Threshold growth level) * max points = 1500/1000 * 30 = 45

Usage growth net score = 30 ~ higher of 15 and 45 from above, for up to a maximum of 30

A similar calculation is used for the deployment metric:

Each new qualifying CPOR deployment gets 5 points OR each new qualifying DPOR deployment gets 2.5 points, whichever aggregates to higher points, for up to a maximum of 25 points.

For example, if you have four net new deployments from DPOR associations over the past 12 months and 3 from CPOR associations, the scoring is decided for Deployments metric as follows:

DPOR based growth = 4 DPOR based points = (actual growth / Threshold growth level) * max points = 4/10 * 25 = 10 points

CPOR based growth = 2 MAU CPOR based points = (actual growth / Threshold growth level) * max points = 3/5 * 25 = 15 points

**Deployments net score = 15** ~ higher of 15 and 10 from above, for up to a maximum of 30

See the full Modern Work details here – https://docs.microsoft.com/en-us/partner-center/pci-modern-work

Benefits

As well as the receiving licensing of on-premises software such as SQL Server, Windows Server, and System Center, qualifying partners will also receive allowances of:

  • Windows 365
  • Microsoft Viva
  • Project & Visio Online
  • Windows IoT

and more.

Timeline of changes

Conclusion

Overall this seems like the next step in Microsoft’s long-term plan to keep moving partners towards being more service based around cloud technologies. This was the case the 7+ years ago and is still where they want their partner base to go – offering as many cloud technologies as possible and providing the services to ensure customers get the best results.

This will likely cause plenty of upset and confusion among partners but, ultimately, how much difference it will actually make remains to be seen. Usually, the bigger the partner the more able the are to absorb and adapt to these new initiatives – we’ll see if this is any different.

Further Reading

MS blog #1

MS blog #2

MS partner page

MS Modern Work solutions

Microsoft Product Terms – March 2022


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Again, not a huge amount of change in the Microsoft Product Terms for March 2022:

Microsoft 365 Privacy Management has been rebranded “Priva”…I thought they might change their mind on this one 😂 I guess they wanted to make sure there was something people could confuse with Viva?!

Expanded pre-requisite licenses for Cloud for Healthcare add-on

Azure Virtual Desktop per user access promo extended to March 31st, 2022 (although the section doesn’t appear to have actually been updated)

SQL Server Big Data Nodes have been retired – anything other than the “core” SQL editions just never seems to quite work does it?

Updated “no cancellations after 72 hours” terms for online services under CSP NCE

Microsoft Product Terms – February 2022


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Another relatively quiet month in Feb 22 but there are a couple of things to note:

  • Microsoft have added a number of education and government SKUs to the eligible SKUs for a range of add-on licenses. This includes Office 365 A1 being an eligible pre-requisite for Business Voice and bringing the Privacy Management SKUs to government.
  • The Azure “Hosting Exception” is now called the “Azure Customer Solution”
  • Terms have been added for the Microsoft Cloud for Retail offering – see more details in this post here.

Microsoft Cloud for Retail: Pricing and licensing


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Microsoft have added another Industry Cloud to the Product Terms – this time it’s Microsoft Cloud for Retail.

I’m still working through some of the info and it doesn’t necessarily all seem complete yet but here’s the overview I can give so far.

Licensing

It is available as an add-on SKU, currently only Dynamics 365 Customer Insights is listed as an eligible base license to purchase the add-on. The Microsoft Docs site lists other licenses that are required in order to use certain elements of the retail cloud solution, these are:

Retail cloud featureRequired license
Omnichannel for Customer ServiceDynamics 365 Commerce / Dynamics 365 Customer Service
Microsoft 365 for Frontline WorkersMicrosoft 365 (F or E SKUs)
Power Virtual AgentsPower Virtual Agents

as well needing an Azure subscription to use:

  • Synapse Analytics
  • Cognitive Search
  • Intelligent Recommendations

Pricing

The Microsoft datasheet lists it as being $20,000 per tenant per month but also states that you “only pay for what you don’t already own“.

This makes sense as they won’t want to penalise customers who are already investing in some of these products but does suggest negotiations will be needed to get pricing…leading to the potential for different rates at different points of the year.

Availability

Available only via EA/EAS, Microsoft Cloud for Retail can currently be deployed from:

  • USA
  • Canada
  • United Kingdom
  • Singapore
  • Australia

and is available in English and French – the latter only being an option in Canada at the moment though.

Further Reading

Microsoft Cloud for Retail datasheet

Microsoft Docs page

Microsoft Cloud for Retail Product Terms page

Windows Server subscription for Azure Stack HCI


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Microsoft have announced a new way for Azure Stack HCI customers to license their Windows Server guest VMs. The snappily titled “Windows Server subscription for Azure Stack HCI” (WSSASHCI) allows organisations to purchase Windows Server licenses via their Azure subscription.

Currently the versions available are:

  • Windows Server 2022 Datacenter: Azure Edition
  • Windows Server 2022 Datacenter
  • Windows Server 2019
  • Windows Server 2016
  • Windows Server 2012 R2

Pricing

WSSASHCI is currently free in public preview but once it hits General Availability (GA) it will be $23.6 per physical core (in your Azure Stack HCI cluster) per month.

Further Reading

Announcement

Docs page

Azure Stack HCI page

Microsoft financial results: Q2 FY22


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Microsoft’s financial results are, once again, fantastic. For Q2 FY22 (Oct – Dec 21) their headline results are:

  • Revenue = $51.7 billion, an increase of 20%
  • Operating Income = $22.2 billion, an increase of 24%
  • Net Income = $18.8 billion, an increase of 21%

That’s over $51 billion in 3 months – a single quarter bigger than recent annual revenues for companies like Oracle, Nike, and Coca Cola.

Looking at the separate business units we see the following…

Productivity & Business Processes

  • Revenue = $15.9 billion, up 19%
  • Office 365 Commercial up 19%
    • “Continued momentum” for E5
  • LinkedIn up 37%
  • Dynamics 365 up 45%
  • Power Apps up 161%
  • Office Commercial (i.e on-premises) down 17%

Intelligent Cloud

  • Revenue = $18.3 billion
  • Azure up 46%
    • “Significant growth” in long-term contracts (again)
  • Enterprise Mobility up to 209 million+ seats

Yet more strong double digit growth across all these product divisions, as we’ve seen so many times before over the last few years. Although the growth is still very strong with Azure, it’s perhaps worth noting that the % increase is dropping slightly over time…from 50 in Q1 to now 46…although this makes sense – as the base grows, maintaining the same % increase becomes more difficult.

We also saw that the security business surpassed $15 billion in revenue, up almost 45% YoY.

“Digital technology is the most malleable resource at the world’s disposal to overcome constraints and reimagine everyday work and life.”

Earnings Call

There is always plenty of great info in the earnings call and this quarter was no different.

  • Azure Arc has tripled its user base YoY as organisations expand hybrid environments.
  • New Azure customers include:
    • CVS Health
    • Johnson & Johnson Medical Devices
    • Kyndryl
    • Wells Fargo
  • Cosmos DB transactions increased 100% YoY
  • Industry Clouds are driving “significant usage” across Microsoft Cloud
  • Teams has 270 million+ monthly active users
  • Microsoft Viva has over 1,000 paying customers already
  • Microsoft Sentinel has over 15,000 customers – a 70% increase YoY

Satya Nadella also discussed “Dynamics 365 Connected Spaces” (currently in preview) which is focused on automating and managing physical processes. This is part of their “Metaverse” play for business.

Note that many of the new “exotic” products are being name checked here:

  • Azure Arc
  • Cosmos DB
  • Industry Clouds
  • Power Apps
  • Microsoft Sentinel

This really helps to highlight Microsoft’s future plans and the successful growth they’re seeing there already. It also seems that there’s plenty of room for growth over the next few years so it doesn’t seem that Microsoft’s growth will be slowing any time soon.

Further Reading

Microsoft Earnings Press Release & documents

Microsoft Product Terms: January 2022


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It’s the first Microsoft Product Terms of 2022 and, as expected, it’s a very quiet one.

A statement re: the end of Open Licensing confirms that:

“…commercial, government, education, and non-profit organizations won’t be able to buy new or renew software licenses, Software Assurance, or online services through the Open License program”

Another name change: “Phone System” is now “Microsoft Teams Phone Standard”.

Microsoft Viva Insights Consumption pricing


Microsoft Viva Insights is an employee experience product from Microsoft that provides insights into how employees are spending their time – are they in too many meetings, are their meeting productive, do they have the time needed to focus on tasks, who do they collaborate with and plenty of other areas.

While it provides a range of pre-built views into that data, organisations are able to build their own too – known as queries. Users, known as analysts, are able to create queries against the vast amounts of data collected by Viva Insights in order to gain more specific…insights into their organisation.

This introduces a range of new metrics and price considerations for organisations. Viva Insights queries are licensed based on capacity credits and every query costs a certain amount of credits, based on factors such as:

  • The number of measured employees included in the analysis
  • The number of weeks of data included in the query output for each measured employee
  • The number of metrics used in the query
  • The type of metrics used from the different price tiers

Within the query designer it will give an estimate of the required credits:

No billing info shown in Query designer

How is it priced?

See the source image

You’ll be pleased to know that Microsoft have introduced some low-level algebra to help calculate pricing, the formula being:

A*B*C*D/1000

Where:

A = measured population i.e. number of employees included in the query

B= metrics – there are a range of metrics to choose from

C = price tier cost – yep, there are different price tiers

D = week i.e. the length of time covered by the data being analysed

Price tiers

There are 3 price tiers:

Tier 1 = 1.25 credits

Tier 2 = 2.25 credits

Tier 3 = 6 credits

Tier 1 includes a total of 68 metrics (at the time of writing) such as collaboration hours andlow quality meeting hours

Tier 2 includes “advanced metrics” which, at the time of writing, is the “network query” group which includes 10 individual metrics dealing with connections and levels of influence between staff.

Tier 3 includes metrics with CRM data

An example of a query calculation is shown here:

Query cost calculation

I think it’s interesting that, although they have this formula, Microsoft state:

“The cost shown is only an estimate. The estimate might vary from the query’s actual cost, which can be seen after the query is successfully ran”

What if you run a query with multiple metrics at different tiers? You calculate as above for each metric and then add the totals together.

How do you get credits?

Each Viva Insights license includes 1 capacity credit per month, pooled across the tenant. If an organisation requires additional capacity credits, they are licensed in increments of 5,000 credits and costs $5,000 per month.

Unused credits expire monthly.

Insights v Workplace Analytics

Viva Insights is the replacement for Workplace Analytics but the latter doesn’t appear to have disappeared completely – the SKU still seems to be available and the Microsoft documentation talks about the differences between Viva Insights Consumption tenants and Workplace Analytics tenants. Analysts working in a Workplace Analytics tenant won’t see query usage or consumption units.

Further Reading

Viva Insights consumption Docs page

Tier 2 network query metrics

Microsoft Product Terms: December 2021


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Not much to cover in the final Product Terms of 2021 but that’s often the case as we come into the Christmas break.

  • A couple of clarifications for D365 & Power Platform that minimum purchase requirements must be maintained throughout the agreement term.
  • Microsoft 365 Professional Direct Support is added (not to CSP). If required, it must be purchased for every M365 license – up to a maximum of 500.
  • A few additional Pre-requisite licenses added for Audio Services, Microsoft 365 App Governance add-on, and Dynamics 365.
  • Teams Essentials – the standalone edition for SMB – was added to CSP.

Microsoft 365 Azure Sentinel promotion


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If you have eligible M365 licenses, you can receive a grant of up to 5MB per user per day for free data ingestion from certain sources. Microsoft say this will save $1,500 a month on a standard 3,500 user deployment.

The offer isn’t listed in the product terms but you can find more info here: https://azure.microsoft.com/en-gb/offers/sentinel-microsoft-365-offer/

Which licenses are eligible?

Customers licensed with the following on an Enterprise Agreement/Enterprise Agreement Subscription are eligible for the promo.

M365 E5 Security
Microsoft 365 E5 Security
Microsoft 365 E5 Security_USGOV_GCCHIGH
Microsoft 365 G5 Security GCC
Microsoft 365 G5 Security_USGOV_DOD
Microsoft 365 A5 Security for faculty
Microsoft 365 A5 Security for students
M365 E5
Microsoft 365 E5
Microsoft 365 E5_USGOV_GCCHIGH
Microsoft 365 GCC G5
Microsoft 365 G5_USGOV_DOD
Microsoft 365 A5 for faculty
Microsoft 365 A5 for students
M365 F5
Microsoft 365 F5 Security Add-on
Microsoft 365 F5 Security Add-on AR_USGOV_DOD
Microsoft 365 F5 Security Add-on AR_USGOV_GCCHIGH
Microsoft 365 F5 Security Add-on GCC
Microsoft 365 F5 Security + Compliance Add-on
Microsoft 365 F5 Security + Compliance Add-on AR (DOD)_USGOV_DOD
Microsoft 365 F5 Security + Compliance Add-on AR_USGOV_GCCHIGH
Microsoft 365 F5 Security + Compliance Add-on GCC

Additional SKUs include:

  • Microsoft 365 E5 Suite features
  • Microsoft 365 E5 with Calling Minutes
  • Microsoft 365 E5 without Audio Conferencing
  • Microsoft 365 A5 Suite features for faculty
  • Microsoft 365 A5 Suite features for students
  • Microsoft 365 A5 with Calling Minutes for Faculty
  • Microsoft 365 A5 with Calling Minutes for Students
  • Microsoft 365 A5 without Audio Conferencing for faculty
  • Microsoft 365 A5 without Audio Conferencing for students
  • Microsoft 365 G5 GCC Suite features
  • Microsoft 365 G5_USGOV_DOD
  • Microsoft 365 E5 Security for EMS E5
  • Microsoft 365 Security and Compliance for FLW

Which data sources are included?

You can use this grant to reduce costs when importing from:

  • Azure Active Directory (Azure AD) sign-in and audit logs
  • Microsoft Cloud App Security shadow IT discovery logs
  • Microsoft information protection logs
  • Microsoft 365 advanced hunting data