Volume
Licensing
Server and Cloud Enrollment
(SCE)
L200 licensing overview
1
What you will learn
2
Server and Cloud Enrollment
(SCE) value proposition
3
SCE recap
*For qualifying customers
4
1
2
Core Infrastructure Suite
(CIS) is available
(Windows Server +
System Center)
Includes
Windows Azure
by default
3
4
Standardized discounts
& terms
Subscription option
added (no more
deferred license)
5
How
Server and Cloud Enrollment
(SCE) works
6
How SCE works
Core
Infrastructure
Application
Platform
Developer
Platform
Windows
Azure
Products
CIS SKUs
(Windows Server +
System Center)
Products
SQL Server, SharePoint
Server & BizTalk Server*
Products
Visual Studio Ultimate
and Premium
Products
All Windows Azure Cloud
Services
Requirements
CIS coverage for all
Windows Servers
Requirements
Full SA coverage
Requirements
Full SA coverage
Available automatically
Can also be licensed
standalone
+ Access to Windows Azure
*BizTalk Server and SharePoint Server can also be enrolled as part of the application platform component
7
Building your SCE
Core
Infrastructure
CIS Datacenter
CIS Standard
CIS Datacenter w/o Windows Server
CIS Datacenter w/o System Center
CIS Standard w/o Windows Server
CIS Standard w/o System Center
Application
Platform
Developer
Platform
Windows
Azure
SQL Server CAL
SQL Server Enterprise per core
SQL Server Business Intelligence
Server
SQL Server Standard per core
SQL Server Standard Server
SQL Server Parallel Data Warehouse
per core
BizTalk Server Enterprise per core
BizTalk Server Standard per core
BizTalk Server Branch per core
SharePoint Server
Visual Studio Ultimate
Visual Studio Premium
Visual Studio Test Professional
Visual Studio Team Foundation Server
CAL
MSDN Platforms
Visual Studio Deployment Standard
Visual Studio Deployment Datacenter
All Windows Azure cloud services
Minimum order requirements
Minimum order requirements
Minimum order requirements
Minimum order requirements
50 processors via 25 licenses (each
license covers up to 2 physical
processors) or more of one or a
combination of Core Infrastructure
Server Suites Standard or Datacenter
SQL Server: 50 SQL Server per core or
5 SQL Server per server with 250 CALs
SQL Server PDW: 32 cores
BizTalk: 24 cores of any edition
SharePoint Server: 5 servers
20 licenses of any combination of
Visual Studio Ultimate and Visual
Studio Premium
Or can be licensed standalone
All licensed Windows Server
deployments must be covered with
one of the above SKUs.
8
All products on the EA additional
products list can be added, except for
products available in SCE components
The following are available as additional
products:
• Visual Studio Pro
• SQL Server Enterprise Edition Server
(non-core) SA only
• System Center Datacenter and
Standard Edition (for managing
non-Windows Server deployments)
Subscription is not available for any
additional products
9
How to establish the customer footprint
• Any existing licenses
deployed with continuous
SA (across all enrollments)
• Any existing licenses
deployed without
continuous SA
• New licenses that are being
purchased
• Renew SA for existing license
current with SA
• For existing licenses without
SA:
o Add subscription SKUs
Or
o Add L&SA at signing
• All baseline licenses for
Windows Server must be
covered with System Center
• Coverage achieved through
adding CIS SKUs
• “CIS without” SKUs are
available when
Windows Server or
System Center SA is current
10
Enrolling in the core infrastructure component
CIS licenses in use with SA
50 CIS Datacenter
100 CIS Standard
Standalone licenses in use with SA
50 Windows Server SE
Licenses in use without SA
10 Windows Server DC
SCE enrollment scenario
Existing baseline
40 Windows Server SE
11
Enrolling in the core infrastructure component
CPS
CIS licenses in use with SA
50 CIS Datacenter
SA
100 CIS Standard
Standalone licenses in use with SA
50 CIS Datacenter
L&SA*
50 Windows Server SE
Licenses in use without SA
10 Windows Server DC
40 Windows Server SE
100 CIS Standard
50 CIS SE without Windows Server
L&SA
10 CIS DC
SCE enrollment scenario
Existing baseline
40 CIS SE
Or subscription
10 CIS DC
*Customers can elect to subscribe to units if they want the flexibility to true down (if they plan to retire workloads or move to the cloud for example)
40 CIS SE
12
Customers can purchase
subscriptions to cover licenses
without continuous Software
Assurance at signing or for new
deployments
Subscription provides flexibility through:
• Lower upfront costs when signing a
SCE
• More purchasing options for new units
• Ability to reduce licenses annually
when retiring workloads, consolidating
or migrating to the cloud
Subscription SKUs will be sold via
Monthly Subscription Units (MSUs)
13
Subscription overview
Pricing
MSUs allow customers
to pay for each month
deployed and will be
priced at 35.5% of the
license only price*
Minimums
Reductions
Customers must
commit to a minimum
of 12 months
Customers can reduce
subscription units no
longer being used for
deployed workloads at
each anniversary date
Buyouts
If customers do not
renew or wish to own,
buyout pricing will be
set at year 3 true up
pricing
*Subscription pricing percentages are set based on non-SCE discounted licenses (standard waterfall discounts apply). Visual Studio will be priced at 46% of a license.
14
How subscriptions work
Year 2
Year 3
Customer adding MSUs at signing:
+ 10 CIS DC subscriptions (via MSUs)
Year 1
+ 25 CIS SE subscriptions (via MSUs)
Automatic annual billing
10 x MSU price x 12
months
25 x MSU price x 12
months
Automatic annual billing
Automatic annual billing
Subscription scenario
Year 1
End of year 3 options:
• Renew
• Buy-out
• Stop using
15
How subscriptions work
Year 2
Year 3
Customer reduces subscription licenses:
+ 10 CIS DC subscriptions (via MSUs)
Year 1
+ 25 CIS SE subscriptions (via MSUs)
Year 2 - 5 CIS SE subscriptions (via MSUs)
10 x MSU price x 12
months
25 x MSU price x 12
months
Automatic annual billing
Automatic annual billing
20 (25-5) x MSU
price x 12 months
Automatic annual billing
Subscription scenario
Year 1
License reduction process:
Submit via METEAOP form
Submitted during annual order period
16
How subscriptions work
Customer adding MSUs at true up:
Year 1
true up
+ 5 CIS SE subscriptions
(Deployed in month 9 of first year via MSUs)
Month 9X
Year 2
5 x MSU price x 15
(3 + 12) months
Automatic annual billing
Year 3
Automatic annual billing
Subscription scenario
Year 1
True ups in years 1 & 2:
• Customers pay for each month deployed in
previous year
• Customers pay forward 1 year
17
How subscriptions work
Customer adding MSUs at true up:
Year 1
true up
+ 5 CIS SE subscriptions
(Deployed in month 9 of first year via MSUs)
Month 9X
Year 2
5 x MSU price x 15
(3 + 12) months
Year 3
Automatic annual billing
Automatic annual billing
5 x MSU price x 3 months
Month 9X
Year 3
+ 5 CIS SE subscriptions (via MSUs)
true up
Year 3 true ups:
Customers pay for
each month deployed
in previous year
Subscription scenario
Year 1
End of year 3 options:
• Renew
• Buy-out
• Stop using
18
Cloud management benefit
SCE Customers who enroll in the
core infrastructure component can
install System Center and manage
Windows Azure Virtual Operating
System Environments (VOSEs).
Eligible Windows Azure VOSEs
instances includes:*
• Windows virtual machine instances
• Cloud service instances (web and
worker role)
• Storage accounts
• SQL databases
• Website instances
*Limited to 10 eligible Windows Azure VOSE instances for each CIS license
19
The benefits of Software Assurance
• New version rights
• Training
• 24x7 problem resolution
• Spread payments
• TechNet
• Extended hotfix
• Step-up availability
• Deployment Planning
Services (DPS)
• Cold back-up for disaster
recovery
20
Moving IT workloads to the cloud
Envision solutions, plan
on-premises, hybrid, or cloud
deployments with planning
services
License mobility through SA
allows you to deploy certain
application software on
premises or in the cloud
without additional licensing
Support hybrid environments,
enable cloud services with new
products versions
21
Unlimited problem resolution support*
Opt-in SA benefit only
available through the SCE*
Unlimited premier reactive
support incidents for core
infrastructure and application
platform components
Available to our largest
customers with premier
services agreements (minimum
SA spend of $250,000 per
year**)
*Customers who opt in to unlimited support lose the ability to convert incidents (earned through SA on SCE products) to premier hours
**Minimum is for each component enrolled and the actual dollar amount varies by geography
22
SCE recap
*For qualifying customers
23
Implications for
EAP customers
24
Discount
changes
Product
edition
availability
Subscription
replaces
deferred
license
25
SCE discount changes for EAP customers
EAP pricing
New
purchases
SA renewals
Licenses
without SA
SCE pricing
Net change
• 40% premium edition license discount
(license portion of L&SA only, not SA)
• 15% standard edition license discount
• 15% discount on license • Slightly lower discounts
& SA
on premium editions
• Slightly higher discounts
on standard editions
• No discount
• 5% discount
• Incremental 5% renewal
discount
• Non-current licenses deferred at SA
only pricing
• Subscription pricing
• Subscription pricing will
be 42% higher than SA
only
26
EAP product edition
availability changes
• SQL Server Enterprise Edition Server is no
longer available for new purchases
• These are not required in baseline
requirements
• Customers can renew SA on perpetual
licenses in additional products
• Not available under subscription
27
Each product has unique Software Assurance value
This edition was retired with the launch of
SQL Server 2012, however, customers should
renew SA to:
• Access future releases of SQL Server & other
SA benefits
• Maintain license mobility for virtual
environments
• New licenses available through additional
products
• Maintaining SA ensures customers can
consume MSDN benefits; access latest
versions of VS, TFS and MSDN software
If SA is not renewed, it cannot be attached later
28
• Buyout provides lowest cost for ownership
o Highly discounted license; SA at 5% discount
in SCE
o SQL Processor buyouts get core grants
• SQL Server Enterprise Edition (non-core)
o Buyout and renew SA (in add’l products)
o Or subscribe to core licenses
• Reduce short term costs by avoiding the EAP
buyout
• Flexibility to reduce these licenses annually
29
Customers with deferred licenses
EAP license position
50 SQL Server EE procs
100 SQL Server SE procs
Deferred licenses brought in as SA only
10 SQL Server EE procs
SA
250 EE cores
500 SE cores
Buyout & SA
Buyout 10 EE procs
Renew SA on 50 EE cores
Or subscription
10 SQL Server EE procs
*Renewal costs assume 5 cores per proc average shown through inventory report maintained by the customer
EAP renewal scenario
Perpetual licenses under SA
CPS
30
Customers with deferred licenses
EAP license position
50 SQL Server EE procs
100 SQL Server SE procs
Deferred licenses brought in as SA only
10 SQL Server EE procs
SA
250 EE cores
500 SE cores
Buyout & SA
Buyout 10 EE procs
Renew SA on 50 EE cores
Or subscription
Renewal cost comparison
Renewal costs in EAP if SCE didn’t exist
10 SQL Server EE procs
EAP renewal scenario
Perpetual licenses under SA
CPS
SQL EE cores SA: $275k/yr
SQL SE cores SA: $145k/yr
SQL EE cores SAPriorL: $55k/yr
Total 3yr cost: $1.43m**
*Renewal costs assume 5 cores per proc average shown through inventory report maintained by the customer
** Pricing estimates based on
31
Customers with deferred licenses
EAP license position
50 SQL Server EE procs
100 SQL Server SE procs
Deferred licenses brought in as SA only
10 SQL Server EE procs
SA
250 EE cores
500 SE cores
Buyout & SA
Buyout 10 EE procs
Renew SA on 50 EE cores
Or subscription
Renewal cost comparison
Renewal costs in EAP if SCE didn’t exist
SQL EE cores SA: $275k/yr
SQL SE cores SA: $145k/yr
SQL EE cores SAPriorL: $55k/yr
Total 3yr cost: $1.43m**
10 SQL Server EE procs
SCE cost with buyout
SQL EE cores SA: $314k/yr
SQL SE cores SA: $137k/yr
Buyout: $107k
Total 3yr cost: $1.46m
*Renewal costs assume 5 cores per proc average shown through inventory report maintained by the customer
** Pricing estimates based on
SCE cost with subs
EAP renewal scenario
Perpetual licenses under SA
CPS
SQL EE cores SA: $261k/yr
SQL SE cores SA: $137k/yr
SQL EE cores subs.: $78k/yr
Total 3yr cost: $1.42m
32
Implications for
ECI customers
33
Discount changes
Installed base
coverage
commitment to CIS
34
Discount changes
20% discount on CIS license & SA
20% discount on CIS SA renewals
~20% off CIS license & SA (15% SCE + 5% CIS)
~10% off CIS SA renewals (5% SCE + 5% CIS)
25 license minimum
25 license minimum
No installed base coverage requirement
All licensed Windows Server deployments must
be licensed with an appropriate Core
Infrastructure Suite SKU
35
ECI transition implications
Existing ECI
ECI
Window Server + System Center
Customer
licensing
preference
Partial coverage
Customers who have only partial coverage
Good coverage
Customers trending towards full coverage
36
ECI transition implications
Existing ECI
ECI
Window Server + System Center
Customer
licensing
preference
Partial coverage
Customers who have only partial coverage
Microsoft
renewal
offer
Renew CIS SKUs in Select/EA
Effective
discount
levels
 5% L&SA discount
 5% SA renewal discount
Good coverage
Customers trending towards full coverage
37
Partial coverage
Existing ECI customer license footprint
50 CIS Datacenter
100 CIS Standard
Standalone licenses in use with SA
10 WS Datacenter
75 WS Standard
Licenses in use without SA
ECI renewal scenario
CIS licenses in use with SA
100 Windows Server SE
38
Partial coverage
Existing ECI customer license footprint
Option 1: Renew into EA additional products/Select
Software Assurance renewal
50 CIS Datacenter
50 CIS Datacenter
10 WS DC
100 CIS Standard
100 CIS Standard
75 WS SE
Standalone licenses in use with SA
10 WS Datacenter
75 WS Standard
Licenses in use without SA
ECI renewal scenario
CIS licenses in use with SA
100 Windows Server SE
39
Partial coverage
Existing ECI customer license footprint
Option 1: Renew into EA additional products/Select
Software Assurance renewal
50 CIS Datacenter
50 CIS Datacenter
10 WS DC
100 CIS Standard
100 CIS Standard
75 WS SE
Standalone licenses in use with SA
10 WS Datacenter
75 WS Standard
Licenses in use without SA
100 Windows Server SE
Option 2: Sign SCE, incrementally add
New L&SA purchase
Subscription
10 CIS DC w/o WS
100 CIS SE
75 CIS SE w/o WS
ECI renewal scenario
CIS licenses in use with SA
Estimated SCE renewal is 61% higher
than renewing CIS SKUs in Select Plus*
* Pricing estimates based on
Guidance: Explain SCEs role in the cloud OS vision; don’t force a deal where customers won’t commit
40
ECI transition implications
Existing ECI
ECI
Window Server + System Center
Customer
licensing
preference
Partial coverage
Customers who have only partial coverage
Good coverage
Customers trending towards full coverage
Microsoft
renewal
offer
Renew CIS SKUs in Select/EA
Renew into SCE
Effective
discount
levels
 5% new unit discount
 5% SA renewal discount
 15% incremental new unit discount
 5% incremental SA renewal discount
41
Good coverage
Existing ECI customer license footprint
Option 1: Sign SCE
SA renewal
Subscription
50 CIS Datacenter
50 CIS Datacenter
10 CIS SE
100 CIS Standard
100 CIS Standard
Standalone licenses in use with SA
New L&SA purchase
5 WS Datacenter
5 CIS DC w/o WS
10 WS Standard
10 CIS SE w/o WS
Licenses in use without SA
10 WS SE
ECI renewal example
CIS licenses in use with SA
Estimated SCE renewal is 3% higher than
renewing CIS SKUs in Select Plus*
* Pricing estimates based on
Guidance: Renew into SCE
42
Coverage through components
Existing ECI customer license footprint
Option 1: Renew into SCE
SA renewal
Subscription
50 CIS Datacenter
50 CIS Datacenter
10 CIS SE
100 CIS Standard
300 CIS Standard
Standalone licenses in use with SA
200 WS Standard
200 SC OpsMan
Licenses in use without SA
10 WS SE
Option 2: Renew CIS in Select; drop SA on SC Comp
SA renewal
50 CIS Datacenter
200 WS Standard
100 CIS Standard
ECI renewal scenario
CIS licenses in use with SA
Dropping SA on System Center components
could save 20%*
* Pricing estimates based on
Guidance: Lead with SCE, but prioritize System Center component renewal
43
As customers renew into the
SCE, excess license grants may
help them meet SCE
requirements
Renewing SA on these licenses may
result in excess grants:
•
Windows Server Enterprise Edition
•
System Center Enterprise Edition
•
System Center components
•
CIS Standard Edition &
Enterprise Edition
Customers with these licenses will
need extra consideration at renewal
44
Excess license grants
Current license w/SA
Windows Server Enterprise Edition
System Center Enterprise Edition
System Center components
CIS Enterprise Edition (1 proc)
CIS Standard Edition (1 proc)
License grant at renewal
SCE implications
2 Windows Server Standard (2:1)
Excess WS SE grants can be used to
meet 100% WS SA requirement
Customers running 2 VMs or less and/or licensing
servers with 1-2 procs have an excess WS SE
license
2 System Center Standard (2:1)
Customers running 2 VMs or less and/or licensing
servers with 1-2 procs have an excess SC SE license
System Center coverage requirements still apply
Excess SC SE grants can be used to
meet 100% SC coverage
System Center Suite (1:1)
Customers with multiple components on a server
have an excess license
CIS Standard Edition (2 proc) (1:1)
Customers who needed 2 CIS EE/SE licenses for a 2
proc server, now may only need 1 CIS SE license for
that server, resulting in an excess CIS SE license
Excess CIS SE grants can be used to
meet SCE coverage requirements
45
Pricing changes for ECI customers
L+SA annualized
Current
pricing
Window Server SE
$437
-5%
EA/Select CIS SE
$830
System Center SE
$437
-20%
ECI CIS SE
$699
46
Pricing changes for ECI customers
L+SA annualized
Current
pricing
Window Server SE
$437
-5%
EA/Select CIS SE
$830
System Center SE
$437
-20%
ECI CIS SE
$699
New
pricing
Window Server SE
$437
-5%
EA/Select CIS SE
$830
System Center SE
$437
-15%
SCE CIS SE
$706
~20% Discount
47
Pricing changes for ECI customers
L+SA annualized
Current
pricing
Window Server SE
$437
-5%
EA/Select CIS SE
$830
System Center SE
$437
-20%
ECI CIS SE
$699
New
pricing
Window Server SE
$437
-5%
EA/Select CIS SE
$830
System Center SE
$437
-15%
SCE CIS SE
$706
One year SA
Current
pricing
Window Server SE
$188
0%
System Center SE
$188
-20%
EA/Select CIS SE
$375
ECI CIS SE
$300
48
Pricing changes for ECI customers
L+SA annualized
Current
pricing
Window Server SE
$437
-5%
EA/Select CIS SE
$830
System Center SE
$437
-20%
ECI CIS SE
$699
New
pricing
Window Server SE
$437
-5%
EA/Select CIS SE
$830
System Center SE
$437
-15%
SCE CIS SE
$706
One year SA
Current
pricing
Window Server SE
$188
0%
System Center SE
$188
New
pricing
Window Server SE
System Center SE
EA/Select CIS SE
$375
ECI CIS SE
$300
$188
-20%
-5%
EA/Select CIS SE
$357
$188
-5%
SCE CIS SE
$339
~10% Discount
49
How will this impact pricing for customers?
Program
Current Pricing
Discount on
Standalone
New Pricing
Discount on
Standalone
EA/Select CIS SE
$830
5%
$830
5%
ECI CIS SE
$699
20%
$706
~20%
Program
Current Pricing
Discount on
Standalone
New Pricing
Discount on
Standalone
EA/Select CIS SE
$375
n/a
$357
5%
ECI CIS SE
$300
20%
$339
~10%
50
Using Microsoft Payment
Solutions
51
Microsoft Payment Solutions
Microsoft Payment
Solutions helps
customers expand their IT
purchasing power and
improve cash flow with an
easy, flexible and
affordable payment plan
aligned to their budget
$0
Deferred payment option: Customer can defer making SCE
payments for up to six months when there is an immediate
need but budget isn’t available till the next fiscal year
Ramped payment option: Customer can pay less in the near term and
then increases payments in later periods to match to their return of
SCE investment or when more funds are available
Monthly/quarterly payment option: Customer can spread the annual
SCE expense including any true-ups over the rest of the contract term
with equal, predictable payments
Manage payment timing
Manage cash flow strategically
Close budget gaps
Align payment with use
Microsoft Payment Solutions is available in United States, Canada, United Kingdom, Germany, Spain, Belgium, France, Italy, Switzerland, The Netherlands, Australia, New Zealand, Japan and Brazil
For informational purposes only. This does not constitute an offer of credit by Microsoft or any affiliate of Microsoft. To receive financing, a customer must be credit-approved by the applicable third-party financing provider. The
financing agreement sets forth the terms and conditions on which financing is offered.
52
Flexible options manage payment challenges
For some customer scenarios, signing a SCE will increase costs due to the installed base coverage requirements
•
Installed base coverage: Customer faces an incremental upfront cost to meet SCE installed base requirements for
Software Assurance
•
Cover Windows Server with System Center: Customer must purchase additional System Center licenses to cover
the entire Windows Server deployment
•
Deferred licenses in EAP Renewals: Customer has a large amount of deferred Licenses in their EAP and will need
to buyout or renew into subscription
•
Subscription in the SCE: Customer must pay the annual subscription cost upfront each year
•
Option 1: Customers with budget constraints can defer making payments until their next fiscal year starts
•
Option 2: Customers with budget constraints can ramp their payments over time, instead of making three equal
payments each year
•
Option 3: Customers who want to manage their cash flow can make equal monthly or quarterly payments over
the term or arrange monthly payment for subscriptions. (annual subscription commitment is still required)
53
Planning for FY14
54
Program availability & launch
July
Aug
Sept
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
June
EAP Available
SCE Only
ECI Available
SCE: Launch November 10th
SCE SKUs on
Preview Pricelists
SCE SKUs Available: November 1st
SCE CIS DC Promotion: Additional 15% off CIS (WS/SC) DC
Windows Server 2012 R2 SKUs available: November 1st
55
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