SPLA
Service Provider License Agreement
Philip Meyer
Regional Hosting Specialist
What We’ll Cover
• Vision
• Market Drivers
– Proven
– Emerging
• Licensing Introduction
• Hosting Solutions
Microsoft .NET
User
experiences
Web
services
Notification
Storage
Servers
Enterprise Servers
Identity
Visual Studio.NET
.NET Framework
Devices
Types of Licenses
• Internal Use: End user is the license owner
– OEM, FPP, Open, Select, EA
– End User must own both Server and CAL licenses
– End User CALs does not have right to access service providers’
servers
• Commercial Services (licenses with hosting rights):
end users of service do not own licenses, service
providers own the licenses
–
–
–
–
–
–
Web/Internet Service Provider/Hoster
Application hosting (mail, LOB & office online)
Platform infrastructure provider
Streaming media provider
ISV providing hosted applications
IT Outsourcer providing software licenses
Licensing Choice
• Customers Own Licenses
(Server + CALs/IC)
– Outsource to service provider
– Customers retain license ownership
– Types of licenses: OEM, FPP, Open, Select or EA
• Service Provider provides all licenses
(PL or SAL)
– Monthly subscription based upon usage
– Software Assurance included
– Multi-tenancy (shared license) permitted
• Combination
SPLA in a nutshell
• Microsoft SPLA is a pay-as-you-go
process, aligning your software
investment with your monthly revenue
streams
• What does this mean for you?
– Avoid upfront costs
– Map your licensing costs to your business
model
– Pay only for what you use
Microsoft Licensing
Large
Medium
EA
Select
Open
Small Business
Home User
SPLA
FPP
SPLA Licensing Model
• SAL (Subscriber Access License)
– Per User (Exchange, Live Comm Server, Office, SharePoint
Portal Svr, Small Business Svr, MOM, SMS, Project Server &
Project, Terminal Services)
• Access any number of servers from any device
• No additional Server fee
• Minimize start-up cost
• PL (Processor License)
– Per Processor (Application Center, BizTalk, Commerce Server,
Content Management Svr, Host Integration Svr, ISA Svr)
• Simple to monitor and count (reducing admin cost)
• Unlimited users and companies
• SAL (Per User) – OR - PL (Per Processor)
– Windows and SQL Server
– Maximum Flexibility
– Not locked in to either model
Microsoft Licensing Map
Internal Use
Remote Access
On-site
OEM, FPP
Licensing
mechanism
Authorized
User
Authorized
Usage
Scenario
MBA
EA/Select
Enrollment
External Use
Open
ISV
External Connector
SPLA
Outsourcer
Enrollment
Customer and Customer’s Affiliates or
appointed agents only
(Excludes unauthorized, non-employees)
‘External User’: Any
person who is not: an
employee, temporary
personnel, or your
customer to whom you
provide hosted services
‘You may not rent, lease, lend or host products…’
Third-party licensing programs (ISV Royalty Licensing program, Service Provider Licensing Agreement)
Service Provider providing
Software Services to its
customers
Outsourced scenarios
(including Outsourcing,
Hosting, Web Services)
Internal & External Use Licensing: HOSTING
Scenario A: Dedicated Hosting
Option 1
Option 2
Scenario B: Shared Hosting
Option 3
Hosting
company’s
server farm
Hosting
company’s
server farm
Customer A
Customer A
Customer Owns
& Acquires
Licenses
Internal Use:
Customer is
licensed via
EA/Select
Customer B
Customer B
Customer owns
licenses; Hosting
Co. acquires
Licenses
Internal Use:
Customer is licensed
via EA/Select; Hosting
Co. signs Outsourcer
Enrollment
Customer C
Customer C
Hosting Co. Owns
& Acquires
Licenses
External use:
Hosting Co. must
sign the SPLA
(cannot use their
own EA/Select)
Hosting Co. Owns
& Acquires
Licenses
External use:
Hosting Co. must
sign the SPLA
(cannot use their
own EA/Select)
Same options
available as
under Scenario 1
Internal or External Use
depending upon license
Ownership
SPLA and Web Hosting
• SPLA is by far the most economic model for
shared hosting
– SPLA permits multi-tenancy (sharing of a single
license held by the Service Provider)
– OEM, Open, FPP, etc may only be used by the
license holder (i.e. the END customer) therefore in a
shared configuration every hosted customer would
require a Windows Server license and potentially SQL
license too
– Service Provider may not use an OEM, Open, FPP
license to provide hosting or commercial services
Internal & External Use Licensing:
BP Outsourcing
Scenario 1: In-house
Customer A
Scenario 2: Dedicated Outsourcing
Scenario 3: Shared Outsourcing
Customer A
Customer A
Billing Dept.
Billing Dept.
Billing Dept.
Customer B
Internal Use:
Customer can
license Billing dept
under EA/Select
agreement
Internal Use: Even
though Billing is
outsourced, it is
dedicated to Customer
A, so Customer A can
use EA/Select
agreement
External Use:
Outsourcer has to
sign SPLA, since
using same set of
licenses to provide
Billing for multiple
customers
Real-world examples
External Use: Amazon
Amazon
External Use: Martha Stewart
Martha
Stewart
Digex
Customers
Customers
Business: Hosts websites for small booksellers
Users: Small booksellers’ Customers
Ownership: Amazon wishes to own software assets
Information controlled by: Bookseller (SP’s customer)
Commercial X-ion between SP & User?: NO
Use Type: External
Licensee: Amazon
Licenses: SPLA (no External Connector)
Business: Sells stuff off website
Users: Employees, Customers
Ownership: Martha Stewart did not wish to own software
assets; entered into hosting agreement with Digex
Information controlled by: Martha Stewart (SP’s customer)
Commercial X-ion between SP & User?: NO
Use Type: External
Licensee: Digex
Licenses: SPLA (no External Connector)
Real-world examples (cont’d)
External Use: HP Helpdesk Services
External Use: Accenture Billing Services
BC Hydro
Billing Dept
Outsourced
to Accenture
Redmond
Helpdesk
Asia
Helpdesk
Helpdesk
outsourced
to HP
Customer B
EMEA
Helpdesk
Business: HP provides Helpdesk services
Users: MS employees
Ownership: HP owns licenses
Information controlled by: Microsoft (SP’s customer)
Commercial X-ion between SP & User?: NO
Use Type: External
Licensee: HP
Licenses: SPLA (no External Connector)
Business: Accenture manages Billing depts
Users: Customers’ customers
Ownership: Accenture owns licenses
Information controlled by: Accenture’s customers
Commercial X-ion between SP & User?: NO
Use Type: External
Licensee: Accenture
Licenses: SPLA (no External Connector)
Real-world examples (cont’d)
External Use: Reuters
External Use: SCS Procurement Services
HP
DBS Bank
Procurement
Dept.
Outsourced
to SCS
Broker
SCS
Customer B
Business: SCS provides Procurement Services
Users: DBS, SCS’ other customers
Business: Reuters provides financial info and storage services
Users: Broker
Ownership: SCS owns licenses
Information controlled by: SCS’ customers
Commercial X-ion between SP & User?: NO
Ownership: Reuters owns licenses
Information controlled by: Brokers
Use Type: External
Licensee: SCS
Licenses: SPLA (no External Connector)
Commercial X-ion between SP & User:? NO
Use Type: External
Licensee: Reuters
Licenses: SPLA (no External Connector)
video
What SPLA means to a
Service Provider and Customers
www.microsoft.com/serviceproviders/licensing/compare.asp
Software As A Service
Market Drivers
• Demand
– IT skills shortage
– Increased application complexity
– Time to deployment
– Technology refresh cycle
• Supply
– Bandwidth
– Emergence of competent, well-funded Service
Providers
Software As A Service Drivers
Affordable access to technology
Avoids capital investment
Simplify budgeting
Shorter implementation cycle
Lower cost of entry for applications
Improved total cost/performance
One-stop shopping/support
Focus more on primary business
Scalability to meet business growth
Avoidance of IT staff recruitment/retention
Source: IDC
0%
10%
20%
30%
40%
50%
60%
Customer Requirements from Microsoft
Annual Customer Survey
•
•
•
•
•
•
•
•
•
•
•
•
Security / viruses
Update / upgrade infrastructure
Improve software / upgrade
Cut costs / budget
New technology
Server upgrade
Info / data management / storage
Improve Internet / web services
Improve hardware / upgrade
Compatibility / system integration
Email / spam
Reliability / stability
How Important are Proposed
Campaigns?
• Security
• Connecting people to devices
• Team Collaboration
• BI
• ERP
• CRM
• Upgrading Servers
• Upgrade MS App SW
• Upgrade MS Desktop OS
Australia SB Attitudes and Strategic Directions Overview
Top strategic directions:
Very
Important
Important
•
•
•
•
•
•
•
•
•
•
Data back-up and disaster recovery
Enhance data security and privacy via firewall, encryption, etc.
IT staff training and skills enhancement
Upgrading bandwidth for data networking
Interconnecting branch offices
Electronic linkages with suppliers and distributors
Using hosted applications via 3rd party service providers (ASPs)
Outsourcing IT & other business services
Customer Relationship Management (CRM) applications
Imaging & document management solutions
Source: AMI SME Survey
Horizontal Opportunities
• Empowering Employees
– Building an extended organisation encompassing
partners, suppliers and customers
– Employee self-service and Online Training
– Messaging and Collaboration
• Any device, Any where, Any time
• Integrating Business Partners
– Collaboration with business partners
– EDI, EAI, B2B
• Connecting Customers
– Extending the storefront to corporate procurement
Enterprise Opportunities
• Avoid “sticker shock”
– Content Management Server
• $80,000 per Proc or $1,400 per month
• Share big ticket items
– BizTalk Server
• Multiple businesses
• “Peaks and Troughs”
– Office and Project
• Special Project with need for desktop licenses for a short time
• Trials and Pilots
– Test out software technology without committing to a perpetual license
• Small offices in overseas locations
– Leave the total solution provision to an SPLA Service Provider rather
than invest in staff, resources and travel
Hosted Exchange Opportunity
Segments  End users & Service Providers
Enterprise
Global, Strategic,
Major, Corporate
Outsourcers
Mid Market
Hosting Service
Providers
Small business
Consumer
ISPs / Webmail
The Windows-based Hosting Solutions
• A collection of best practices, scripts, and tools that enables
service providers to deploy a centralized management
infrastructure
• Provides these benefits:
– Cost savings even as your data center complexities increase
– Highly specialized tools that enable the service provider to roll-out
managed services quickly
Monitoring
and Reporting
• Server or service
failure
• Data mining
• Customer reporting
Centralized
Management
• Group policies
• Improve and scale
the administration
of multiple servers
Server Purposing
• Build a new server
• Repurpose existing
servers
Update
Management
• Security alerts
• Apply security updates
• Reconfigure existing
servers
ADS Secure, Hands-Off Imaging
“Zero Touch Server Builds from Bare Metal”
1
Bare metal server PXE Boots and task sequence is
initiated
2
Controller downloads DOS image for hardware
configuration
3
Controller transfers deployment agent to RAM
disk
4
Agent authenticates/ requests image
5
Encrypted image is downloaded and
deployed
6
Image is personalized and boots to full
OS with agent
Target Server
PXE
FW
RAM
Hard
Disk
Logs all activity
SSL
DB
ADS
Controller
Possibly
Multicast
Deployment Agent
Pre-OS
Administration Agent
Windows-Present
Logical Diagram
Border
Router
Perimeter Firewall Services
Packet and Port Filtering
SSL Termination
Stateful Inspection
Application Filtering
Perimeter/Net
Hosted Exchange
Services
Exchange Front-End
Servers
SMTP:
EXSMTP01
EXSMTP02
OWA/POP/IMAP
and RPC Proxy:
EXFE01
EXFE02
EXFE03
Exchange Back-End
Server Cluster (4+1)
EXBE01
EXBE02
EXBE03
EXBE04
EXBE05
Web and
Data Hosting
Web Hosting
WEB01
FrontNet
Platform Services
External DNS
DNS01
DNS02
DNS03
DNS04
Update
Management
SMS01
Provisioning
Front-End
PROV01
BackNet
Service
Monitoring and Active
Data Hosting
Directory
Provisioning
Reporting
Shared
AD01
MPS01
MOM01
SQL01
AD02
MOMSQL01
Dedicated
SQL02
BackUp-Build-Net
Backup and
Restore
Server
Purposing
ADSC01
MPS Request Flow
• New Customer
• Initial request
Web Control
Panel
1. HTTP Post via SSL
2. XML Provisioning Request
3. Request Expansion
4. Providers perform tasks
Request Expansion
• Active Directory Provider
• Create New OU
• Create Groups
• Set Security
• Delegate Permissions
• IIS Resource Manager
• Find Available Resource
• IIS Provider
• Create Folder
• Set Security on Folder
• Create Site
• Set Security on Site
• FrontPage Provider
• Enable SharePoint Team Services
5. XML Response
6. HTML – Update Complete
MPF
AD
RM
Request
Active
Directory
IIS Resource
Manager
IIS
FP
Tasks
IIS
FrontPage
More Hosting Solutions and
Opportunites
• Document Protection
– Hosted Windows Rights Management
• EAI Management
– Hosted BizTalk Server farm
• Media Company Content Portal
– Content Management Server
• EPM
– Hosted Project Server + Project via Terminal Services
• Remote Small Businesses
– CPE SBS2003 and potentially even Office
• CRM
– Hosted CRM (under SPLA and a CS Solution Q3 CY05)
Resources
• Directions on Microsoft
– www.directionsonmicrosoft.com
• Jumpstart Programs
• Microsoft Partner Solutions Centre (MPSC)
• www.microsoft.com/serviceproviders
–
–
–
–
–
–
Licensing
Windows Web Hosting Program
Service Provider Newsletter
Certification Programs
Third party Solution Directory
Deployment Guides
• Shared Web Hosting Guide
• Solution Technical Articles and Case Studies
Demand Generation for Hosting
http://www.microsoft.com/smallbusiness/products/roadmap.mspx
Why a Service Provider?
• Limited IT skills to manage services to employees and
customers
• Reduce TCO by sharing infrastructure with other businesses
• Want to stay current with latest hardware and software
• Need better integration between business applications
– Messaging linked to CRM, Web site to ERP
• Need access from anywhere, anytime and potential from any
device
– Mobile device integration, telecomputing
• Outsource the license management burden
• Move IT from asset based to expense based
• Place security in the hands of professionals