SPLA Service Provider License Agreement

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SPLAService Provider License Agreement

• Philip MeyerRegional Hosting Specialist

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What Well Cover

• Vision
• Market Drivers
• Proven
• Emerging
• Licensing Introduction
• Hosting Solutions

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Microsoft .NET
Devices
User experiences
Visual Studio.NET .NET Framework
Web services
Notification
Identity
Storage
Servers
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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

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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

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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

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Microsoft Licensing
Large
EA
Select
Medium
Open
SPLA
Small Business
FPP
Home User
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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

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Microsoft Licensing Map
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Internal External Use Licensing HOSTING
Scenario A Dedicated Hosting
Scenario B Shared Hosting
Option 3
Option 2
Option 1
Hosting companys server farm
Hosting companys server farm
Customer A
Customer C
Customer B
Customer A
Customer B
Customer C
Same options available as under Scenario 1

• Customer owns licenses Hosting Co. acquires
  Licenses

Hosting Co. Owns Acquires Licenses
Hosting Co. Owns Acquires Licenses

• Customer Owns Acquires Licenses

Internal or External Use depending upon license
Ownership
Internal Use Customer is licensed via EA/Select
Internal Use Customer is licensed via EA/Select
Hosting Co. signs Outsourcer Enrollment
External use Hosting Co. must sign the SPLA
(cannot use their own EA/Select)
External use Hosting Co. must sign the SPLA
(cannot use their own EA/Select)
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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

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Internal External Use LicensingBP Outsourcing
Scenario 1 In-house
Scenario 3 Shared Outsourcing
Scenario 2 Dedicated Outsourcing
Customer A
Customer A
Customer A
Billing Dept.
Billing Dept.
Billing Dept.
Customer B
External Use Outsourcer has to sign SPLA, since
using same set of licenses to provide Billing for
multiple customers
Internal Use Even though Billing is outsourced,
it is dedicated to Customer A, so Customer A can
use EA/Select agreement
Internal Use Customer can license Billing dept
under EA/Select agreement
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Real-world examples
External Use Amazon
External Use Martha Stewart
Amazon
Martha Stewart
Digex
Customers
Customers

• 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 (SPs
  customer)
• Commercial X-ion between SP User? NO

• Business Hosts websites for small booksellers
• Users Small booksellers Customers
• Ownership Amazon wishes to own software assets
• Information controlled by Bookseller (SPs
  customer)
• Commercial X-ion between SP User? NO

• Use Type External
• Licensee Amazon
• Licenses SPLA (no External Connector)

• Use Type External
• Licensee Digex
• Licenses SPLA (no External Connector)

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Real-world examples (contd)
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 (SPs
  customer)
• Commercial X-ion between SP User? NO

• Business Accenture manages Billing depts
• Users Customers customers
• Ownership Accenture owns licenses
• Information controlled by Accentures customers
• Commercial X-ion between SP User? NO

• Use Type External
• Licensee Accenture
• Licenses SPLA (no External Connector)

• Use Type External
• Licensee HP
• Licenses SPLA (no External Connector)

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Real-world examples (contd)
External Use SCS Procurement Services
External Use Reuters
HP
DBS Bank
Procurement Dept. Outsourced to SCS
Broker
SCS
Customer B

• Business SCS provides Procurement Services
• Users DBS, SCS other customers
• Ownership SCS owns licenses
• Information controlled by SCS customers
• Commercial X-ion between SP User? NO

• Business Reuters provides financial info and
  storage services
• Users Broker
• Ownership Reuters owns licenses
• Information controlled by Brokers
• Commercial X-ion between SP User? NO

• Use Type External
• Licensee Reuters
• Licenses SPLA (no External Connector)

• Use Type External
• Licensee SCS
• Licenses SPLA (no External Connector)

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video

• What SPLA means to a
• Service Provider and Customers
• www.microsoft.com/serviceproviders/licensing/compa
  re.asp

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Software As A ServiceMarket Drivers

• Demand
• IT skills shortage
• Increased application complexity
• Time to deployment
• Technology refresh cycle
• Supply
• Bandwidth
• Emergence of competent, well-funded Service
  Providers

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Software As A Service Drivers
Source IDC
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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

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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

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Australia SB Attitudes and Strategic Directions
Overview

• Top strategic directions
• 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

Very Important
Important
Source AMI SME Survey
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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

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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

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Hosted Exchange Opportunity Segments ? End users
Service Providers
Outsourcers
Enterprise Global, Strategic,
Major, Corporate
Mid Market Small business
Hosting ServiceProviders
ISPs / Webmail
Consumer
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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

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ADS Secure, Hands-Off ImagingZero Touch Server
Builds from Bare Metal
1
4
Bare metal server PXE Boots and task sequence is
initiated
Agent authenticates/ requests image
Target Server
2
5
Controller downloads DOS image for hardware
configuration
Encrypted image is downloaded and deployed
3
6
Image is personalized and boots to full OS with
agent
Controller transfers deployment agent to RAM disk
Logs all activity
SSL
Possibly Multicast
ADS Controller
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Logical Diagram
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MPS Request Flow

• New Customer
• Initial request

Web Control Panel
1. HTTP Post via SSL
2. XML Provisioning Request
Request Expansion
3. Request Expansion
4. Providers perform tasks
MPF

• 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

AD
RM
IIS
FP
Request
Tasks
5. XML Response
Active Directory
IIS Resource Manager
IIS
FrontPage
6. HTML Update Complete
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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)

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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

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Demand Generation for Hosting

• http//www.microsoft.com/smallbusiness/products/ro
  admap.mspx

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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

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