Microsoft will re-align the whole of the System Center suite of products across two main editions, namely Datacenter and Standard Edition, and both will include all components and capability to manage any workload. The option to procure individual components of the System Center stack will be removed.

There will no longer be a requirement for a license for the Management Server and only the endpoints that are managed by System Center will need a license. This will include both managed servers (via Server MLs) and managed clients (via Client MLs).  SQL technology will also be integrated into the endpoint license(s).

Microsoft have also provided a license grant for existing Software Assurance (SA) customers to support the transition to the new 2012 product stack and licensing model.

There will also be updates to Enrolment for Core Infrastructure the Core IO procurement model that combines Windows Server and System Center – will be covered in a subsequent article.

Server Management Licenses (Server MLs)

• The Server ML for Datacenter Edition license will support a single server with two processors.
• The Server ML for Standard Edition license will support a single server with two processors; or will be determined by the number of managed OSEs, whichever is greater.
• Licenses will need to be ‘stacked’ to support a single server with more than 2 processors.

• Each license covers up to 2 Processors
• All Physical Processors on a Server must be licensed with the same Server ML Edition
• Server MLs include SQL Server Technology and can manage any type of workload

The ‘Tipping Point’ that determines the choice of the edition will be dependent on the level of virtualization and the Server configuration. 

• Datacenter Edition will support unlimited OSEs when the Server is hosted on-premise and 8 OSEs when managed in a Service Provider’s Server farm.
• Standard Edition will support 2 OSEs when the Server is hosted on-premise and 2 OSEs when managed in a Service Provider’s Server farm.

• System Center Standard Edition allows for 2 managed OSEs per license.
• System Center Datacenter Edition allows for an Unlimited # OSEs per license
• System Center Standard Edition can be ‘stacked’ to support more Virtual OSEs (VOSE)
• A customer with a Physical Operating System Environment (POSE) will favour Standard Edition.
• A customer with a highly virtualised Operating System Environment (VOSE) will favour Datacenter Edition.

Software Assurance (SA) is included as default. This will support Mobility Rights for SA to use the VL (Volume License) in a Service Providers DC.

For more information, see the Microsoft License Mobility through Software Assurance Customer Guide and the general information on Software Assurance including New Product Rights

Client Management Licenses (Client MLs)

The management of client endpoint devices will continue to be licensed under the Client ML model.

System Center Components
Operations Manager
Configuration Manager
Data Protection Manager
Service Manager
Virtual Machine Manager
Endpoint Protection NEW
Orchestrator
App Controller NEW

Please note that both editions of System Center 2012 contain all components, and that the components are not available separately.

A customer who procures through an Enterprise Agreement (EA) and chooses Core CAL will receive Client MLs for: System Center Configuration Manager (SCCM), Virtual Machine Manager (VMM) and now Forefront EndPoint Protection (FEP).

If the customer chooses ECAL, they will also receive (in addition to the Client MLs within Core CAL): System Center Operations Manager (SCOM), Data Protection Manager (SCDPM), Service Manager (SCSM) and now Orchestrator.

The Server MLs are now all-inclusive of the System Center portfolio, the Client MLs will enable access from that Core IO solution for all endpoint devices.

The Client Management Suite Client ML and Configuration Manager Client ML and EndPoint Protection are required for managed client devices supported by System Center Datacenter or Standard Edition.  This is licensed on a Per User or Per OSE basis and Individual Components will not be available separately. If a Server Management technology is used, please ensure there is a corresponding Client ML (as below) to support management of that end-point device.

[Ref: Microsoft System Center 2012 Licensing Datasheet]

SA Migration Paths

It is recommend you work with your preferred LAR to understand the impact on your current estate and plan your procurement.

If you have Software Assurance (SA) coverage on your current System Center license footprint at the time of System Center 2012 General Availability (GA), you will receive the following System Center 2012 Server ML grants at a set ratio.

[Ref: Microsoft System Center 2012 Licensing Datasheet]

If you have Software Assurance (SA) coverage on your current System Center license footprint at the time of System Center 2012 General Availability (GA) , you will receive the following System Center 2012 Server ML grants at a set ratio.

[Ref: Microsoft System Center 2012 Licensing Datasheet]

*System Center 2012 Datacenter covers up to 2 processors per license, whereas SMSD only covers 1 processor per license.

Retirement of SMSD and SMSE

For information purposes, SMSD and SMSE are a licensing suite of Server MLs that will be retired. Below is the retiring licensing model that will be replaced with System Center Datacenter Edition and System Center Standard Edition.

Server Management Suites Licensing

The server management suites provided an easy and economical way for customers to get server management licenses (Sever MLs)  for the five main products of System Center—System Center Operations Manager 2007 R2, Configuration Manager 2007 R2, Data Protection Manager 2010, Virtual Machine Manager 2008 R2, and Service Manager 2010. Because the Suites include Virtual Machine Manager—Microsoft’s solution for managing a virtual environment— customers who are running or plan to run virtual infrastructure would consider acquiring one of the Suites.

The Server ML stack was provided through System Center Server Management Suite Enterprise (SMSE) and the System Center Server Management Suite Datacenter (SMSD). Both suites include the following specific components:

• Enterprise server management licenses for:
  • System Center Operations Manager 2007 R2
  • System Center Configuration Manager 2007 R2
  • System Center Data Protection Manager 2010
  • System Center Virtual Machine Manager 2008 R2
  • System Center Service Manager 2010
• The System Center Virtual Machine Manager 2008 and System Center Data Protection Manager Management Server licenses were included with the purchase of the Server Management Licenses (Server MLs)for these products.
• Management Server Licenses for System Center Operations Manager 2007 R2, System Center Configuration Manager 2007 R2, and System Center Service Manager 2010 were purchased separately.
• The Server Management Suite Enterprise (SMSE) provides rights to manage up to four (4) Virtual Operating System Environments (VOSEs) plus the Physical Operating System Environment (POSE); provided the POSE is limited to supporting the virtualization capability per license.
• The Server Management Suite Datacenter provides rights to manage an unlimited number of operating system environments (OSEs) on a single physical server.

(Ref: July 2010 Product List – Page 129 of 137)

It is also worth reading my previous post on System Center 2010. 

Recommendations

At the end of the current agreement term, customers should do a self-inventory, documenting the number of processors in each server in use with System Center. This will enable customers to receive the appropriate number of processor licenses based on System Center 2012 to continue their current deployments.

• Customers should do this self-inventory using the Microsoft Assessment and Planning (MAP) Toolkit or other inventory tools and processes to accurately archive a time/date stamped inventory of hardware tied to System Center installations.
• Customer can also work with a Microsoft Partner to understand the current managed estate and plan for current and future requirements.

EA Timelines

The following will need to be confirmed with Microsoft, please work with your LAR to understand impact to your contract(s)

• Current stand-alone Licenses w. Software Assurance (SA) on the Customer Pricing Sheet (CPS) can be bought until the next anniversary on the contract.*
• Current SMSE and SMSD licenses that are  on the Customer Pricing Sheet (CPS) can be bought until the end of the enrolment.

Select and Open Agreement Timelines

The following will need to be confirmed with Microsoft, please work with your LAR to understand impact to your contract(s)

• Current stand-alone Licenses w. Software Assurance (SA) can be bought until 31st January 2012*
• Current Software Assurance (SA) can be renewed until System Center General Availability (GA)
• SMSE and SMSD licenses  can be bought until System Center General Availability (GA)
• Current Stand Alone Licenses can be bought until January 2013*

*Needs to be confirmed with Microsoft

Reference

• Microsoft Website http://www.microsoft.com/en-us/server-cloud/system-center/default.aspx
• Microsoft Datasheet Get Licensing Details

Please be aware that I now work at a Microsoft Partner – BT Engage IT and will now be providing my licensing expertise through our new Licensing Services . So please do get in contact with me directly if you would like to have a bespoke review for your organisation (available to organisations with UK operations).

Our specialist team can assist you to purchase the correct licenses, at the best price, through the right program.  Please email my directly to arrange a meeting or call.

– Tony Mackelworth

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Disclaimer

This document is provided “as-is”. Information and views expressed in this document, including URL and other Internet Web site references, may change without notice. This document does not provide you with any legal rights to any intellectual property in any Microsoft product.

Please be aware that nothing on this website constitutes specific technical advice. Some of the material on this website may have been prepared some time ago and therefore may have been superseded. Specialist advice should be taken in relation to specific circumstances.

The contents of this website are for general information purposes only. Whilst the author(s) endeavour to ensure that the information on this website is correct, no warranty, express or implied, is given as to its accuracy and the primary author and website owner or it’s contributing Authors do not accept any liability for error or omission.

The contributing authors and owner of the website shall not be liable for any damage (including, without limitation, damage for loss of business or loss of profits) arising in contract, tort or otherwise from the use of, or inability to use, this website or any material contained in it, or from any action or decision taken as a result of using this website or any such material.

This Disclaimer is not intended to and does not create any contractual or other legal rights. This website is not run by Microsoft or BT Engage IT and the opinions are the author’s own.

One common scenario that IT Pros look at is VMware server running a virtual guest of Windows Server 2008 R2.

To encourage adoption of premium editions, highly virtualized environments are better supported by the premium licenses (Datacenter and Enterprise).

Microsoft has aligned the functionality of Windows Server across three main editions, namely Datacenter, Enterprise and Standard Edition. Furthermore, Microsoft have aligned the product licensing across those three main editions.

If a customer has VMware ESX as the virtualization technology, then Windows Server is not deployed as a host operating system in the physical OSE. The Volume License is assigned to the physical server to support the corresponding number VOSE (Virtual Operating System Environments)

Physical Operating System (POSE) + Virtual Operating Systems (VOSE)

Windows Server 2008 Standard 1* + 1
Windows Server 2008 Enterprise 1* + 4
Windows Server 2008 Datacenter 1* + Unlimited

*If running the maximum allowed instances, the instance in the physical operating system environment may only be used to run hardware virtualization software (for instance VMware or Hyper-V), provide hardware virtualization services, or run software to manage and service operating system environments on the licensed server.

• Before you run any instance of the server software under a software license, you need to assign that license to one of your servers.
• You may assign other software licenses to the same server, but you may not assign the same license to more than one server (Microsoft does not support concurrent use).
• Please be aware that OEM licenses are pre-assigned to the server.
• Windows Server comes with ‘Down Edition’ rights. This will support licensing with a Enterprise or Datacenter license to support the peak capacity of virtual machines, while allowing deployment of the standard image. There is not a requirement to ‘stack’ Windows Server Standard licenses If It is not the most cost-efficient licensing model.
• In addition, once you have one license of a product, you can ‘create and store’ as many (non-running) Virtual Machines with that product as you like without requiring additional licenses

If a server is running ESX as the virtualization technology, then Windows Server is not deployed as a host operating system in the physical OSE.

As an example, If you have assigned a single license of Windows Server 2008 R2 Enterprise to the server running ESX, then you may run up to four instances at a time of Windows Server 2008 R2 Enterprise.

You may not run a fifth instance under the same license since that right requires that the fifth instance be running hardware virtualization software and software managing and servicing the OSEs on the server.

 

Two common scenarios for high availability datacentres involve running the same workload simultaneously across two servers and running a workload on a primary server and periodically moving it to another server due to failure, load balancing, patching or down-time. In each case, whether POSE (Physical Operating System Environment) or VOSE (Virtual Operating System Environment) Microsoft have sufficient licenses assigned to the server to support the workload running on it and accommodate ‘peak capacity’.

1. The servers are clustered, each licensed with Windows Server and both running the same virtualized workload in parallel.
2. Both servers are licensed with Windows Server. The workload is moved from the first server to the second server.

If a customer is running Parallels Virtuoso as the virtualization technology, then any Windows Server Virtual OSEs are running in silo, on top of Windows Server on the physical OSE. The VMs share the same kernel as the Windows Server OS but have isolated registry settings, OS library, OS processes and App software. The virtual OSEs are enabled for separate machine identities and admin rights.

The Virtual OSEs share the same kernel and as such, will need to run the same edition when using Parallels for Physical and Virtual OSEs. All Virtual OSEs will be exposed to all processors on the Server. This can have both a cost and licensing impact for Server Applications that run on a Per Processor licensing model (BizTalk)

Example: As shown above, a two-processor server with three running instances of BizTalk Server in virtual OSEs must have six processor licenses for BizTalk Server. 1u Windows Server 2008 R2 Enterprise License is required since the server is running Windows Server in the Virtual OSEs and One instance in the Physical OSE.

An alternative, would be to look at BizTalk Enterprise Edition – Microsoft provides unlimited virtualization when the physical processors are licensed.

If a customer VMware ESX host, with v-Motion enabled, the main consideration is ensuring that each physical server can support the maximum possible number of VOSE (Virtual Operating Systems) that are enabled by the assigned license(s ). Microsoft does not have a concurrent licensing model and the assigned license(s ) should support the total number of VOSE (Virtual Operating Systems) that could run on the Server.

The same licensing rules apply to Windows Server Clustering Services as VMotion and System Center Virtual Machine Manager (SCVMM). When a customer moves Virtual OSEs between servers, the licenses remain with the physical server to which they were originally assigned.

When an instance is moved to a new physical server, that new server must already have appropriate licenses assigned to it (as above)/. Since Windows Server Datacenter permits an unlimited number of instances of the server software to run in virtual OSEs, in multi-server installations with VMotion, and System Center Virtual Machine Manager, it offers the greatest flexibility to move instances between servers without having to track the number of instances running or worry about being under licensed as VMs start stacking up.

Windows Server 2008 R2 Datacenter – Allows an unlimited number of instances of Windows Server to run simultaneously in virtual OSEs. Windows Server 2008 R2 Datacenter provides the flexibility to move instances of Windows Server without concern about maintaining license compliance.

For Windows Server, licenses may only be reassigned to new hardware after 90 days. This, however, does not restrict the dynamic movement of virtual OSEs between licensed servers. As long as the license(s ) is sufficient to support the corresponding number of Virtual OSEs the administrator can transfer Virtual OSEs at will without having to track license assignments.

Server Repartitioning (Windows Server 2008 R2 Datacenter)

You may reassign licenses sooner than permitted in the Universal License Terms when you:

• reallocate processors from one licensed hardware partition to another
• create two or more partitions from one licensed hardware partition
• create one partition from two or more licensed hardware partitions as long as (i) prior to repartitioning, each hardware partition is fully licensed, and (ii) the total number of licenses and processors remains the same.

[Product Use Rights, January 2012, Page 36]

Determining Which Edition of Windows Server Is Most Cost-effective

The most cost-effective edition of Windows Server for your virtualization needs depends on the specifics of your organisation’s environment. This can also be impacted by existing license footprint and volume agreement that windows server is procured through.

• Standard is the most cost-effective if you want to run up to three simultaneous instances in a virtual OSE on the server.
• Enterprise is most cost-effective if you want to run four simultaneous instances in a virtual OSE per processor. Enterprise is licensed by server, not per processor, but more than one Enterprise license may be assigned to a server to have the rights to run more than four instances of Windows Server.
• Datacenter is most cost-effective for running more than four instances per processor. At four instances per processor, Datacenter is slightly more expensive than Enterprise, but provides room to add instances in a virtual OSE on the server at no additional cost. The flexibility gained from “unlimited” virtualization rights reduces concern of licensing compliance.

The optimum licensing vehicle for Windows Server will be dependent on the level of virtualization in the customer datacentre. If your organisation is looking at high availability and continuity and other benefits commonly associated with Virtualization (Whether VMware or Microsoft Hyper-V), then the Premium Editions of Windows Server will support a higher number of Virtual OSEs.

I have often stated in this blog that the optimum licensing model is always dependent on the specifics of the organisation and ultimately that specific “Tipping Point” for that customers’ environment, including but not limited to, access to the most cost-effective Volume Agreement.

It is therefore important not to make decisions about procurement ‘in silo’ without a wider review of the existing environment and vendor contract agreement framework. There will be server licensing considerations both pre and post consolidation and it should acknowledge the impact of v-Motion running across the estate.

The following areas could all be reviewed when when looking at licensing windows in virtual environments,

• Current Volume Agreements (Procurement Models)
  • Alternative Volume Agreements (Procurement Models)?
• Current Product Licensing Footprint – Is it sufficient?
  • Does it support current and planned configurations?
• Software Assurance (Maintenance) – Software Use Rights
  • Does the current Software Use Rights enabled under maintenance contracts cover the current and planned server estate?

VMware  advertise the advantages of vSphere as to  “Perform multiple concurrent migrations to continuously optimize a virtual IT environment.” This is why review of the whole server estate, including existing licensing footprint, current contract obligations, software use rights (both perpetual, subscription based or maintenance enabled), current deployed configuration and planned virtualization plans should all be considered.

The advantages of a holistic approach should not be disregarded. While the cost may be higher than your initial estimated costs for the project, but over a longer period it could deliver cost savings through leveraging economies of scale through procurement on the most appropriate Volume Agreement( s) and secure against unanticipated costs from non-compliance following a vendor review (Microsoft) or independent organisation (BSA or FAST).

Please be aware that nothing on this website constitutes specific technical advice. Some of the material on this website may have been prepared some time ago and therefore may have been superseded. Specialist advice should be taken in relation to specific circumstances.

The contents of this website are for general information purposes only. Whilst the author(s) endeavour to ensure that the information on this website is correct, no warranty, express or implied, is given as to its accuracy and the primary author and website owner or it’s contributing Authors do not accept any liability for error or omission.

The contributing authors and owner of the website shall not be liable for any damage (including, without limitation, damage for loss of business or loss of profits) arising in contract, tort or otherwise from the use of, or inability to use, this website or any material contained in it, or from any action or decision taken as a result of using this website or any such material.

This Disclaimer is not intended to and does not create any contractual or other legal rights. This website is not run by Microsoft and the opinions are the author’s own.

• Which Affiliates are to be included?
• How many Qualified Devices?
• Overview of the relevant Contract Documentation
• Overview of the True Up Process
• Which Enterprise Products for Standardisation?

The diagram below illustrates the Microsoft Stack across Apps, Systems and Servers. The Enterprise Agreement provides the option to standardise across one, two or all three pools. If all three pools are committed, then the Enterprise Products will receive a Platform Discount.

Whether a company has a greater strategic approach in the commitment to the Microsoft Platform, or takes a narrow ad hoc approach to procurement will ultimately impact the individual price point of a given product or set of technologies.

This price elasticity across the multiple Volume Agreements for a particular organisation will be dependent on the quantity of product ordered or whether the organisation commits ‘enterprise wide’ to the Microsoft technology. If several technologies are committed ‘enterprise wide’ within a technology platform there will be a ‘Tipping Point’ when procurement of a Suite of products on a relational Volume Agreement will deliver more value over ad hoc procurement on a Transactional one.

The CAL Suites are an approach to buy access rights for multiple products in the Microsoft server stack. Ultimately, It will be dependent on your organisations planned upgrade path over time, existing license footprint and requirement for enterprise functionality.

If customers are looking at procurement enterprise wide and see the value of Software Assurance (SA) then the CAL Suite on an Enterprise Agreement (EA) or Enterprise Agreement Subscription (EAS) may make sense.

In the diagram below, the customer has a 3 Year Enterprise Agreement, wherein, the customer is paying for License and Software Assurance (L&SA) over the Agreement term. For information purposes, this is recognised as one third of the License each year and one year of Software Assurance (SA).

During the Agreement term, the customer has added a number of additional qualified devices to the network. In the first year of the Enterprise Agreement (EA), 30 organisation iPads accessing the corporate VDI have been discovered via the SAM database. This would be added to the True Up payment for the 1st Anniversary (Start of 2nd year) etc.

For additional support also refer to the EA contracts What are the EA contract documents? and the Qualified Device definition: What is the definition of a Qualified Device?

The Enterprise Agreement True Up Requirements

Microsoft updated the timing schedule for the EA True Up in July 2011. Previously, Microsoft required the True Up order to be received between 60 prior to, or 15 days after, the Anniversary Date. This is now amended to 60-30 days prior to the next Anniversary. Microsoft request payment to be received within 30 days and the Invoice date can be set to align to the Anniversary. On the 3rd Anniversary, the order is submitted in the last 30 days with payment due within 3l0 days of receipt of invoice. Accordingly it is recommended to review SAM process and align to financial systems to support the new discovery, reporting and payment schedule(s ).

On this basis, Microsoft has included a definition on the qualification of the devices that are licensed under that Agreement and contribute towards the qualified device count that determines both minimum quantity requirements and the discount the customer receives for purchases within that Pool.

Up until the Microsoft 2011 Agreement update, the Microsoft Enterprise Agreement was based on a “Qualified Desktop” count. This was defined as devices capable of running a application such as Office Professional Plus.

This includes both traditional desktop PCs and Apple Macs. This excluded, Servers and other devices with an Embedded OS that do not access a Virtual Desktop Infrastructure (VDI) or dedicated line-of-business systems. This could include PoS Terminals and specific FX trading stations.

However, in 2011 Microsoft extended the definition to “Qualified Device” and this now includes new generation devices like the Apple iPad 2 and Samsung Galaxy Tablet (Android) or indeed, Smart-Phones that are brought onto the organisations premises and used to access the organisations’ VDI (Virtual Desktop Infrastructure). It is important to understand the IT policy for Consumer devices in the Software Asset Management (SAM) policy to confirm compliance with your organisations Microsoft contract terms. It does not matter to Microsoft whether VDI is accessed by an employee or corporate owned device.

I have covered this popular topic before in another article Applications and OS Licensing: Remote Access and Roaming Use that may be a useful reference. Broadly, the slate device would not be included if all the following criteria were applicable (1) The device is not owned by the organisation or ‘controlled’ by the organisation. (2) The device is used to access VDI off-premise and the end-user never accesses on-premise. (3) The user of the slate device would be the Primary User of another device as covered under the Enterprise Agreement (EA) or Enterprise Agreement Subscription (EAS). The Primary User of the main PC with active Software Assurance (SA) assigned to the Windows Upgrade license.

For reference purposes, ““Qualified Device” means any personal desktop computer, portable computer, workstation or similar device that is used by or for the benefit of the Enrolled Affiliate’s Enterprise. It does not include (1) any computer that is designated as a server and not used as a personal computer, (2) any Industry Device, (3) any device running an embedded operating system (e.g. Windows Phone 7) that does not access a virtual desktop infrastructure, or (4) any device that is not managed and/or controlled either directly or indirectly by Enrolled Affiliate’s Enterprise. Enrolled Affiliate may include as a Qualified Device any device which would be excluded above (e.g. Industry Device)”

[EA 2011 Enrolment, Direct, EU-EFTA, English, July 2011]

For reference purposes,

[EA 2011 Enrolment, Direct, EU-EFTA, English, July 2011]

[1] Please be aware specific concessions are subject to approval by Microsoft.

Please be aware that I now work at a Microsoft Partner – BT Engage IT and will now be providing my licensing expertise through our new Licensing Services . So please do get in contact with me directly if you would like to have a bespoke review for your organisation (available to organisations with UK operations).

– Tony Mackelworth

For Corporate Customers:

“Enrolled Affiliate owns or controls, Owns of controls owned Affiliate, or is under common ownership or control with enrolled Affiliate.”

“For the purposes of this definition, “ownership” means more than 50% ownership and “control” means the right granted by law to exercise decision power over administration, finances and operations.

For Government customers: “Any entity that is enrolled in the same country as the enrolled Affiliate and meets the Government eligibility criteria”. [EA2011 AgrGP (EMEA)(ENG)(Jul2011)]

In the UK, under the N39 UK Public Sector Framework Agreement “Government Customer” “means any public sector entity defined as being covered by the OGC buying solutions Trading Fund (Extension and Amendment) Order 2009.”

“For the purposes of this agreement, Government Customers shall not include:

• Utilities as defined in the Utilities Contracts Regulations 2006;
• Any company or entity (or any defined part of a government entity) which operates on a for-profit basis; and
• any entity which Microsoft and Buying Solutions have specifically agreed should be excluded".

[UKPublicSectorCustomMBSA (May 2009)]

Eligibility criteria for UK Public Sector Customers under PSA09

Many UK Public Sector organisations are entitled to benefit from the special pricing and terms agreed under the Cooperation Agreement between Microsoft and Buying Solutions for Microsoft licensing to the UK Public Sector (PSA09).

In order to benefit from the PSA09 special terms and prices, your public sector organisation must first meet the eligibility criteria which Microsoft has agreed with Buying Solutions:
You are a UK public sector entity defined as being covered by the Buying Agency Trading Fund Order 1991 (as amended) with the exception of:

• utilities as defined in the Utilities Contracts Regulations 2006;
• any company or entity (or any defined part of an entity) which operates on a for-profit basis; and
• any entity which Microsoft and Buying Solutions have specifically agreed should be excluded.

1. Are you covered by the Trading Fund?
   You must confirm you are a UK public sector entity covered by the Buying Agency Trading Fund Order 1991 (as amended) (“Trading Fund”). Buying Solutions will have provided your organisation with a unique reference number if you are covered by the Trading Fund. If you are unsure if you are covered please contact Buying Solutions at info@buyingsolutions.gsi.gov.uk.
   If your organisation is not covered by the Trading Fund but you are a public sector organisation who wishes to benefit from the PSA09 special terms and prices, the approval of both Microsoft and Buying Solutions is required; please contact licopsuk@microsoft.com indicating that you are not covered by the Trading Fund.
2. Is your organisation a utility?
   If you are covered by the Trading Fund but your public sector organisation is a utility (as defined in the Utilities Contracts Regulations 2006) then you are not eligible for the PSA09 special terms and prices. If you wish to be considered for inclusion it will require the approval of both Microsoft and Buying Solutions; please contact licopsuk@microsoft.com , providing your unique Trading Fund reference number.
3. Does your organisation operate on a for-profit basis?
   If you are covered by the Trading Fund but your organisation operates on a for-profit basis then you are not eligible for the PSA09 special terms and prices. For the purposes of these eligibility criteria, the following additional criteria will be applied to profit-making public sector organisations to determine whether such organisation is considered for-profit:
• Do the revenues/profits of your organisation go solely to UK Government (no profits go to private shareholders)?
• Is your organisation exempt from corporation tax?
• Is your organisation financed more than 50% by UK Government (i.e., does it derive less than 50% of its funding from commercial activities)?

If the answer to all of these questions is “yes,” then your organisation shall not be considered for-profit.
If the answer to any of the questions above is “no,” then your organisation shall be considered for-profit and you will not be eligible for the PSA09 special terms and prices. If you wish to be considered for inclusion it will require the approval of both Microsoft and Buying Solutions; please contact licopsuk@microsoft.com , providing your unique Trading Fund reference number. Please note that generally, government owned corporations, state-owned enterprises and government owned organisations (whether incorporated or not) undertaking commercial activities (e.g., telecommunications, banking, transportation) will not be eligible.

4. Is your organisation eligible for Microsoft’s Educational License schemes?
   If your organisation is a government-recognised education establishment, is responsible for the administration of such establishments, is a public library or museum or is a charity then it may be eligible for Microsoft’s Educational Licence schemes which are specifically designed to meet the unique demands of the education community. Please check your eligibility for such schemes at http://www.microsoft.com/uk/education/buy/who.mspx.

If your organisation is not covered by the Trading Fund but you are a public sector organisation who wishes to benefit from the PSA09 special terms and prices, the approval of both Microsoft and Buying Solutions is required; please contact licopsuk@microsoft.com indicating that you are not covered by the Trading Fund.

Microsoft and Buying Solutions reserve the right to review and reject the status of any organisation as being eligible for the PSA09 special terms and prices. Microsoft and Buying Solutions may agree to amend these criteria at any time.

Microsoft will be updating the PSA09 Customer Overview Guide in 2012. As always, refer to specific reference documentation and work directly with Microsoft UK for confirmation.

Physical Documents

1. Contract Pack is created using current Version of Documents.
2. LAR ensures all information is present and correct.
3. Customer Signs Documents and returns to LAR.
4. LAR sends Documents to Licensing Operations Team at TVP via Post.
5. Licensing Operations team check documents for Invalids and advise if necessary.
6. Documents are sent to EOC for Processing once deemed valid.

Scanned Documents

1. Contract Pack is created using current Version of Documents.
2. LAR ensures all information is present and correct.
3. Customer Signs Documents and returns to LAR
4. LAR sends Documents to Licensing Operations Team via Scan to ukscan@microsoft.com
5. Licensing Operations check documents for Invalids and advise as necessary.
6. Documents are sent to EOC for Processing once deemed Valid.

eAgreements

1. Contract Pack is created using eAgreement tool.
2. LAR ensures all information is present and correct.
3. Customer Signs Documents.
4. Documents are automatically sent to EOC via eAgreements tool to begin processing.
5. If there is an issue, the LAR can raise a CLT via www.Explore.ms

Physical Copies

• All Physical documents need to be sent to the address below:
  • Licensing Operations Team
  • Building 5, Floor 1, Zone A
  • Microsoft Campus
  • Thames Valley Park
  • Reading
  • RG6 1WG

eAgreements

• All documents are submitted via the eAgreements tool

Scanned Documents process

• Completed signed documents need to be scanned and sent to alias : ukscan@microsoft.com

Pre-validation

• If you would like to use the Pre-validation service please sent scanned copy of completed unsigned documents to licopsuk@microsoft.com

Please be aware that I now work at a Microsoft Partner – BT Engage IT and will now be providing my licensing expertise through our new Licensing Services . So please do get in contact with me directly if you would like to have a bespoke review for your organisation (available to organisations with UK operations).

– Tony Mackelworth

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Technorati Tags: Microsoft Agreement Structure,Microsoft Contract Structure,Microsoft Enterprise Agreement Contracts,Microsoft Enterprise Agreement Documentation,Submitting Microsoft Contracts to EOC

On November 3rd 2011, Microsoft announced both the release and licensing changes coming with SQL Server 2012.

Microsoft will re-align the functionality of the SQL 2012 across three main editions, namely Enterprise, Business Intelligence and Standard Edition. Furthermore, It will also align the licensing across those three editions.

• Enterprise – Mission critical applications and data warehousing
• Business Intelligence – Premium corporate and self-service Business Intelligence (BI)
• Standard – Basic database capabilities, reporting and analytics.

As part of that realignment of functionality, Microsoft will consolidate and therefore remove the following:

• Datacenter – features will now be available in Enterprise Edition
• Workgroup – features will be available in Standard Edition.
• Standard for Small Business – features will be available in Standard Edition.

Please be aware that I now work at a Microsoft Partner – BT Engage IT and will now be providing my licensing expertise through our new Licensing Services . So please do get in contact with me directly if you would like to have a bespoke review for your organisation (available to organisations with UK operations).

– Tony Mackelworth

• Web Edition – Available via Services Provider License Agreement (SLPA)

In addition, non-commercial releases of SQL will continue.

• Developer, Express and Compact Editions will also continue to be distributed without licensing or pricing changes.

Licensing Per Core

Microsoft will re-align the licensing model for SQL 2012 to remove Per Processor as a commercial charging mechanism for their enterprise database software. In response to evolution of the number of cores per physical processor and the future expected consolidation of the number of processors, Microsoft has re-aligned it’s commercial model for SQL Server.

Licensing by cores is a better way to align pricing to hardware capacity. In addition, cores provide a precise and flexible measure of capacity across both physical and virtual environment. This will support both mobility and hybrid environments.

Enterprise and Standard will be available under core-based licensing. However, Microsoft will not extend the core model to the Business Intelligence (BI) Edition.

Enterprise Edition will include the full capabilities of SQL Server 2012, so a customer who wants to license a BI Server on a per core basis can do so by buying Enterprise Edition. Enterprise Edition will be the preferred way to license advanced SQL Server BI capabilities when users are uncountable (For instance, external facing workloads) or when there is a very large number of users.

The New Core Licensing Model

Physical The licensing requirement for licensing Per Core will be to count the physical number of cores on the hardware. Microsoft have caveated a minimum of 4 Core licenses per physical processor. Additionally, Enterprise Edition when licensed with Active Software Assurance (SA) will have Unlimited Virtualization rights.

To license a physical server properly, an organisation would license all the cores in the server with a minimum of 4 core licenses required for each physical processor in the server.

Virtual The licensing requirement for licensing Per Virtual Core will be to count the number of virtual cores per VM. Microsoft have caveated a minimum of 4 virtual Core licenses per VM. Additionally, when licensed with Active Software Assurance (SA) will provide flexibility of License Mobility across both on-premise and cloud deployment scenarios. 

Cost Implications

Microsoft have modelled the price of a Core license at circa ¼ the cost of SQL Server 2008 R2 Processor License. Accordingly, Microsoft state that there would be limited impact on a physical processor with 1-4 cores. The impact going forward would be that as compute capacity increases so will the licensing requirement.

Please be aware that the net price impact to an individual customers will depend on both correctly licensing the existing SQL footprint and understanding current and planned capacity and functionality requirements. Working with only an excellent Microsoft Partner will support an optimum procurement model for your organisation.

Server and CAL Model

Server + CAL model, available with Business Intelligence (BI) and Standard Editions, is appropriate for business intelligence workloads and scenarios in which users can be counted accurately.

Server + CAL model would support a Business Intelligence (BI) solution as It would align to the number of devices using Office and SharePoint. This would have a defined number of accessing devices.

To access a licensed SQL Server, the SQL Server CAL should be the same version or newer.  For instance, a deployment of SQL Server 2008 R2 Server will need a SQL 2008 R2 CAL or SQL 2012 CAL.

Each SQL Server 2012 CAL can provide access to any SQL Server database, regardless of Platform or Edition. This includes all licensed SQL Servers, including the new Business Intelligence Edition as well as Standard Edition Servers and legacy Enterprise Edition Servers.

The SQL Server 2012 CAL price will increase by about 27%

SQL Virtualization – Per Core

The updated licensing model for SQL Server 2012 will support both Virtualization and Cloud deployment scenarios.

• High Number of Virtual Machines (VM) The licensing requirement for licensing Per Core will be to count the physical number of cores on the hardware. Microsoft have caveated a minimum of 4 Core licenses per physical processor. Enterprise Edition with Active Software Assurance (SA) for all the physical cores on the server (or server farm) and leverage deploying any number of VMs on the licensed hardware.
  • SQL Without Active Software Assurance (SA) VM density is limited to one VM per physical Core. VM Density can never rise above the hardware footprint.
  • License Individual Virtual Machines (VM) The licensing requirement for licensing Per Virtual Core will be to count the number of virtual cores per VM ( The number of threads of physical cores assigned to VM)
• License for Virtual Machine (VM) Mobility this is to support both private and public clouds. VM license mobility will be a benefit of Active Software Assurance (SA). Without SA, licenses can be moved from one server to another only once every 90 days. This is important for customer who are using VMware v-Motion and are intending to virtualize SQL.

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SQL Virtualization – Per Server / CAL Model

The updated licensing model for SQL Server 2012 will support

To license a Virtual Machine (VM) with a Server license (for Business Intelligence or Standard only) an organisation must procure the server license and buy corresponding SQL Server CALs.

Each licensed Virtual Machine (VM) that is covered with Active Software Assurance (SA) can be moved frequently within a server farm or to a third party hoster or cloud services provider without buying additional SQL Server licenses.

License Migrations – Server + CAL

Microsoft has stated that new server licenses for Enterprise Edition will only be available for purchase through 30th June 2012.

Customers on an ‘Active’ Enterprise Agreement (EA) w. Enrolment for Desktop /Enrolment for Application Platform (EAP) Enrolment  can continue to  buy server licenses until renewal of the Agreement after June 30, 2012.

SQL Server Enterprise Licenses purchased with Active Software Assurance (SA) will upgrade to SQL Server 2012 at no additional cost.

Microsoft customers who have licensed SQL on the Server model, with Active Software Assurance (SA) will receive SQL 2012 under New Version Rights at no additional cost.

Microsoft have stated that the migration will be subject to a 20 core per server license maximum.  This applies to both net new requirement for SQL Server or existing footprint with Active Software Assurance (SA). In the event SQL Server Enterprise Edition on the Server + CAL model is running on a Server with > 20 physical cores, It is recommended that you work with your Microsoft Partner who will contact the  Licensing Sales Specialist within your local Microsoft subsidiary.

Moving forward, If your organisation has procured Enterprise Edition server licenses without Software Assurance can maintain existing SQL Server 2008 R2 Enterprise Edition Server licenses as legacy licensing for existing workloads. The alternative is to buy net new Enterprise Edition on the Per Core model or Business Intelligence (BI) on the Server + CAL model.

License Migrations – Per Processor to Core Model

Customers with processor licenses under Active Software Assurance (SA) can upgrade to SQL Server 2012 at no additional cost.

At the end of the Software Assurance (SA) term, processor licenses will be exchanged for core licenses and customers can renew their Software Assurance (SA) on core licenses. This will maintain New Version Rights and License Mobility for Software Assurance to move Volume Licensing (VL) licensed applications to shared hardware clouds.

It is recommended that you review your SQL environment at the end of the Software Assurance (SA) Term. This will provide the basis for the core licenses you will own, and will confirm the requirements for renewal of Software Assurance (SA) going forward.

Microsoft will provide access to the Microsoft Assessment and Planning (MAP) Toolkit as one way to help track and document deployments. This tool can help you plan the transition from processor-based licenses to core-based licenses by counting both processors and cores across deployments. Microsoft are actively encouraging SQL customers to work with a Microsoft Partner to determine an optimal transition plan. This will include both review of existing physical and virtual deployments and mapping onto existing and planned SQL requirements going forward

Please be aware that I now work at a Microsoft Partner – BT Engage IT and will now be providing my licensing expertise through our new Licensing Services . So please do get in contact with me directly if you would like to have a bespoke review for your organisation (available to organisations with UK operations).

– Tony Mackelworth

• SQL Enterprise and Standard processor licenses under SA will be exchanged for a minimum of 4 core licenses per processor or for the actual number of cores in use.
• SQL Server Datacenter processor licenses will be exchanged for a minimum of 8 Enterprise Edition core licenses per processor or for the actual number of cores in use.

Customers with an Active Enterprise Agreement or Active Enterprise Agreement Subscription with a desktop Enrolment or an Active Enrolment for Application Platform will be able to continue to purchase Enterprise Edition server and processor licenses until the end of the Agreement Term.

However, please be aware that this can lead to a two-tier licensing model spanning both new procurement on Select Agreements and legacy procurement in an Enterprise Agreement. An organisation will need to ensure license compliance under the Product Use Rights under SQL 2008 R2. Please see my previous article to support.

Customers with an Active Enterprise Agreement or Active Enterprise Agreement Subscription with a desktop Enrolment or an Active Enrolment for Application Platform can add Core licenses mid-term and can engage via the Microsoft Reseller or Microsoft Account Team.

Microsoft have stated that the migration will be subject to a 20 core per server license maximum.  This applies to both net new requirement for SQL Server or existing footprint with Active Software Assurance (SA). In the event SQL Server Enterprise Edition on the Per Processor model is running on a Server with > 20 physical cores, It is recommended that you work with your Microsoft Partner who will contact the  Licensing Sales Specialist within your local Microsoft subsidiary.

Renewal Software Assurance (SA)  will attach Deployment Planning Services and Technical Assistance. 

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• Direct Partners to a register for a "See What’s New With the VLSC" LiveMeeting on August 11th. https://training.partner.microsoft.com/learning/app/management/LMS_ActDetails.aspx?UserMode=0&ActivityId=751179
• Find VLSC training and resources:  http://www.microsoft.com/licensing/existing-customers/manage-my-agreements.aspx
• "See What’s New in the VLSC" video: http://www.microsoft.com/licensing/existing-customers/media/How_to_Use_the_VLSC.aspx

All links above are publicly available on Microsoft public and partner facing websites.

Please be aware that nothing on this website constitutes specific technical advice. Some of the material on this website may have been prepared some time ago and therefore may have been superseded. Specialist advice should be taken in relation to specific circumstances.

The contents of this website are for general information purposes only. Whilst the author(s) endeavor to ensure that the information on this website is correct, no warranty, express or implied, is given as to its accuracy and the primary author and website owner or it’s contributing Authors do not accept any liability for error or omission.

The contributing authors and owner of the website shall not be liable for any damage (including, without limitation, damage for loss of business or loss of profits) arising in contract, tort or otherwise from the use of, or inability to use, this website or any material contained in it, or from any action or decision taken as a result of using this website or any such material.

This Disclaimer is not intended to and does not create any contractual or other legal rights. This website is not run by Microsoft and the opinions are the author’s own.