Enterprise Cloud Suite Licensing Guide

The objective of this article is to review the publicly available documentation available on Enterprise Cloud Suite

This will look at the publicly available information upon general availability on December 1st 2014

  • This article is not intended to replace the Product Use Rights or Product List or other binding contractual documents
  • The Use Rights or Terms of Service for each Product or Version are available within the Product Use Rights
  • Further product-specific conditions or limitations on use of products are in the Product List
  • Please be aware that any licensing information could be subject to change. This document confers no rights and is provided for information purposes only.
  • Please be aware, my own emphasis may have been added to quotations and extracts from 3rd party sources.
  • As always, If you would like to book a consultation, available under NDA, please drop me a note via email

Executive Summary

  • The Enterprise Cloud Suite combines three strategic elements for Microsoft to drive adoption of Office 365, Enterprise Mobility Suite, Windows Desktop OS under a consistent Per User subscription model for the desktop
  • Windows offers a compelling Per User licensing model, but organisations should continue to track device profiles and associated underlying Windows device licenses
  • The Enterprise Cloud Suite will enable remote home working and BYOD scenarios for organisation who opt to deliver a consistent Windows experience  via a VM-based VDI (dedicated image) or VM-based VDI (shared image) delivery model to a range of device profiles.
  • The Enterprise Cloud Suite will be offered at a  advantageous price to incentivise adoption, driving ‘strategic bets’ for Windows 10, Office 365 and Enterprise Mobility Suite.
  • The Enterprise Cloud Suite is available on the Enterprise Agreement (EA) and Enterprise Agreement Subscription (EAS). Customers should understand the impact of revised True Up reporting within November 2014 contracts.

Enterprise Cloud Suite Overview

Microsoft made Enterprise Cloud Suite generally available to  Enterprise Agreement customers December 1st 2014

The updated EA purchasing vehicle  combines three strategic elements for Microsoft to drive adoption of Office 365, Enterprise Mobility Suite, Windows Desktop OS under a consistent User Subscription Licensing Model.

The ‘Cloud Desktop Platform’ packages strategic objectives for Productivity and Cloud Services with Management across Devices

Cloud Desktop

  • Microsoft Intune provides a unified Mobile Device Management (MDM) and Mobile Application Management (MAM) across PCs and devices. This now includes management of Office Mobile Apps (Word, Excel, PowerPoint) for iOS devices and restrict actions such as copy, cut, and paste outside of the managed app ecosystem.
  • Azure Active Directory Premium (AADP) provides User Identity and Federation via Active Directory Federation Services (ADFS) to enable pass through authentication with SSO experience from on premise AD to cloud service providers like Office365 and Salesforce.com. Acting as a identity broker for SaaS Apps with support for Multi Factor Authentication (MFA).
  • Later this will include Microsoft Identity Manager (MIM) in H1 2015 as an on-prem Identity and Access Management (IAM)
  • Azure Rights Management Services enabling Information Rights Management (IRM) for  Office365 Services and On Premise SharePoint, Exchange and Windows Server File Services.

EMS

  • Microsoft Office365 Enterprise E3 is a flagship SaaS subscription offering of Exchange Online, SharePoint Online and the Lync Online, Yammer and Office365 Pro Plus

Office365

Windows Enterprise and SA

This represents a move from Microsoft to provide a consistent Per User licensing vehicle to enable a future ‘Cloud Desktop’ service offering. While Windows will be integrated with cloud services running on the Azure Platform; Whether the Windows service will be reflected in a consistent subscription based commercial model for Windows 10 remains to be seen.

Cloud Desktop


Windows SA Per User

Prior to General Availability of the Enterprise Cloud Suite and Windows SA Per User licensing Windows Client OS on any device under a per-user model was not an option.

Microsoft now provide four licensing options, a ‘full’ Windows SA Per User Subscription, a ‘full’ Windows VDA Per User Subscription and an Windows SA Per User ‘Add On’ Subscription and Windows SA Per User Migration 

Windows Per User

With the Windows SA Per User Subscription, organisations can license Windows Software Assurance on a per user basis. When the license is assigned primary user, the associated primary device must be licensed with a ‘qualifying OS’.

The Windows SA Per User ‘Add On’, provides the benefit of Windows Software Assurance per User, or Windows VDA per User, at a price point that recognizes existing ongoing investment. When the license is assigned to a primary user of a primary device that is already covered with active Software Assurance, the Windows Software Assurance per User Add-on grants the licensed user with all of the benefits of Windows Software Assurance per User. When you license the primary user of a primary device that is already covered with Windows VDA, the Windows Software Assurance per User Add-on grants the licensed user with all of the benefits of Windows VDA per User.

These Windows VDA Per User Subscription allows an organisation license Windows on a per user basis, and may be assigned to any user. Each licensed user has access to Windows Enterprise without the need to track the operating system license(s) on the user’s device(s), except for devices where the software is installed locally. This provides a user-centric licensing model, providing flexible options for organisations to deploy and access Windows across devices, and does provide improved license management for Windows.

The Windows SA Per User Migration  maintains the SA Only price point that is available to customers who own perpetual licenses with Software Assurance in an Enterprise Agreement (EA) or Select Agreement. Customers with active SA will receive special pricing for transition continuity, recognizing their equity investment in previous fully paid perpetual licenses. This is now available for existing renewal customers.

[Ref: Microsoft Price List Guide, December 2014]

Per Device vs. User Comparison

Enterprise Agreement Requirements

The Windows SA Per User Subscription for customers with an Enterprise Agreement (EA) should acquire Windows SA Per User for all “Qualified Users”

  • The “Qualified User” is defined in the Enterprise Agreement enrollment as “”‘Qualified User” means a person (e.g., employee, consultant, contingent staff) who: (1) is a user of a Qualified Device, or (2) accesses any server software requiring an Enterprise Product Client Access License or any Enterprise Online Service. It does not include a person who accesses server software or an Online Service solely under a License identified in the Qualified User exemptions in the Product List.” [Ref: Enterprise Agreement Enrollment 2014]
  • “To understand what “user of a Qualified Device” means, “Qualified Device” means any device that is used by or for the benefit of Enrolled Affiliate’s Enterprise and is: (1) a personal desktop computer, portable computer, workstation, or similar device capable of running Windows Professional locally (in a physical or virtual operating system environment), or (2) a device used to access a virtual desktop infrastructure (“VDI”).
  • Qualified Devices do not include any device that is: (1) designated as a server and not used as a personal computer, (2) an Industry Device, or (3) not managed (as defined in the Product List at the start of the applicable initial or renewal term of the Enrollment) as part of Enrolled Affiliate’s Enterprise. At its option, the Enrolled Affiliate may designate any device excluded above (e.g., Industry Device) that is used by or for the benefit of the Enrolled Affiliate’s Enterprise as a Qualified Device for all or a subset of Enterprise Products or Online Services the Enrolled Affiliate has selected.”

[Ref: Enterprise Agreement Enrollment 2014]

  • The Microsoft define a ‘Primary User’ must be assigned to a License Device
  • The “Primary User” is defined as  “the user who uses a Windows Software Assurance, Windows Embedded Industry Software Assurance, or Windows VDA Licensed Device more than 50% of the time in any 90 day period.

[Ref: Product Use Rights, January 2015, Page 75]

Product Licensing Requirements

  • The Licensed Device must be ‘already licensed’ for a ‘Qualified Operating System‘ of Windows as defined in the Product List
  • The Windows SA Per User Subscription does not require Software Assurance for an assigned to the Licensed Device
  • Microsoft clarify that Windows can be locally installed in a Physical OSE on Windows Pro and Enterprise devices and additionally on “integrated” screens with a size of 10.1″ diagonally or less
  • The Windows SA Per User Add On does require Active Software Assurance or active VDA Subscription Per Device License for the Licensed Device
  • The Windows SA Per User Add On can only be purchased for the maximum number of available SA or Windows VDA Subscription
  • The ongoing software use rights acquired through the purchase of Add-on User Subscription Licenses will expire with the the expiration of the SA coverage for the Qualifying License(s), or at the end of the subscription term for the Add-On USLs.
  • The VDA Subscription License is recommended  for User Profiles without a primary work device, or not considered a “Primary User” under the Product Use Rights 

Decision Tree Windows SA

[Ref: Product List –  January 2015, Page 33–35][Ref: Product List –  January 2015, Page 34]

This diagram below provides an overall view of the licensing options for Windows Per User. (As always, please refer directly to binding documentation for confirmation), but this diagram attempts to capture different device profiles and respected software use rights:

Windows Per User Graphic

Complexity of the Per Device Model

Please be aware that the Per User model is not completely abstracted from the device profile, or the requirement underlying licenses assigned to those devices.

  • It does comparatively offer less complexity when managing home workers accessing VDI from a personal device and the associated risk of unlicensed access to a virtual desktop or walking their personal devices onto the organisation premises, something restricted under the “Roaming Use Right”.
  • Adopting the Windows Per User Subscription Model without also adopting Office365 Pro Plus on a Per User Subscription Model could lead to commercial risk from non compliance.
  • For example, if a user is assigned with a Windows SA Per User Subscription, but continues to access Office Pro Plus 2013 off-premise, relying on the ‘Roaming Use Right’ available as part of Software Assurance, this would not impact the ‘Qualified Device’ count. However, should the user walk that personal device onto organisation premises, it may inadvertently ‘pull through’ a requirement to license an extended number of devices under the ‘Qualified Device’ definition.
  • Microsoft state “Roaming Use” can be used on ‘Qualifying Third Party Device’ defined by Microsoft as “a device that is not controlled, directly or indirectly, by you or your affiliates”. Organisations should be aware of the definition of “management of qualified devices” as defined in the Product List to include domain join, on premise authentication to use applications, or install of agents to enforce anti-virus, anti-malware, enforcement of group policies, or receives data about, and, configures, or gives instruction the OS on a device, or access to Windows in a Virtual Desktop Infrastructure (VDI) outside of the off-premise “Roaming Use Right”. [Ref: Product Use Rights, January 2015, Page 9] [Ref: Product List, January 2015, Page 84]

The complexity of managing  home working VDI and uncontrolled BYOD scenarios drives the business case for a consistent Per User licensing model. Microsoft will continue to incentivise procurement under the Per User licensing model available for solutions and services within the Office365 and Azure portfolio to drive adoption of a ‘cloud desktop’ under a subscription or relational procurement model.

Windows Per Device Graphic


The Enterprise Cloud Suite

Microsoft now provide three licensing options on the price list to purchase the Enterprise Cloud Suite  a ‘full’ Cloud Desktop Per User, a Cloud Desktop Add On and an Cloud Desktop From SA 

  • The Enterprise Cloud Suite User Subscription License (USL) or Cloud Desktop Per User includes Office 365 Plan E3, the Enterprise Mobility Suite  (EMS) and Windows Enterprise SA per User.
  • The Enterprise Cloud Suite Add-on or Cloud Desktop Add On can be added on to a Platform EA (which includes Office Pro Plus, Windows Enterprise and either the ECAL or Core CAL).
  • The Enterprise Cloud Suite From SA User Subscription License (USL)  or Cloud Desktop From SA provides the same functionality as the full priced Enterprise Cloud Suite USL, but at a beneficial price point for customers who own perpetual licenses with Software Assurance in an Enterprise Agreement (EA).  Customers with active SA will receive an better price point incentivise transition continuity, and recognize existing equity investment in previous fully paid perpetual licenses.  This is now available for existing renewal customers
  • Customers that see Lync Voice as a part of their future roadmap, may purchase the Lync Voice Add-On. While the Lync Voice Add-On is available from December 2014, Microsoft are careful to stipulate that no provisioning will take place upon procurement of the license.

Lync Voice Add On


The Impact of 2014 Contracts

In November 2014, Microsoft updated contract packs for the Enterprise Agreement (EA), Enterprise Agreement Subscription (EAS) and Server Cloud Enrollment (SCE).

Enterprise Agreement with Add Ons

  • Microsoft have aligned the Enterprise Plan E1, Enterprise Plan E3, Enterprise Plan E4, Enterprise Mobility Suite (EMS), and Enterprise Cloud Suite (ECS) Add-Ons as “Enterprise Online Services”.
  • This will enable organisations to enroll a subset of users into a Per User licensing model or transition users over the contract term without committing Enterprise-Wide at outset of contract.
  • Microsoft continue to offer a ‘Platform’ SKU to incentivise ‘front loading’ a contract.
  • The Lync Voice Add-On is currently aligned as an ‘Additional Product’ enabling ‘price lock’ and not categorizing Lync Voice as an ‘Enterprise Online Service’.

Enterprise Online Services Only EA

  • Organisations that sign an Enterprise Agremeent (EA) or Enterprise Agreement Subscription (EAS) for ‘Enterprise Online Services Only EA‘ must meet the minimum order requirements of the respective enrollment of 250 Enterprise Online Services USLs, including Enterprise Plan E1, Enterprise Plan E3, Enterprise Plan E4, Enterprise Mobility Suite (EMS), and Enterprise Cloud Suite (ECS), From SA and Full USLs  and Microsoft Intune Full USLs but no enterprise-wide commitment is required.
  • Enterprise Online Services can be reduced to a minimum of 250 USLs at Anniversary
  • Notably, All ‘Additional Products’ are eligible to be added to the contract

True Up Policy

A principle impact to organisations will be in the approach to the annual True Up. Updated wording in the contracts could significantly impact customers that have seasonal or other annual deployment fluctuations to impact the total cost of ownership (TCO) of a Microsoft Enterprise Agreement

This new approach, effective for customers signing the revised contracts is defined as follows for the Enterprise Agreement enrollment:

“True-up Requirements. Enrolled Affiliate must submit an annual true-up order that accounts for any changes since the initial order or last order. If there are no changes, then an update statement must be submitted instead of a true-up order.

(i) Enterprise Products. For Enterprise Products, Enrolled Affiliate must determine the number of Qualified Devices and Qualified Users (if ordering user-based Licenses) at the time the true-up order is placed and must order additional Licenses for all Qualified Devices and Qualified Users that are not already covered by existing Licenses, including any Enterprise Online Services.

(ii) Additional Products. For Additional Products that have been previously ordered under this Enrollment, Enrolled Affiliate must determine the maximum number of Additional Products used since the latter of the initial order, the last true-up order or the prior anniversary date and submit a true-up order that accounts for any increase.”

For the counting of Enterprise Products, the wording in the enrollment does have an apparent conflict, that accounts for “any changes” over the term or since the last anniversary, but later also under the term Enterprise Products “at the time the true-up order is placed”.

Taken in a wider context for customers renewing other enrollments, this tactical editing of the November 2014 also extends to the Server Cloud Enrollment :-

“(ii) True-up order. Enrolled Affiliate must determine the maximum number of Products used since the latter of the initial order the last true-up order, or the Enrollment’s prior anniversary and submit a true-up order that accounts for any increase.” [Ref: Server Cloud Enrollment 2014]

This approach has been reflected in other guidance, including deployment of the Microsoft Assessment and Planning Toolkit (MAP):

“The Microsoft Assessment Planning (MAP) Toolkit features an IT-based Software Usage Tracker functionality that provides usage reports for the following server products: Windows Server, Exchange Server, SQL Server, SharePoint Server, and System Center Configuration Manager. This automated software asset management–related functionality is designed to be used by Microsoft Volume Licensing customers. The Software Usage Tracker provides you with a view of your actual server usage, which can be valuable for comparing with your purchased CALs, or for True-up and agreement renewal discussions.” [Ref: EA Program Guide]

This change in written terminology may incentivise Microsoft to request metering of use over the contract term, or final year of a contract, to ascertain ‘maximum use’ therein driving revenues from final year True Up and subsequent renewal; underwriting the business case to move workloads to Azure

The application of this term may be applied inconsistently by Microsoft, I would recommend an agreed approach to True Up with your respective Licensing Solution Provider (LSP).


Final Thoughts

The Enterprise Cloud Suite, as a commercial licensing vehicle provides a consistent Per User licensing metric across the desktop environment and “pulls through” Windows onto a subscription procurement model. This combined suite provides an incentivised price point to drive adoption and enable the strategy for a ‘Cloud Desktop’ delivering user-centric services from Azure.  This is reflected by the recent announcements for Windows 10 that will extend Windows as a ‘universal’ platform across device profiles for Office365 and Azure services.

The licensing model ensures securement OEM licensing business model by limiting abstraction from the device profile, or the requirement for underlying Windows licenses assigned to those devices . Microsoft  continue to leverage volume licensing as a strategic tool to drive customer behaviors toward subscription services and this will continue in 2015.

Organisations should review their current and planned utilisation of Microsoft Solutions and Services to evaluate alignment with the strategic objectives of their Microsoft Account Team. Microsoft will align personnel and resources to support customers that move toward Azure and Office365 but are enabled by the 2014 contract structure to secure short term revenue generation through True Up or via Audit.

Microsoft Advisory Services

SoftwareONE provide independent consultancy services from within our Microsoft Advisory Services to optimise our clients Microsoft Strategy, including but not limited to the following benefits:

  • Knowledge Transfer on Microsoft Solutions and Services, and Licensing, from Principal Consultants from our Microsoft Advisory Practice and Technical Solutions Division
  • Confirmation of current License Entitlement and Maintenance Entitlement
  • Optimised Commercial Investment plan for Microsoft Solutions and Services
  • Commercial Analysis across Contracts and Global Pricelists
  • Assessment of Commercial Options versus Microsoft Strategic Objectives to ascertain opportunities for Negotiation Advantage
  • Managed closure support with Microsoft Global Account Manager

About

This website is a way to give back to the licensing community and as an information resource for all customers that work with Microsoft software and licensing. I hope you find it of value.

Tony Mackelworth is Microsoft Advisory Services – Practice Lead at SoftwareONE

As always, If you would like to reach out for a coffee or a meeting under NDA, Email or connect via Twitter or LinkedIn

Tony lives with his wife in Oxford, England.


Disclaimer

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

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

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Office 2013 Overview

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Microsoft  communicated some incredible statistics; with over 350 Million smart phones used for work, and 50% of enterprises with technology roadmaps that include the Cloud; Microsoft’s cloud integrated approach for Office 2013 was their answer to provide a seamless user experience across different devices.

  • This article will give you a brief overview of the licensing model(s)
    [Article originally written 15th April 2013, Updated August 1st 2013]

  • This article is not intended to replace the Product Use Rights or Product List
  • Please be aware that any licensing information could be subject to change. This article confers no rights and is provided for information purposes only.

Office Features and Components

Below is a ‘snapshot’ of the components assigned to Office Professional Plus 2013 and the extended value proposition Microsoft have incorporated in Office 365 ProPlus

image

image


Office Professional Plus (On-Premise)

Microsoft originally released Office Professional Plus 2013 RTM to Volume Licensing Customers with Active Software Assurance (SA) on October 11th 2012

Microsoft announced that support for Office 2003 will end on April 8 2014 to coincide with Windows XP End of Support; encouraging organisations to upgrade to the latest release(s).

  • Users with an On-Premise technology roadmap are able to upgrade to Office Professional Plus 2013
    • This can be procured through Perpetual or Subscription Volume Agreements.
    • This is licensed on a Per Device model Organisations can adopt a Cloud procurement model, and transition Users to Office 365 Pro Plus over the contract term. It is recommended to work with a licensing expert Partner to understand the optimum approach to Product Licensing and Procurement Model(s) for your organisation.

image

  • On-premise client software will continue to be installed, managed, and licensed on a per-device basis.
  • The on-premises per-device model is based on a core assumption that the more devices a user has running the full software experience, the more value the user will derive.

image

[Ref: Ready To Go Microsoft Website] Please note: this is derived from non-binding marketing collateral. Please refer to binding documentation.


Office 365 ProPlus (Cloud Service Model)

Users with a Cloud Roadmap have the option to transition to Office 365 ProPlus

    • This was a re-engineered Office for cloud scenarios and multiple device use, consistent with the Microsoft vision of a user-centric cloud service.
    • This is deployed, authenticated, and managed on a per-user basis and is licensed on a Per User model.
    • A single user cloud service subscription will support use on a maximum of 5 Devices
    • Organisations can adopt Cloud Services procurement model, and transition current On-Premise Users to Office 365 ProPlus over the contract term when the O365 Services Refresh goes live.
    • Extended access to Office Apps natively via Android and iOS

[Ref: Microsoft Software Lifecycle Website]

This is a snapshot overview of the licensing features of Office 365 Pro Plus.

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Please refer to the relevant Product Use Rights or Product List and your relevant Volume Agreement contract(s).


Mobile Office Clients

  • The Mobile Office client for mobile devices will be licensed as a Per User ‘add-on’ to the Office Professional Plus on-premises device license.
    • Commercial use rights to Office RT with purchase of Office Professional Plus on a Volume Agreement (Open, Select Plus, EA)
  • This will be included with Office 365 ProPlus Per User license.

image


An Exploration of Downgrade Rights

Binding Documentation

Microsoft provide the software use terms for use of prior versions  via the monthly updated Product List and the Universal License Terms of the Product Use Rights. Microsoft define the extended software use right within the Universal License Terms and then subsequently amend or retract based on product, as specified in either the General License Terms or Product-Specific License Terms and Additional Terms of the Product Use Rights document.

  • The Universal License Terms. These terms apply to all products licensed through Microsoft Volume Licensing.
  • The General License Terms. These terms apply to all products that use a particular licensing model. Each licensing model section includes a list of products that use that particular model.
  • The Exceptions and Additional Terms for the product. Any additional product-specific terms are listed by product.

[See article: Hierarchy of Software Use Terms]


Downgrade Rights (Volume Licensing)

Microsoft provide the following definition in the Universal License Terms of the Product Use Rights,

“For any permitted copy or instance, you may create, store, install, run or access in place of the version licensed, a copy or instance of a prior version, different permitted language version, or different available platform version (for example, 32 bit or 64 bit). You may use different versions of components only as permitted under the Product-Specific License Terms. If you use an earlier version under these downgrade rights, Microsoft is under no obligation to provide security updates or support for the product or service beyond the end of support date listed at http://support.microsoft.com/lifecycle.”

[Ref: Product Use Rights, July 2013, Page 9 of 114]

The Product List states downgrade rights as a universal software use right of Volume Agreements, but are careful to continue to set the parameters of support for older versions: “customers can acquire the latest version in order to use an older version with downgrade rights, but are eligible for support for that product only if it is listed as supported” as maintained in the software lifecycle website.

[Ref: Product List, July 2013, Page 74 of 188]

Microsoft  offer a minimum of 10 years support for business products. This is classified as 5 years of mainstream support or for 2 years after the successor product is released (whichever is longer); and extended support provided for the 5 years following end of mainstream support; or for 2 years after the 2nd successive product is released (whichever is longer) – This is available in detail on the life policy website.


Volume Licensing: Legacy Deployments of Office

The September 2012 Licensing Brief states that downgrade rights “are granted with all application software licenses acquired through the Volume Licensing programs” wherein, Volume Agreements “give you the right to downgrade to any prior version of the same product”.

As an example, the Multi Language Pack, when procured with an application license (for any of the following products) are eligible to version downgrade.

  • Office Standard 2013
  • Office Professional Plus 2013
  • Project Standard 2013
  • Project Professional 2013
  • Visio Standard 2013
  • Visio Professional 2013

“are eligible to use the English/Multilanguage version of a downgraded version of the product in place of the licensed version. Use of the downgraded version of the product is subject to the use rights for the 2013 version of the product. These rights expire when the customers’ rights to either the Office Multi-Language Pack 2013 or the above listed 2013 product expires.”

[Ref: Product List, July 2013, Page 102 of 188]

The Licensing Brief document states that an organisation  “may downgrade Microsoft Office Professional Plus 2010 to the Microsoft Office Professional Plus 2007, Office Professional Enterprise 2003, Office Professional XP” […]You may not, however, downgrade to Microsoft Office Standard Edition 2007 because it is a different product and not considered a prior version of Microsoft Office Professional Plus 2010.”

[Ref: Downgrade Rights Licensing Brief September 2012, Page 4 of 6]

The advisory document does address issues from the consolidation of editions upon general availability of Office 2010:

”In addition, Office Professional Plus 2010 users may not use earlier versions of the Microsoft Office OneNote note-taking program and Microsoft Office Groove software via downgrade rights, because these products are not part of earlier versions of the suite (for example, OneNote 2007 and Groove 2007 are not included with Office Professional Plus 2007)”

[Ref: Downgrade Rights Licensing Brief September 2012, Page 4 of 6]

(For information purposes, I have provided a diagram of the releases of Office illustrating where a component has been upgraded, added or discontinued; Please be aware this is not derived from any Microsoft binding or advisory documentation):
image

IT Asset Managers should be aware, that if attempting to maintain a legacy deployment of Office Enterprise 2007 as  part of your corporate image across your organisation,“Software Assurance (SA) customers who have deployed Office Enterprise 2007 only (i.e., are not using any other edition of Office in their organization), and need additional seats of Office Enterprise 2007, may purchase licenses for Office Professional Plus 2010 and downgrade to Office Enterprise 2007. No other downgrades from Office Professional Plus 2010 to Office Enterprise 2007 are permitted.”

[Product List, November 2012, Page 95 of 175]

[Ref: Licensing Brief September 2012, Page 5 of 6]

In terms of access to software for installation, Microsoft provides guidance via the Fulfilment Website informing customers that software is available for download via the Volume Licensing Service Center (VLSC).

VLSC provides download access only to the current (N) and the last version (N-1) of products. This again drives customer behaviour to upgrade. As of December 2012 Microsoft continued to support a limited set of N-2 and N-3 prior product versions for download on VLSC but should a release be removed, this is via the Product Activation Center.

Previous product editions available through VLSC

Microsoft provide guidance on support for legacy releases of Office on the Microsoft Office Products Support Lifecycle Website


Visio Professional 2013 Downgrade Rights

IT Asset Managers should be aware, that if attempting to maintain a legacy deployment of Visio Premium 2010; Upon release of Visio Professional 2013 Microsoft extended a downgrade right for Visio Premium 2010 users only with a standardised enterprise-wide deployment of the product.

“Software Assurance customers who have deployed Visio Premium 2010 only (i.e., are not using any other edition of Visio in their organization), and need additional seats of Visio Premium 2010, may purchase licenses for Visio Professional 2013 and downgrade to Visio Premium 2010. No other downgrades from Visio Professional 2013 to Visio Premium 2010 are permitted.”

[Ref: Product List, July 2013, Page 104 of 188]

This caveat, enshrined within the Product List requires strict software asset management controls to leverage this ‘downgrade right’ and is recommended to closely monitor deployed software in your desktop estate.

Under the Software Assurance Migration Path for Visio Premium 2010 Microsoft extended the use right to the Professional 2013 edition under the following conditions of use:

“Customers with active Software Assurance coverage for Visio Premium 2010 as of download availability date for Visio Professional 2013 are eligible to use Visio Professional 2013 in place of Visio Premium 2010.

The right to use Visio Professional 2013 under this offering expires when the right to use Visio Premium 2010 under the corresponding qualifying licenses expires. Use of Visio Professional 2013 is governed by the use rights for Visio Professional 2013 and the terms and conditions of the customer’s volume license agreement. This product condition note and the customer’s evidence of the corresponding qualifying license together evidence the right to use Visio Professional 2013 under this offer. Upon expiration of Software Assurance coverage for Visio Premium 2010, the customer may acquire Software Assurance for Visio Professional 2013 without the need to separately acquire a new license.

[Ref: Product List, July 2013, Page 105 of 188]

This logic is consistent in the advisory brief on Visio Premium 2010 that downgrade rights are version specific, and Microsoft maintain caveats for existing maintenance (SA) customers with legacy deployments:

“Downgrade rights in Volume Licensing agreements provide customers with the right to downgrade to any prior version of the same product. However, Visio Premium 2010 is a new product without a prior version, so downgrade rights do not apply.Only Software Assurance customers who licensed Visio Professional 2007 may continue to use Visio Professional 2007under those licenses despite their Software Assurance migration rights to Visio Premium 2010.

[Ref: Licensing Brief September 2012, Page 5 of 6]


Visio Pro for Office 365 Downgrade Rights

As an express limitation for the Office 365 Pro Plus service; The Product List states that “Visio Pro for Office 365 service has no downgrade rights.”

[Ref: Product List, July 2013, Page 106 of 188]


Office 365 Pro Plus Downgrade Rights

An express limitation for the Office 365 Pro Plus service; the Product List states that the “Office 365 ProPlus service has no downgrade rights”.

[Ref: Product List, July 2013, Page 104 of 188]

Microsoft do address the issue of downgrade rights under O365 Pro Plus subscriptions in a non-binding advisory document:

“In Online Services customers have access to the latest technology with the newest features and releases. As with all Subscription Services, Microsoft generally offers only the latest version of the service at a time. Therefore, downgrade rights are not available with Office Professional Plus for Office 365 licenses

[Ref: Licensing Microsoft Office Professional Plus for Office 365, June 2011, Page 3 of 6]


Is there an exception to the rule….?

Microsoft do elaborate on the topic of on-premise use downgrade rights under the O365 Office Pro Plus Subscription:

“There is a one-time exception during the introduction of Office Professional Plus for Office 365 to Enterprise and Enterprise Subscription customers. If those customers have deployed Office Professional Plus 2010 under their Enterprise or Enterprise Subscription agreement, they may use Office Professional Plus 2010 software in place of Office Professional Plus for Office 365 user authenticated software. Although those customers may be allowed to use Office Professional Plus 2010 software, they are still required to comply with the use rights under their Office Professional Subscription license and no perpetual software rights apply.”

[Ref: Licensing Microsoft Office Professional Plus for Office 365, June 2011, Page 4 of 6]

It is understood this exception, (subject to approval from your Microsoft subsidiary), could be made available for organisations that provisioned an E3 tenant prior to Office 365 commercial availability on 27th February 2013; to support continued access to Office ProPlus 2010 installer until 8th April 2014.

Windows XP will be out of support on 8th April 2014 and may drive some organisations to upgrade Windows to enable access to the new wave of cloud productivity Office 365 applications on Windows 7.

The software use right to install Office 2010 locally under Office 365 is by exception, available under a specifically agreed contractual amendment from Microsoft;  Your procurement strategy should be principally defined by binding documentation for your organisation.

An agreed exception would be notwithstanding anything to the contrary in the Product Use Rights or other binding contractual documentation, to enable an organisation to install Office Professional plus 2010 locally;. However, this would likely be time limited; “[…] All customers will need to comply with Online Services upgrade requirements in the next release” and upgrade to the required version of Office Professional Plus.

[Ref: Licensing Microsoft Office Professional Plus for Office 365, June 2011, Page 4 of 6]

Driving Adoption of Cloud Services

The  Microsoft Office Website does suggest support for dual access rights for on-premise legacy office deployments, permitting customers to “keep older versions of Office side by side on your PCs to mitigate any potential file or add-in compatibility risks”   [last checked: 24.07.2013]. However, this was likely intended as atemporary right, and not aligned to the full term of the service.

The FAQ regarding Office ProPlus website is still active [last checked: 24.07.2013] and Microsoft do make the following statements: “If you have users who installed Office 2010 Subscription,you are required to upgrade to new version of Office 365 ProPlusby 28 February 2014” and “You will be able to install Office ProPlus 2010 until 28 February 2014.”; Microsoft will then remove the installation link on the Microsoft Online Portal and in May 2014 Office Professional Plus users will receive a notice and subsequently enter Reduced Functionality Mode with 30 days notice.

Taken directly from the FAQ regarding Office ProPlus website:

“We don’t want to upgrade to Office 365 ProPlus. Can’t we keep authenticating for Office ProPlus 2010?
No.

The Product Use Rights for Office ProPlus state: “If we provide a major upgrade to software licensed under your User SLs for the online service, you must install the upgrade on all devices using the online service to prevent an interruption of the online service.” Additionally, Office Subscription customers do not have downgrade rights.

If you cannot (or do not want to) upgrade to Office 365 ProPlus by 28 February 2014, you should purchase a Volume License for Office, utilize downgrade rights, and reinstall the perpetual version of Office 2010 on all machines with Office ProPlus 2010.”

This is an interesting statement, as downgrade rights remain enshrined within Volume Licensing. Those organisations seeking to leverage on-premise deployment rights for legacy versions of Office 2010 will need to leverage the use rights under a perpetual license procured under Volume Licensing.

“We purchased Office ProPlus 2010, but deployed the version of Office Professional Plus 2010 from the Volume Licensing Service Center (VLSC). What will happen to us on 28 February 2014?
First off, it you don’t understand this question, it almost certainly doesn’t apply to you.

If you installed Office Professional Plus 2010 via the MSI on the VLSC, you will not have users entering Reduced Functionality Mode, as this version is not cloud-authenticated. You will, however, be violating your Office Subscription license agreement.”

Ref: FAQ regarding Office ProPlus [last checked: 24.07.2013].

In terms of binding-documentation, the Microsoft Product Listprovides the following statement on legacy software use rights for Office 2010:

“Use of Office Professional Plus 2010 or Office for Mac Standard 2011

With the release of the updated service for Office 365 ProPlus your media eligibility right to use Office Professional Plus 2010 or Office for Mac Standard 2011 in place of Office 365 ProPlus software under active subscriptions has been discontinued. You have a year, until February 28th, 2014 to upgrade your devices to Office 365 ProPlus media.

* See February 2013 Product List for full terms of media eligibility rights for Office Professional Plus Subscription”

[Ref: Product List, July 2013, Page 103 of 192]

[Please note another useful resource: Microsoft Service Updates Website.]


The Impact of Office 365 “Add Ons”

It was recently announced that E3 and E4 SKUs under Office 365 will be available as “Add Ons”. This will support organisations to wish to retain perpetual rights to Core CAL and ECAL Suites but want to access cloud services. This was reported as effective August 1st 2013.

This has an important impact for Office. Wherein, organisations will be able to “Add On” E3 and E4 service plans to their existing Enterprise Agreement (EA) without committing to Office 365 Pro Plus. This would support access to Lync, Exchange and SharePoint as a Microsoft hosted cloud service without committing to the software use terms and contractual commitment to Office 365 Pro Plus at outset. This is particularly advantageous to organisation’s with perpetual rights to Office Professional Plus 2013.

  • Add Ons are an “Additional Product”on the Customer Price Sheet (CPS)

  • Add Ons do not change the underlying EA. True up for Qualified Devices as normal.
  • “No minimum” for Add Ons.
  • Add Ons are for a “Primary User” for an existing qualifying underlying License. Add Ons cannot exceed underlying licenses on the Enterprise Agreement.

O365 AddOns 2

This will be reviewed later on this website, referencing available binding and non-binding advisory documentation. This is intended for information purposes only, and I am available for consultation (under NDA) as required to review your Microsoft procurement strategy.


Final Thoughts

The restrictive approach to support legacy Office users was seen by some commentators as restrictive for customers who are looking to adopt cloud procurement, and see the value in signing up to cloud procurement model ‘now’, but have a longer transition roadmap for their legacy office deployed footprint that the Microsoft upgrade cycle.

Those seeking to leverage software use rights for legacy on-premise deployments of Office 2010 leveraged from the Office 365 cloud service plans that include Office 365 Pro Plus, appear to have a narrow and limited grace period (as of writing) until February 28th 2014subject to Microsoft guidance and terms extracted above. The official date for Windows XP end of support is April 8th 2014

Organisations are responding to the User CAL Price Increase and interest in cloud hosted email and collaboration services within the E3-E4 Plans to review cloud procurement models at contract renewal. This is combined with a gradual change in the way incentives are paid to channel partners worldwide to drive cloud service adoption.

Many organisations have adopted a longer upgrade cycle than the software release cycle of a software vendor, but often choose to leverage new procurement contracts to leverage price protection, better price level, special rights of purchase, or extended software use rights, often enabled under an ‘active’ contract with Software Assurance (SA) (maintenance). This has long driven ‘net new’ volume procurement even when the technical reality in the customer would not support spend.

The role of downgrade rights has been critical for Microsoft to drive relational procurement contracts under Volume Licensing. The consistency in overall approach for common productivity applications like Office was useful, but this has since caused customer confusion with the emergence of Office as a cloud service offering within Office 365.

Those customers with existing perpetual rights to Office 2013 may seek to opt out of cloud subscription model for Office 365 Pro Plus, but may be under increasing scrutiny to prove compliance; Microsoft will continue to leverage the popularity of mobile working (and the explosion of companion devices) to incentivise adoption of the User based metric available under Office 365 Pro Plus. The up-date to the Office 365 cloud service commercial licensing model is welcomed in the support for customers who want to migrate to the cloud ‘on their terms’.

– If you would like to book an in-depth Licensing Workshop / Microsoft Strategy Workshop please drop a quick email or connect with Tony on Twitter


About

This website is a way to give back to the licensing community and as an information resource for all customers that work with Microsoft software and licensing. I hope you find it of value.

Tony Mackelworth is a Senior Licensing Specialist at SoftwareONE

If you would like to book an in-depth Licensing Workshop / Microsoft Strategy Workshop please drop me an email or connect with Tony on Twitter

Tony lives with his wife in Oxford, England.



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.

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Microsoft SAM Guide (Part One)

What a Microsoft Licence Review means for you and your organisation

This guide has been put together to address any questions or concerns you may have about undergoing a licence review with Microsoft. I understand that you will want to know what’s involved, how the process works, what Microsoft would expect from you, and what you will get in return. If you need extra information or clarification, please get in touch with your Microsoft contact (or your Reseller) at any time during the course of your review […]

Read On

10 Reasons to Implement SAM

Why should you implement a Software Asset Management (SAM) Plan in your business?

Financial Security

The complexities of managing software across an organization make controlling costs a big challenge and can leave you feeling financially vulnerable. Implementing a good SAM plan controls your costs with standardization throughout the software life cycle. You can thereby secure the information needed to choose the most cost-effective licensing programs, provide better IT forecasting for budgeting, and receive tax benefits associated with software depreciation.

Volume discounts for better price points

SAM can help you save when purchasing your licenses, improve relations with your software resellers, and give you an advantage in future negotiations. These benefits and others are possible because a fully implemented SAM plan gives you a better understanding of what types of licenses—and how many—your organization has purchased and deployed, and what you are actually using and therefore need. Should you buy on a per-PC basis, or could you save money through volume licensing? Your SAM plan will provide you with the insights to help you make efficient and effective decisions for the unique needs of your organization.

More liability control

A good SAM plan helps you avoid financial penalties and legal costs by ensuring that your licenses are compliant, and helps prevent any potential damage to your reputation that could arise from a lawsuit. SAM can also help you achieve compliance with government regulations that require strict standards of IT governance and controls.

Good corporate governance

Effective corporate governance begins with two basic steps: identifying the risks facing your business, and controlling and mitigating those risks before they can have an impact. SAM can help you identify your business and compliance risks associated with software management (or lack thereof) and establish a set of well-defined best practices that help ensure consistent management of these assets throughout your organization.

Increased employee satisfaction

A good SAM plan will give your employees the right tools they need to do their jobs. Trouble-free software and IT systems that function as they should will result not only in increased efficiency, but also in better overall employee morale.

Smoother operations

Your entire organization runs better with SAM. Initially, by providing better automation and standardizing processes to help reduce complexity, SAM optimizes your software and IT resources and lets you focus on running your business. Infrastructure Optimization can take your business from a non-managed reactive state to a proactive, optimized, and dynamic state. You also have an added peace of mind by ensuring your software is genuine and not pirated. This provides an extra layer of security and efficiency that pirated software cannot, and which might in fact interrupt your IT systems and overall business.

Reduce/eliminate waste and redundancy

Overlapping, non-integrated, and outdated applications are just harder to manage. SAM gives you the information you need to make the best use of your software assets and to pay only for what you use. Thorough and ongoing reconciliation can reveal software overlap, as well as software that you no longer use and can consequently retire but are still maintaining. SAM therefore enables you to reduce/eliminate maintenance plans and additional fees on software you no longer use.  *Always check your license agreements before transferring software. Certain agreements may limit the transfer or redeployment of software.

Better market position

SAM can help your business gain the competitive advantage it needs in the marketplace. Up-to-date licensing and an extensive, comprehensive documented media library can result in faster, easier processes and streamlined software functionality throughout the organization; both with day to day activities and in times of mergers and acquisitions.

Increased long-term business value

Implementing SAM can increase your organization’s agility and enhance its future value by ensuring that you make strategic use of resources in times of changing business conditions. With consistent and effective SAM practices in place, your business is more efficient and can respond quickly to market conditions and opportunities. Following the best practices in your SAM plan results in better information for decision making and a higher degree of operational excellence; ultimately driving long-term business value.

Flexibility for the future

SAM gives you better insight into your future software needs and provides a scalable foundation for growth. Instead of buying all the newest software and updates available, you’ll be able to decide exactly what software is needed and when you’ll need it. With SAM, you can plan for your future needs now.

[Ref: http://www.microsoft.com/sam/en/us/reasons.aspx]

What a Microsoft License Review means for you and your organisation

MLR

What a Microsoft Licence Review means for you and your organisation

This guide has been put together to address any questions or concerns you may have about undergoing a licence review with Microsoft. We understand that you will want to know what’s involved, how the process works, what we expect from you, and what you will get in return. If you need extra information or clarification, please get in touch with your Microsoft contact at any time during the course of your review.

A SAM-led approach

Licence reviews are just one aspect of a wider initiative to encourage all of our customers to adopt Software Asset Management (SAM) policies and processes. SAM is widely recognised as industry best practice, supported by an ISO Standard and the IT Infrastructure Library. Why have I been chosen to be reviewed?

Your organisation, along with a number of others, has been identified as part of an ongoing data mining exercise that encompasses all UK customers. 

What’s involved?

Simply put, we’ll ask you to supply information about your software estate, and then check that the software you have installed matches up with the licences you hold (Microsoft licence reviews only encompass Microsoft software and software licences). We work in partnership with you in an open and transparent way, and do our utmost to keep any disruption to a minimum. However, you should be aware that you will need to dedicate some time to completing the review. Your input is vital to ensure accuracy and to enable us to complete the process together as swiftly as possible. 

How long will the review take?

It depends on the size, structure and complexity of your organisation, and how easy it is for you to access the information we’ll need to finalise the review. If you have strong asset management processes in place, and systems that can easily extract the relevant data, the overall timescale is likely to be shorter.

What happens if I’m under-licensed?

In our experience, customers are often over-licensed as well as under-licensed, which can identify opportunities for long-term savings. If your review does reveal a shortfall, you’ll be asked to buy licences to cover what you’re using, normally within 30 days. If you are faced with an unexpected bill, Microsoft Financing can help smooth out any cashflow or budgetary concerns that might arise.

What do I get out of the review process?

At the end of the review, you’ll have a clear and accurate picture of the licences in your estate and where they’re being used across your organisation. This gives you the peace of mind of knowing you’re properly licensed, and also a valuable insight that will allow you to avoid costly ‘shelfware’ and put you in a stronger negotiating position for future purchases. Our customers often see positive outcomes upon completion of their review which they admit they didn’t expect at the outset.

Your opportunity: take control and reap the benefits

Following a review you have complete visibility of your Microsoft software estate, so you are perfectly placed to strengthen your SAM processes. Taking firm control of your software assets makes sound business sense and brings many advantages, but getting started can be a daunting prospect.

That’s why Microsoft set up the Microsoft SAM Programme (UK) which supports you in integrating SAM best practice into your organisation. It’s designed to help you see the tangible benefits of implementing SAM policies:

• Long-term cost savings on software licences – up to 30 per cent in the first year alone – allow you to re-direct budget to where your organisation needs it most, or to more strategic IT project

• Avoiding the legal and financial risks of being under-licensed, not to mention potential damage to your reputation

• Stronger negotiating position through accurate tracking of software usage – so you only pay for what you need

• Reduced security risks from counterfeit software

• Less time-consuming administration devoted to tracking and managing licences – freeing up your staff for more productive tasks

As part of the programme, you are entitled to free training and a complimentary SAM consultancy session with an accredited SAM partner. On completion, you receive a certificate recognising your Microsoft software. It’s valid for 12 months, so you should not need a software review for at least that long

Microsoft License Review

Discovery

The first step on ascertaining your license position is to go through a discovery process. The purpose of this exercise is to ascertain exactly what software is deployed across your organisation. This should include all sites from the central HQ to regional offices. This will include owned affiliates.

The method you approach this will depend on your organisations existing investment in Software Asset Management (SAM). You will need access to a discovery tool which will enable you to scan your network. Software inventory tools intelligently “discover” software installed across the network and collect software file information such as Title, Version and Edition. Some inventory tools compare software inventory data with purchasing information to reveal license deficits and ensure that organizations remain compliant with their licensing agreements.

HINT: As a starting point you can start this project using the Microsoft Inventory Analyser (MSIA) Tool.

If you have limited resources to conduct a Microsoft License Review it is recommend to agree and scope out a project with a Microsoft SAM Partner. You can choose your preferred LAR (Large Account Reseller), who will have a SAM department, or an independent SAM consultancy.

The Discovery Process will ascertain the following,

  • Identify all Windows based hardware assets within the Company.
  • Identify and categorise all major software applications deployed on hard drives.
  • Provide a consolidated MLR (Microsoft License Review) document.
  • Provide the core data to identify exposure to mislicensed software.

A Microsoft SAM Partner will deploy audit software. This software can be deployed either on-site or remotely. The audit software will then intensively scan all possible Windows devices.