CSP Spotlight

February 2023

Louise Ulrick
Commercial Licensing
February 2023
Agenda 2
Agenda

• A review of the October 2022

hosting launches
• Did You See…?

February 2023
October 2022 hosting launches review

February 2023
Summary of the October 2022 changes 4

A new licensing A new licensing A new program

benefit option

Flexible Virtualization Licensing Windows CSP-Hoster program

benefit Server by virtual
machine

February 2023
Meet Noah… 5

…he’s got a few questions

February 2023
Flexible Virtualization Benefit

February 2023
The Flexible Virtualization Benefit 7

http://bit.ly/3C7FA06

Which products What’s an Authorized

are included? Outsourcer?
What exactly is as an
eligible license?

February 2023
Windows Server licensing options: October 2022 8

Volume Licensing agreements CSP

Licenses without SA Licenses with SA Software Subscriptions License-only

Products Products Products Products

• Windows Server Std • Windows Server Std • Windows Server Std • Windows Server Std
• Windows Server DC • Windows Server DC • Windows Server DC • Windows Server DC
• Windows Server CALs • Windows Server CALs • Windows Server CALs • Windows Server CALs
• RDS CALs • RDS CALs • RDS CALs • RDS CALs

License type License type License type License type

• Perpetual: Select Plus, • Perpetual: Select Plus, • Subscription • Perpetual
MPSA MPSA, OV, EA
• Subscription: OVS, EAS

“Subscription licenses or licenses with active Software Assurance”

February 2023
What products are included? 9
Any products that have a software component
For example:

Windows Server 2022

SQL Server 2022

Windows 11 Enterprise E3

Office Professional Plus 2021

Who has access Microsoft 365 Apps for enterprise

to the bits and
keys?
Microsoft 365 E3

Microsoft 365 Business Premium

February 2023
Customer outsourcing options 10
Customers using outsourcing hire a third party to handle their IT infrastructure,
including hardware, IT services, and software

Listed Providers Authorized Outsourcers

Offers dedicated Offers shared

Alibaba customer solutions customer solutions

Amazon

Where does
SPLA fit in?
Google

Microsoft

February 2023
Customer software solutions 11
License-
Bring Your Own Sell licenses for
included
License (BYOL) solutions
solutions

(rights included in license)

Authorized Outsourcer

Authorized Outsourcer (rights included with Flexible Virtualization Benefit)

SPLA partner

February 2023
The Flexible Virtualization Benefit and SPLA
Windows Server – SPLA
• SPLA and customer licenses may not be
combined to license a physical server
• If the partner wants to offer hosted
infrastructure through SPLA they must
license the entire server through SPLA
12
Authorized Outsourcers
• There is no requirement for an Authorized
Outsourcer to be a SPLA partner
• However, they MAY be a SPLA partner and
thus offer solutions licensed via SPLA while
still allowing customers to make use of the
Flexible Virtualization Benefit
Applications – SPLA + FVB
• A partner may license Windows Server
via SPLA, and then allow customers to
bring their own licenses to run products
such as SQL Server or Office Professional
Plus via the Flexible Virtualization Benefit
February 2023
Flexible Virtualization Benefit Licensing Guide
http://bit.ly/3hGOJ9l
13

February 2023
Are these statements true or false? 14

The Flexible Virtualization Benefit

only applies to Windows Server F
The Flexible Virtualization Benefit
only applies to Authorized Outsourcers T
With the Flexible Virtualization Benefit, the customer
provides bits and keys, and is responsible for compliance T
Partners must choose to be a SPLA partner
OR an Authorized Outsourcer F

February 2023
Windows Server licensing

February 2023
Enhanced Windows Server on-premises licensing 16
Introduced in October 2022 for customers with SA or subscription licenses

Originally: License the From October 2022: Option to In both models: assign CALs
physical server license the virtual machines to users or devices

Is this a new
licensing option
for SPLA too?

For licenses with or without SA For licenses with SA and

and subscription licenses subscription licenses
February 2023
Scenario: single server 17
Fourth Coffee have a physical server with four 4-core processors on which they want to run eight 2-core
virtual machines with Windows Server Standard. They also want to run Windows Server Standard in the
physical Operating System Environment

Option 1 (with or without SA/subscription licenses)

• License the physical server with 4 x 8 = 32 Core licenses to
run 2 VMs
• License the physical server with an additional 3 x 32 = 96
Core licenses to run the further 6 VMs
• Total: 128 Core licenses

Option 2 (with SA/subscription licenses)

• License the physical server with 4 x 8 = 32 Core licenses to
run 2 VMs
• License the additional 6 VMs with an additional 6 x 8 = 48
Core licenses
• Total: 80 Core licenses

February 2023
Licensing individual virtual machines 18

https://bit.ly/3x7tP7W
What does the
What happens if I
minimum of 16
have a 10-core virtual
licenses per customer
machine?
mean?

February 2023
A minimum of 16 licenses per customer… 19

Windows Server 2012 R2 Windows Server 2016 License conversion

• Customers with active SA on each
Windows Server 2012 R2
Processor license on or after
October 1, 2016 were eligible for
16 Windows Server Core licenses

Today
• Customers need 16 Windows
Server Core licenses:
• Per physical server
• To avail of licensing by
Per Processor licensing Per Core licensing virtual machine
1 license per 2 processors 1 license per core • To avail of the Azure Hybrid
Minimum of 8 per Benefit
processor, 16 per • To avail of the Flexible
server Virtualization Benefit
February 2023
Core licenses and core license packs 20
Windows Server 2012 R2 – 1 license covered 2 processors

Q4: Can I split my

Windows Server core
license packs across
multiple servers?
Windows Server 2022 – 1 license covers 1 core
A: Yes. Core licenses are
sold in 2-packs, as well as
optional 16-packs (for
convenience), and each
individual license may be
assigned to a separate
physical server.
Windows Server 2022 – sold in packs of 2 or 16 Core licenses
https://bit.ly/3M8KrTq

February 2023
Scenario: two servers 21
Blue Yonder Airlines have 2 physical servers with four 4-core processors across which they want to run
eight 2-core virtual machines with Windows Server Standard. They also want to run Windows Server
Standard in the physical Operating System Environments

Option 1 (with or without SA/subscription

licenses)
• License each physical server with 4 x 32 = 128
Core licenses to run 8 VMs
• Total: 256 Core licenses

Option 2 (with SA/subscription licenses)

• License each physical server with 4 x 8 = 32 Core
licenses to run Windows Server Standard in the POSE
• License the 8 VMs per VM with an additional 8 x 8 =
64 Core licenses
• Relaxed reassignment rules apply
• Total: 128 Core licenses

February 2023
 Scenario: using both licensing models 22
Lucerne Publishing have 2 physical servers with four 4-core processors across which they want
to run six 2-core virtual machines with Windows Server Standard. They also want to run
Windows Server Standard in the physical Operating System Environments

Option (with SA/subscription licenses)

• License each physical server with 4 x 8 =
32 Core licenses to run Windows Server
Standard in the POSE and 2 VMs
• License the remaining 4 VMs with an
additional 4 x 8 = 32 Core licenses
• Total: 96 Core licenses

32 32

Important! Listen to the talk track for this slide to be sure of the rules February 2023
Scenario: two non-Windows servers 23
Northwind Traders have 2 physical servers with four 4-core processors across which they want to run
eight 2-core virtual machines with Windows Server Standard. They do not need to run Windows Server
in the physical Operating System Environments

Option (with SA/subscription licenses)

• License the 8 VMs per VM with 8 x 8 = 64 Core
licenses
• Relaxed reassignment rules apply
• Total: 64 Core licenses

February 2023
Windows Server and Virtualization Licensing Guide 24
https://bit.ly/3SSzfMJ

February 2023
Outsourcing Windows Server: from October 2022 25

Dedicated options Shared options

Azure multi-
Outsourcer

Outsourcer
Authorized

Authorized

Authorized
Customer-

Dedicated
Provider

Provider
Mobility
partner
owned

tenant
Listed

Listed
Azure

Host
L-only (VL/CSP)

L&SA (VL)

Software Subscriptions (CSP)

Included in license rights Via License Mobility through SA benefit Are the AHB and FVB
rules the same?
Via Flexible Virtualization benefit Via Azure Hybrid Benefit

February 2023
Licensing Windows Server VMs 26

License eligibility
• Windows Server Standard or Datacenter Core licenses, with Software Assurance, acquired through a
Volume Licensing program
• Windows Server Standard or Datacenter Core licenses sold as Software Subscriptions through CSP
• Minimum of 16 Core licenses required

On-premises rules Azure rules

• License all the virtual cores with a minimum of
8 Core licenses per virtual machine
• Assign further licenses for additional cores in
a VM
• Assign CALs to users or devices
• The licenses must match the edition of
Windows Server installed
• License all the virtual cores with a minimum of
8 Core licenses per virtual machine
• Assign further groups of 8 licenses for
additional cores in a VM
• No CALs required
• Possible to use Standard licenses with
Datacenter edition images

February 2023
Using licensing options for Windows Server 2022 27

Dedicated options Shared options

Azure multi-
Outsourcer

Outsourcer
Authorized

Authorized

Authorized
Customer-

Dedicated
Provider

Provider
Mobility
partner
owned

tenant
Listed

Listed
Azure

Host
L-only (VL/CSP)

L&SA (VL)

Software Subscriptions (CSP)

How are VM licensing

License by physical server
and FVB linked?
License by virtual machine

February 2023
Windows Server Licensing Guide 28
https://bit.ly/3M8KrTq

February 2023
Other useful Licensing Guides 29

https://bit.ly/3SWTn0u
https://bit.ly/3fG3BUw

February 2023
Are these statements true or false? 30

Licensing Windows Server by virtual machine

is known as the Flexible Virtualization Benefit F
Licenses bought in a pack of 2 Core licenses
must always be assigned to the same server F
Licensing Windows Server by virtual machine
is also a new option for SPLA licenses F
The rules for licensing Windows Server with the Azure
Hybrid Benefit and Flexible Virtualization Benefit are the same F

February 2023
CSP-Hoster program

February 2023
Hosting and Outsourcer partners’ software solutions 32
License-
Bring Your Own Sell licenses for
included
License (BYOL) solutions
solutions

Authorized Outsourcer

SPLA partner
Authorized Mobility Partner

SPLA partner
Direct CSP partner
QMTH partner
CSP-Hoster partner

February 2023
Hosting and Outsourcer partners’ software solutions 33

What’s happening
with SPLA?

What’s happening
with QMTH?

February 2023
Overview of CSP-Hoster solutions 34
Who has access
to the bits and
SQL Server virtual machine keys?
• Optimized for…
• Best at…
• Unparalleled in…

Does the
customer need the
Flexible Virtualization
Customer licensing options Benefit?

License-included solution BYOL solution

• The partner has a single price
which includes the IP, services,
and software
• They sell the relevant licenses to
the customer through CSP as
part of the solution
• The partner has a single price
which includes the IP and
services
• The customer brings their own
eligible licenses acquired
through any of the ways to buy
February 2023
Using licenses with CSP-Hosters 35

https://bit.ly/3C7FA06

February 2023
Becoming a CSP-Hoster 36

Meet the eligibility criteria:

• Have an active SPLA agreement
• Be a CSP Direct Bill partner

Review the CSP-Hoster Program

Guide:
• https://bit.ly/3MdotP3

February 2023
Becoming a CSP-Hoster 37

Apply to the CSP-Hoster program

desk:
• csp-hoster@microsoft.com

Sign the CSP-Hoster Authorization

• Sent to eligible partners
• Must be signed within 30 days

February 2023
 Monthly reporting requirements
https://bit.ly/3COebSm 38

February 2023
Help customers to provide BYOL information 39

https://bit.ly/3CfPwor
https://bit.ly/3fNqy85

What are the

Authorized Outsourcer
reporting
requirements?

February 2023
Coming soon… 40

February 2023
Are these statements true or false? 41

Today, the CSP-Hoster program is a

direct replacement for the SPLA program F
The Flexible Virtualization Benefit allows a
customer to take their licenses to a CSP-Hoster solution F
Both Authorized Outsourcer and CSP-Hoster
partners must carry out monthly reporting F
The CSP-Hoster program is currently
only available for Direct CSP partners T

February 2023
Did You See…?

February 2023
Exchange Online concurrent licenses 43
http://bit.ly/3XNIpg6

February 2023
GDAP / AOBO / PEC
http://bit.ly/3llMuu0
44

February 2023
Community Calls from Business Operations 45

CSP Q&A calls

• Who: CSP Direct Partners and Indirect Providers
• What: assist with questions related to CSP launches and upcoming changes
• When: February 22/23, 2023
• Registration: https://bit.ly/3afeki3

February 2023
CSP Spotlight
February 2023

Louise Ulrick
Commercial Licensing
February 2023