Customer Owned Licenses: Who is Responsible?
One thing we come across in nearly every one of our engagements is confusion around customer-owned licenses. The scenario is common: A Service Provider delivers an IAAS solution to a customer and either the Service Provider does not have admin access to verify what software has been installed or they may just not have permission to scan the servers.
Often in a multi-tenant environment, the end customer may claim to own the licenses they’ve installed, such as Microsoft SQL Server, but does the Service Provider verify that the client has active Software Assurance on those licenses (a requirement of License Mobility through Software Assurance)? Do they confirm at the end of the agreement term that the Software Assurance has been renewed?
License Mobility is often treated as a concept and not as the Software Assurance Benefit that it is, which, by the way, requires the end customer to undergo a validation process prior to reassigning their eligible licenses.
We hear it regularly from Service Providers: “I’m not responsible for Licenses my customers install without my knowledge!” Well,if you own the hardware and license the OS, in the event of a Microsoft SPLA audit you can be held responsible and forced to pay a hefty penalty for under reporting, going back 5+ years.
What’s the solution? It starts by understanding your own software usage entitlements and ongoing reporting accountability.
Altaris Cloud has always performed Baseline Assessments, using the same methodology and techniques as any audit firm, to help Service Providers understand their Microsoft Licensing obligations.
More recently we’ve started working with end-customers, doing one-time assessments to assist with their EA true-ups and Renewals. This has proven to be highly effective in delivering a blueprint for both the Service Provider and customer. We help identify license entitlements, product term dependencies, and can definitively solve the question of “Who is truly responsible?”.
It might not be practical or desirable to do this with every one of your clients, however it’s not uncommon for a Service Provider to have a few ‘anchor’ tenants, where the bulk of the exposure tends to exist.
As part of an end-customer assessment we also make sure they understand the License Mobility Software Assurance Benefit and verification program. We can even work with them to validate their license eligibility online.
In some cases we determine that it might not be in the end-customer’s interest to continue with an Enterprise Agreement and be bound by a company-wide commitment. It often makes more economic sense to license their software through a Service Provider’s Cloud Solution Provider (CSP) agreement.
This can be complicated to assess and implement. Ideally you want to work with a neutral-third party like Altaris to provide a holistic view of License Entitlements, obligations, and optimal licensing adaptations. Both your customers and your organization will benefit in the end.
We are always happy to speak with Service Providers and review their unique situation. Click below and book a complimentary consultation.
From Your Microsoft Licensing Experts at Altaris Cloud