QMTH and Software Outsourcing Clarification (Windows 10)

We’ve written about QMTH (Qualified Multi-tenant Hosting) before, outlining the program, qualification requirements, and the overall positive step Microsoft has taken to expand third-party hosting rights for Office and Windows.  But did you know that earlier this year Microsoft announced that Office 365 Business (procured as part of Microsoft 365 Business) is now an eligible subscription?  Up until April 30th, 2019 QMTH service providers had the option to host Office 365 Pro Plus for their end customers as a standalone subscription or as a component of either E3-E5-M365, however, Office 365 Business was not included on the initial list of eligible products.  The significance of this change will really depend on your target audience and business model.  But, if you service small and medium customers or are looking to provide your clients with a more cost effective solution, then this addition should have a positive impact.

Software Outsourcing Clarification

The traditional software outsourcing right, which allows end users to furnish a managed hosted server environment with their own licenses, has been around since the early days of SPLA (see Outsourcing Software Management definition in the Product Terms).  As long as the server/host provisioned for your end customer is fully dedicated to the one client there is almost unimpeded flexibility to taking on and hosting end user owned licenses... almost.  One example of where you will run into license restrictions, even on fully dedicated hardware, is with Windows 10 sold through CSP.  First the good news, if your clients purchase their Windows 10 subscriptions (Windows 10 Enterprise E3 Per User with SA, Windows 10 Enterprise E5 Per User with SA, etc.), through a traditional Volume Licensing Program, then this restriction does not apply.  If, however, your end customers have purchased their Windows 10 licenses through CSP, then the only way they can assign the software license to fully dedicated hardware environment is through the QMTH program.  Unlike Office 365 Pro Plus or Office 365 Business, provisioning physically dedicated hardware does not mitigate the need to be an Authorized QMTH partner.

If this seems complicated then let us help you demystify this and any other complex hybrid licensing scenarios.  We will give you the certainty and ability to understand your licensing rights, stay compliant, and sell with confidence. 

While on the topic, take a look at our recent blog about the pending changes to the Outsourcing Software Management use rights.

Email us at info@altariscloud.com or use the button below to book a complimentary consultation

From Your Microsoft Licensing Experts at Altaris Cloud