Qualified Multitenant Hoster Program (QMTH): How to host O365 and Windows 10

Learning when you can/can’t allow your end-customers to use their existing Microsoft software licenses in your hosted environment is one of the most challenging licensing topics for Service Providers to master. As a Service Provider who has customers that want to use their existing licenses in your multitenant hosted environment, you need to be well-versed in Microsoft’s concept of “License Mobility” and thoroughly understand how to read the “Product Terms”. If there’s a failure in understanding and or application of the rules, the “customer licensed software” running in your datacenter could very likely become a huge liability come audit time.

Today we’re focusing in specifically on how customers can use their licenses for Microsoft “Online” products (i.e. O365 Applications, Project Online, etc.) in a Service Provider’s multi-tenant hosted environment. If you’re looking for guidance on other Microsoft products, feel free to reach out to through our “Contact” page and one of our licensing experts would be happy to assist.

First off we want to reiterate that the guidelines we’ll discuss here only apply when the Microsoft software in question is running on shared hardware. If customer licensed software is running on a dedicated stand alone physical server or on VMs that run on hardware dedicated to one customer, then these rules won’t apply. When hardware is fully dedicated, a customer can assign their own licenses for any Microsoft Volume Licensed product according to the standard Volume Licensing “Product Terms” without additional considerations for the Service Provider or end-customer. Service Providers that want to host customer licensed Microsoft “Online” software in shared environments have a couple additional rules to abide by..

First, the only Microsoft “Online” Products that are eligible to be hosted on a Service Provider’s shared hardware are O365 (Pro Plus editions only), Project Online Professional, Visio Pro for O365, and Windows 10 Enterprise E3 and E5. That is it. Exchange/Skype/SharePoint/etc. “Online” licenses cannot be assigned in a Service Provider’s datacenter.

The second requirement is that Service Providers can only host Microsoft Online software on shared hardware if they are a QMTH partner (Qualified Multitenant Hoster Program). This program was formerly known as the “SCA Program” until 2018 when Microsoft rebranded [and expanded] it, as they often do. The only major change Microsoft made in the transition was adding the Windows 10 OS to the list of eligible products that can be hosted in a Service Provider’s shared environment.

In order to be a part of the legacy SCA program/current QMTH program, the Service Provider must be a CSP Direct Partner and must add the Services Provider License Agreement Qualified Multitenant Hosting Partner Amendment to their SPLA agreement. It is noteworthy that joining the CSP Direct program comes with sales and 3rd party support obligations, so it won’t usually make sense for a Service Provider to join solely so they can host Microsoft Online products out of their datacenter. For those interested, additional information on CSP enrollment can be found here:

If you’re not a part of the QMTH program, do not let your customers run their Microsoft “Online” software in your shared environment. You may be responsible for paying SPLA licenses for these products during an audit if you do.

These are the basics of the licensing. If you’d like to discuss the intricacies of either the licensing or the technical application, shoot us your question through our Contact page or book an complimentary consultation.

Thanks for reading. Stay SPLAwesome!!