SPLA Tools: Part II

We recently published a post on SPLA tools. We didn’t want to go into much detail as we do maintain that Altaris is tool agnostic. We can work with tools you already have in place or recommend one that suits your unique environment. And we always maintain that no tool alone can do the complete job and that licensing and compliance experts are required to manage the tool and ensure the output is optimized from a cost perspective to produce a compliant and reseller ready report.

More recently we have been working with a tool called Block 64, a company based in Toronto and founded in 2012. The primary use of this tool is for on-premise asset management and server metering but with a few tweaks we’ve found it quite effective in a Hosted / Service Provider’s environment.

Not only does it accurately collect all server and usage data, but also meters the environment and provides the costs for running a specific workload in the public cloud.

Obviously, some Hosting Companies resist moving workloads to the public cloud as they see it as a competitor to their own service. However, we have some clients who use these same metering capabilities to sell against the public cloud, armed with the costs such a migration might cost.

Regardless, we recently completed a highly complex engagement that came about as a result of a significant acquisition. With the use of metering / asset management tools like Block 64 we were able to identify a lot of redundancy and reduce their SPLA bill by 40%.

Some of the tactics included:

• The consolidation of physical hosts where there was capacity to reduce the number of Windows Server Datacenter licenses.

• Identify customers licensed for dedicated environments but still being reported under SPLA

• Identify instances of Passive SQL servers being reported under SPLA

• ESX hosts being licensed at the aggregate level vs. VM level

• Optimizing almost 1/3 of the SQL footprint by identifying low utilization and moving SQL VMs to a designated host and then licensing on the host level with SQL Enterprise Edition

If you want to discuss the right tool for your environment or explore what you might be able to leverage what you already have deployed, click on the button below to book a complimentary consultation or email us at info@altariscloud.com.

Your Licensing Experts at Altaris Cloud

What’s the right SPLA SAM tool for your Hosted Environment?

In the past few years a number of companies have developed tools to address a big problem: how to automate the collection of SPLA (Service Provider License Agreement) usage data – on a monthly basis – interpret that data and put it in the form of a reseller-ready report. Of course, it needs to be optimized so Service Providers do not overspend while at the same time, maintain compliance.

WORD OF ADVICE: Don’t simply base your SPLA reporting on your billing data. That approach is fraught with error and is a huge SPLA Audit risk.

What we’ve listed below are paid tools, developed specifically to capture SPLA usage. Most also do some level of analysis, optimization and in the end provide a summary of what you are obligated to report based on Microsoft’s SPUR (Service Provider Use Rights).

However, whenever Altaris Cloud engages with a Hoster or Service Provider, we always explore what other tools they already have deployed so that additional licensing and implementation costs can be avoided. These could be tools used for monitoring or patching but could also be leveraged for SPLA data collection. The data from the environment is what we ultimately need (VMware, Hyper-V, Active Directory, Software Install Exports, Hardware configuration etc.). How we get it is something we can be flexible with.

System Center is a great example of a tool that may be deployed in your environment that can be leveraged to collect SPLA data using scripts we’ve developed specifically for this purpose. It’s also very cost effective when purchased as a bundle through the SPLA program - CIS (Core Infrastructure Suite) - where you get both Windows Server and System Center at a reduced cost.

Examples of SPLA Software Asset Management Tools:
1. Octopus Cloud: (https://octopus.cloud/) Agentless SPLA inventory appliance

2. Block 64: (https://block64.com/)  Agentless inventory and metering solution. Goes beyond asset management and provides Public Cloud assessments and relative costing

3. Movere: (https://www.movere.io/) Agentless Inventory and Metering application (acquired by Microsoft in September 2019)

4. License Watch: (https://splamanager.com/ ) Agent based or leveraging a remote server agent

5. Snow: (https://www.snowsoftware.com/) Large range of applications and platforms but no specific focus on SPLA

6. CPL24: (https://www.cpl24.com) Leverages an application housed in a German Datacenter to compile and interpret data. Doesn’t require any inbound traffic

7. ActivAeon: (http://www.activaeon.com/) SPLA focused tool. Free 15 day trials available.

8. Map Toolkit: (https://www.microsoft.com/en-ca/download/details.aspx?id=7826) Developed by Microsoft, this collection of scripts takes a one-time snap shot of your hosted environment. It’s known to miss inventory that might be offline when that snapshot is taken. It’s free and there’s a reason.

At Altaris Cloud, we are tool agnostic. Each tool has its own strength and weaknesses, depending on your environment. The right solution not only delivers an optimized, compliant report each month, but does so with minimal overhead and lastly, provides a solid audit trail.

The cost of a SPLA audit is not only the penalties that can occur if under reporting is detected but also the enormous amount of resources required to facilitate the requests from the auditors. In the event of a Microsoft SPLA audit, a well-documented SAM practice and carefully archived audit trail can save hundreds of hours of IT resources.

At Altaris Cloud we’ve worked with almost every tool in the market and would be happy to share our experiences with you. If you want to discuss the right tool for your environment or explore what you might be able to leverage that you already have deployed, click on the button below to book a complimentary consultation or email us at info@altariscloud.com

Your Microsoft Licensing Experts at Altaris Cloud

Altaris Partners with Crayon to offer end-to-end Cloud Services tailored for Service Providers

Altaris Cloud today announces a strategic partnership with Crayon, the global leader in maximizing the ROI of technology and helping customers digitally transform. This partnership was formed with a real purpose in mind: to address the under-serviced and complex needs of the Microsoft hosting community. This partnership will extend Altaris Cloud's offerings to include cloud assessments, cloud architecture, migration, and steady-state management of multi-cloud environments.

Service Providers and Hosting companies face the unique challenge of architecting Hybrid Cloud environments that make both economic sense and are also fully compliant. That means choosing from a myriad of licensing vehicles and cloud platforms to find the optimal balance. It's about working with unbiased experts who find the right home for every workload and creating the right strategy for cloud modernization.

"Crayon applies a very specific strategy to partnering," says Glenn Orcutt, CEO of Crayon US. "We look for niche partners - subject matter experts – who will benefit from our rich cloud capabilities and for whom Crayon is a natural extension of that partner's core capabilities.  Altaris is a clear leader for Software Asset Management within the hosting community, and this partnership uniquely positions them to modernize and transform their customers."

Altaris has been working closely with the Service Provider community for years, as not only the leading SPLA experts but every Microsoft licensing vehicle to ensure license optimization and compliance. 

"We passionately believe that organizations should only pay for the IT resources they actually need, but we understand that in today's complex technology landscape that can be difficult to achieve," says Glenn Orcutt – CEO, Crayon US. "Our partnership with Altaris furthers our mission of enabling customers to realize true optimization of technology spend while also putting them in a position of strength for their digital transformation."

Crayon's approach to digital transformation, called Cloud by Design, is a methodology where the customer/partner does not have to change their environment holistically.  Instead, they can pick and choose which workloads to move to the cloud.

Cloud by Design is an offering in which the following three Crayon practice areas can be leveraged: Innovation and Transformation, Software and Cloud Analytics, and Cloud Services. Crayon Cloud by Design helps customers/partners understand the ins and outs of decisions made while transitioning systems to the public cloud. Crayon Cloud Architects guide customers/partners through the architectural best practices for designing and operating reliable, secure, efficient, and cost-effective systems in the cloud.

It provides a way for customers/partners to consistently measure their architectures against best practices in the cloud and identify areas for improvement.

"Cloud by Design is a natural extension of our services," says Adam Longacre, President of Altaris Cloud. "By partnering with Crayon and leveraging their immense resources, we can take our customers further on the journey to the cloud in a very economical way, and more importantly, on their terms."

For more information about Crayon visit https://www.crayon.com/en-US/

Email us at info@altariscloud.com or click below to schedule a complimentary consultation.

Your Microsoft Licensing Experts at Altaris Cloud

Options for SPLA reporting during an economic slowdown

SPLA is the only Microsoft Licensing vehicle where the Service Provider can true-up or down on a monthly basis. It also allows a hoster or ISV to change editions on a montly basis. With that in mind, we’ve put together some potential options you might be able to leverage during periods of low utilization, to reduce your SPLA spend.

SQL Server
Many times, deployment of specific SQL Server editions is driven by system and/or feature requirements.  Conversely, just as often we see that service providers standardize their SQL Server image and over deploy the high-end edition(s) of the software.  In both instances, however, IT Staff and Architects often overlook the option of utilizing the Web edition of SQL Server.  This software does have licensing and technical limitations but it’s a great fit when the need is for a database to support web pages, web sites, web applications and web services.  ISVs, in particular, are encouraged to evaluate the feasibility of SQL Server Web Edition, especially when a considering a database solution for proprietary web apps.

Here are the SQL Server Web Edition terms found in the Services Provider Use Rights document:

The software may be used only to support public and Internet accessible Web pages, Web sites, Web applications and Web services. It may not be used to support line of business applications (e.g., Customer Relationship Management, Enterprise Resource Management and other similar applications).

You can also find a detailed SQL Server Edition comparison here.

One other thought when it comes to SQL Sever Standard.  It’s the one edition of Core-based Server software that also offers hosters the choice of licensing it per user (Subscriber Access License).  It’s best to evaluate this licensing model for small clients, where direct or indirect access is limited to a small number of users.

Both the Web Edition and SAL options, where applicable, can help you reduce your SQL Server spend up to 90% while delivering the same level of service.

Subscriber Access License (SAL) Software
Given that SAL-based software is licensed by permitted access vs. consumed services, consider restricting permissions to your SaaS solution(s) for products such as Office in order to decrease your reported license usage.  Such a reduction will be a flection of your current situation and can be implemented, as an example, by updating your Active Directory Security Groups to define access roles.  This can be updated month-to-month and will allow you to bring clients back online as needed.

Developer Tools
Consider moving your development practice to a large public cloud provider.  Rather than dedicating and licensing infrastructure in your datacenter, you can spin up VMs as needed and only pay for the number of hours you consume the service.  Azure is a great example of this type of solution and it’s the only one you can deploy your MDSN licensed software to.

We would be more than happy to walk through your unique scenario, in a no-strings attached, complimentary consultation. We are committed to supporting the Service Provider community during these harsh economic times. Click below to schedule an appointment.

From your Microsoft Licensing Experts at Altaris Cloud

Windows Server 2008/2008 R2 and SQL Server 2008 R2: End of Support options

First things first:  If you’re a Hoster licensing software consumption through a Service Provider Licensing Agreement (see below for possible ISV alternative), you have no programmatic way to buy End of Support
Updates (ESU).  That said, here are 2 possible workarounds:

Azure

Migrating your hosted Windows Servers and SQL Servers to Azure will not only provide you with the ability to scale and reduce costs but, more importantly, you will receive free extended security patches by moving your workloads.  The CSP (Cloud Solution Provider) program is the ideal way to facilitate the licensing and procurement steps of an Azure migration.  Keep in mind that through CSP there are possible limits and compliance implications with multitenant solutions, hybrid cloud, etc. 

Let us know if you have any Azure Extended Support questions or if you would like for us to review a specific scenario.  We can ensure that your proposal is optimized and fully compliant.

Client Procured ESU

Unlike the Azure migration option above, where a Service Provider maintains control over licensing the entire hosted solution and support, this scenario puts the onus on the end customer to procure Extend Support Updates.  Whether the server environment is fully licensed by the hoster through a SPLA or partially, with SQL Server reassigned under the License Mobility through Software Assurance benefit, the client will have to work with their reseller/Microsoft and purchase ESU through an Enterprise Agreement or a Server and Cloud Enrollment.  The cost for the Extended Support Updates is roughly 75% of a full perpetual license price
annually and the licenses are subject to a 16 Core minimum for Windows Server and 4 Core minimum for SQL Server.

Even though the responsibility for obtaining ESU in the scenario lies with the client it’s important to identify
the appropriate number of Cores and to look for ways of optimizing your end of support workloads.  Also, you and your client may find that the support costs are unsustainable, at which point we recommend a Cloud Economic Assessment to help evaluate and justify an Azure migration.

ISV Option

Independent Software Vendors are in a unique position in that their hosted unified solutions can be licensed through traditional volume licensing programs and, in particular, the Self-Hosted ISV software assurance benefit.  As the licensee of traditional volume licenses, ISVs can procure Extended Support Updates directly through an Enterprise Agreement or a Server and Cloud Enrollment.

Whether you want to explore your Extended Support options, a Cloud Economic Assessment or determine if you qualify to licensing your solution under Hosted ISV, we’d be happy to help.

Email us at info@altariscloud.com or click the button below to schedule a free consultation.

From your Microsoft Licensing Experts at Altaris Cloud

The future of SPLA: is it going away?

SPLA partners ask us all the time if SPLA (Service Provider Licensing Agreement) is going away. Some tell us their Microsoft reps told them it was, but provided no more detail except they should move everything to CSP as soon as possible . . . 

Of course migrating to CSP isn't always possible or desirable and there are still thousands of active SPLA partners out there generating billions of dollars a year for Microsoft. 

SPLA is an honor-based licensing model. If Microsoft wanted to put beacons in their software that would then 'self-report' usage, they probably would have done so a long time ago. I suspect they didn't as this might stifle the popularity of their software and create huge security issues. 

Azure Stack, the node of Azure that can be run as a private cloud on-premise, can be configured to report licensing usage but all workloads must be deployed under tenant subscriptions. Many partners don't always want to publish the names of their customers and under SPLA, few report under End Customer Enrollments that effectively identify the end customer. 

Azure Stack can be configured to report through a CSP agreement, and this is the direction I think Microsoft may be moving in. SPLA isn't going away but it might get a new name. Microsoft loves coming up with new names. 

SPLA usage could be reported through the CSP portal and categorized for what it is - software being commercialized by a service provider. In this scenario reporting would be direct to Microsoft and the traditional SPLA reseller would be removed from the equation. That makes sense to me as with the shrinking incentives SPLA resellers get, this business is no longer considered strategic for them.

What isn't going away for some time is the honor-based license reporting. If that isn't going away, neither is Microsoft's compliance motions. Say what you want about Microsoft audits but they are required to conduct them to ensure no one partner has an advantage over another. 

With that in mind, every current SPLA partner needs to ensure they have a solid asset management practice. We can definitely help you find ways to reduce your SPLA spend, how to leverage CSP or explore traditional licensing for some areas of your business. Click below and we'll set up a complimentary appointment to discuss your unique needs. 

From Your Microsoft Licensing Experts at Altaris Cloud

Updated License Desk Offering To Cover all Microsoft Licensing Vehicles

Altaris has launched an updated version of our License Desk, with two key updates: we’ve made it affordable and we will address all Microsoft Licensing types. Previously limited to SPLA (Service Provider License Agreement) we have expanded the offering to include traditional Volume Licensing, EAs (Enterprise Agreements), MPSA, MSDN subscriptions and of course CSP.

Altaris’ niche has always been SPLA but in almost every situation we encounter, we have to consider what other licensing entitlements our clients have in order to fully optimize their spend.

The service can be leveraged on a pre-sales basis to ensure your costs are as low as possible while remaining compliant. Alternatively, we can review your situation before either submitting a monthly SPLA report or purchasing new software from your reseller.

Resellers are great and an essential part of the Microsoft ecosystem, but they don’t always have enough staff to give you the answers you need, quickly and accurately.

The Altaris team has over 30 years' experience with the Microsoft licensing. We helped design and build the SPLA compliance program. We are ex-Big 4 Accounting Firms who have performed hundreds of SPLA audits on behalf of Microsoft. We have likely been involved with any scenario you can throw at us.

HOW DOES IT WORK?

It’s easy, you simply buy a block of hours you can each month to engage with members of staff of licensing experts. You can email us to open a ticket and we will either try to answer your question over email or on a call. We don’t just copy and paste from the SPUR (Service Provider Use Rights) or the PUR (Product Use Rights). We give answers that address your specific challenges.

DON’T BELIEVE WE CAN DELIVER ON OUR PROMISE?

Try it at no cost. Ask your systems admin, someone in procurement, your sales team . . . find a licensing scenario that has your organization perplexed. Then schedule a complimentary appointment using the link below. We are that confident we can prove our value.

From Your Microsoft Licensing Experts at Altaris Cloud

Windows PROC to CORE… Don’t be get caught misreporting!

October will be the very last month where the remaining legacy Service Provider Licensing Agreements (SPLA) will allow hosters to report Windows Server licenses per PROC. Many Service Providers have already transitioned to the new Windows Server reporting structure, although a significant number of companies continue count and pay for PROC licenses... albeit for different reasons. I’ll get into the compliance risks and potential exposure below, but first the technical licensing notes you need to be aware of when transitioning to Windows Server CORE reporting.

WINDOWS PROC-TO-CORE

The overarching licensing concept of Standard vs Datacenter does not change as you move from PROC-to-CORE. In fact you can run an indeterminant number of VMs on a host licensed by Windows Server Datacenter and Windows Server Standard is still the optimal choice where the deployed software editions line up (Standard = Standard), you need to license standalone servers, or have ‘lightly’ virtualized hosts. Moving from PROC-to-CORE will, however, require modifying the way you count your licenses. Here are the minimums, under SPLA and the corresponding Service Provide Use Rights (SPUR) document, which you need to be aware of:

Per Core (OS)*
Server Licenses (per core)
-------------------------------------------------------------------------------------------------------------------------

1. Customer may use the server software on a Licensed Server, provided it acquires sufficient Server licenses as described below.

2. The number of Licenses required equals the number of Physical Cores on the Licensed Server, subject to a minimum of 8 Licenses per Physical Processor.

3. Standard edition:

• Standard edition permits use of the server software in one OSE on the Licensed Server.

• Standard edition permits use of one Running Instance of the server software in the Physical OSE on the Licensed Server (in addition to one Virtual OSE), if the Physical OSE is used solely to host and Manage the Virtual OSE.

• Customer may assign additional Standard edition Licenses to the Licensed Server equal to the number specified in 2 above and run the server software in one additional OSE on the Licensed Server.

1. Datacenter edition permits use of the server software in any number of OSEs on the Licensed Server.

*Universal License Terms: Service Provider Use Rights – September 2019

For a majority of Service Providers, the shift from PROC-to-CORE will result in higher licensing costs. Modern hardware will have a direct impact on the increase as most PROCS have in excess of the minimum 8 CORES required under the SPUR. This forced transition is a great opportunity to work with Altaris to evaluate your server densities and identify ways to optimize and consolidate your Windows Server environments.

COMPLIANCE RISK

For any hoster still entitled to report Windows Server per PROC, and only for one more usage month, there are 2 triggers that will require you to shift to the current Windows Server CORE model. The first is the SPLA renewal, which I already mentioned above. The second, however, is the deployment of Windows Server versions 2016 or newer. In fact, many service providers continue reporting Windows Server PROC licenses even after deploying the latest version(s) of the software. This obviously creates a compliance exposure that will require a true up to address past misreporting.

This brings me to the last and most important point: Don't rely on your SPLA Reseller or Microsoft to alert you of required updates to your reporting. Time and again, Altaris onboards hosters that have rolled over their reports, even after initiating 1 or both of the triggers listed above. In some cases, the status quo reporting of Windows Server PROC goes on for months, if not years.

Ignorance of the law is no excuse and Microsoft SPLA audits are no exception. They can go back as far as 5 years and the potential exposure if you don't have this conversion right is significant. 

Email us at info@altariscloud.com or click below to schedule a complimentary appointment to review your unique situation. 

From Your Microsoft licensing Experts at Altaris Cloud