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Licensing Guide for Partners

Leveraging Data Center Providers and Software Services Resellers

LEVERAGING DATA CENTER PROVIDERS AND SOFTWARE SERVICES RESELLERS: LICENSING GUIDE

Table of Contents

Introduction.............................................................................................................................1

What are Data Center Providers, Software Services Resellers and Outsourcing Companies, and how do they work together?.............................................................................................1

Using Data Center Providers...................................................................................................1

Using Software Services Resellers...........................................................................................2

Using Microsoft Windows Azure as a Data Center Provider.....................................................5

Using Outsourcing Companies.................................................................................................5

Frequently Asked Questions....................................................................................................7

Microsoft Volume Licensing i

LEVERAGING IAAS PROVIDERS AND SOFTWARE SERVICES RESELLERS: LICENSING GUIDE

IntroductionWith an increasing dependency on virtualization technologies and a growing number of Service Providers looking to consume infrastructure as a service (“IaaS”), Service Providers have requested greater flexibility under the Services Provider License Agreement (SPLA) to host their offers on the platforms of other high capacity Service Providers (Microsoft Windows Azure and others). The upcoming 2013 version of the SPLA addresses this scenario, both from the perspective of the Service Provider that acquires IaaS and the Service Provider that provides IaaS. This Licensing Guide explains Microsoft’s policy with regard to the entities’ related roles and responsibilities under the SPLA. It also addresses the policies with regard to the use of Outsourcing Companies and Software Services Resellers.

What are Data Center Providers, Software Services Resellers and Outsourcing Companies, and how do they work together?Data Center Providers, Software Services Resellers and Outsourcing Companies are different entities with which Service Providers can engage to facilitate the delivery of Software Services to end users.

A. A Data Center Provider is a Service Provider that provides Software Services, usually IaaS, to another Service Provider using Products licensed from Microsoft through its own SPLA.

B. A Software Services Reseller is a legal entity that resells a Service Provider’s Software Services to end users. In some cases, a Software Services Reseller can be another Service Provider that consumes IaaS from a Data Center Provider while providing Software Services to end users under its own SPLA or offering services to end users based on non-Microsoft products.

C. An Outsourcing Company is an entity that performs data center management services or installation services for a Service Provider.

Below is a more detailed explanation of how Service Providers work together with Data Center Providers, Software Services Resellers and Outsourcing Companies, and how a Service Provider itself could function in any or all of these roles.

Using Data Center Providers Microsoft does not require Service Providers to deliver Software Services out of their own data center. Service Providers may acquire IaaS through a Data Center Provider. In this case, the Service Provider sells Software Services (e.g., hosted Microsoft® Exchange) that are consumed and reported under its SPLA, but deployed on a Data Center Provider’s platform. The underlying infrastructure layer is consumed and reported as IaaS under the

Microsoft Volume Licensing 1

LEVERAGING IAAS PROVIDERS AND SOFTWARE SERVICES RESELLERS: LICENSING GUIDEData Center Provider’s separate SPLA. In this model, the Service Provider is also considered a Software Services Reseller for the Data Center Provider.

Figure 1: Using a Data Center Provider - Selling software as a service (“SaaS”) on top of a Data Center Provider’s platform.

1End users acquire SaaS (e.g., hosted Microsoft Exchange) directly from Contoso, Inc. as a Service Provider.2Contoso, Inc., the Service Provider, reports SALs for Products comprising SaaS under its SPLA and, as a Software Services Reseller acquires IaaS (e.g., Microsoft Windows Server, Microsoft System Center) from its Data Center Provider. 3The Data Center Provider reports Processor and Core licenses for IaaS consumed under its SPLA.

Not all Products available through the SPLA are eligible to be included in Software Services delivered on top of a Data Center Provider’s platform. The Services Provider Use Rights (SPUR) lists the Products that a Service Provider can include in Software Services it delivers on top of a Data Center Provider’s infrastructure. While Microsoft permits Service Providers to leverage Data Center Providers, Service Providers are still required to accurately report the Products used for their Software Services. A Service Provider needs direct access to the physical hardware in a data center to accurately determine the number of processors and/or cores used to support infrastructure software, as well as to stay compliant with the applicable use rights stipulated in the SPUR. Accordingly, Products licensed under the per processor and per core licensing models in the SPLA are not eligible for Software Services delivered on top of a Data Center Provider’s platform, and instead should be acquired from the Data Center Provider.Service Providers that provide Software Services on top of a Data Center Provider’s platform must disclose to Microsoft upon request the name and address of its Data Center Provider, and allow Microsoft to conduct a reasonable inspection of all the Data Center Provider’s servers that contain Products licensed under the Service Provider’s SPLA.

Using Software Services ResellersAs an alternative to selling Software Services directly to end users, Microsoft allows Service Providers to sell Software Services through Software Services Resellers. In this case, either:

A. the Service Provider could be acting as a Data Center Provider for another Service Provider (as described in the “Using Data Center Providers” section above) (see figure 2 below);


Contoso, Inc.


B. the Service Provider could be using a reseller (not necessarily another Service Provider) to distribute both its IaaS and SaaS applications to end users (see figure 3 below); or

C. the Service Provider could be acquiring IaaS from a Data Center Provider (as described in the “Using Data Center Providers” section above) while also using a Software Services Reseller to distribute its SaaS applications to end users (see figure 4 below).

Each case is allowed in the SPLA, and in all cases, the Service Provider is required to maintain agreements with its Software Services Resellers ensuring that certain requirements are met. For example, while Microsoft allows flexibility in how Service Providers structure and deliver their offerings, Service Providers must take measures to ensure that all Product deployment and use is permitted, and tracked and reported in accordance to the SPLA terms, and that compliance with the SPLA and SPUR can be verified. Upon Microsoft’s request, the Service Provider is also required to disclose the names and addresses of its Software Services Resellers (including other Service Providers using its IaaS) to Microsoft. The Service Provider can distribute Client Software (as specified in the SPUR and in accordance with its SPLA) through its Software Services Resellers to the end user, but remains responsible for ensuring that all end users’ use of those Products is authorized.

Figure 2: Using Software Services Resellers - Selling IaaS as a Data Center Provider to Other Service Providers (see graphics key on page 1).

1End users acquire SaaS (e.g., hosted Microsoft Exchange) directly from their Service Provider.2The Service Provider, as a Software Services Reseller, acquires IaaS (e.g., Windows Server, System Center) from Contoso, Inc., the Data Center Provider.3Contoso, Inc., as the Data Center Provider, reports Processor and Core licenses for IaaS consumed under its SPLA.

Figure 3: Using Software Services Resellers - Selling SaaS and IaaS to end users through Software Services Resellers (see graphics key on page 1.)


Contoso,

Inc.


End users acquire SaaS (e.g., hosted Microsoft Exchange) and IaaS (e.g., Windows Server) from a Software Services Reseller.Contoso, Inc., as the Service Provider delivering both SaaS and IaaS, reports SALs for SaaS applications and Processor and Core licenses for IaaS consumed under its SPLA.

Figure 4: Using Software Services Resellers - Selling SaaS to end users through Software Services Resellers on top of IaaS acquired through Data Center Providers (see graphics key on page 1).


Contoso, Inc.


1End users acquire SaaS (e.g., hosted Microsoft Exchange) from a Software Services Reseller.2Contoso, Inc., as Service Provider delivering SaaS, report SALs for Products consumed under its SPLA and at the same time, as a Software Services Reseller, acquires IaaS (e.g., Windows Server, System Center) from the Data Center Provider.3The Data Center Provider reports Processor and Core licenses for IaaS consumed under its SPLA.

Using Microsoft Windows Azure as a Data Center ProviderThe Microsoft Windows Azure Services platform is considered a “Data Center Provider” and can be used by Service Providers to deliver Software Services under the same terms as those governing the use of other Data Center Providers. Use of Products on Windows Azure is subject to Microsoft’s verification under the terms of the Service Provider’s SPLA. Windows Azure is not available through the SPLA. It can be purchased either directly at www.windowsazure.com or via a Microsoft Volume Licensing Enterprise Agreement.

Using Outsourcing CompaniesCompanies that provide hardware resources and/or management services without an operating system layer or other Software Services are considered Outsourcing Companies under a SPLA. They perform data center administration, testing and maintenance support services on servers on a Service Provider’s behalf. They also usually provide a Service Provider data center space and fully, physically dedicated servers, but can also operate within the Service Provider’s own data center (see figures 5 and 6 below). Service Providers that use Outsourcing Companies are required to enter into agreements with the Outsourcing Company to ensure authorized access only to the Products run in the Outsourcing Company’s data center and to allow access to and inspection by Microsoft of servers running those Products. Conceptually, leveraging an Outsourcing Company is like outsourcing one’s data center functions and responsibilities to a third party.


Contoso, Inc.


Figure 5: Using Outsourcing Companies - Selling SaaS and IaaS to end users using an Outsourcing Company’s Data Center and Services (see graphics key on page 1).

End users acquire SaaS (e.g., hosted Microsoft Exchange) and IaaS (e.g., Windows Server, System Center) from Contoso, Inc., the Service Provider. Contoso, Inc., as Service Provider, reports SALs for SaaS and Processor and Core licenses for IaaS consumed under its SPLA, while outsourcing its operations through an Outsourcing Company that provides data center space.

Figure 6: Using Outsourcing Companies - Selling SaaS and IaaS to end users using an Outsourcing Company’s Services (see graphics key on page 1).

End users acquire SaaS (e.g., hosted Microsoft Exchange) and IaaS (e.g., Windows Server, System Center) from Contoso, Inc., the Service Provider.


Contoso, Inc.

Contoso, Inc.

LEVERAGING IAAS PROVIDERS AND SOFTWARE SERVICES RESELLERS: LICENSING GUIDEContoso, Inc., as Service Provider, reports SALs for SaaS and Processor and Core licenses for IaaS consumed under its SPLA, while outsourcing its operations within its own data center through an Outsourcing Company.

Frequently Asked Questions1. What Products may I license via a SPLA and deploy with a Data Center Provider?

The Products you are permitted to license and deploy on a Data Center Provider’s platform (or cloud environment) are identified in the SPUR (as of the October 2013 update).

2. Can I license Per Processor and/or Per Core products via my SPLA and deploy them on a Data Center Provider’s platform? No, Per Processor and Per Core products are not eligible for licensing and use on top of a third party infrastructure provider’s platform (or cloud). While the SPLA program allows a Service Provider to provide Software Services even if it does not own a data center, the Service Provider is still required to accurately report the Microsoft products used to provide its Software Services. The Service Provider needs to have the day to day management over the physical data center to accurately determine the processors and/or cores used to support infrastructure software. The Products Service Providers are permitted to license and use on a Data Center Provider’s platform are identified in the SPUR (as of the October 2013 update).

3. I provide third party access to a qualified Unified Solution under the Self-Hosted Applications Software Assurance Benefit. Can I move that Unified Solution to Windows Azure or another infrastructure provider’s cloud? No. The license terms governing the use of Microsoft products under the Self-Hosted Applications Software Assurance Benefit require that all of the Microsoft products used within and in conjunction with the Unified Solution have active Software Assurance coverage and are licensed under one of the Volume Licensing programs. Accordingly, infrastructure as a service acquired through either Microsoft Windows Azure or a third party provider cannot be considered part of your Unified Solution.

4. What’s the difference between a Data Center Provider and an Outsourcing Company in my SPLA? A Data Center Provider generally provides access to both the hardware on which the software is running and the infrastructure as a service. A Data Center Provider is also a Service Provider delivering Software Services under its own SPLA. A typical Outsourcing Company simply provides the hardware and day to day management of the data center. When you use an Outsourcing Company, the hardware allocated to you will be dedicated to your use (i.e., single-tenant).

5. I am a Service Provider, and I want to use a third party data center to deliver my Software Services. The company I am working with does not offer SQL Server. Can I still use and report Microsoft SQL Server under my SPLA? SQL Server is available for use on top of a Data Center Provider’s platform under the SAL model only. You cannot use and report SQL Server under the Per Processor or Per Core model on top of a Data Center Provider’s platform (or cloud). If SQL Server per SAL is not a practical option for you, you can find a Data Center Provider that provides the infrastructure Products you need.

6. I am a Service Provider without my own data center. Can I deploy on a third party provider’s platform using Products I report under my SPLA? Yes, however, you need to obtain infrastructure software (for example, Windows Server, System Center, SQL Server Enterprise) from the Service Provider that also provides hardware (meaning from a Data Center Provider). While the SPLA program allows a Service Provider to provide Software Services even if it does not



own a data center, the Service Provider is still required to accurately report the Microsoft products used to deliver its Software Services. The Service Provider needs to have the day to day management over the physical data center to accurately determine the number of processors and/or cores used to support infrastructure software. Microsoft allows Service Providers who deploy on Data Center Providers’ platforms to use and report application products because Service Providers can accurately count user SALs. In other words, Service Providers do not need to know physical hardware specifications to properly license application products under the SAL license model.

7. Do I have to disclose who my Data Center Provider is to Microsoft? Yes, you must identify your Data Center Provider to Microsoft upon Microsoft’s request. Any time you are using third parties to deliver your Software Services to end users, whether it is Data Center Providers, Software Services Resellers or Outsourcing Companies, Microsoft may require you to disclose their name and address.

8. I am a Data Center Provider; do I have to audit my customers who buy infrastructure as a service from me? (Am I responsible for their compliance if they have a separate SPLA with Microsoft?) You are not required to audit your customers who buy Software Services from you; however, as a Data Center Provider, you are required to enter into agreements with your Software Services Resellers obligating them to pass through to their end users certain terms and conditions regarding use of the Products reported under your SPLA, and ensuring Microsoft’s right to verify compliance with those terms. You are responsible for ensuring the obligations under your SPLA (e.g., compliant use of the Products included in the Software Services you provide) are met. Your customer’s SPLA sets forth its obligations with respect to the Software Services comprised of Products it licenses from Microsoft.

9. Can Volume Licensing customers use License Mobility through Software Assurance to deploy Products with a Data Center Provider? No, because a Data Center Provider, by definition, is a Service Provider that provides infrastructure as a service to other Service Providers. Volume Licensing software that is eligible to be deployed on shared third party servers under License Mobility through Software Assurance cannot be accessed and used for the benefit of third parties. A Volume Licensing customer may deploy licenses in a data center of an entity that provides infrastructure as a service for both end users and Service Providers alike, but its Volume Licensing software is still limited to internal use only (License Mobility through Software Assurance does not allow Volume Licensing customers to provide a hosted service).

©Microsoft Corporation. All rights reserved.0713


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