SPLASPLAService Provider License Service Provider License AgreementAgreement

Philip MeyerPhilip MeyerRegional Hosting SpecialistRegional Hosting Specialist

What We’ll CoverWhat We’ll Cover

• VisionVision

• Market Drivers Market Drivers – Proven– Emerging

• Licensing IntroductionLicensing Introduction

• Hosting SolutionsHosting Solutions

Microsoft .NET Microsoft .NET

User User experiencesexperiences

Web Web servicesservices

DevicesDevices

ServersServers

Visu

al S

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ETVi

sual

Stu

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.NET

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.NET

Fra

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ork

App

licat

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App

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Cen

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Cen

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Enterprise ServersEnterprise Servers

Biz

Talk

B

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Serv

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rver

Com

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Com

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Serv

erSe

rver

Exch

ange

Ex

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Serv

erSe

rver

SQL

Serv

erSQ

L Se

rver

ISA

Ser

ver

ISA

Ser

ver

Live

Com

m

Live

Com

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Serv

erSe

rver

Shar

epoi

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Shar

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Serv

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Serv

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Storage IdentityNotification

Types of LicensesTypes of Licenses• Internal Use: End user is the license ownerInternal Use: End user is the license owner

– OEM, FPP, Open, Select, EA– End User must own both Server and CAL licenses– End User CALs does not have right to access service providers’

servers

• Commercial Services (licenses with hosting rights): Commercial Services (licenses with hosting rights): end users of service do not own licenses, service end users of service do not own licenses, service providers own the licensesproviders own the licenses– Web/Internet Service Provider/Hoster– Application hosting (mail, LOB & office online)– Platform infrastructure provider– Streaming media provider– ISV providing hosted applications– IT Outsourcer providing software licenses

Licensing ChoiceLicensing Choice

• Customers Own LicensesCustomers Own Licenses(Server + CALs/IC)(Server + CALs/IC)– Outsource to service provider– Customers retain license ownership– Types of licenses: OEM, FPP, Open, Select or EA

• Service Provider provides all licensesService Provider provides all licenses(PL or SAL)(PL or SAL)– Monthly subscription based upon usage– Software Assurance included– Multi-tenancy (shared license) permitted

• CombinationCombination

SPLA in a nutshellSPLA in a nutshell

• Microsoft SPLA is a pay-as-you-go Microsoft SPLA is a pay-as-you-go process, aligning your software process, aligning your software investment with your monthly revenue investment with your monthly revenue streamsstreams

• What does this mean for you?What does this mean for you?– Avoid upfront costs– Map your licensing costs to your business

model– Pay only for what you use

Microsoft LicensingMicrosoft Licensing

LargeLarge

MediumMedium

Small BusinessSmall Business

EAEASelectSelect

OpenOpen

FPPFPP

SPLASPLA

Home UserHome User

SPLA Licensing ModelSPLA Licensing Model• SAL (Subscriber Access License)SAL (Subscriber Access License)

– Per User (Exchange, Live Comm Server, Office, SharePoint Portal Svr, Small Business Svr, MOM, SMS, Project Server & Project, Terminal Services)

• Access any number of servers from any device• No additional Server fee• Minimize start-up cost

• PL (Processor License)PL (Processor License)– Per Processor (Application Center, BizTalk, Commerce Server,

Content Management Svr, Host Integration Svr, ISA Svr)• Simple to monitor and count (reducing admin cost)• Unlimited users and companies

• SAL (Per User) – OR - PL (Per Processor)SAL (Per User) – OR - PL (Per Processor)– Windows and SQL Server– Maximum Flexibility– Not locked in to either model

Microsoft Licensing MapMicrosoft Licensing Map

Internal UseInternal Use

Remote AccessRemote Access

External UseExternal Use

MBAMBA

EA/Select Enrollment

EA/Select Enrollment

OEM, FPPOEM, FPP

Customer and Customer’s Affiliates or appointed agents only

(Excludes unauthorized, non-employees)

Customer and Customer’s Affiliates or appointed agents only

(Excludes unauthorized, non-employees)

‘You may not rent, lease, lend or host products…’‘You may not rent, lease, lend or host products…’

Outsourcer Enrollment

Outsourcer Enrollment

‘External User’: Any person who is not: an employee, temporary

personnel, or your customer to whom you provide hosted

services

‘External User’: Any person who is not: an employee, temporary

personnel, or your customer to whom you provide hosted

services

External ConnectorExternal Connector SPLASPLA

Service Provider providing Software

Services to its customers

Service Provider providing Software

Services to its customers

Outsourced scenarios (including Outsourcing, Hosting, Web Services)

Outsourced scenarios (including Outsourcing, Hosting, Web Services)

On-siteOn-site

OpenOpen ISVISV

Authorized User

Authorized Usage Scenario

Licensing mechanis

m

Third-party licensing programs (ISV Royalty Licensing program, Service Provider Licensing Agreement)

Internal & External Use Licensing: HOSTINGInternal & External Use Licensing: HOSTING

Customer A Customer B

Customer Owns & Acquires Licenses

Internal Use: Customer is licensed via EA/Select

Customer owns licenses; Hosting Co. acquires Licenses

Internal Use: Customer is licensed via EA/Select; Hosting Co. signs Outsourcer Enrollment

Customer C

Hosting Co. Owns & Acquires Licenses

External use: Hosting Co. must sign the SPLA (cannot use their own EA/Select)

Scenario A: Dedicated Hosting

Option 1 Option 2 Option 3

Scenario B: Shared Hosting

Hosting company’s server farm

Customer A

Customer B Customer C

Internal or External Use depending upon license Ownership

External use: Hosting Co. must sign the SPLA (cannot use their own EA/Select)

Hosting Co. Owns & Acquires Licenses

Same options available as under Scenario 1

Hosting company’s server farm

SPLA and Web HostingSPLA and Web Hosting

• SPLA is by far the most economic model for SPLA is by far the most economic model for shared hosting shared hosting – SPLA permits multi-tenancy (sharing of a single

license held by the Service Provider)– OEM, Open, FPP, etc may only be used by the

license holder (i.e. the END customer) therefore in a shared configuration every hosted customer would require a Windows Server license and potentially SQL license too

– Service Provider may not use an OEM, Open, FPP license to provide hosting or commercial services

Internal & External Use Licensing:Internal & External Use Licensing:BP OutsourcingBP Outsourcing

Customer A

Billing Dept.

Internal Use: Customer can license Billing

dept under EA/Select

agreement

External Use: Outsourcer has to sign SPLA, since

using same set of licenses to

provide Billing for multiple customers

Internal Use: Even though Billing is outsourced, it is

dedicated to Customer A, so

Customer A can use EA/Select

agreement

Customer A

Billing Dept.

Customer A

Billing Dept.

Customer B

Scenario 1: In-house

Scenario 2: Dedicated Outsourcing

Scenario 3: Shared Outsourcing

Real-world examplesReal-world examplesExternal Use: Amazon

Business: Hosts websites for small booksellersUsers: Small booksellers’ CustomersOwnership: Amazon wishes to own software assetsInformation controlled by: Bookseller (SP’s customer)Commercial X-ion between SP & User?: NO

External Use: Martha Stewart

Business: Sells stuff off websiteUsers: Employees, CustomersOwnership: Martha Stewart did not wish to own software assets; entered into hosting agreement with DigexInformation controlled by: Martha Stewart (SP’s customer)Commercial X-ion between SP & User?: NO

Digex

Martha Stewart

Customers

Customers

Amazon

Use Type: ExternalLicensee: AmazonLicenses: SPLA (no External Connector)

Use Type: ExternalLicensee: DigexLicenses: SPLA (no External Connector)

Real-world examples (cont’d)Real-world examples (cont’d)

Redmond Helpdesk

Asia Helpdesk

EMEA Helpdes

k

Helpdesk outsourced to HP

Business: HP provides Helpdesk servicesUsers: MS employeesOwnership: HP owns licensesInformation controlled by: Microsoft (SP’s customer)Commercial X-ion between SP & User?: NO

Use Type: ExternalLicensee: HPLicenses: SPLA (no External Connector)

External Use: HP Helpdesk Services

BC Hydro

Billing Dept Outsourced

to Accenture

Customer B

Business: Accenture manages Billing deptsUsers: Customers’ customersOwnership: Accenture owns licensesInformation controlled by: Accenture’s customersCommercial X-ion between SP & User?: NO

Use Type: ExternalLicensee: AccentureLicenses: SPLA (no External Connector)

External Use: Accenture Billing Services

Real-world examples (cont’d)Real-world examples (cont’d)

DBS Bank

Procurement Dept.

Outsourced to SCS

Customer B

Business: SCS provides Procurement ServicesUsers: DBS, SCS’ other customersOwnership: SCS owns licensesInformation controlled by: SCS’ customersCommercial X-ion between SP & User?: NO

Use Type: ExternalLicensee: SCSLicenses: SPLA (no External Connector)

External Use: SCS Procurement Services

SCS

HP

Broker

External Use: Reuters

Business: Reuters provides financial info and storage servicesUsers: BrokerOwnership: Reuters owns licensesInformation controlled by: BrokersCommercial X-ion between SP & User:? NO

Use Type: ExternalLicensee: ReutersLicenses: SPLA (no External Connector)

videovideo

What SPLA means to a What SPLA means to a

Service Provider and CustomersService Provider and Customers

www.microsoft.com/serviceproviders/licensing/compare.asp www.microsoft.com/serviceproviders/licensing/compare.asp

Software As A ServiceSoftware As A ServiceMarket DriversMarket Drivers• DemandDemand

– IT skills shortage– Increased application complexity– Time to deployment– Technology refresh cycle

• SupplySupply– Bandwidth– Emergence of competent, well-funded Service

Providers

Software As A Service DriversSoftware As A Service Drivers

0% 10% 20% 30% 40% 50% 60%

Affordable access to technologyAffordable access to technology

Avoids capital investmentAvoids capital investment

Simplify budgetingSimplify budgeting

Shorter implementation cycleShorter implementation cycle

Lower cost of entry for applicationsLower cost of entry for applications

Improved total cost/performanceImproved total cost/performance

One-stop shopping/supportOne-stop shopping/support

Focus more on primary businessFocus more on primary business

Scalability to meet business growthScalability to meet business growth

Avoidance of IT staff recruitment/retentionAvoidance of IT staff recruitment/retention

Source: IDCSource: IDC

Customer Requirements from Customer Requirements from Microsoft Annual Customer Survey Microsoft Annual Customer Survey • Security / virusesSecurity / viruses• Update / upgrade infrastructureUpdate / upgrade infrastructure• Improve software / upgradeImprove software / upgrade• Cut costs / budgetCut costs / budget• New technologyNew technology• Server upgradeServer upgrade• Info / data management / storageInfo / data management / storage• Improve Internet / web servicesImprove Internet / web services• Improve hardware / upgradeImprove hardware / upgrade• Compatibility / system integrationCompatibility / system integration• Email / spamEmail / spam• Reliability / stabilityReliability / stability

How Important are Proposed How Important are Proposed Campaigns?Campaigns?• SecuritySecurity• Connecting people to devicesConnecting people to devices• Team CollaborationTeam Collaboration• BIBI• ERPERP• CRMCRM• Upgrading ServersUpgrading Servers• Upgrade MS App SWUpgrade MS App SW• Upgrade MS Desktop OSUpgrade MS Desktop OS

Australia SB Attitudes and Strategic Directions Australia SB Attitudes and Strategic Directions OverviewOverview

Top strategic directions: Top strategic directions: • Data back-up and disaster recovery

• Enhance data security and privacy via firewall, encryption, etc.

• IT staff training and skills enhancement

• Upgrading bandwidth for data networking

• Interconnecting branch offices

• Electronic linkages with suppliers and distributors

• Using hosted applications via 3rd party service providers (ASPs)

• Outsourcing IT & other business services

• Customer Relationship Management (CRM) applications

• Imaging & document management solutions

Source: AMI SME Survey

Very Important

Important

Horizontal OpportunitiesHorizontal Opportunities

• Empowering EmployeesEmpowering Employees– Building an extended organisation encompassing

partners, suppliers and customers– Employee self-service and Online Training– Messaging and Collaboration

• Any device, Any where, Any time

• Integrating Business PartnersIntegrating Business Partners– Collaboration with business partners– EDI, EAI, B2B

• Connecting CustomersConnecting Customers– Extending the storefront to corporate procurement

Enterprise OpportunitiesEnterprise Opportunities

• Avoid “sticker shock” Avoid “sticker shock” – Content Management Server

• $80,000 per Proc or $1,400 per month• Share big ticket itemsShare big ticket items

– BizTalk Server • Multiple businesses

• ““Peaks and Troughs”Peaks and Troughs”– Office and Project

• Special Project with need for desktop licenses for a short time• Trials and PilotsTrials and Pilots

– Test out software technology without committing to a perpetual license• Small offices in overseas locationsSmall offices in overseas locations

– Leave the total solution provision to an SPLA Service Provider rather than invest in staff, resources and travel

Hosted Exchange Opportunity Hosted Exchange Opportunity Segments Segments End users & Service Providers End users & Service Providers

ConsumerConsumer

Mid MarketMid Market

Small businessSmall business

EnterpriseEnterprise Global, Strategic, Global, Strategic,

Major, CorporateMajor, Corporate

Hosting Hosting ServiceService

ProvidersProviders

Hosting Hosting ServiceService

ProvidersProviders

OutsourceOutsourcersrs

OutsourceOutsourcersrs

ISPs / ISPs / WebmailWebmail

ISPs / ISPs / WebmailWebmail

The Windows-based Hosting SolutionsThe Windows-based Hosting Solutions

• A collection of best practices, scripts, and tools that enables A collection of best practices, scripts, and tools that enables service providers to deploy a centralized management service providers to deploy a centralized management infrastructure infrastructure

• Provides these benefits:Provides these benefits:– Cost savings even as your data center complexities increase– Highly specialized tools that enable the service provider to roll-out

managed services quickly

Monitoring and Reporting• Server or service failure• Data mining• Customer reporting

Centralized Management• Group policies• Improve and scale the administration of multiple servers

Update Management• Security alerts• Apply security updates• Reconfigure existing servers

Server Purposing• Build a new server• Repurpose existing servers

Target Server

Administration Agent Windows-Present

Deployment Agent Pre-OS

ADS Secure, Hands-Off ImagingADS Secure, Hands-Off Imaging“Zero Touch Server Builds from Bare Metal”“Zero Touch Server Builds from Bare Metal”

DB

HardDisk

RAM

PXEFW

Logs all activity

ADS Controller

SSLSSL

Bare metal server PXE Boots and task Bare metal server PXE Boots and task sequence is initiatedsequence is initiated

Controller transfers deployment agent to Controller transfers deployment agent to RAM diskRAM disk

Controller downloads DOS image for Controller downloads DOS image for hardware configurationhardware configuration

11

22

33

Agent authenticates/ requests Agent authenticates/ requests imageimage

Image is personalized and boots Image is personalized and boots to full OS with agentto full OS with agent

Encrypted image is downloaded Encrypted image is downloaded and deployedand deployed

44

55

66

PossiblyMulticast

Logical DiagramLogical Diagram

Platform ServicesWeb and Data Hosting

Hosted Exchange Services

Border Router Perimeter/NetPerimeter/NetPerimeter/NetPerimeter/Net Perimeter Firewall Services

Packet and Port FilteringSSL TerminationStateful InspectionApplication Filtering

FrontNetFrontNetFrontNetFrontNet

BackNetBackNetBackNetBackNet

BackUp-Build-NetBackUp-Build-NetBackUp-Build-NetBackUp-Build-Net

Exchange Front-End Servers

SMTP:EXSMTP01EXSMTP02

OWA/POP/IMAP and RPC Proxy:

EXFE01EXFE02EXFE03

Web HostingWEB01

External DNSDNS01DNS02DNS03DNS04

Update Management

SMS01

Provisioning Front-End

PROV01

Backup and Restore

Exchange Back-End Server Cluster (4+1)

EXBE01EXBE02EXBE03EXBE04EXBE05

Data HostingShared

SQL01Dedicated

SQL02

Monitoring and Reporting

MOM01MOMSQL01

Active Directory

AD01AD02

Service Provisioning

MPS01

Server Purposing

ADSC01

MPS Request FlowMPS Request Flow

• New CustomerNew Customer• Initial requestInitial request

ActiveDirectory

IIS ResourceManager

IIS FrontPage

2. XML Provisioning Request1. HTTP Post via SSL

4. Providers perform tasks

5. XML Response6. HTML – Update Complete

• Active Directory Provider• Create New OU• Create Groups• Set Security• Delegate Permissions

• IIS Resource Manager• Find Available Resource

• IIS Provider• Create Folder• Set Security on Folder• Create Site• Set Security on Site

• FrontPage Provider• Enable SharePoint Team Services

3. Request Expansion

Web ControlWeb ControlPanelPanel

Web ControlWeb ControlPanelPanel

AD RM IIS FP

MPF

Request ExpansionRequest Expansion

Request Tasks

MoreMore Hosting Solutions and Hosting Solutions and OpportunitesOpportunites• Document ProtectionDocument Protection

– Hosted Windows Rights Management• EAI ManagementEAI Management

– Hosted BizTalk Server farm• Media Company Content PortalMedia Company Content Portal

– Content Management Server• EPMEPM

– Hosted Project Server + Project via Terminal Services• Remote Small BusinessesRemote Small Businesses

– CPE SBS2003 and potentially even Office• CRMCRM

– Hosted CRM (under SPLA and a CS Solution Q3 CY05)

ResourcesResources• Directions on MicrosoftDirections on Microsoft

– www.directionsonmicrosoft.com• Jumpstart ProgramsJumpstart Programs• Microsoft Partner Solutions Centre (MPSC)Microsoft Partner Solutions Centre (MPSC)• www.microsoft.com/serviceproviderswww.microsoft.com/serviceproviders

– Licensing– Windows Web Hosting Program– Service Provider Newsletter– Certification Programs– Third party Solution Directory– Deployment Guides

• Shared Web Hosting Guide• Solution Technical Articles and Case Studies

Demand Generation for Demand Generation for HostingHosting

http://www.microsoft.com/smallbusiness/products/roadmap.mspx http://www.microsoft.com/smallbusiness/products/roadmap.mspx

Why a Service Provider?Why a Service Provider?• Limited IT skills to manage services to employees and Limited IT skills to manage services to employees and

customerscustomers• Reduce TCO by sharing infrastructure with other businessesReduce TCO by sharing infrastructure with other businesses• Want to stay current with latest hardware and softwareWant to stay current with latest hardware and software• Need better integration between business applicationsNeed better integration between business applications

– Messaging linked to CRM, Web site to ERP• Need access from anywhere, anytime and potential from any Need access from anywhere, anytime and potential from any

devicedevice– Mobile device integration, telecomputing

• Outsource the license management burdenOutsource the license management burden• Move IT from asset based to expense basedMove IT from asset based to expense based• Place security in the hands of professionalsPlace security in the hands of professionals