Why Google may win the Cloud battle in the Enterprise

Google-Apps-vs.-Office-365-change-1024x372 Since the Cloud offering of Office 365 the inconsistency of licensing purchase methods is increasing. Enterprise clients have extensive agreements with Microsoft and have maintained them for decades, however the subscription licensing has been obtained in a very confusing and additive way instead of substituting the volume licensing agreements.

First it was the Cloud addition and “bridge” licenses within the same document contracts that increased the cost, not equal or save costs to customers.

Flexibility offered by the Cloud subscription model was compromised because these old agreements had to be maintained. Microsoft could have adopted a better transition just by allowing flexibility in the licenses within the agreements when clients deployed Cloud services, it could have provided an incentive to Microsoft clients not only to license but to deploy the Cloud technologies. Instead Microsoft added costs, and pushed clients to move to the cloud within a difficult transition that will eventually fulfill the promise of being flexible.

Currently the increase to 500 users to have a large agreement, the introduction of the MPSA agreement, the discontinuation of enrolments that were sold as ultimate solutions in the last 3 to 4 years have become not only a product licensing complexity but also a management chaos for organizations in the enterprise with multiple offices, affiliates and moving numbers of workforce.

Google has offer consistency as a cloud subscription model for working tools, and has allow other vendors interacting with Google Apps for work. It is in a collaborative way that Google and other vendor partners can offer security, data jurisdiction, access to robust data servers and integration with multiple ERP and CRM systems. Google has understood of the opportunity to gain market share in the Enterprise and has started offering new interesting approaches.

The dichotomy I see is the following: Microsoft offers an All-in approach to technology buyers through complex agreements while Google offers “buy what you like” with Google and “friends” subscription models, independent to each other, including Microsoft products and Azure services.

To manage compliance and mitigate risk is better for enterprise organizations to pay for what they truly use, measure its performance and use and adapt budgets accordingly.

I am observing companies deciding on their Cloud services consumption based on flexibility and less management burden on compliance risk. The Cloud is standardizing security, integration, multiple levels of vendor to vendor development and common market approaches… it will be difficult to justify complex licensing contracts the more collaborative are the services offered in the Cloud.

Microsoft could invite more vendors to sell collaboratively on flexible plans, otherwise Google may win the presence in the Enterprise.

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Integrating a Secure Messaging Environment with Office 365

 

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Josef interview for CIOReview Magazine

See Publication from CIOReview

 

Licensing the Cloud with Microsoft.

To subscribe to the Cloud directly is easy, is a simple transaction based on consumption, however the co-existence of old traditional Volume licensing, or Service Provider licensing programs with the new Cloud subscriptions is not that easy. In fact to make sure that new benefits for the Cloud enablement like the Software Assurance Mobility Rights are properly used requires attention to the licenses allocated to the servers on Windows Azure, for example. Understanding the real rights and possibilities is another variable to contemplate when measuring compliance.

Hosted providers do not offer much guidance with respect of what their clients can allocate on licensing into the Cloud environments, and is often a conflict of responsibilities when the vendor audits the hosted provider or the end-user client.

In the Microsoft Product Use Rights for example we can observe the limitations of the licenses covered by SA with respect to their Cloud options with the Mobility Rights: (see table below)

Understanding the right coverage of the license is important in order to maintain not only compliance but also to predict Cloud budgets.

Clients with an Azure consumption negotiated on their Enterprise Agreement can use any of the services and increase without difficulty, and as they evolve using the Cloud services will be important to understand the ROI of the existing licenses versus the newly consume and fully subscribed licenses. In a way Cloud has enable transitions of existing licensing investments however at the same time is creating a conflict:

Is the Cloud subscription directly on Microsoft Azure a better option than the SA Mobility Rights?

As prices vary, the Cloud footprint extends and upgrade cycles arrive, the SA renewal will be confronted by the commitment to Azure subscriptions in a way that customers will choose one or the other.

For Microsoft clients using other third-party hosted providers the question is:

Have I allocated the compliant rights of use on the Cloud? and if I consume SPLA, is my hosted provider compliant? Am I compliant? Or am I at risk due to hosted provider error?

I can confidently say that Software Asset Management has become more relevant in the Cloud era.

(SAM Mobility Rights table as per PUR July 2014)

PRODUCT LICENSINGMODEL PRODUCT OR PRODUCT TYPE LICENSE PERMITTED NUMBER OF OSES PERLICENSE/PERMITTED NUMBER OF

CORES PER LICENSE

Server/CAL External Connector Licenses Each External Connector license with active Software Assurance coverage 1 OSE per license
Server/CAL SQL Server Each Server license with active Software Assurance coverage 1 OSE per license
Per-Processor All eligible Products Each Processor license with active Software Assurance coverage 1 OSE with up to 4 virtual processors per license
Per-Core All eligible Products Each Core license with active Software Assurance coverage One virtual core (subject to the Product Use Rights including the requirement of a minimum of 4 cores per OSE)
Management Servers System Center ServerManagement Licenses

(versions prior to System

Center 2012)

Each Server Management license with active Software Assurance coverage 1 Managed OSE per license
Management Servers System Center Server Management Suites Each SMSE or SMSDlicense with active Software Assurance coverage 4 Managed OSEs per License
Management Servers System Center 2012 R2 Standard Each System Center 2012R2 Standard Server Management license with active Software Assurance coverage 2 Managed OSEs per license
Management Servers System Center 2012 R2 Datacenter Each System Center 2012R2 Datacenter Server Management license with active Software Assurance coverage 8 Managed OSEs per license
Management Servers Visual Studio Deployment 2013 Standard Each Visual StudioDeployment 2013

Standard Server

Management license with active Software Assurance coverage

2 Managed OSEs per license
Management Servers Visual Studio Deployment 2013 Datacenter Each Visual StudioDeployment 2013

Datacenter Server Management license with active Software Assurance coverage

8 Managed OSEs per license
Specialty Servers HPC Pack Enterprise Each Server license with active Software Assurance coverage 1 OSE per license

 

The New Order of Software Asset Management (SAM) in the Cloud era.

The New Order

Microsoft is definitely the great influencer of Software licensing; when Microsoft develops and promotes new rules may other vendors follow. During this last World Partner Conference, that just happened in Washington DC, I observed the influence of Cloud now directly affecting the Software Asset management (SAM) approach.

Cloud and SAM

Not long ago I was questioned by other SAM peers on my approach towards Cloud and SAM, the interaction of the old licensing models affected by the new subscription models seemed for some the end of the need of the licensing advisors, however I always thought it was only an adaptation of the SAM knowledge towards new exciting models to compliantly license software.

Microsoft is going all or nothing to the Microsoft Cloud offerings, I am glad that my guess has been right for so long with respect of being aware on how to measure, what to investigate, and how to determine the right Cloud licensing solution, because now SAM has to fulfill the qualification to move the right IT budgets towards Cloud in order to fulfill the great demand and transformation that Cloud is making in organizations everywhere. SAM has now a special role in regards to Cloud, it has to monitor the usage, contemplate the rules and repurpose licenses for an optimal transition.

SAM and Services

Some SAM professionals identify their task as auditors as the more relevant with respect to the services thy offer. However I disagree, in fact SAM has to be hand in hand with technical, and business assessments to actually not only portray a licensing position but to guide any organization to transformation. The new era of SAM services has to require a true alignment between business goals, technical requirements and licensing.

 

SAM 2.0

SAM is now critical in order to govern software and identify the possibilities of Cloud computing, outsourcing databases, access to BI integrated products, assessing security tools and allowing a new perspective of IT expenditure that walk with business objectives. The New Order of SAM services will create once again a differentiation between those that will be stuck in the old reseller ways, just contemplating the exercise of an audit without any other variable added, and those that understand the new realities and needs of IT on today’s market.

 

IT is truly a great moment for SAM services that can play a significant role on the era of Cloud.

The Cloud and the New order of Licensing and Software Asset Management #WPC14

July is an important time for Software Asset Management (SAM) as the Microsoft World Partner Conference (WPC) kicks off with announcements and news. Microsoft licensing is definitely a great influencer to all vendors on compliance rules.

There is expected content on SAM processes according to Microsoft to discuss on this 2014 edition of the conference and one or two expected announcements on Azure and other Microsoft Cloud.

We are arriving to a time of Cloud offerings consolidation. After observing constant changes on office 365 and additions to services offer through Azure it is time to finally elaborate transition plans for licenses to be moved to the Cloud, reconcile with SPLA (Hosted-Service Provider Licensing Agreement) and traditional Volume Licensing investments that have the reign for the last two decades.

As consuming IT is the actual trend and desire, it is expected for the licensing models to quickly offer transitions for compliance towards all Microsoft Cloud products.

The expectation is to finally observe consolidation on subscription models and more governance of SAM dedicated to Cloud offerings.

As the partner ecosystem also evolves to develop Cloud solutions of their own, licensing models like SPLA are getting more and more licensing in production environments. At the same time is not any more about going Cloud but about securing, developing and managing the Cloud. These has made SAM more relevant than ever as Application Management has to respond to the different scenarios that companies use today, a mix of applications in the Cloud with Private/Hybrid and Public Clouds.

The Licensing Guru will update after WPC on findings and relevant information to the readers.

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You will be Audited

Sounds like a title for a doomsday licensing movie… however besides the dramatic title it is very certain that if you are an organization using software, specially from the usual suspects: Microsoft. Adobe, Oracle, IBM… you will be audited!!!

Is written on the terms and conditions you may have not read when deploying the software, or on the contract the reseller provided you to sign. And as a practice to ensure compliance the software vendors periodically will request from you licensing information to make sure everything is alright.

Now… to fall in non-compliance situations is very easy:

  • Many software vendors don’t restrict the use of software to avoid misuse.
  • Many organizations don’t track licensing use and compliance with Software Asset Management Tools
  • Licensing rights, terms and conditions are subject to change, and they change often!.

For this reason through AMTRA Solutions and its partners, plus this blog I will start a campaign of awareness and practical examples plus Q&A to help you be prepared and ready with the information gathered from my experience. I consider that a “fair trial” has to be performed when all parties had fully knowledge of consequences and clear understanding of complexities. Stay tuned for more content and invitations to listen and see coming up.

Cheers

The Licensing Guru: Josef Hans Lara

Get ready for a Licensing Audit and get the vendor to fund it

Certified companies for SAM services like AMTRA are able to prepare companies and help them to pro-actively report their licensing status to vendors.

In the case of Microsoft, the SAM team partners with clients to get compliance ready in a friendly engagement that distance itself from the traditional audit approach that takes so many IT leaders by surprise.

Some vendors divide the exercise of hunting for compliance issues in two categories:

  • Soft Audit: just requesting general information on existing installations
  • Audit: full analysis and reconciliation of the client using the empowerment of the agreed terms and conditions (that normally no one takes in consideration until the vendor shows up)

However Microsoft has changed the pace of these engagements by allowing clients to proactively report, and experience shows that the “friendly” gathering and reconciliation of the data helps organizations to fix issues and arrive to better agreements when they willingly and proactively approach the vendor, it is called “Baseline”.

For this reason the Baseline SAM services for Microsoft could also be done using a pool of funds to help clients to fulfill these task, plus they also help clients to Assess and deploy SAM Services. Only a few companies are able to provide these services, and as mentioned AMTRA Solutions is one of them, servicing clients globally.

What is left after the exercise is a full understanding of the licensing compliance status. Now these by itself is useful for the vendor however the organizations can have these done as a starting point for a more Dynamic SAM process and assessments to truly avoid any noncompliance issue in the future.

It is key to understand and strategize SAM Baseline services as a way to get the Vendor involved and a SAM partner to help reducing typical compliance and costs risks.

For more information on SAM Baseline let’s discuss: @mslicensing @amtrasolutions

“The Guru” joins AMTRA Solutions

AMTRA SOLUTIONS appoints Josef Hans Lara as Director of SAM & CLOUDAMTRALogoFinal_FullColor (1)

“The Licensing & Cloud Guru” new addition to the AMTRA team.

Calgary, AB, March 7, 2014– Amtra Solutions appoints Josef Hans Lara as Director of SAM & Cloud. Josef, also known for his online presence as the “Licensing & Cloud Guru” through his publications, speaking engagements and social media presence will direct the Amtra SAM efforts bringing an innovative way to offer AMTRA clients the best of Software Asset Management and Cloud transformation.

Josef depth of experience started in Europe leading the marketing and sales efforts on hardware and software licensing channel and solution sales in Europe. Continued building his career in North America becoming a builder of award winning Large Account Resellers, SAM consulting services and an evangelist for Cloud Computing.

Josef vision on SAM goes beyond the standards and provides synergies between application management, IT infrastructure transitions like Cloud computing, and a full understanding of compliance for multiple software vendors. Josef’s work has given him presence and reputation in the IT industry as a leader, helping multiple industry and public sector organizations across Canada, USA and Europe to achieve compliance and embrace models to adopt new technologies, truly approaching Business Intelligence to IT SAM compliance models.

Currently is a member of the Ingram Micro Services Advisory Council North America, IAMCP Canada National Executive, SRC Technology Group BC, and serves as a volunteer economic development commissioner in Maple Ridge, BC.

About AMTRA

AMTRA Solutions is a North American leader on Application Management and IT Innovation. Our consultants are highly seasoned application packagers, developers and deployment & operations experts – each with several years of experience. They have all worked within strict and demanding environments such as Petrochemicals, Energy, Banking, Finance and the Pharmaceutical industries. We understands the importance of adherence to standards and industry regulations

AMTRA is the North American distributor of all ATEA software and services. Products include Application Manager, JumpStart, AppMarket and Service Market. ATEA is known for their high-end, high capacity client management and application packaging factory which is the largest of its kind in Europe.

If you would like more information about this topic, please contact 1-855-326-0533.

O365 for Enterprise

O365 is born for the masses but there is a strong push to have every Enterprise Agreement including the bridge CAL or O365 subscriptions to enable the use of Microsoft Cloud in the Enterprise level clients.

Things that should be offered:

  • A clear VLK and MAK allowed deployment practices. So customers using SCCM or any other management and operations tool can push software instead of using O365 methods.
  • Extending the SMB O365 subscriptions to include on premise CAL use rights. Allowing those EAs on the 250 to 300 device count or user count range to benefit from a lower O365 cost starting point.
  • EAs could totally transform to subscription however after decades of investment allowing clients to own the licenses instead of making a decision to use a subscription that ends services if discontinued. It will be nice for long-term Microsoft Enterprise clients to see this in the T&Cs.
  • And maybe last wish, have an O365 option that includes windows server CALs.

There is a still a long way to go for O365 to be positioned in the Enterprise, not only “sold” to the Enterprise but “used” and consume, more flexible licensing and deployment practices will help.

 

 

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