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.

To know more :

Advertisements

The CSP Licensing Business Model

A few years ago I had the opportunity to start a full LSP (licensing service provider) licensing business from the very beginning of licensing activities and growing the business with a licensing business model. Later on I repeated the process in MSP and VARs especially for those who had the desire to grow their Volume licensing business. And now the change towards Cloud licensing especially with the CSP program has given me the chance again to work on licensing business models transformation, for this reason I thought was relevant to comment on the CSP licensing model concepts that all CSPs should assess.

Adapting to a Cloud revenue business model is not an easy transition and sales teams, business owners and many others are reluctant to change the traditional transactional model to a subscription based model, but obviously signing to the CSP program is already a commitment towards applying the necessary changes on the business model required.

CSPs must be “licensing ready” and should assess the business to successfully plan activities: knowing about licensing is not enough, controlling subscriptions, transitions from volume licensing to subscription licensing, client ROI impact and SAM maturity, between other topics,… all is essential to all CSPs…

Some questions to resolve: has the CSP a volume licensing or hosted licensing business in place? What is the CSP licensing selling strategy? Is the CSP reactive to renewals? How successful it has been to capture net new Cloud clients? Is the CSP in a position to sell Office 365 or Azure Services? Is there sales team members knowledgeable enough to offer Cloud subscription models? Can you transition from SPLA to other cloud licensing? Is the sales team incentive align with the achievement of new monthly recurrent revenue? Has the CSP SAM services at all? Is the CSP SAM service aligned with client expectations or works just as a necessary exercise due to partnership obligations for audits? How many current clients versus net new are required to obtain to keep CSPs revenue expectations?

The end goal of any assessment exercise towards licensing sales business is to create a strategy for sales and operations that can capture clients and operate efficiently to create revenue. Some CSPs plans have not contemplated all risks, for example:

Many CSPs are finding that some sales efforts are futile with clients that transact with Enterprise Agreements via qualified resellers or LSPs (Licensing Solutions Partners), it is necessary to know how to pick the battles and be ready to fight the arguments of licensing agreements, making sure that clients don’t get involved between the subscription margin fight from the different resellers and see the services value as the true differentiator. As it is today between CSPs and LSPs with CSP expectations (all of them) the battle for the Cloud is on…

Assess, plan and get the right licensing trusted partners and distributors. Get the right SAM independent partner (you can always ask me for their names), be familiar with distributors CSPs advantages and get yourself ready to get into the wonderful world of software licensing in the Cloud era.

Let me know if you require more information for your CSP plans.

The Benefits of Voluntary SAM & Licensing Reporting

First of all, it has been an interesting journey during my SAM career to get to write this post…because I have spent so much time helping companies and organizations “clean up the house” and get compliant, manage their applications and protecting them in the way of being always ready for software audits. But like the best things in life the journey does not have an end and is the ride that makes it great.

In the SAM World the ultimate efficiency is to manage applications from the deployment of images to usage control with compliance in between. It is precisely on this SAM ultimate efficiency that allow us to be more proactive in order to not only be ready for software audits but also to advance the reporting to a vendor before reaches to audit… I know, I know, sounds sacrilegious.

Let us put together this scenario: one organization uses a SAM governance management for all applications, policies and procedures are well-defined, smooth and there is compliance control. To “cleaning up the house” is easy and give it a year to achieve the optimal position. It is now a matter of maintaining, adapting and advising. It is then that risks are fully controlled towards software audits. And the services are rendered by a certified and recognized independent SAM consulting firm, not by a reseller. Imagine then that the organization reports voluntarily their compliance that includes deployment information.

Benefits:

  • Vendor does not have to list the organization on the black list
  • The organization tracks reports delivered to provide “good faith” to auditors and avoid their time-consuming engagements
  • The organization is motivated and keeps SAM governance live, active and constant maintaining compliance to optimal levels
  • Vendors provide funding for voluntary reporting, services by the SAM consultant may be partially covered if not paid in full.
  • SAM consultants can focus on the upcoming projects, working with IT architects and other to prepare for changes and ensure healthy delivery and compliance as per the established road map.

What we need is an alignment between the vendors, the SAM consultants and the customers. It has to be driven by the Vendors primarily, creating clear programs of audit protection by voluntarily reporting, enabling independent SAM consultants to provide a level of trust and optimal reporting acceptance. And this is out of the scope of the True Ups and Renewal typical reporting,,, Cloud subscriptions actually fit well on this model as usage can be controlled by the access to the applications from the vendor, but more than ever, the reality of Hybrid Cloud could benefit this approach tremendously, increasing the trust between all parties involved.

Just a thought…

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.

Thank you for following

Facing a Software Audit Webinar Invitation

Join the Webinar on June 12th

Register Here! (click the logo)AMTRALogoFinal_FullColor (1)

 

 

 

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

Save time, reduce costs and get compliant with Application Management

We live in an Application driven IT world.  Whether its our Cloud-based phone apps, our computer apps, or the applications in our servers and hosted datacentres, everything is moving towards applications that will improve our productivity.  Technical complexity is increasing rapidly and we are consuming more applications than ever before.

I have come to understand the value of application packaging.  Initially, I thought it was simply creating an automated process of imaging applications to be delivered. However, I have to come to realize that its a lot more than that.  Application packaging:

  •        Allows one to conform to standards despite their edition and version.
  •        Provides the ability to test applications before moving to production.
  •        Delivers the same application, yet tailored to specific needs or departments.
  •        Provides process and characteristic documentation without having to spend hours writing and collecting screen shots.
  •        Enables a licensing person, through the process, to control and manage assets (Software Asset Management (SAM)).

For this reason it is now part of what I envision to provide my clients.  That vision is to deliver a robust strategy that not only takes care of SAM inventory and reconciliation, but also goes to the root and applies application packaging best practices.

Ask me how: @mslicensing, @amtrasolutiuons

SQL and Microsoft audits – the money maker

Recently my level of engagements with SQL licensing has increased due to the Software Asset Management team at Microsoft strong campaign delivered earlier this year performing audits to Microsoft customers.

SQL on test environments, for third-party applications support, embedded into cloud offering and the change from per processor to core licensing have created great complexities that without careful review can become a real issue on non compliance .

When you evaluate your SQL footprint make sure of the following:

  • You know which instances are on test environments and that you have enough Visual Studio licenses with appropriate SQL capabilities for your development team.
  • Understand which software vendors have a subscription SQL database that will be their responsibility to license
  • Understand the number of users that access each instance .
  • Be aware of inactive SQL databases still showing on your inventory reports but not accessed by anybody.

If you carefully review your SQL footprint you may take advantage of a “cleaning exercise” to make sure any audit will not force you to purchase unnecessary licenses.

good luck!

Let me know if you require assistance.