How to Get Tough With Your Tech Vendors

I recently contributed towards an article in InfoWorld regarding tactics for negotiating with software vendors – read the full article here. If you have any questions please contact me.

Daryl.

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Changes to Windows 7 Virtualization Rights and Windows Virtual Desktop Access (formerly VECD)

As of July 1, 2010, Windows Software Assurance customers will no longer need to order a separate VECD for SA license in order to run and access Windows 7 software in their datacenter.  Those rights will be available to users of Windows licensed devices under active Software Assurance coverage.

In addition Volume License customers with active licenses for Microsoft Desktop Optimization Pack for Software Assurance (MDOP) will receive the following software (as it is made available).

ü  Microsoft Application Virtualization 4.5 for Windows Desktops

ü  Desktop Standard GPO Vault / Microsoft Advanced Group Policy Management (AGPM)

ü  Microsoft Diagnostics and Recovery Toolset

ü  Microsoft Asset Inventory Service

ü  Microsoft System Center Desktop Error Monitoring

ü  Microsoft Enterprise Desktop Virtualization

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Clearing up the License Dependency between Microsoft Products

A common mistake when evaluating a new Microsoft Project is the lack of understanding the licensing requirements of software used in conjunction with one or more Microsoft products. For example, in order to use SQL Server software, a server needs to be assigned both a SQL Server license and an operating system (Windows Server) license.

In order to avoid under licensing and under budgeting I have put together a short list of the most common Microsoft software and other Microsoft software associated licenses that are required to use that software.

How to Use the Table

Identify the product you want to license in the left hand column under ‘Product’. The right hand ‘Dependency’ column describes the software licenses that you need in order to be properly licensed to run the Product and other products used in conjunction with it.

Product Dependency
Exchange Server 2010 Enterprise/Standard Edition Windows Server
Identity Lifecycle Manager 2007 Windows Server,

SQL Server

Internet Security and Acceleration Server 2006 Standard and Enterprise Editions Windows Server
Office Communications Server 2007 R2 Standard and Enterprise Editions Windows Server,

SQL Server

Groove Server 2010 Server Manager Windows Server,

SQL Server,

Office Groove Server Relay (deployed on a separate server)

SharePoint Foundation Server,

SharePoint Server 2010,

SharePoint Server for Internet Sites Standard,

SharePoint Server for Internet Sites Enterprise

Windows Server,

SQL Server

Project Server 2010 Windows Server,

SharePoint Server 2010,

SQL Server

System Center Configuration Manager 2007 R2 Windows Server,

SQL Server

System Center Operations Manager 2007 R2 Windows Server,

SQL Server

System Center Service Manager 2010 Windows Server,

SQL Server

Windows 7 Professional Desktop Operating System Upgrade Qualified Windows Desktop Operating System from an Original Equipment Manufacturer (OEM), retailer (Full Packaged Product – FPP) or through the Get Genuine Windows Agreement (GGWA).
Microsoft Desktop Optimization Pack Windows Desktop Operating System from an Original Equipment Manufacturer (OEM), retailer (Full Packaged Product – FPP), through the Get Genuine Windows Agreement (GGWA),

active Software Assurance

Windows Server 2008 Remote Desktop Services CAL Windows Server CAL or Core CAL Suite or Enterprise CAL Suite
Exchange Server 2010 Enterprise CAL Exchange Server 2010 Standard CAL, or;

Core CAL Suite

SharePoint Server 2010 Enterprise CAL SharePoint Server 2010 Standard CAL or Core CAL Suite
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Step Up Licenses

This is a great tool to upgrade lower level license editions to a higher edition license and at the same time utilize purchased licenses and save money on needed higher version licenses.  Customers must have a license with active Software Assurance protection coverage (e.g., Software Assurance or Enterprise Agreement) for the qualifying product in order to acquire a Step-Up License. The customer’s right to the use of software under a Step-Up license is conditioned on their having and retaining a License for the qualifying product.

Product Step Up examples

Licensed Application Step Up To
BizTalk® Server Branch BizTalk® Server Standard
BizTalk® Server Branch BizTalk® Server Enterprise
BizTalk® Server Standard BizTalk® Server Enterprise
Commerce Server Standard Commerce Server Enterprise
Core CAL Suite Enterprise CAL Suite
Dynamics CRM Workgroup Server Dynamics CRM Professional Server
Dynamics CRM Professional Server Dynamics CRM Enterprise Server
Exchange Server Standard Exchange Server Enterprise
Office Communications Server Standard Office Communications Server Enterprise
Office Project Standard Office Project Professional
Office Standard Office Professional Plus
Office Visio® Standard Office Visio® Professional
Professional Desktop Enterprise Desktop
SQL Server ™ Workgroup SQL Server ™ Standard
SQL Server ™ Standard SQL Server ™ Enterprise
System Center Configuration Manager Standard Server Management Licence System Center Configuration Manager Enterprise Server Management Licence
System Center Configuration Manager Enterprise Server Management Licence System Center Server Management Suite Enterprise
Visual Studio Team System Architecture Edition with MSDN Premium Visual Studio® Team System Team Suite with MSDN Premium Subscription
Visual Studio® Professional Edition with MSDN Premium Visual Studio Team System Development Edition with MSDN Premium
Visual Studio® Professional Edition with MSDN Professional Visual Studio® Professional Edition with MSDN Premium
Windows® Server™ Standard Windows® Server™ Enterprise
Windows® Server™ Standard Windows® Server™ Datacenter
Windows® Server™ Enterprise Windows® Server™ Datacenter

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Windows Virtual Enterprise Centralized Desktop for Software Assurance (VECD for SA)

Windows Virtual Enterprise Centralized Desktop for Software Assurance is the version of Windows designed to help medium and large size organizations deploy Windows using virtualization technology in a network-centralized deployment architecture.

Windows Virtual Enterprise Centralized Desktop (VECD) for Software Assurance is an optional purchase available only to those customers who have Windows Software Assurance coverage.

Eligible customers may acquire VECD for SA for any Windows desktop with active Software Assurance coverage. VECD for SA must be acquired under the same Select or Enterprise or Campus and School Enrollment or Open Value agreement as the corresponding Software Assurance coverage. The VECD for SA subscription provides customers the right to run the latest version of the Windows desktop operating system made available during the term of their SA coverage.

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Cold Back-up for Disaster Recovery

One of the most valuable Software Assurance benefits available from Microsoft is the cold back-up for disaster recovery licenses.

Customers with Software Assurance (enrolled in a Enterprise Agreement or under a Select Agreement) for qualifying server products and related CALs are eligible for complimentary server licenses for those products for disaster recovery (DR) purposes.

For each qualifying server license (i) a customer has enrolled in SA and (ii) for which the customer has all related CALs (if required by the product) enrolled in SA, the customer will be deemed to have a second server license under which it may deploy the same product on a “cold” back-up server solely for DR purposes during the term of its Software Assurance coverage. Customers’ deployment and use of software under the DR licenses is subject to the terms and conditions of their license agreement.

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Windows 7 Virtualization Rights

Windows 7 Virtualization RightsVolume Licensing customers have some flexibility in how they can deploy Windows 7 in their organizations.

As a benefit of Software Assurance coverage for Windows desktops, customers may leverage virtualization use rights.

This use right allows running the software in up to four local virtual machines.

While a customer’s right to use Windows 7 Enterprise may survive the expiration of their Software Assurance coverage, the Virtualization Use Right does not.

For further use right details, please refer to the Product Use Rights document.

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Maximizing Gold Partner Licensing Entitlement

Recently I have come across a number of Microsoft customers that are also Microsoft Gold Partners that have renewed or entered into a new Enterprise Agreement. One of the most common mistakes is the confusion regarding the number of Gold Partner Licensing grants they are entitled too.  I have seen cases where customers have literally left hundreds of thousands of dollars on the table from under utilizing the licensing grant they are entitled to as a basic part of the Gold Partner program.

Maximizing Your Licensing Grant

  1. Initial licensing grant  – this is the basic number of licenses your organisation is entitled to when enrolling into the program https://partner.microsoft.com/US/program/programoverview/40029254
  2. Maximum licensing grant – in order to maximize your licensing grant (for example receiving 500 Office licenses) you need to understand how to go about executing this benefit, first off all you must be aware that to be entitled to additional licenses you need to order a “Tool Kit”, a Tool Kit can be ordered for any additional location (Office residing at a separate address then the main office), in order to maximize the license grant you need to order an additional 4 Tool Kits (Maximum licensing grants is per partner per country) per country. If  you have offices in multiple countries you can enroll them separately into the Gold  Partner program and enjoy the same maximum licensing grant.
  3. Pay attention to what licenses are available through the partner grant, many times customers/partners only utilize the Office, Cal’s and MSDN licenses, there are in addition products such as BizTalk (Priced at $22,000 a year per processor), CRM, MDOP, SQL and SharePoint Server for Internet sites (priced at $26,000 per year in the EA) and may more.

Eligibility for Additional Partner Program Toolkits

To qualify to receive an Additional Partner Program Toolkit, a location must satisfy one of the following scenarios. Note that each location may receive only one Additional Program Toolkit.

  1. Scenario 1 -  Two associated MCPs Three approved references
  2. Scenario 2 – One associated certified product
  3. Scenario 3 (For partners with the Microsoft Business Solutions Competency only) – One Microsoft Business Solution exam that leads to the competency. Three approved references.

The Additional Partner Program toolkit provides the same number of licenses as those provided in the initial software license grant. The licenses provided by the Additional Program Toolkit are governed by the maximum license caps set for each Partner, per country. Please refer to the Software License Resources‖ section for details regarding the license benefits and maximum license caps.

If you have any questions regarding Microsoft Licensing please contact us.

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E-Book Now Available – Special Launch Price $149

‘Negotiating with Microsoft’ by Daryl Ullman is now available as a Ebook.

Click on the link below for an immediate download.

SPECIAL LAUNCH PRICE – $149 – Until 31st March 2010.
Update (April 2010) The special launch price has now finished – The Ebook is available for download for $199.

Buy Now

Please note the Free Consultation Offer is not available for Ebook purchases.

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New Microsoft Enterprise Agreement Options

enterprise agreement optionsMicrosoft has extended its Enterprise Agreement offering to include two additional enrollments, the Core Infrastructure Enrollment and the Application Platform Enrollment, before I go into detail regarding each program I want you to keep in mind that the secret of achieving great results negotiating with Microsoft is understanding the entire spectrum of the Licensing agreements available and building a “customized set of agreements” that will best meet your needs and budget. My experience with the EAP agreement has been excellent and I have achieved 20-30 percent cost savings when licensing SQL in an Application Platform Enrollment compared to a standard EA.

Both new programs can be licensed as:

  • A new enrollment (no need to have an existing Enterprise Agreement for Desktops)
  • Added at mid-term to an existing Enterprise Agreement
  • Added to an EA at renewal

Microsoft Enrollment for Core Infrastructure (ECI)

The ECI offer includes a licensing solution that integrates Windows® Server operating system, Microsoft® System Center server management, and Microsoft Forefront Client Security together in a simple per-processor license.

The offering covers three Suites

  • Data Center Suite -  supports an unlimited number of virtualized instances
  • Enterprise Suite – supports up to four instances on a two-processor server.
  • Standard Suite -  supports only one virtualized instance per processor

Benefits of the ECI

  • Simplified licensing. By licensing these suites per processor licensing management compliancy should be simplified.
  • Lower cost. Microsoft claims that the ECI should save customers 13 to 29 percent off purchasing the product licenses individually. As this is a very general claim I suggest performing a financial  benchmark with a standard licensing solution and validating this claim in accordance to your organizations needs

Microsoft Enrollment for Application Platform (EAP)

The EAP offer includes a licensing solution for any one of following products:

  • Microsoft SQL Server
  • Microsoft BizTalk  Server
  • Microsoft Office SharePoint  Server (no CALs)
  • Microsoft Visual Studio

How does the agreement work?

1. Select the products you want:

  • Choose One or more products with minimum initial purchase requirement*
  • Establish your initial requirements based on your current install base.
  • 100 percent Software Assurance coverage on all included products

2. Receive the latest version of products:

  • Included products only.
  • Price of license deferred indefinitely on units not covered by Software Assurance on your initial coverage, as long as you remain in the program.

3. Deploy unlimited incremental units:

  • New incremental units receive price savings on license cost.
  • True up annually or at the end of your three-year term.

4. Choose the best True up option: choice of One-Year True-up or Three-Year True-up

Benefits of the EAP

  • Lowering up-front costs – deferred license cost for units that were not covered by Microsoft Software Assurance at the time of enrolling in the program.
  • Lower cost. Microsoft claims that the EAP should save customers up to 40 percent off purchasing the product licenses individually. I have worked with customers on moving SQL licensing from a standard EA renewal to an EAP and the end results have been excellent with savings of 20-30 percent compared to standard licensing
  • Flexible licensing model – choice of One-Year True-up or Three-Year True-up

* Please refer to Microsoft’s program overview for exact requirements   http://www.microsoft.com/licensing/licensing-options/enrollments.aspx

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