As of October 1, 2022, Microsoft has implemented significant improvements in its terms of outsourcing and hosting (Hosting) that benefited customers around the world, with a “program” called: Flexible Virtualization Benefit.
These additional benefits have enabled new scenarios for how customers can license and run workloads (workloads) with cloud providers, including those run with partners in the program Cloud Solution Provider.
These changes support customers' ability to move their licenses to a partner's cloud, take advantage of shared hardware, and have more flexibility in deployment options for their software licenses, i.e., use resources multicloud.
Essential aspects:
- Any subscription license or license with Software Assurance can be “pulled” to a third-party cloud or hosting platform using the BYOL licensing benefit;
- Providers are automatically authorized to use the Flexible Virtualization Benefit, except, Amazon, Google, Alibaba and Azure, which have specific rules for hosting Microsoft services and licenses;
- Services from Microsoft 365, Office 365, Windows 11 and even Windows Server are included;
- The program Flexible Virtualization Benefit turned out to be more interesting than the License Mobility;
- For the first time Windows Server received rules equivalent to License Mobility on-premises;
What is the Flexible Virtualization Benefit:
Customers who have subscription licenses or licenses with Software Assurance asset (including CALs) may use the software on devices, including shared servers, which are under the management and operation of Authorized Service Providers.
The above quote is taken from the Universal License Terms.
Let’s explain the term “Authorized Service Provider” using another quote:
Authorized Service Provider: means any third party service provider that is not a Listed Provider (Alibaba, AWS, Google and Microsoft) and not using a Listed Provider (Alibaba, AWS, Google and Microsoft) as a Data Center Provider as part of the outsourcing service.
We can, for example, list some Authorized Service Providers in Brazil: IBM Cloud (formerly Softlayer), Oracle Cloud, Huawei Cloud, equinix, Locaweb, Tivit, Cirion, Algar, etc.
Simply put, it's any service provider except Alibaba, AWS, Google and Microsoft.
Explaining the Flexible Virtualization Benefit:
Suppose you have subscription licenses or licenses with active Software Assurance.
In this case, you have the right to ask your service provider to bring these licenses (BYOL) to your data center and use them in any hosted environment: shared (multi-tenant) or dedicated (single tenant).
There is no limit on the type of environment. Shared and dedicated environments are included.
All Microsoft software available as subscriptions or licenses with Software Assurance is included.
Does the Flexible Virtualization Benefit replace License Mobility from Software Assurance?
License Mobility through Software Assurance remains intact. It's the only way to get your licenses to the Listed Providers.
Deepening Understanding: Practical Implications of the Flexible Virtualization Benefit
The implementation of the Microsoft Flexible Virtualization Benefit represents a significant shift in Microsoft’s licensing landscape, offering businesses greater flexibility and control over their software investments. To fully understand the benefits of this change, it is crucial to explore some practical scenarios and key considerations.
Optimized Licensing for Hybrid Environments
In a world where cloud computing and on-premises environments coexist, the ability to move licenses seamlessly is essential. Flexible Virtualization Benefit enables customers to use their per virtual machine licenses in shared or dedicated environments from authorized outsourcers, optimizing resource utilization and reducing costs.
Considerations for Licensing Specific Products
When planning your Flexible Virtualization Benefit implementation, it is critical to consider the licensing nuances of specific Microsoft products. For example:
- Windows Server: With the introduction of equivalent rules for License Mobility, customers now have greater flexibility to deploy Windows Server licenses in third-party environments. The issue of core license and core cal remains.
- SQL Server: Optimizing SQL Server licensing in virtualized environments is simplified, allowing more efficient use of resources.
- Microsoft Power Platform and Microsoft Teams: The inclusion of services such as Microsoft Power and Microsoft Teams in the Flexible Virtualization Benefit program expands the possibilities for collaboration and productivity in third-party environments.
- Sharepoint Server: This is another server product that benefits from the change.
- Desktop products: Desktop products also benefit from flexibility.
- Apps and windows: Licensing of applications and operating systems also becomes more flexible.
Software Assurance and Additional Benefits
Software assurance coverage plays a key role in making the most of the Flexible Virtualization Benefit. Customers with active licenses with software assurance can enjoy additional benefits, including:
- Mobility through software assurance: This advantage allows the movement of licenses between different environments, ensuring the flexibility needed to keep up with business demands.
- Licenses with active software: Ensures that the customer always has the latest versions of the software.
Licensing Options: Enterprise Agreement and Beyond
Microsoft offers a variety of licensing options to suit the needs of different businesses. The Microsoft Enterprise Agreement is a popular choice for large organizations, offering flexibility and unique benefits. However, other options, such as subscription licenses or licenses, may also be suitable depending on the company's profile.
Partnering with Solution Providers and the Microsoft Cloud
Working with an experienced solution provider or cloud solution provider can help you implement the Flexible Virtualization Benefit. These partners can help you choose the best licensing options, migrate workloads to the Microsoft cloud or authorized outsourcers, and optimize resource utilization.
Final Considerations
The Microsoft Flexible Virtualization Benefit represents a significant advancement in Microsoft software licensing, providing businesses with greater flexibility, control, and cost optimization. By understanding the nuances of this program and seeking support from expert partners, organizations can make the most of their software investments and drive innovation across their businesses.
Official Source: https://www.microsoft.com/en-us/licensing/news/options-for-hosted-cloud
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Tags: sql server, microsoft licensing, authorized outsourcer, post navigation, licensing management.