{"id":3411,"date":"2019-08-30T14:25:15","date_gmt":"2019-08-30T18:55:15","guid":{"rendered":"https:\/\/www.apps4rent.com\/blog\/?p=3411"},"modified":"2019-10-31T07:42:28","modified_gmt":"2019-10-31T12:12:28","slug":"microsoft-server-licensing-changes-october-2019-update","status":"publish","type":"post","link":"https:\/\/www.apps4rent.com\/blog\/microsoft-server-licensing-changes-october-2019-update\/","title":{"rendered":"How Does Microsoft\u2019s Updated Outsourcing Licensing Terms Impact Your Business?"},"content":{"rendered":"<p style=\"text-align:justify\">Companies and enterprises are moving  to the cloud from physical servers and infrastructure every day. Cloud-based  computing is now the primary element that allows both SMEs and corporates to  efficiently scale their operations to adjust to market and consumer demand.<\/p>\n<p style=\"text-align:justify\">When it comes to cloud computing  service providers, three of the biggest brands in the market are Microsoft  Azure, Amazon Web Services (AWS), and Google Cloud. Together, those 3 service  providers take up more than 90% of market share in the cloud computing services  industry.<\/p>\n<p style=\"text-align:justify\">Recently, an official news  notification from Microsoft detailed a fair number of modifications that the  company is poised to bring into effect starting October 1, 2019. Read on to  find out what this means and how it could impact your business:<\/p>\n<h2>Microsoft\u2019s current licensing terms<\/h2>\n<p style=\"text-align:justify\">Microsoft Azure, as well as Amazon AWS and  Google Cloud, have traditionally allowed a Bring Your Own License (BYOL) policy.  Customers could purchase licenses for server workloads from Microsoft, then  deploy those on say Amazon\u2019s cloud. Essentially, this allowed customers a  choice to select their cloud hosting services provider. If they wanted the  functionality of Microsoft\u2019s workloads with the pricing of Amazon AWS, they  could do that.<\/p>\n<p style=\"text-align:justify\">At the time of writing this article, it is possible for a customer  to deploy Microsoft Server applications on any other cloud platform (AWS or  Google Cloud) seamlessly. However, Microsoft released an official notification  on August 1, 2019 which stated the change of licensing terms in starting from  October 1, 2019.<\/p>\n<h3>Microsoft\u2019s licensing changes explained<\/h3>\n<p style=\"text-align:justify\">Effective October 1, 2019, Microsoft will no longer permit on-premises  licenses of its applications to be deployed on dedicated hosted clouds offered  by public cloud service providers including Alibaba, Amazon, Google, and others.  Those would be only permitted if licenses were purchased with Software  Assurance and mobility rights. Microsoft will refer Azure\u2019s competitors as  \u2018Listed Providers\u2019 hereafter.<\/p>\n<p style=\"text-align:justify\">Additionally, not all of Microsoft\u2019s applications qualify for  Software Assurance and mobility rights. If the application to be deployed is  not eligible, the customer needs to directly purchase it from the cloud hosting  services provider where it shall be part of the infrastructure utilized by  them.<\/p>\n<h3>What is the reason behind this change?<\/h3>\n<p style=\"text-align:justify\">Microsoft\u2019s reasoning for its modifications to the licensing terms  stems from the point that the emergence of dedicated hosted cloud services has  made them ever more like on-premises hosting. Hence, the organization believes  that both scenarios should be governed by a specific set of terms. Another  likely reason for Microsoft to pass those modifications is to promote its own  Azure dedicated hosted cloud.<\/p>\n<h3>Benefits of updated Microsoft\u2019s  licensing policy<\/h3>\n<p style=\"text-align:justify\">Microsoft shall offer several benefits to its customers who choose  Azure Dedicated Hosted cloud when moving their on-premises licenses over the  offerings of Listed Providers in form of both significant cost savings and  added features.<\/p>\n<p style=\"text-align:justify\">For example, you can use your existing software licenses for  workloads such as Windows Server or SQL Server on Azure\u2019s dedicated hosted  cloud for better pricing, your applications such as Windows Server Datacenter  and SQL Server Enterprise Edition can deploy any number of VMs depending on  your requirements and the capacity of the server, and workloads such as Windows  Server 2008 R2 as well as SQL Server 2008 R2 shall continue to receive extended  security updates at no extra cost.<\/p>\n<p style=\"text-align:justify\">To add to this, with Azure dedicated hosted cloud, you will not  need to pay high fees for purchasing applications (those not covered under  Software Assurance and mobility benefits) from other cloud hosting providers.  Hence, it all sums up to big savings for your company.<\/p>\n<h3>Azure Hybrid Benefit vs License  Mobility<\/h3>\n<p style=\"text-align:justify\"> Considering the recent modifications to Microsoft\u2019s terms and  policies regarding dedicated hosted cloud services, two terms including \u2018Azure  Hybrid Benefit\u2019 and \u2018License Mobility\u2019 have become commonly used terms. Hence,  you must understand how they are different.<\/p>\n<p style=\"text-align:justify\">Let\u2019s say your organization requires two Microsoft workloads  including Microsoft Server 2008 R2 and SQL Server 2008R2 and you want to move  to the cloud. In this case, there are two possible cases:<\/p>\n<ul>\n<li style=\"margin-bottom: 15px;\"><strong>Case 1<\/strong> \u2013 You opt for a fully-loaded VM  from Azure that includes the licenses of both Microsoft Server 2008 R2 as well  as SQL Server 2008 R2, this is assuming you did NOT have the licenses for  deploying either workload before.<\/li>\n<li><strong>Case 2<\/strong> \u2013 You separately purchased the  licenses for Microsoft Server 2008\/R2 and SQL Server 2008\/R2 and then moved to  the Microsoft Azure cloud.<\/li>\n<\/ul>\n<p style=\"text-align:justify\"><b>Case 2<\/b> is referred to as the BYOL or \u2018Bring Your Own License\u2019  policy. Depending on whether you \u2018brought\u2019 those licenses of Microsoft Server  2008\/R2 and SQL Server 2008\/R2 to Azure or to a Listed Providers\u2019 cloud (such  as Google Cloud or Amazon AWS), the rules set by Microsoft for their server  workloads are different.<\/p>\n<p style=\"text-align:justify\">If you brought your own license of the workloads to the Microsoft  Azure cloud, you would enjoy what\u2019s called \u2018Azure Hybrid Benefit\u2019 or AHB.  Essentially, Azure Hybrid Benefit is Microsoft\u2019s BYOL policy for the Azure cloud.<\/p>\n<p style=\"text-align:justify\">However, if you brought the Microsoft Server 2008 R2 license for  deploying the workload on Amazon AWS cloud, for example, the correct term would  be License Mobility (in place of Azure Hybrid Benefit).<\/p>\n<p style=\"text-align:justify\">In both cases, however, the licenses for the applications may either be used on-premises or in the cloud (Azure or those of Listed  Providers\u2019). However, there are exceptions to this such as the Windows Server  Datacenter Edition which under Azure Hybrid Benefit can be used both  on-premises as well as in the Azure cloud.<\/p>\n<h3>What is the impact on current server workloads?<\/h3>\n<p style=\"text-align:justify\">Considering that you are running Microsoft\u2019s  workloads on the dedicated hosted clouds of Microsoft\u2019s Listed Providers, you  can continue to work with your existing licenses on the cloud infrastructure  offered by Listed Providers, but you shall not be able to add workloads from  licenses purchased or bought from October 1, 2019, to the dedicated hosted  clouds of Listed Providers. At that point, there are two options; either you  can purchase cloud services directly from the Listed Providers or if you have  any licenses that offer Software Assurance, they can be used with dedicated  hosted cloud infrastructure under Azure Hybrid Benefit (or License Mobility)  feature.<\/p>\n<h3>What should you do?<\/h3>\n<p style=\"text-align:justify\">As a customer, if you have already deployed Microsoft applications and server workloads on dedicated clouds by Listed Providers, new rules will apply to you till your license renews. After the cut-off date, you will need to  purchase your application licenses directly from your cloud services, which are  not covered under Software Assurance and mobility rights.<\/p>\n<p style=\"text-align:justify\">Microsoft\u2019s latest move seems to be a step towards incentivizing the use of its own cloud service. But looking from an outsider\u2019s perspective,  deploying Microsoft applications on Azure seems to be significantly cheaper option in comparison with Amazon\u2019s AWS. Azure offers plenty of benefits for a  fraction of the cost.<\/p>\n<p>If you want more information on <a href=\"https:\/\/www.apps4rent.com\/blog\/microsoft-server-licensing-changes-october-2019-update\/\"> Microsoft\u2019s licensing <\/a> and require solutions for your business strategy, talk to our <a href=\"https:\/\/www.apps4rent.com\/managed-azure.html\" target=\"blank\" rel=\"noopener noreferrer\">Azure consultants<\/a> right away. <a href=\"https:\/\/www.apps4rent.com\/blog\/contact-us\/\" target=\"blank\" rel=\"noopener noreferrer\">Call us now!<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Companies and enterprises are moving to the cloud from physical servers and infrastructure every day. Cloud-based computing is now the primary element that allows both SMEs and corporates to efficiently scale their operations to adjust to market and consumer demand. When it comes to cloud computing service providers, three of the biggest brands in the [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":3500,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[209],"tags":[],"class_list":["post-3411","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cloud-computing"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.apps4rent.com\/blog\/wp-json\/wp\/v2\/posts\/3411","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.apps4rent.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.apps4rent.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.apps4rent.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.apps4rent.com\/blog\/wp-json\/wp\/v2\/comments?post=3411"}],"version-history":[{"count":0,"href":"https:\/\/www.apps4rent.com\/blog\/wp-json\/wp\/v2\/posts\/3411\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.apps4rent.com\/blog\/wp-json\/wp\/v2\/media\/3500"}],"wp:attachment":[{"href":"https:\/\/www.apps4rent.com\/blog\/wp-json\/wp\/v2\/media?parent=3411"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.apps4rent.com\/blog\/wp-json\/wp\/v2\/categories?post=3411"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.apps4rent.com\/blog\/wp-json\/wp\/v2\/tags?post=3411"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}