Software License Rental in the Cloud: Part 2

In part one of our video blog found here, we discussed software license rental in a multi-tenant private cloud environment. Part two, we will discuss the dedicated private cloud environment and will stay with Microsoft as the software example. This is just one small piece to the license rental puzzle, so feel free to call us or email us with any questions. We are here to help.  

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In part two of our software license rental using Microsoft as an example, we already covered a multi-tenant private cloud, so now we're going to cover the dedicated private cloud.

And dedicated means you have your own dedicated hardware that's separate from everyone else.

It's only dedicated to you as a company-- in this case, our XYZ company.

And the reason why we have this is because this company chose to use Windows 7 as the way that they access the cloud so that the interface that the user uses is Windows 7.

Microsoft requires that if you use Windows 7, it's called a BDA license, and it's a $99 per year for a three-year subscription. And if you do that, you must have your environment separated from everyone else, so you cannot be in a multi-tenant environment.

With the Exchange, Window Server, and SQL Server-- that's what we had in our prior example-- you may still have those products, but in this case, you have the option to rent them or buy them.

And you do not have to buy them with software insurance, because you are dedicated. You still can rent them per user as you did in the multi-tenant, but you have the option in either case. If you buy them, however, you do have to remember it's up to you keep those products updated and upgraded, because it would rely on you to do that.

The other rule is you cannot mix rental with software license rental with purchase within the same product.

You can rent Windows Server, and you can buy Exchange, but what you can't do is rent part of Exchange and buy part of Exchange.

So if you bought Exchange for 20 users, and you add five more, you can't have those additional five as licensed rental. You'd have to add them within the purchase model.

What Microsoft refers to all this license rental as SPLA, fun acronym they came up with. And also, the main thing to remember, regardless of the situation you're in, Microsoft is going to look to you, as the customer, as being responsible for making sure you're in compliance with the rules.

The cloud provider should help you, but ultimately, if there was an audit of some type, they're going to come back to you to make sure that you've licensed these properly based on the number of users.