Microsoft adds flexible, cost-effective Office 365 purchase option

Effective yesterday, Aug. 1, Microsoft customers have a simpler way to add Microsoft Office 365 to their Enterprise Agreements (EAs). Known as Office 365 Add-ons, the new Office 365 purchase plan will allow new, existing, or renewal EA customers to procure Office 365 as an “add-on” to their existing on-premises Software Assurance (SA) investment.

Why Microsoft Office 365 Add-ons are a breath of fresh air

When Microsoft introduced Office 365 a couple of years ago, the goal was to move organizations to the cloud and transition their on-premises, perpetual license workloads, such as Microsoft Exchange, SharePoint, Lync, and Office ProPlus, to a hosted subscription-based licensing model. But with thousands of customers already under Enterprise Agreements for these traditional licenses with Software Assurance, the process wasn’t going to be easy.

In order to accommodate organizations that wanted to begin transitioning to Office 365 before the term of their Enterprise Agreement ended, Microsoft offered a purchase option that introduced transitional part numbers (SKUs), Client Access License (CAL) Bridges, and pricing changes that would account for the difference in what customers were paying on-premises versus what they would need to pay in the cloud.

Additionally, Microsoft had to update many of its contractual documents, including Enterprise Agreements, to accommodate terms for online services. The new language used to address minimum purchase order requirements, price level minimums, true-up due dates, and other conditions brought about a whole new set of program terms or changes.

The result: the hybrid licensing model that many customers use today. This licensing approach has its benefits. It allows organizations to transition to cloud services at their own pace, matches online services plans to meet requirements of users within the organization, and amasses no incremental costs in a year for equivalent transitioned users. These benefits make the hybrid licensing model optimal for customers looking for a long-term solution.

However, the new SKUs, licensing options, and product/program terms introduced by the transitional hybrid licensing model add a layer of complexity that can become an unforeseen administrative burden for some organizations. Continue Reading…

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Microsoft User CAL Changes: What it means for you

As the nature of the cloud evolves, so too does its licensing models. In the past, organizations were set up with licensing on a “per device” basis, but with the ongoing consumerization of IT and the proliferation of new devices (mobile phones, tablets, ultrabooks, etc.) in the workplace, many organizations are looking to cut costs by shifting focus to the user rather than the device.

To address this shift, Microsoft is raising the cost of its User Client Access License (CAL) licensing model. Effective Dec. 1, 2012, the cost of the following User CALs will increase 15 percent:

  • Bing Maps Server CAL
  • Core CAL Suite
  • Enterprise CAL Suite
  • Exchange Server Standard and Enterprise CAL
  • Lync Server Standard, Enterprise, and Plus CAL
  • Project Server CAL
  • SharePoint Server Standard and Enterprise CAL
  • System Center 2012 Client Management Suite
  • System Center Configuration Manager
  • System Center Endpoint Protection
  • Visual Studio Team Foundation Server CAL
  • Windows Multipoint Server CAL
  • Windows Server CAL
  • Windows Server Remote Desktop Services CAL, Terminal Services CAL
  • Windows Server Rights Management Services CAL

What does this mean for you? Continue Reading…

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