While the vendor injects its best-performing R&D, distribution, and marketing resources into the cloud, some of Microsoft`s enterprise customers are still bound by on-premise implementations operationally and contractually. This has led the vendor to take aggressive steps to migrate these customers to the cloud. The results include several price and licensing changes, an increase in formal and informal licensing controls (often disguised as software asset management commitments), and increased contractual complexity and inflexibility. The Microsoft ISV Royalty Licensing Program is for ISVs looking for a convenient way to license Microsoft products and integrate them into a single solution. ISVs can then replicate the commercial solution and distribute a fully licensed solution to their end users. Isv Royalty Agreements (ISVRs) have a three-year term and payment is made monthly through an authorized distributor of ISV Royalty licensing programs. *This retreat does not apply to Select Plus public and academic agreements or when the MPSA is not available on July 1, 2016. A complete list of markets where the MPSA is available can be found in the mpsa frequently asked questions. Get answers to frequently asked questions about the Select Plus retreat. Microsoft Enterprise Agreement and Microsoft Enterprise Subscription Agreement are commitment-based licensing agreements for commercial organizations that sign a new registration with 500 users/devices* or more, and government organizations with at least 250 users/devices. These agreements work best for organizations that want to license on-premises software and cloud services enterprise-wide over a three-year period and at the best available prices.
You must be a Microsoft Licensing Solutions (LSP) provider to sell licenses and subscriptions through Microsoft Enterprise agreements and registrations. Microsoft`s mission is to move its enterprise customer base from traditional on-premise software to its subscription-based cloud services. Revenue from cloud commercial offerings is growing significantly, while traditional software sales are declining and mixing is weighing on Microsoft`s ability to support a multi-faceted business. Microsoft`s success is measured by how it accomplishes this mission and customers will be under increased pressure to move to the cloud or pay the price through greater contractual and price complexity for on-premise solutions. Most customers have made the leap to 365 and are experimenting with at least Azure. The good news is that the agreement window is still open for all new cloud editions with Microsoft. There are a large number of possibilities for licensing and/or subscribing to Microsoft products. The provider or account representative of a given company may not be aware of all the options available. However, they are well trained (and motivated by incentives) to lead customers towards increased licensing costs. Make sure that you ask Microsoft`s licensing specialists how to better structure licensing for lower expenses and consider getting unbiased expertise to help the procurement team review recommendations. There are more and more licensing and subscription optimization challenges that need to be addressed in transactions with Microsoft, as well as new costs, flexibility, and licensing/subscription opportunities that you can take advantage of.
As Microsoft continues its metamorphosis and business budget and usage requirements change rapidly, customers should prepare for a more demanding procurement and supplier management environment. . . .