Microsoft just announced a 10% increase to Remote Desktop Services (RDS) coming in January 2021. This after a 15% increase as recently as January 2018. Unlike other years, this is the only SPLA sku that will see an increase in January.
So why did Microsoft choose to focus on this particular SKU? Officially they claim it is due to the significant investment Microsoft has made in Research and Development across its infrastructure products. Enhanced capabilities such as supporting Offline use on internal networks, single sign on support, connection to an RD Broker without an RD Gateway, better 4k remoting improvements, multiple GPU support, and better network detection are just some of the listed improvements.
Strategically we do know that Microsoft is pushing hard on Windows Virtual Desktop with Windows 10, delivered through Azure and with Office365/Teams. In this offering, remote access can be bundled in with the service. Those affected are Service Providers who have been delivering Remote Desktop Services to their clients through private cloud offerings.
WHAT CAN YOU DO?
As a Service Provider you can always explore offering Windows Desktop Services to your clients through CSP. Microsoft is pushing this angle aggressively along with expanded Office365/Teams usage (see their latest earnings guidance). If you do decide to explore this route, make sure you fully consider all costs involved. In some cases, the margins may not be as appealing as what can be achieved through a private cloud offering. Furthermore, as a Service Provider you do lose some customization abilities if you go down this route. That said, there are some significant incentive-based rebates you can tap into if you decide this is the right move your business.
More immediately, in order to mitigate the impact of the upcoming price hike, you can make sure you are correctly reporting RDS. In our experience, RDS is the single most over-reported SKU identified through the Microsoft audit process. Many Service Provider do not put the required controls in place, limiting remote VM access to only those who require it. So before you start considering your public cloud options, and converting your customers over to the Azure offering (which could take many months), make sure you control your immediate costs by only reporting what your clients are consuming.
At Altaris Cloud we have worked with hundreds of Service Providers, conducting private reviews to determine exactly what you should be reporting and paying to Microsoft for SPLA.
One other point of consideration is that RDS Client Access licenses, purchased by your clients through traditional Volume Licensing programs such as Open or EA, may be appropriated for RDS consumption in your cloud environment. We can help you review the specific terms and qualifications which the govern Extended Use Rights, but this can be a viable alternative to reporting SAL usage under SPLA.
This recent price increase does not have to impact your bottom line. With a proper review by SPLA experts we can help you increase your profits.
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Your Microsoft Licensing Experts at Altaris Cloud