The future of SPLA: is it going away?

SPLA partners ask us all the time if SPLA (Service Provider Licensing Agreement) is going away. Some tell us their Microsoft reps told them it was, but provided no more detail except they should move everything to CSP as soon as possible . . . 

Of course migrating to CSP isn't always possible or desirable and there are still thousands of active SPLA partners out there generating billions of dollars a year for Microsoft. 

SPLA is an honor-based licensing model. If Microsoft wanted to put beacons in their software that would then 'self-report' usage, they probably would have done so a long time ago. I suspect they didn't as this might stifle the popularity of their software and create huge security issues. 

Azure Stack, the node of Azure that can be run as a private cloud on-premise, can be configured to report licensing usage but all workloads must be deployed under tenant subscriptions. Many partners don't always want to publish the names of their customers and under SPLA, few report under End Customer Enrollments that effectively identify the end customer. 

Azure Stack can be configured to report through a CSP agreement, and this is the direction I think Microsoft may be moving in. SPLA isn't going away but it might get a new name. Microsoft loves coming up with new names. 

SPLA usage could be reported through the CSP portal and categorized for what it is - software being commercialized by a service provider. In this scenario reporting would be direct to Microsoft and the traditional SPLA reseller would be removed from the equation. That makes sense to me as with the shrinking incentives SPLA resellers get, this business is no longer considered strategic for them.

What isn't going away for some time is the honor-based license reporting. If that isn't going away, neither is Microsoft's compliance motions. Say what you want about Microsoft audits but they are required to conduct them to ensure no one partner has an advantage over another. 

With that in mind, every current SPLA partner needs to ensure they have a solid asset management practice. We can definitely help you find ways to reduce your SPLA spend, how to leverage CSP or explore traditional licensing for some areas of your business. Click below and we'll set up a complimentary appointment to discuss your unique needs. 

From Your Microsoft Licensing Experts at Altaris Cloud