1. SPLA Service Provider License Agreement
Philip Meyer Regional Hosting Specialist

2. What We’ll Cover Vision Market Drivers Licensing Introduction
Proven
Emerging
Licensing Introduction
Hosting Solutions

3. Microsoft .NET Devices User experiences Visual Studio.NET
.NET Framework
Web services
Notification
Storage
Identity
Application Center
Enterprise Servers
BizTalk Server
Commerce Server
Exchange Server
SQL Server
ISA Server
Live Comm Server
Sharepoint Services
Servers

4. Types of Licenses Internal Use: End user is the license owner
OEM, FPP, Open, Select, EA
End User must own both Server and CAL licenses
End User CALs does not have right to access service providers’ servers
Commercial Services (licenses with hosting rights): end users of service do not own licenses, service providers own the licenses
Web/Internet Service Provider/Hoster
Application hosting (mail, LOB & office online)
Platform infrastructure provider
Streaming media provider
ISV providing hosted applications
IT Outsourcer providing software licenses

5. Licensing Choice Customers Own Licenses (Server + CALs/IC)
Outsource to service provider
Customers retain license ownership
Types of licenses: OEM, FPP, Open, Select or EA
Service Provider provides all licenses (PL or SAL)
Monthly subscription based upon usage
Software Assurance included
Multi-tenancy (shared license) permitted
Combination

6. SPLA in a nutshell
Microsoft SPLA is a pay-as-you-go process, aligning your software investment with your monthly revenue streams
What does this mean for you?
Avoid upfront costs
Map your licensing costs to your business model
Pay only for what you use

7. Microsoft Licensing EA Select Open SPLA FPP Large Medium
Small Business
FPP
Home User

8. SPLA Licensing Model SAL (Subscriber Access License)
Per User (Exchange, Live Comm Server, Office, SharePoint Portal Svr, Small Business Svr, MOM, SMS, Project Server & Project, Terminal Services)
Access any number of servers from any device
No additional Server fee
Minimize start-up cost
PL (Processor License)
Per Processor (Application Center, BizTalk, Commerce Server, Content Management Svr, Host Integration Svr, ISA Svr)
Simple to monitor and count (reducing admin cost)
Unlimited users and companies
SAL (Per User) – OR - PL (Per Processor)
Windows and SQL Server
Maximum Flexibility
Not locked in to either model

9. Microsoft Licensing Map
Internal Use
Remote Access
External Use
MBA
EA/Select Enrollment
OEM, FPP
Customer and Customer’s Affiliates or appointed agents only
(Excludes unauthorized, non-employees)
‘You may not rent, lease, lend or host products…’
Outsourcer Enrollment
‘External User’: Any person who is not: an employee, temporary personnel, or your customer to whom you provide hosted services
External Connector
SPLA
Service Provider providing Software Services to its customers
Outsourced scenarios (including Outsourcing, Hosting, Web Services)
On-site
Open
ISV
Authorized User
Authorized Usage Scenario
Licensing mechanism
Third-party licensing programs (ISV Royalty Licensing program, Service Provider Licensing Agreement)

10. Internal & External Use Licensing: HOSTING
Scenario A: Dedicated Hosting
Scenario B: Shared Hosting
Option 1
Option 2
Option 3
Hosting company’s server farm
Hosting company’s server farm
Customer A
Customer B
Customer C
Customer A
Customer B
Customer C
Customer Owns & Acquires Licenses
Customer owns licenses; Hosting Co. acquires Licenses
Hosting Co. Owns & Acquires Licenses
Hosting Co. Owns & Acquires Licenses
Same options available as under Scenario 1
Internal or External Use depending upon license Ownership
Internal Use: Customer is licensed via EA/Select
Internal Use: Customer is licensed via EA/Select; Hosting Co. signs Outsourcer Enrollment
External use: Hosting Co. must sign the SPLA (cannot use their own EA/Select)
External use: Hosting Co. must sign the SPLA (cannot use their own EA/Select)

11. SPLA and Web Hosting
SPLA is by far the most economic model for shared hosting
SPLA permits multi-tenancy (sharing of a single license held by the Service Provider)
OEM, Open, FPP, etc may only be used by the license holder (i.e. the END customer) therefore in a shared configuration every hosted customer would require a Windows Server license and potentially SQL license too
Service Provider may not use an OEM, Open, FPP license to provide hosting or commercial services

12. Internal & External Use Licensing: BP Outsourcing
Scenario 1: In-house
Scenario 2: Dedicated Outsourcing
Scenario 3: Shared Outsourcing
Customer A
Customer A
Customer A
Billing Dept.
Billing Dept.
Billing Dept.
Customer B
Internal Use: Even though Billing is outsourced, it is dedicated to Customer A, so Customer A can use EA/Select agreement
External Use: Outsourcer has to sign SPLA, since using same set of licenses to provide Billing for multiple customers
Internal Use: Customer can license Billing dept under EA/Select agreement

13. External Use: Martha Stewart
Real-world examples
External Use: Amazon
External Use: Martha Stewart
Amazon
Martha Stewart
Digex
Customers
Customers
Business: Sells stuff off website
Users: Employees, Customers
Ownership: Martha Stewart did not wish to own software assets; entered into hosting agreement with Digex
Information controlled by: Martha Stewart (SP’s customer)
Commercial X-ion between SP & User?: NO
Business: Hosts websites for small booksellers
Users: Small booksellers’ Customers
Ownership: Amazon wishes to own software assets
Information controlled by: Bookseller (SP’s customer)
Commercial X-ion between SP & User?: NO
Use Type: External
Licensee: Amazon
Licenses: SPLA (no External Connector)
Use Type: External
Licensee: Digex
Licenses: SPLA (no External Connector)

14. Real-world examples (cont’d)
External Use: HP Helpdesk Services
External Use: Accenture Billing Services
BC Hydro
Billing Dept Outsourced to Accenture
Redmond Helpdesk
Asia Helpdesk
Helpdesk outsourced to HP
Customer B
EMEA Helpdesk
Business: HP provides Helpdesk services
Users: MS employees
Ownership: HP owns licenses
Information controlled by: Microsoft (SP’s customer)
Commercial X-ion between SP & User?: NO
Business: Accenture manages Billing depts
Users: Customers’ customers
Ownership: Accenture owns licenses
Information controlled by: Accenture’s customers
Commercial X-ion between SP & User?: NO
Use Type: External
Licensee: HP
Licenses: SPLA (no External Connector)
Use Type: External
Licensee: Accenture
Licenses: SPLA (no External Connector)

15. Real-world examples (cont’d)
External Use: SCS Procurement Services
External Use: Reuters HP
DBS Bank
Procurement Dept. Outsourced to SCS
Broker
SCS
Customer B
Business: SCS provides Procurement Services
Users: DBS, SCS’ other customers
Ownership: SCS owns licenses
Information controlled by: SCS’ customers
Commercial X-ion between SP & User?: NO
Business: Reuters provides financial info and storage services
Users: Broker
Ownership: Reuters owns licenses
Information controlled by: Brokers
Commercial X-ion between SP & User:? NO
Use Type: External
Licensee: SCS
Licenses: SPLA (no External Connector)
Use Type: External
Licensee: Reuters
Licenses: SPLA (no External Connector)

16. video What SPLA means to a Service Provider and Customers

17. Software As A Service Market Drivers
Demand
IT skills shortage
Increased application complexity
Time to deployment
Technology refresh cycle
Supply
Bandwidth
Emergence of competent, well-funded Service Providers

18. Software As A Service Drivers
Affordable access to technology
Avoids capital investment
Simplify budgeting
Shorter implementation cycle
Lower cost of entry for applications
Improved total cost/performance
One-stop shopping/support
Focus more on primary business
Scalability to meet business growth
Avoidance of IT staff recruitment/retention
Source: IDC

19. Customer Requirements from Microsoft Annual Customer Survey
Security / viruses
Update / upgrade infrastructure
Improve software / upgrade
Cut costs / budget
New technology
Server upgrade
Info / data management / storage
Improve Internet / web services
Improve hardware / upgrade
Compatibility / system integration
/ spam
Reliability / stability

20. How Important are Proposed Campaigns?
Security
Connecting people to devices
Team Collaboration BI
ERP
CRM
Upgrading Servers
Upgrade MS App SW
Upgrade MS Desktop OS

21. Australia SB Attitudes and Strategic Directions Overview
Top strategic directions:
Data back-up and disaster recovery
Enhance data security and privacy via firewall, encryption, etc.
IT staff training and skills enhancement
Upgrading bandwidth for data networking
Interconnecting branch offices
Electronic linkages with suppliers and distributors
Using hosted applications via 3rd party service providers (ASPs)
Outsourcing IT & other business services
Customer Relationship Management (CRM) applications
Imaging & document management solutions
Very Important
Important
Source: AMI SME Survey

22. Horizontal Opportunities
Empowering Employees
Building an extended organisation encompassing partners, suppliers and customers
Employee self-service and Online Training
Messaging and Collaboration
Any device, Any where, Any time
Integrating Business Partners
Collaboration with business partners
EDI, EAI, B2B
Connecting Customers
Extending the storefront to corporate procurement

23. Enterprise Opportunities
Avoid “sticker shock”
Content Management Server
$80,000 per Proc or $1,400 per month
Share big ticket items
BizTalk Server
Multiple businesses
“Peaks and Troughs”
Office and Project
Special Project with need for desktop licenses for a short time
Trials and Pilots
Test out software technology without committing to a perpetual license
Small offices in overseas locations
Leave the total solution provision to an SPLA Service Provider rather than invest in staff, resources and travel

24. Hosted Exchange Opportunity Segments  End users & Service Providers
Outsourcers
Enterprise
Global, Strategic,
Major, Corporate
Mid Market
Small business
Hosting Service Providers
ISPs / Webmail
Consumer

25. The Windows-based Hosting Solutions
A collection of best practices, scripts, and tools that enables service providers to deploy a centralized management infrastructure
Provides these benefits:
Cost savings even as your data center complexities increase
Highly specialized tools that enable the service provider to roll-out managed services quickly
Monitoring and Reporting
Server or service
failure
Data mining
Customer reporting
Centralized Management
Group policies
Improve and scale the administration of multiple servers
Update Management
Security alerts
Apply security updates
Reconfigure existing servers
Server Purposing
Build a new server
Repurpose existing servers

26. ADS Secure, Hands-Off Imaging “Zero Touch Server Builds from Bare Metal”1
Bare metal server PXE Boots and task sequence is initiated 4
Agent authenticates/ requests image
Target Server 2 5
Controller downloads DOS image for hardware configuration
PXE FW
Encrypted image is downloaded and deployed 3 6
Controller transfers deployment agent to RAM disk
RAM
Image is personalized and boots to full OS with agent
Hard
Disk
Deployment Agent
Pre-OS
Logs all activity DB
SSL
Administration Agent
Windows-Present
Possibly
Multicast
ADS Controller

27. Hosted Exchange Services
Logical Diagram
Platform Services
Web and Data Hosting
Hosted Exchange Services
Border Router
Perimeter/Net
Perimeter Firewall Services
Packet and Port Filtering
SSL Termination
Stateful Inspection
Application Filtering
FrontNet
BackNet
BackUp-Build-Net
Exchange Front-End Servers
SMTP:
EXSMTP01
EXSMTP02
OWA/POP/IMAP and RPC Proxy:
EXFE01
EXFE02
EXFE03
Web Hosting
WEB01
External DNS
DNS01
DNS02
DNS03
DNS04
Update Management
SMS01
Provisioning Front-End
PROV01
Backup and Restore
Exchange Back-End Server Cluster (4+1)
EXBE01
EXBE02
EXBE03
EXBE04
EXBE05
Data Hosting
Shared
SQL01
Dedicated
SQL02
Monitoring and Reporting
MOM01
MOMSQL01
Active Directory
AD01
AD02
Service Provisioning
MPS01
Server Purposing
ADSC01

28. MPS Request Flow New Customer Initial request Web Control Panel
1. HTTP Post via SSL
2. XML Provisioning Request
3. Request Expansion
Request Expansion
4. Providers perform tasks
MPF
Active Directory Provider
Create New OU
Create Groups
Set Security
Delegate Permissions
IIS Resource Manager
Find Available Resource
IIS Provider
Create Folder
Set Security on Folder
Create Site
Set Security on Site
FrontPage Provider
Enable SharePoint Team Services AD RM
IIS FP
Request
Tasks
5. XML Response
Active
Directory
IIS Resource
Manager
IIS
FrontPage
6. HTML – Update Complete

29. More Hosting Solutions and Opportunites
Document Protection
Hosted Windows Rights Management
EAI Management
Hosted BizTalk Server farm
Media Company Content Portal
Content Management Server
EPM
Hosted Project Server + Project via Terminal Services
Remote Small Businesses
CPE SBS2003 and potentially even Office
CRM
Hosted CRM (under SPLA and a CS Solution Q3 CY05)

30. Resources Directions on Microsoft Jumpstart Programs
Jumpstart Programs
Microsoft Partner Solutions Centre (MPSC)
Licensing
Windows Web Hosting Program
Service Provider Newsletter
Certification Programs
Third party Solution Directory
Deployment Guides
Shared Web Hosting Guide
Solution Technical Articles and Case Studies

31. Demand Generation for Hosting

32. Why a Service Provider?
Limited IT skills to manage services to employees and customers
Reduce TCO by sharing infrastructure with other businesses
Want to stay current with latest hardware and software
Need better integration between business applications
Messaging linked to CRM, Web site to ERP
Need access from anywhere, anytime and potential from any device
Mobile device integration, telecomputing
Outsource the license management burden
Move IT from asset based to expense based
Place security in the hands of professionals