Many businesses have teams of third-party vendors to assist with their business operations or to provide independent services – like software development or website design – that require access to company servers. For Microsoft products like Windows Server that require additive licensing (usually, Client Access Licenses, or CALs) to support all such client access, the…
Many businesses that identify a need to acquire “commercial hosting rights” in connection with hosted solutions incorporating Microsoft software have two options for acquiring them: through a Services Provider License Agreement (SPLA) with Microsoft or through the Self-Hosted Application (SHA) benefit that is included with Software Assurance under an Enterprise Agreement or other volume-licensing agreement….
Many businesses contact Scott & Scott, LLP regarding Services Provider License Agreement (SPLA) audits after providing extensive information to Microsoft’s auditors and receiving compliance demands that would be ruinous for their bottom lines, if paid in full. At that stage, it might be difficult to “un-ring the bell” with respect to the data allegedly underlying…
Businesses seeking to license older versions of Microsoft products may encounter challenges acquiring valid licenses. This is a particular concern for some companies that utilize Microsoft products as the basis for their IT infrastructure and that want to avoid a costly migration to new software versions. Microsoft offers a number of options under its Volume…
Microsoft licensing is a complex, multi-faceted undertaking, with different rules and license metrics applying to different products. In the context of software audits initiated by Microsoft, it is important to keep in mind the fact that the auditors hired to perform those investigations are fallible human beings and that they can (and do) make mistakes…
In recent years, Microsoft seems to have been shifting an increasing volume of its license-compliance resources toward what it calls Software Asset Management (SAM) reviews. These “optional” engagements typically are proposed by Microsoft personnel with whom a company has not had any prior interactions, and the company often receives no advance warning or introductions from…
Microsoft’s Services Provider License Agreement (“SPLA”) is a popular licensing framework for businesses delivering hosted or rented software solutions to their customers. However, as with many software license agreements pertaining to resale or other business channel partnership programs, the SPLA typically includes audit rights language giving Microsoft the ability to review a SPLA partner’s records…
Following the conclusion of a software audit, Microsoft’s standard practice is to require an audited company to purchase licenses associated with calculated “unlicensed use” within a set period of time (typically, 30 days) following receipt of Microsoft’s settlement demand. However, it is important for companies with Enterprise Agreements to keep in mind the fact that…
Many of our clients contact us regarding notices they received from Microsoft requesting an internal self-assessment of their license positions under their Services Provider License Agreements (SPLAs). Naturally, many of those clients have questions about that process and the ramifications of cooperating with Microsoft. For those who may be unaware, SPLA is the principal licensing…
Microsoft does not make licensing SQL Server easy, either under SPLA or under volume licensing agreements. Here are the three most significant problems that our clients face when trying to license that product: Four-Core Minimum – Microsoft allows SQL Server to be licensed based either on physical core counts (for physical servers or virtualization hosts)…
Companies with experience licensing Microsoft software and services through Enterprise Agreements know that small forests could be felled to produce the paper required for the typical document stack. EAs often incorporate a dozen or more different components, including some or all of the following: Microsoft Business and Services Agreement or Microsoft Business Agreement (Microsoft sometimes…
Microsoft, like other software publishers, routinely audits customers to help ensure that it is protecting the value of its intellectual property. Microsoft verifies its customers’ compliance using several methods. Microsoft License Verification (also, Software Asset Management “SAM” request). In a SAM request, Microsoft assigns a third party to reach out to a customer to confirm…
