What Is the Difference between SPLA and Open Value Licensing?

The question we get asked a lot by customers is to explain the different options they have available when purchasing Microsoft Dynamics licensing. If things were not already complicated enough before, now with the introduction of ‘the cloud’ and ‘Software Agreement’ thrown into the mix, your options can seem even more daunting!

The Big Difference

Microsoft Services Provider License Agreement (SPLA) allows partners to license Microsoft products on a monthly basis and hosted in a private cloud infrastructure. It’s also the only program that gives you the right to license Microsoft products and hosted applications to your customers.

Microsoft Open Value licenses are primarily for customers who want to pay-as-they-go in order to split the cost of large license orders. Microsoft Open Value Subscription provides the lowest up-front costs of the Open Programs with the flexibility to reduce your total licensing costs in years when your desktop PC count declines. The Open Value is purchased for an annual fee for the duration of three years and billed annually. Typically, organizations with as few as five desktop PCs will choose Open Value licensing.

Microsoft Services Provider License Agreement (SPLA) Benefits

The SPLA makes offering software services easier because you are the licensee, not the customer. With these advanced license rights you can offer highly-customized solutions to a wider set of customers.

• Deliver a customized service. Flexibility to deliver tailored IT services to your customers through a dedicated or shared hosting environment. If hosted with a private cloud environment, the licenses can be fully customizable, so they can be integrated fully with your existing apps.
• Pay as you go with no up-front costs. Pay only for the products that you authorized your customers to use the previous month. There are no start-up costs, monthly sales requirements, or long-term commitments.
• Access the most current product versions. Give your customers the most current and capable Microsoft platform. Download your products at no charge through the Microsoft Volume Licensing Service Center instead of ordering physical media.
• Try before you buy. Test and evaluate products internally before offering them to your customers as a service.
• Prior version rights. Rights to prior product versions to support a seamless transition for developers and ISVs to move to SPLA and have a hosted business model.

Open Value (OV) Subscription Benefits

Open Value Subscription offers flexible annual payments tied to the number of desktop PCs you have and the lowest up-front costs under a single agreement. Features include:

• Additional savings in the first year if you have current or previous versions of company-wide licensed products.
• Option to add the company-wide licensed products you have selected on new desktop PCs throughout the year at no additional cost for that year, which means lower payment through the years as your desktop PC count declines.
• During the three years you are entitled to any upgrades for free. After the three years you then own the licenses. Software Assurance then expires unless you chose to renew at the end of your agreement.

What License Agreement Do We recommend?

Our Myappsanywhere private cloud environment leverages Service Provider Licenses to our customers. We use a month by month pricing strategy for the delivery of a highly customized solutions and help you avoid upfront capital expenses. You can also bring your own licenses to our private cloud and the cost per user per month will be less than the SPLA pricing, but you will get all of the benefits of SPLA -- and YOU own the licenses.

Have additional questions about transferring licenses to our Myappsanywhere cloud? Check out our Cloud FAQ to learn more!

by Myappsanywhere