More Changes
In preparing for this version of my blog, I went back and read the April 2020 version in which I talked about Microsoft introducing or renaming their Microsoft 365 product line. I started off that blog making light of the “Bizzaro World” I lived in at the time. The Covid-19 Pandemic was just in full swing with the 30 days to stop the spread shutdown in full effect. All our lives have been fundamentally changed as we navigate through the daily effects the Pandemic continues to bring, truly a “Bizzaro World”.
Also, in that blog, I discussed how Microsoft is pushing its customers to the cloud by making some features in their cloud version of software not available in the on-premises version of software.
Microsoft states in their Office 2019 for Windows FAQ…
“Office 2019 (for both Windows and Mac) is a one-time purchase and does not receive feature updates after you purchase it. It includes a meaningful subset of features that are found in Microsoft 365, but it’s not part of Microsoft 365. Office 2019 will receive quality and security updates as required.”
Microsoft Open Programs
In September 2020, Microsoft announced they would be ending the Open License program at the end of 2021. For those that might not be familiar with the Open Programs, there are three:
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- Open Value – recommended if you have a small to midsize organization with five or more desktop PCs and want to simplify licensing management, manage software costs, and get better control over your software investments. It also includes Software Assurance (SA), providing valuable benefits such as training, deployment planning, software upgrades, and product support. At the end of the agreement, you could renew your agreement for another 3-year term, purchasing only SA to continue accessing the latest product versions and other benefits. Or you can let the agreement expire and own the rights to the current version at the end of your agreement term, but you will no longer continue receiving SA benefits or upgrade rights.
- Open Value Subscription – provides the lowest up-front costs. It also includes SA mentioned above. It is a 3-year agreement which takes the purchase and spreads the payments over three annual payments. At the end of the term, you have three options:
- Renew your agreement for another three-year term and continue enjoying the latest licensed products and other benefits, or
- Make an optional buyout payment to own the licenses for the current version at the end of your agreement, or
- Choose to not renew your agreement and forfeit the rights to use the products.
- Open License – is very much the same as the Open Value, but SA is optional purchase. Open License is commonly used for purchasing as-needed software licenses and online services. If SA was not purchased, the software license is only good for the current version of software. There are no upgrades included without SA.
Open License moving to Cloud Solution Provider (CSP)
“Simplifying the purchase experience for our customers is a core element of making it easier to do business with Microsoft. It requires a change in the way we’ve engaged with you, and in how you buy and manage your software licenses and subscriptions for online services.”
“In September 2020, we announced changes to the Microsoft Open License program with the introduction of perpetual software license purchases through the new commerce experience. If you’re a small or midsized customer, you can now buy software licenses from partners participating in the Cloud Solution Provider program. As a result, we’ll be ending purchases through the Open License program on December 31, 2021. If you have a small or midsize organization with little or no IT resources, Microsoft partners can provide expertise and services and build unique solutions with the latest Microsoft services and offers.”
Previously, Open License purchases were made through CSP Partners, such as Zunesis. The CSP model was designed for the partner to add value to its customers’ cloud experience via support, billing flexibility and advice. The customer effectively has a pay as you go consumption arrangement through the partner, rather than directly with Microsoft.
CSP has numerous benefits to customers. One is Flexibility. This is where you pay for what you use and have the ability to add/remove licenses on a monthly basis. Other features include Monthly Billing, no upfront costs, benefit from the Partner’s Licensing expertise, and discounts off MSRP to name a few.
Seriously, what does this mean?
It means these as-needed software purchases without SA will be subscription-based purchases through Microsoft’s Cloud.
Does this mean you have to “move” to the cloud?
No, you get all the features you are used to, with the flexibility of the CSP program. The software is downloaded and installed the same way it always was.
In fact, it could be argued that licensing through CSP has better benefits than SA.
Office Productivity Suite
There are several options for purchasing Office via CSP, some include online services, some are software only. Plans start as low as $5 per month. Each one of these plans include always up to date software. When updates are released, the user is prompted to install them. A few examples:
- Microsoft 365 Business Apps ($8.25/mo) – provides access to the Office Online Applications (through a web browser) and also download and install Office on the user’s PC. Includes 1 TB of storage in OneDrive.
- Microsoft 365 Business Basic ($5/mo) – provides access to the Office Online Applications (through a web browser). Includes 1 TB of storage in OneDrive and Exchange Online email with a 50 GB mailbox.
- Office 365 Apps ($12/mo) – provides access to the Office Online Applications (through a web browser) and also download and install Office on the user’s PC. Includes Teams. Includes 1 TB of storage in OneDrive.
Windows/SQL Server/BizTalk Server/Exchange Server
Windows Server and Microsoft SQL Server can be purchase through CSP. These licenses can be used both on-premises and in Azure, saving 40% in Azure using the Hybrid Benefit and save more as there is no need for Client Access Licenses in Azure. Customers are billed monthly for the CSP licenses, even though the server purchases are annual.
Conclusion
Microsoft continues to push customers toward their cloud offerings. There are a lot of combinations when looking at Microsoft Licensing through CSP. A CSP Partner can assist in finding the most cost-effective solution for your organization.
Bizzaro World
Welcome to April 30, 2020. The NFL Draft kicks off in Las Vegas tonight. Can you believe they are building a stage in the Bellagio fountains? The Vegas Golden Knights are entering the second round of the NHL Playoffs on there way to Stanley Cup. The Cleveland Indians have started the season on a tear, projecting a club record 110 wins. LeBron and Anthony Davis win another championship for the Lakers.
Oh wait! Those are some of thing things which did not happen in this version of 2020. For this IT guy, I feel like I am in an episode of my life but Bizzaro World. Its stolen from the likes of Superman Bizzaro World, or one of my favorite Seinfeld episodes, The Bizzaro Jerry.
In my Bizzaro world, I do not wander outside of my makeshift office, a.k.a. dining room table. My kids have taken ownership of the office at various times of the day for their online learning activities. I am loving my commute of walking down the stairs. There is usually never any traffic at that time of the morning. Sometimes, my health care working wife (thank you for your service) is leaving at the same time. And I can’t forget to mention, the 15 steps to the kitchen for snacks and meals.
Licensing Changes
One thing that is not from this Bizzaro World is Microsoft making changes to licensing again. This time its changes to Office 365. Welcome Microsoft 365.
The recent changes were released April 21. They represent Microsoft’s vision for the future. Microsoft integrates the Microsoft Office apps with Artificial Intelligence (AI) and other cutting-edge innovations to work for small and medium sized businesses.
New Name – New Capabilities
The new name also indicates that Office is more than Word, Excel, and PowerPoint. It includes new apps like Teams, Stream, Forms, and Planner. Even the core apps now include features that often require cloud connectivity and make use of AI.
At this time when we are facing health and economic challenges, there are new capabilities in Microsoft Teams. These include hosting rich meetings and events online, cloud file storage and sharing capabilities. This enables businesses to collaborate from anywhere.
“This new approach to naming our products and the use of the Microsoft 365 brand is designed to help customers quickly find the plan they need – whether an enterprise, SMB or consumer plan,” a spokesperson said.
Many Office 365 subscriptions automatically become Microsoft 365 subscriptions:
- Office 365 Personal becomes Microsoft 365 Personal.
- Office 365 Home becomes Microsoft 365 Family.
- Office 365 Business Essentials becomes Microsoft 365 Business Basic.
- Office 365 Business Premium becomes Microsoft 365 Business Standard.
- Microsoft 365 Business becomes Microsoft 365 Business Premium.
- Office 365 Business becomes Microsoft 365 Apps for Business.
- Office 365 Pro Plus becomes Microsoft 365 Apps for Enterprise.
- Office 365 Nonprofit Business Essentials becomes Microsoft 365 Nonprofit Business Basic
- Office 365 Nonprofit Business Premium becomes Microsoft 365 Nonprofit Business Standard
There are no changes to the following Office 365 plans:
- Office 365 Enterprise Plans E1, E3, E5
- Office 365 Nonprofit Plans E1 (Donation), E3 E5
- Office 365 F1 (Firstline)
- Office 365 Education Plans A1, A3, A5
- Office 365 Government Plans G1, G3, G5
Subscription Options
If you already have existing Office 365 plans, you don’t need to do anything. Your Office 365 subscription will automatically be renamed to Microsoft 365. You will see the name of your subscription updated across your Admin Portal and monthly billing statements.
Since 2017, Microsoft 365 has been offered as a licensing bundle for enterprise customers. It provides a combination of Windows 10, Office Pro, and Enterprise Mobility and Security (EMS). These were the first SAAS offerings to include Windows 10 licensing with the subscription. It also offered EMS. This included features such as Azure Active Directory, Azure Information Protection, Microsoft Cloud App Security, Microsoft Advanced Threat Analytics, Microsoft Secure Score, and Microsoft Endpoint Manager (including Microsoft Intune and Configuration Manager).
In addition, Microsoft released Microsoft 365 plans for both home and personal use. These come with the core applications as well as online storage and cloud-connected features that let users collaborate on files in real time. These subscriptions, like all of Microsoft cloud offerings, allow users to have the latest features, fixes, and security updates along with ongoing tech support at no cost. Subscriptions can be paid for on a monthly or yearly basis. The Microsoft 365 Family plan lets users share their subscription with family members up to 6 people. They can use the apps on multiple PCs, Macs, tablets, and phones.
Want to get more information on Microsoft 365 for your organization? Contact Zunesis today.
