Microsoft Cloud Services Licensing

ONLINE SERVICES LICENSING
HOW IT WORKS, DUAL USE RIGHTS, FROM SA PRICING, CONTRACTUAL POSSIBILITIES & MORE

AGENDA:
WHAT WILL WE DISCUSS TODAY?
INTRODUCTION
CLOUD LICENSING – THE BASICS
CONTRACTUAL POSSIBILITIES
DUAL USE RIGHTS
FROM SA PRICING
MICROSOFT AZURE
DYNAMICS 365
POWER PLATFORM

WHY THIS PRESENTATION?
Microsoft Licensing for Cloud services is COMPLEX!
CLOUD LICENSING
LicenseQ often encounters clients
struggling to understand Microsoft
cloud licensing
Much different from old fashioned on-
premises licensing!
Cloud licensing, though already in
existence for a long time, is still
considered difficult
Cloud licensing has ramped up quickly, and
Microsoft is moving increasingly towards
subscription-based licensing
The “old way” of on-premises licensing had
been the status quo for decades, but is
being overtaken (or already has
overtaken?)
Microsoft approaches
both on premises and
online services licensing
in a completely different
way, this does not make it
easier

WHY THIS PRESENTATION?
• With cloud subscription licensing, you get a lot of rights for
on-premises use;
• Business as usual is often possible, by licensing cloud
subscriptions;
• Don’t immediately dive head-first into cloud subscriptions, first
understand what you need;
• We help clients create an overview of the need, and make
sure not to over license!
Microsoft Licensing for Cloud services is COMPLEX!
CLOUD LICENSING
What are your rights
when you switch from
on-premises to cloud?
And what are the
pitfalls you
should watch out
for?
What is important to understand:

CLOUD LICENSING
THE BASICS OF MICROSOFT CLOUD

Microsoft’s Online Services include:
These Services are typically licensed with User Subscription Licenses
(User SLs or USLs).
A license is assigned to an individual, named user.
Procuring a User Subscription License will offer access to the use of the
online service. Generally: no license, no access.
CLOUD LICENSING
LICENSING Online Services:
BUYING Online Services:
THE BASICS
WEB DIRECT
CLOUD SOLUTION
PROGRAM
VOLUME LICENSING
AGREEMENTS
Purchased of the
MSFT website
Paid upfront
annually of
monthly
Purchased through
authorized MSFT partners
Paid upfront
annually of
monthly
Purchased through
Microsoft directly or
through specific partners
(LSPs)
Paid for
upfront
annually
Windows 10
OS license; can be
installed on up to 5
devices
Office 365
Productivity license;
the client can be
installed on up to 5
devices
Enterprise
Mobility+
Security
security and
compliance
Microsoft 365
suite of above 3 items
Dynamics 365
CRM or ERP
*the new Microsoft Customer Agreement (MCA) is handled in
our Volume Licensing training

WHAT ARE ENTERPRISE ONLINE SERVICES?
MICROSOFT ENTERPRISE OLS
Microsoft defines Enterprise Online Services
Office 365
E3/E5
Enterprise
Mobility +
Security
E3/E5
Windows
E3
(per user)
MICROSOFT
365 E3/E5
The suite of products is called Microsoft 365 Enterprise
It is a suite of suites – sound strange?
Variations of E3 and E5 – the difference is in the functionality and
the components included
In order to license these in an EA, a minimum commitment is
needed of 500 users (see VL training) – that is why they have the
connotation of Enterprise Online Services
Move from E3 to E5 by using step-up licenses (also for the
component suites
Let’s look into the different suites within the suite!

https://github.com/AaronDinnage/Licensing
Office 365 E1 is also an Enterprise Service, but consists
of less functionality (and is not included in any M365
Enterprise suites)
In yellow you will find the most noticeable services of the
suite
Note: watch out for tenant wide services!
OFFICE 365 ENTERPRISE
MICROSOFT
ENTERPRISE OLS
Office 365 Enterprise – Creation and
Collaboration Services
Anti-Phishing
Real-Time Reports
Safe Attachments
Safe Links
Microsoft Defender for Office 365 Plan 1
Attack
Simulator
Automated
Investigation
& Response
Campaign
Views
Compromise
d User
Detection
Threat
Explorer
Threat
Trackers
Microsoft Defender for Office 365 Plan 2
Advanced
Audit
Advanced
eDiscovery
Advanced
Message
Encryption
Auto
Conferencing
Comm
Compliance
Customer
Key
Customer
Lockbox
Double Key
Encryption
Information
Barriers
Information
Governance
My Analytics
(Full)
Office 365
Cloud App
Security
Phone
System
Power BI
Pro
Privileged
Access
Management
Recording
Management
Rules-Based
Classification
(Office 365)
Teams Data
Loss
Prevention
Alert Policies Audit Logging Bookings
Data Loss
Prevention
Delve eDiscovery
Exchange
Online Plan 2
Exchange
Online
Protection
InfoPath App
Information
Protection
(Office 365)
Insights by
MyAnalytics
Kaizala Pro
(retiring)
Live Events
Microsoft 365
Apps for
Enterprise
Microsoft
Dataverse for
Teams
Microsoft
Forms
Microsoft
Lists
Microsoft
Teams
Microsoft
To-Do
Microsoft
Whiteboard
Office for the
Web
Office Mobile
App
OneDrive for
Business
Plan 2
Planner
Power Apps
for Office 365
Power
Automate for
Office 365
Power Virtual
Agents for
Teams
Retention
Policy
SharePoint
Online Plan 2
Skype for
Business
Plan 2
(retiring)
Stream for
Office 365
Sway
Yammer
Enterprise
Office
365
E3
Office
365
E5
MICROSOFT DEFINES THIS AS:
Office 365 and Microsoft 365 Apps enables you to create,
share, and collaborate from anywhere on any device with a
cloud-based suite of productivity apps and services.

ENTERPRISE MOBILITY AND SECURITY
Enterprise Mobility + Security – identity and intelligence driven security
The blue items are an overview of everything included
in Azure Active Directory Premium P1 (light) and P2
(dark)
In yellow you will find the most noticeable services of
the suite
Note: watch out for tenant wide services!
MICROSOFT DEFINES THIS AS:
Microsoft Enterprise Mobility + Security (EMS) is an
intelligent mobility management and security
platform. It helps protect and secure your
organization and empowers your employees to work
in new and flexible ways.
Azure Identity
Protection
Entitlement
Management
Privileged
Identity
Management
Risk-Based
Conditional
Access
Microsoft
Defender for
Identity
Microsoft
Cloud App
Security
Rules-Based
Classification
(AIP Client &
Scanner)
Access
Reviews
Advanced
Security
Reports &
Alerts
App Proxy,
including Ping
Access
Azure AD
B2B
5 guests per
user
Azure AD
Connect
Health
Active
Directory
RMS
Advanced
Threat
Analytics
(retiring)
Azure RMS
Azure AD
Password
Protection
Cloud App
Discovery
Conditional
Access
Enterprise
State
Roaming
Endpoint
Analytics
Information
Protection
Intune MDM
& MAM
Microsoft
Identity
Management
Multi-Factor
Auth (MFA)
Self-Service
Password
Reset in AD
Self-Service
Group
Management
Microsoft
Endpoint
Config
Manager
System
Center
Endpoint
Protection
Windows
Server CAL
Rights
Shared
Account
Password
Roll-Over
Single-Sign-
On to other
SaaS
Terms of Use
3rd Party MFA
Integration
Enterprise
Mobility
+
Security
E5
(EMS
35)
Enterprise
Mobility
+
Security
(EMS
3)

WHAT ARE ENTERPRISE ONLINE SERVICES?
Windows E3/E5 – also know as Windows Enterprise Operation System
These Windows versions are bought as User subscription
licenses – allow installs on up to 5 devices
Windows E3 is the full OS experience as you know it
E5 is the additional security also known as Defender for
Endpoint
Like the on-premises version, the rights here are upgrade
licenses – you need to have a qualifying license (see right
side – Product Terms page 42)
The E3 and E5 subscriptions give you the same Software
Assurance rights as an on-premises version with SA
For more info check out our Product Licensing
basics session
Qualifying Operating Systems
Enterprise Agreement,
Microsoft Products and
Services Agreement, Select,
Select Plus
Microsoft Cloud
Agreement and
Microsoft Customer
Agreement
Windows 10
Enterprise, IoT Enterprise, Pro, Pro for
Workstations, Pro in S mode
X X
Education, Home, Home in S mode
(Academic licenses only)
Windows 7 / 8 / 8.1
Enterprise, Pro, Professional, Ultimate,
Windows 7 Professional/Ultimate for
Embedded Systems, Windows
Embedded 8/8.1 Pro, Industry Pro
X

HOW ON-PREMISES TRANSLATES TO CLOUD
ON PREM TO CLOUD
The basics to how licensing of Microsoft on-
premise stack relates to cloud subscription
licensing.
License suites do not overlap 1:1, so
differences in moving from on-prem to cloud.
Moving one part to cloud does not mean you
have to move all parts
Many models possible, never one-size fits all
To find your ideal licensing configuration,
LicenseQ can help in doing a deep dive
optimization of your contract
Office 365
E3/E5
Enterprise
Mobility +
Security
E3/E5
Windows
E3
(per user)
MICROSOFT
365 E3/E5
Office
Profession
al Plus
Core CAL
suite / E
CAL suite
Windows
Upgrade
(DVC)
PRO/ENT
DESKTOP
On-premises Licensing Cloud subscription Licensing
LICENSING
IMPORTANT TO UNDERSTAND:
CAL equivalent licensing and on-
premises use rights – this will be
handled further on in the slides

O
N
L
I
N
E
S
E
R
V
I
C
E
S
The following cloud service portions of Microsoft Defender
Advanced Threat Protection: Attack Surface Reduction, Next
Generation Protection, Endpoint Detection & Response, Auto
Investigation & Remediation, Threat & Vulnerability Management,
SmartScreen.
The cloud service portion of Microsoft Intune
such as the Microsoft Intune Add-on Product
or a management service provided by
Microsoft Intune such as Mobile Device
Management for Office 365.
Microsoft Dynamics 365 Core Services
The following services, each as a standalone service or as included in a
Dynamics 365 branded plan or application: Dynamics 365 Customer
Service Enterprise, Dynamics 365 Customer Insights, Dynamics 365
Customer Service Professional, Dynamics 365 Customer Service Insights,
Dynamics 365 Field Service, Dynamics 365 Business Central, Dynamics
365 Supply Chain Management, Dynamics 365 Finance, Dynamics 365
Marketing, Dynamics 365 Commerce, Dynamics 365 Human Resources,
Dynamics 365 Sales Enterprise, and Dynamics 365 Sales Professional.
Dynamics 365 Core Services do not include (1) Dynamics 365 Services for
supported devices or software, which includes but is not limited to
Dynamics 365 for apps, tablets, phones, or any of these; (2) LinkedIn Sales
Navigator; or (3) except as expressly defined in the licensing terms for the
corresponding service, any other separately-branded service made
available with or connected to Dynamics 365 Core Services.
Office 365 Services
The following services, each as a standalone service or as included in an Office
365-branded plan or suite: Compliance Manager, Cortana, Customer Lockbox,
Exchange Online Archiving, Exchange Online Protection, Exchange Online,
Microsoft Bookings, Microsoft Forms, Microsoft MyAnalytics, Microsoft Planner,
Microsoft StaffHub, Microsoft Stream, Microsoft Teams (including Bookings, Lists,
and Shifts), Microsoft To-Do, Office 365 Advanced Threat Protection, Office 365
Video, Office for the web, OneDrive for Business, Project, SharePoint Online,
Skype for Business Online, Sway, Whiteboard, Yammer Enterprise and, for
Kaizala Pro, Customer’s organizational groups managed through the admin portal
and chats between two members of Customer’s organization. Office 365 Services
do not include Microsoft 365 Apps for enterprise, any portion of PSTN Services
that operate outside of Microsoft’s control, any client software, or any separately
branded service made available with an Office 365-branded plan or suite, such as
a Bing or a service branded “for Office 365.”
Microsoft Azure Core Services
API Management, App Service (API Apps, Logic Apps, Mobile Apps, Web Apps), Application
Gateway, Application Insights, Automation, Azure Active Directory (including Multi-Factor
Authentication), Azure API for FHIR, Azure Cache for Redis, Azure Container Registry
(ACR), Azure Container Service, Azure Cosmos DB (formerly DocumentDB), Azure
Database for MySQL, Azure Database for PostgreSQL, Azure Databricks, Azure DevOps
Services, Azure DevTest Labs, Azure DNS, Azure Information Protection (including Azure
Rights Management), Azure Kubernetes Service, Azure NetApp Files, Azure Resource
Manager, Azure Search, Backup, Batch, BizTalk Services, Cloud Services, Computer Vision,
Content Moderator, Data Catalog, Data Factory, Data Lake Analytics, Data Lake Store,
Event Hubs, Express Route, Face, Functions, HDInsight, Import/Export, IoT Hub, Key Vault,
Load Balancer, Log Analytics (formerly Operational Insights), Azure Machine Learning
Studio, Media Services, Microsoft Azure Portal, Notification Hubs, Power BI Embedded, QnA
Maker, Scheduler, Security Center, Service Bus, Service Fabric, SignalR Service, Site
Recovery, SQL Data Warehouse, SQL Database, SQL Server Stretch Database, Storage,
StorSimple, Stream Analytics, Synapse Analytics, Text Analytics, Traffic Manager, Video
Indexer, Virtual Machines, Virtual Machine Scale Sets, Virtual Network, and VPN Gateway
Microsoft Intune
Online Services
Microsoft Power Platform Core Services
The following services, each as a standalone service or as included in an Office 365 or
Microsoft Dynamics 365 branded plan or suite: Microsoft Power BI, Microsoft Power Apps,
Microsoft Power Automate, and Microsoft Power Virtual Agents. Microsoft Power Platform
Core Services do not include any client software, including but not limited to Power BI Report
Server, the Power BI, PowerApps or Microsoft Power Automate mobile applications, Power BI
Desktop, or Power Apps Studio.
Microsoft Defender Advanced
Threat Protection Services
Microsoft Threat
Protection
The cloud service portion of Microsoft
Threat Protection.
THE MICROSOFT CLOUD BASICS
CLOUD LICENSING
Below is an overview of all current Microsoft cloud products…….

This often leads to organizations buying more than they need
What we often see: “we use M365 E5 for all our users!”
 This generally is not true
Know what is in the suite and know what you need from this
suite!
Don’t over-license, not even when the price is very attractive
You can easily calculate a break-even point of when a suite
might be more cost optimal to licensing components
We tend to analyze customer data and move
into COMPONENT LICENSING instead of full
suites (differs per case)
MICROSOFT LOVES TO
LICENSE SUITES!
THE MICROSOFT CLOUD BASICS
CLOUD LICENSING - SUITES

A SMALL SIDESTEP
MICROSOFT 365 FIRSTLINE F3
What is Microsoft 365 F3?
This is for specific user scenario’s:
• Uses a primary work device with a single
screen smaller than 10.1”
• Shares their primary work device with other
qualifying Microsoft 365 or Office 365
Firstline Worker licensed users, during or
across shifts.
Translation: your blue-collar workers or
non-desk employees
Specific to F3:
• Rights to use Windows 10 Enterprise LTSC
do not apply.
• Rights to install and use MDOP do not
apply.
• Other than the use of Windows Virtual
Desktop, rights to access and use
virtualized instances of Windows only apply
to Licensed Users of a shared device with a
Qualifying Operating System
Alert
Policies
Exchange
Online
Kiosk
(2GB)
Exchange
Online
Protection
Kaizala
Pro
(retiring)
Microsoft
Dataverse
for Teams
Microsoft
Forms
Microsoft
Teams
Microsoft
To-Do
Microsoft
Whiteboard
Office
Web &
Mobile
Apps
One Drive
for
Business
(2GB)
Planner
Power
Apps for
Office 365
Power
Automate
(2000
step/day)
Power
Virtual
Agents for
Teams
Share
Point
Online
Kiosk
Skype for
Business
Plan 1
(retiring)
Stream
(Consume) Sway
Yammer
Enterprise
Limitations:
• Users cannot be administrators.
• No Skype desktop or app sharing.
• Cannot schedule Skype meetings.
• No access to productivity servers.
• No Outlook Desktop access.
• No Voicemail.
• No OneDrive for Business sync.
Active
Directory
& Azure
AD RMS
Advanced
Threat
Analytics
(retiring)
Endpoint
Analytics
Information
Protection
Intune
MDM &
MAM
Microsoft
Endpoint
Config
Manager
System
Center
Endpoint
Protection
Windows
Server
CAL
Rights
Advanced
Security
Reports &
Alerts
App Proxy,
including
Ping-
Access
Azure AD
B2B 5
guests per
user
Azure AD
Connect
Health
Azure AD
Password
Protection
Cloud App
Discovery
Conditional
Access
Enterprise
State
Roaming
Microsoft
Identity
Manager
Multi-
Factor
Auth
(MFA)
Self-
Service
Password
Reset in
AD
Self-
Service
Group
Manage-
ment
Shared
Account
Password
Roll-Over
Simple-
Sign-On to
other
SaaS
Terms of
Use
3rd Party
MFA
Integration
Azure AD Premium Plan 1
Always
ON VPN
Application
Control
Application
Guard AppLocker
App
Assure
App-V
Attack
Surface
Reduction
Azure AD
& Domain
Join
BitLocker
&
BitLocker
to Go
Branch-
Cache
Cortana
Credential
Guard
Desktop
Analytics
Device
Guard
Direct-
Access
Edge for
Business
Long Term
Servicing
Channel
MDM MDOP
Microsoft
Defender
Antivirus
Microsoft
Store for
Business
Persistent
Memory
Resilient
File
System
(ReFS)
SMB
Direct
Unified
Write Filter
Universal
Print
User
Experience
Virtualisation
Window
Autopilot
Windows
Conditiona
l Access
Windows
Firewall
Windows
Hello for
Business
Windows
Information
Protection
Windows
to Go
Windows
Update for
Business
Windows
Virtual
Desktop
Office 365 F3
Enterprise Mobility + Security E3
(EMS E3)
Windows 10 E3 for Microsoft 365 F3
Microsoft 365 F3 includes Windows 10 E3 except Long
Term Servicing Channel and Microsoft Desktop
Optimization Pack
Microsoft
365
F3

A SMALL SIDESTEP
MICROSOFT 365 FIRSTLINE F1
This is for specific user scenario’s:
• Uses a primary work device with a
single screen smaller than 10.1”
• Shares their primary work device with
other qualifying Microsoft 365 or Office
365 Firstline Worker licensed users,
during or across shifts.
Translation: your blue-collar workers or
non-desk employees
Specific to F1:
• M365 F1 does not include rights to an
Exchange mailbox. In order to enable a
full Teams experience, M365 F1 licenses
may come with the Exchange Online K1
service plan enabled. Although the
Exchange Online K1 service plan will
provision a mailbox for the user, M365 F1
users are not entitled to use the mailbox.
What is Microsoft 365 F1?
Microsoft
Forms
(Consume)
Microsoft
Teams
Office for the
Web (read-
only)
Office Mobile
Apps (read
only)
Planner
SharePoint
Online Kiosk
Skype for
Business
Plan 1
(retiring)
Stream
(Consume)
Sway
Yammer
Enterprise
Limitations:
• Users cannot be administrators.
• No Skype desktop or app sharing.
• Cannot schedule Skype meetings.
• No access to productivity servers.
Active
Directory
& Azure
AD RMS
Advanced
Threat
Analytics
(retiring)
Endpoint
Analytics
Information
Protection
Intune
MDM &
MAM
Microsoft
Endpoint
Config
Manager
System
Center
Endpoint
Protection
Windows
Server
CAL
Rights
Advanced
Security
Reports &
Alerts
App Proxy,
including
Ping-
Access
Azure AD
B2B 5
guests per
user
Azure AD
Connect
Health
Azure AD
Password
Protection
Cloud App
Discovery
Conditional
Access
Enterprise
State
Roaming
Microsoft
Identity
Manager
Multi-
Factor
Auth
(MFA)
Self-
Service
Password
Reset in
AD
Self-
Service
Group
Manage-
ment
Shared
Account
Password
Roll-Over
Simple-
Sign-On to
other
SaaS
Terms of
Use
3rd Party
MFA
Integration
Azure AD Premium Plan 1
Office 365 for Microsoft 365 F1
Enterprise Mobility + Security E3
(EMS E3)
Windows
Microsoft 365 F1 does
not include Windows.
Microsoft
365
F1

ONLINE SERVICES

As stated, Online Services should be procured in order to
have access, this holds true for adding licenses of certain
services. No license, no possibility for assignment
• This does not mean that you need to create a
purchase order for all additional licenses.
• There is a process available called Online Services
Reservations.
• Basically, reserving a license means the license will
immediately become available to you, but payment will
not have to be done until the EA anniversary (EA true-
up or EAS annual report period)
WHAT IS IN THE EA?
From the Enterprise Enrollment:
Minimum order requirements: if you order only
Enterprise Online Services a minimum of 500 seats need
to be licensed in order to qualify
• This means that you can have a contract with a
minimum of 500 Windows E3 licenses included
• For a list of Enterprise Online Services, see next slide
1
2

IMPORTANT TO NOTE ON THIS CLAUSE:
Microsoft labels certain services as Enterprise Online Services. These
are:
• These services can be reduced upon anniversary to a minimum of
500
• In combination with on-premises licenses (like CoreCAL, Windows
Device license, or even Office 365 Pro plus) you are not able to
reduce to the minimum requirements of 500, but need to maintain
the level at the start of the contract as a minimum
• Microsoft labels other products as Additional Online Services, this
is anything not listed above – so also components of the suites
• These licenses can be reduced at the anniversary to a minimum of
0, as such cancelling an order if all licenses under that order are
set to 0.
You are able to reduce Subscription
licenses upon anniversary!
WHAT IS IN THE EA?
Microsoft 365
suites
excluding M365 F1
and M365 F3
Office
365
suites
Enterprise
Mobility +
Security suites
Windows
E3 or E5

(i) Online Services eligible for an Extended Term. For Online Services identified as
eligible for an Extended Term in the Product Terms, the following options are available
at the end of the Enrollment initial or renewal term.
1) Extended Term. If Enrolled Affiliate does not renew prior to the Expiration Date,
access to the Online Services will automatically continue month-to-month in
accordance with the terms of the Enrollment (“Extended Term”) for up to one year
unless designated in the Product Terms to continue until cancelled. For the first
twelve months of the Extended Term, Online Services will be invoiced monthly at
the then-current published price for Enrolled Affiliate’s price level as of the
Expiration Date plus a 3% administrative fee. As of the first day of the thirteenth
month of the Extended Term, Online Services that continue until cancelled will be
invoiced at the then-current published price for price level A plus a 3%
administrative fee. During the Extended Term, the then-current Online Services
Terms and Product Terms will apply to Enrolled Affiliate’s use. If Enrolled Affiliate
does not want an Extended Term, Enrolled Affiliate must submit a request to
Microsoft at least 30 days prior to the Expiration Date.
2) Cancellation during Extended Term. At any time during the first year of the
Extended Term, Enrolled Affiliate may terminate the Extended Term by submitting
a notice of cancellation to Microsoft for each Online Service. Thereafter, either
party may terminate the Extended Term by providing the other with a notice of
cancellation for each Online Service. Cancellation will be effective at the end of
the month following 30 days after Microsoft has received or issued the notice.
(ii) Subscription Licenses and Online Services without an Extended Term. If Enrolled
Affiliate elects not to renew, the Licenses will be cancelled and will terminate as of the
Expiration Date. Any associated media must be uninstalled and destroyed and
Enrolled Affiliate’s Enterprise must discontinue use. Microsoft may request written
certification to verify compliance.
EXTENDED TERM is an important aspect of understanding
Cloud LIcensing for a couple of reasons:
• Mergers and acquisitions: If you renew under a new
name or with a new company, you might continue to pay
for subscriptions under your expired (old) contract
• If you decide to discontinue cloud services: not
renewing your cloud services at end of term may cause
invoices to be automatically generated
• If you are still negotiating with Microsoft: your
contract is expired, but the new contract is not in place
Always check your EXTENDED TERM STATUS
with Microsoft! It may cause unwanted
invoices and discussions
WHAT IS IN THE EA?
From the Enterprise Enrollment:

THE ONLINE SERVICES TERMS is a document that govern a Microsoft customer’s use
of their Online Services
This is a dynamic document added to all Microsoft Volume Licensing Contracts – updated
monthly
If you have an Enterprise Agreement, the OST version in effect is the one released at the
date of signing the EA
If Microsoft makes changes to the OST that are more restrictive, you do not have to
accept these until your contract renewal
Tied to the OST is a Data Processing Agreement – when you sign a contract with
Microsoft, always review both OST and DPA and see if they are in line with your
organization’s policies
Cloud Services specifics are detailed in this document – know what you
use, and how you are allowed to use it! This is additional to the Product
Terms, that may hold similar clauses to what is present in the OST
The Online Services Terms:
WHAT IS IN THE EA?

FROM SA PRICING
BUSINESS AS USUAL, WITH SIMPLER LICENSING

Remember the below picture from earlier?
An old school Ent Desktop + AddOn to M365 is considered
to be about the same price as a Microsoft 365 license
BENEFICIAL PRICING FOR ON-PREM TRANSITIONS
FROM SA PRICING
Office 365
E3/E5
Enterprise
Mobility +
Security
E3/E5
Windows
E3
(per user)
MICROSOFT
365
E3/E5
Office
Professio
nal Plus
Core
CAL suite
/ E CAL
suite
Windows
Upgrade
(DVC)
PRO/ENT
DESKTOP
On-premises Licensing Cloud subscription Licensing
LICENSING
Office 365
E3/E5
Enterprise
Mobility +
Security
E3/E5
Windows
E3
(per user)
MICROSOFT
365
E3/E5
Office
Professio
nal Plus
Core
CAL suite
/ E CAL
suite
Windows
Upgrade
(DVC)
PRO/ENT
DESKTOP
ADD-ON TO M365 /
O365 / EM+S / WIN E5
Looking at this from a financial perspective – comparing
cloud and on premises licensing shows quite a big change

Office 365
E3/E5
Enterprise
Mobility +
Security
E3/E5
Windows
E3
(per user)
MICROSOFT
365
E3/E5
Office
Professio
nal Plus
Core
CAL suite
/ E CAL
suite
Windows
Upgrade
(DVC)
PRO/ENT
DESKTOP
Office
365
E3/E5
From SA
Enterpris
e Mobility
+
Security
E3/E5
From SA
Windows
E3 From
SA (per
user
MICROSOFT
365 E3/E5
From SA
From SA pricing is for
customers that paid
Software Assurance on the
“old” Enterprise Products for
their on premises use
It is a 15% decrease from
Full USL pricing (non-From
SA)
It benefits customers who
have invested in Microsoft
technology for a long time
BENEFICIAL PRICING FOR ON-PREM TRANSITIONS
FROM SA PRICING
Microsoft introduced From SA Pricing:
15%
ADD-ON TO M365 /
O365 / EM+S / WIN E5

FROM SA PRICING is available for all
Microsoft Online Services that have an on-
premises counterpart
Appendix C of the Product Terms state all
From SA entitled licenses
Leverage the From SA pricing for all
software you are using!
Microsoft is sometimes able to
grant more From SA than you
are entitled to, be sure to
always discuss your options
For some services, there are options to
From SA that might not be apparent: i.e.
CoreCAL can grant an EM+S E5 From SA
price
The Product Terms document states:
THE PRODUCT TERMS
FROM SA PRICING

DUAL USE RIGHTS
EXPLAINED
BUSINESS AS USUAL, WITH SIMPLER LICENSING

AS A STARTING POINT, the picture on the left shows a great deal of
information:
• The Product Terms Appendix A shows an overview of what Microsoft
calls CAL/ML Equivalent Licensing
• Every CAL you currently use, has an equivalent Online Service license
This means that when you license yourself with an Online
Service, you have the rights to use the license to access an
on-premises server
AS AN EXAMPLE:
• You purchase Microsoft 365 E/A3
• You now have the right to access all relevant Application Servers for
Exchange, Sharepoint and Skype for Business -> Office 365 E3 gives
you this use right
• Have the rights to Windows Server access -> Enterprise Mobility +
Security E3 gives you this use right
NB. Dual Use Rights is also available for Dynamics 365
HOW TO MOVE CAL SUITE LICENSING TO CLOUD SUBSCRIPTIONS
CAL EQUIVALENT LICENSING

The above specifically states what
your rights are in case you are
licensing Microsoft 365 E3/E5 for
your entire organization
When licensing Microsoft 365, you
have the added benefit to no longer
license Application Servers
WHAT ABOUT APPLICATION SERVER LICENSES?
CAL EQUIVALENT LICENSING
WHAT TO LOOK OUT FOR:
When not standardizing on
Microsoft 365 E3/E5 for everyone,
you need to have a license for the
Server Applications
F1/F3 is never included, as this
is a license for Firstline workers.
These licenses do not have CAL
equivalency either

• Typically, as a long time Microsoft customer, you most likely have invested in Office Pro
Plus Software Assurance for years
• In moving to the cloud, your License + Software Assurance investments will grant you a
“From SA” license (discussed before)
• From SA is important here, and this benefit as such does not apply to all organizations
• Additional benefits, like the one below, apply as well!
2.2.2 Office Professional Plus
2.2.2.1 Microsoft 365 From SA User SLs:
For each Licensed User to whom customer assigns a Microsoft 365 From SA User SL, Customer may install:
 one local copy of Office Professional Plus for the sole use of the Licensed User for the duration of the subscription; and
 one local copy of Office Professional Plus for new User SLs added to the same volume license agreement for the sole use of the
Licensed User for the duration of the subscription. The number of new User SLs granted those user rights may not exceed the
number of From SA User SLs initially covered under the agreement.
2.2.2.2 Microsoft 365 User SLs acquired in MPSA
For each Licensed User with a device covered with Software Assurance for Office Professional Plus to whom Customer assigns a Microsoft
365 User SL, Customer may install one local copy of Office Professional Plus for the sole use of the Licensed User for the duration of the
subscription.
UNDERSTANDING YOUR POSSIBILITIES FOR MICROSOFT 365 APPS
DUAL USE RIGHT FOR OFFICE
Office Pro Plus – the expensive one. There are
options here as well! Basically, this means that
alongside your Microsoft 365
E3/E5 (From SA) subscription, you
have the right to use a local dopy
of Office Professional Plus
CAVEAT: not entitled to From SA
pricing? This is not for you, and if
you need on prem licensed Office
Pro Plus, different scenario’s
would apply

HOW DO THEY COMPARE?
WINDOWS PER DEVICE & PER USER
Windows per Device versus per User:
both Device and User licenses
Per User: as it states, assign the license to a user – user is
allowed to use Windows on multiple devices
Per Device: as it states, assign the license to your qualified
devices. There is a 1:1 relation
You can mix and match
PER DEVICE is usually bought as an Upgrade and
Software Assurance license in an Enterprise Agreement
PER USER is usually bought as a Subscription
license in an Enterprise Agreement

Licensing cloud instead of on-premises can have
many benefits
HOW CAN YOU BENEFIT?
DUAL USE RIGHTS
The previous slides showed the HOW,
now we are discussing the WHY:
Focus of Microsoft is on selling
cloud licenses!
WHY
Don’t state to Microsoft
“I do not and will not
move to the cloud”
Instead tell them “I want
to move, but in due time
– how can I best do
this?”
Find your perfect fit in
cloud licenses! Don’t let
Microsoft persuade you
into their one-size-fits-
all approach
Do reach out to us in
case you want help to
identify your ideal
configuration!
+
LICENSING MADE
SIMPLER
one license instead
of multiple
(depending on
solution needed)
+
INCENTIVE FOR
MICROSOFT
their sellers rather
sell cloud, on-prem
does not fill their
targets
+
MOVE TO THE CLOUD
AT YOUR PACE
business as usual, but
innovation is possible

DYNAMICS 365
THE DIFFICULT ONE?

Dynamics applications
are licensed under a variety of
models consisting of assigned
licenses that are dedicated to a
named user or device and
unassigned licenses that provide
access to a feature or service at
tenant level.
HOW TO LICENSE
DYNAMICS 365
Licensing overview:
ASSIGNED licenses are (not an exhaustive list):
• Enterprise users or principal users, such as salespeople, customer service
representatives, finance employees, controllers, human resources, and supply
chain managers are licensed with: Sales Enterprise, Customer Service
Enterprise, Field Service, Human Resources, Finance, Supply Chain
Management, Commerce, Project Operations, Remote Assist, Guides,
Business Central Premium, and Business Central Essentials.
• Professional users whose work scenarios are generally less complex with
streamlined capabilities to provide core support functionality are licensed with:
Sales Professional and Customer Service Professional.
• Device Licenses: perfect for users sharing devices – though there is a break
even point usually
• Team Members: users without a specific function, but who require basic
access to the Dynamics 365 environment
UNASSIGNED Licenses are:
• Full application access Licenses: applications that are not
assigned per user but tenant level – like D365 Marketing
• Capacity licenses: add-ons that offer additional storage or
environments
Note around Team Members:
As stated on the right, for basic access
like reading data across all applications.
If you have custom apps, Team members
is not a good solution!

Note: Base and attach license provide access to same application functionality
Single App User Two App User Three App User
HOW TO LICENSE
DYNAMICS 365 CRM & ERP
Sales Customer Service Field Service
BASE LICENSE: the first Business Application
purchased at the standard price
ATTACH LICENSE(S): incremental Business
Application (USL) purchased after the Base
license at a heavily discounted ‘Attach price’
Sales Sales
Customer Service
How to license D365 applications:

Main Apps Operation Activity HR Self Serve
HOW TO LICENSE
DYNAMICS 365 ERP
Per User Per User Per User
D365 ERP Additional Licenses:
For users that need full
access
For instance: headquarters
and central operations users
Light use license – includes
Team Members functionality and
additionally:
- Approve activity related
transactions
- Create or Edit items related
to special activities
- Operate point of sale
devices
For users like store employees
Applies to the HR Application
only and provides additional use
rights. For instance:
- Update employee info
- Report sick leave
- View employee info as a
manager
Team members grant these
same rights, plus rights to use
functionality in other apps

Overview of attach licenses:
Commerce CS Ent CS Pro Field Svc Finance HR Proj Ops RA Sales Ent Sales Pro SCM
Business Central Essentials x x
Business Central Premium x x
Commerce x x x x x x x x x
Customer Service Enterprise x x x
Customer Service Professional x
Field Service x x x x x
Finance x x x x x x x x x
Guides
Human Resources x x x x x x
Microsoft Relationship Sales solution Plus x x x x x
Project Operations x x x x x x
Remote Assist (RA)
Sales Enterprise x x x
Sales Premium x x x x x
Sales Professional x
Supply Chain Management (SCM) x x x x x x x x x
Dynamics 365 Attach Licenses per user
Dynamics 365 Base licenses per user
How to read: If you purchase a Customer Service Enterprise base license, you can add Field Service and/or Sales Ent
or Sales Pro as attach licenses
IMPORTANT NOTES:
• You cannot have Pro and Ent
licenses in the same
environment and needs to be
spread over tenants
• Attach licenses can only be
assigned to users with a correct
base license
• In EA, if incorrectly purchasing
attach licenses, you can step up
the license to a base
• In CSP and MPSA the attach
license would need to be
swapped for correct base
license
• Dual use rights apply!
HOW TO LICENSE
DYNAMICS 365

Understanding storage (it’s complicated!):
IMPORTANT NOTES:
• First license gives you default capacity and is shared per tenant
• Additional base licenses give you incremental storage
• Attach licenses use the same entitlements as your base license and don’t increase
capacity
• Additional capacity, if needed, is bought through specific Capacity licenses (see snippet
below)
• In order to add environments, you will always need to have a minimum of 1 GB space
available
• Calculate your storage need correctly! Again, this is where we can help your organization
in optimally licensing your estate
HOW TO LICENSE
DYNAMICS 365

Additional items to note:
Product Minimum Quantity
Marketing Additional Contracts Tier 3:2 Tier 3:2 Tier 3:2
Microsoft Relationship Sales Solution 10
Dynamic 365 Commerce*
Dynamic 365 Finance*
Dynamic 365 Supply Chain Management*
Dynamic 365 Project Operations*
20
Dynamic 365 Human Resources 5
Dynamic 365 Customer insight Attach 20 20 1
Professional Direct Support 20
*250 maximum once met all
remaining users are covered with no
additional licenses required*
HOW TO LICENSE
DYNAMICS 365
Minimum quantity requirements:
Product Terms page
67 states minimum
requirements
External users
don’t need licenses
Multiplexing
(pooling connections),
as with all Microsoft
licensing, is not
allowed
Dual use rights are
available for
Dynamics 365
Look at your storage
requirements!
These minimums can be mixed and matched in EA, but not in CSP! All apps grant Team
Member functionality

Dynamics 365 Plan
Full
Users
Plans
Applications
Marketing
Field Service Project Service
Automation Retail
Sales Customer Service Talent
Finance and
Operations
Customer Engagement Plan Unified Operations Plan
2K contacts
Included with 10 seats of
Dynamics 365 or
Customer Engagement
Plans
Included with Unified
Operations Plan
20 seat min
5 seat min
20 seat min
If you are on the Customer Engagement
Plan, Unified Ops Plan or Dynamics 365
Plan, you need to:
• know which apps are in use
• investigate how many environments
are in use
• check the amount of storage you are
currently using
The old model had tiered pricing, the
new model has not…
This means pricing in the new model
can be 4/5x higher!
Investigate your options
early, and negotiate your
discounts
HOW TO LICENSE
DYNAMICS 365
Old Licensing model to new Licensing model:
$210
$95
$95
$95
$95
$115 $190
$40
$170

MICROSOFT AZURE
THE ODD ONE OUT?

Buying Azure:
COMPLEX IN LICENSING
MICROSOFT AZURE
How does it DIFFER to other cloud licensing
programs?
• Initiate the full potential (all services) by setting up a subscription. This can be done
by purchasing via one of the listed routes on the left
• When the subscription is set up, you initially don’t have to pay
• When setting up resources and use of resources start, then charges are incurred
Resources can differ in their unit of measure: VMs can go by hour, Storage per
$/GB or $/transaction, databases $/GB
• On one tenant, you can have multiple subscriptions for different parts of the
company
This means you can create an organizational structure and cost management for
retrieving cost within your org
• Payment is done monthly in arrears, based upon the actual consumption of
services
Azure is Microsoft’s growing
set of integrated services to
help customers move faster,
do more and save money
Via a partner
through the CSP
program
Through a Volume
Licensing
Agreement
Direct from Microsoft
through an internal sales
person
Direct from
Microsoft through
Azure.com
MICROSOFT AZURE – Cloud Computing Services

IMPORTANT NOTICE!
MICROSOFT AZURE
MCA is handled in our other training
around Volume Licensing programs
Changes for customer buying Azure through the EA
2019
Nov 1
Beginning on November 1, 2019
commercial customers in direct* markets
may not initiate or renew an Azure-only
SCE or introduce Azure to an Enterprise
Enrollment that did not previously include
Azure
*Argentina, Australia, Belgium, Canada, Chile, Denmark, Finland, France,
Germany, Greece, Iceland, Ireland, Jamaica, Italy, Lichtenstein, Luxemburg,
Netherlands, Norway, Portugal, Puerto Rico, South Africa, Spain, Sweden,
Switzerland, Trinidad & Tobago, U.K., and Uruguay

IMPORTANT TO UNDERSTAND
MICROSOFT AZURE
UNDERSTANDING PAYMENT OPTIONS & COMMITMENTS IN EA:
COMMITMENT
LEVEL
IMPORTANCE TO MICROSOFT
Pay as you
go (PAYG)
Microsoft Azure
Consumption
Commitment
(MACC)
Prepayment
Benefit of the EA: Pricing Threshold! Not
available in MCA at the moment
PAYG: use services in your contract, get invoiced in
arrears on actual consumption
MACC: paper commitment. State consumption amount
over term of contract. Not spend? Microsoft reserves
right to bill
In case of prepayment: What happens if you spend
more? This will be charged separately as overage
against same pricing

Azure Hybrid Benefit:
• Use on premises Windows Server and/or SQL Server with
Software Assurance licenses to reduce the cost of VMs and
Databases in the Azure cloud
• Most Microsoft customers have Software Assurance on Windows
Server and/or SQL Server – use your entitlements on prem and/or
in the cloud
• Don’t cannibalize on your past investments – reduce spend on
Azure Services by leveraging investments in the past
• Easy to set up – you can start saving right now!
• With AHB there is no need for Extended Security Updates (ESU) –
move your environment to the cloud, get free ESU
Reserved Instances:
• Lock-in a certain VM type in a specific datacenter to get significant cost savings on
the prices
• 1-year or 3-year Reserved Instance possible
• Potentially save up to 72% on certain VMs (towards 80% with AHB)
• Cost of the RI will be effectuated in your monthly bill, or immediately reduced from
your total in case of prepayment
• Potential to either:
− Cancel an RI: termination fee applies and there is a cap towards total value
to be returned
− Exchange an RI: choose different region and/or VM type – total cost is
calculated for the new term minus the remaining cost of the exchanged RI
• Can be assigned at enrollment level or subscription level, so you can manage
organizational or department level use
Find more in-depth training on AHB here: https://youtu.be/FVdqMgKppxw
MICROSOFT AZURE
MICROSOFT AZURE – Programmatic Cost Reduction Possibilities:

MICROSOFT AZURE
WHAT ARE YOU ABLE TO NEGOTIATE?
Concessions Azure
1. Azure Commitment Discount (ACD) – This is depending on your current
consumption level and roadmap and consumption plan towards to the future
– have this clear and ready!
2. Flexibility – preferably keep away from the monetary/upfront commit model;
Often it seems very practical to prepay but we strongly recommend not to
3. Agreements spanning > 3 years – Microsoft is willing to have you commit
for longer periods
4. Line item discounts:
• ACD is applied on any and all line items except Reserved Instance – ask for same
discount on RI
• There are items where you can request larger discounts – if it makes sense for
you, do request it!
5. Azure Credits – in certain scenario’s Microsoft might be willing to
grant free Azure consmption credits
6. Be considerate which contract model you choose, we advise to
stay in EA, EAS or SCE at this time
• SCE provides pricing thresholds for your consumption – the new MCA
does not (yet?)
7. Azure Hybrid benefit – if you are able to standardize on Windows
Server, adding your entitlements as subscription to an SCE will lower
your pricing and will help you with flexbility
8. If you are negotiating a new contract and are currently consuming in
overage – request to not pay the overage but deduct this from your
new commitment!
1
2
3
4
5
6
7
licenseq.com
8

MICROSOFT AZURE
MICROSOFT AZURE – Takeaways
Set up an account free of
charge Set up a good Cloud Cost Management
framework before you start consumption –
this will save you money in the long term
Pay only for what you use
1
2
3
Review your spend on a monthly basis, look for easy
optimizations. Ask questions like:
• Is there a newer version of the VMs I currently use? It will most
likely be cheaper
• Do I need to run my VMs 24/7? If so, can I use a Reserved
Instance?
• Am I using the right type of storage? Can I use a cheaper version
If usage grows month over
month, decide if you want to
work towards price commitment
and its added incentives as
discussed on the previous slide
Leverage items
that save you
money: Reserved
Instance and Azure
Hybrid Benefit
4
5
6

POWERAPPS &
POWERAUTOMATE
THE NEW ONE?

PowerApps:
Low-code and no-code app development
Licensing can be difficult to understand, due to the model
being different
License Users or Apps, and license for additional capacity
and portals
How to deal with External users?
PowerAutomate:
DPA uses PowerAutomate to enable automation of modern systems
through APIs – 350 first- and third-party connectors
RPA enables automation of legacy apps where there aren’t any
connectors available (like with DPA)
RPA desktop flows can be categorized in Attended RPA (human
involvement) and Unattended RPA (without user involvement).
FOCUSING ON POWERAPPS & POWERAUTOMATE
MICROSOFT POWERPLATFORM
Select Microsoft 365 and Office 365 licenses include Power Apps and Power Automate functionality
So what is PowerApps & PowerAutomate?
Microsoft states:
Increase agility across your
organization by rapidly building
low-code apps that modernize
processes and solve
tough challenges.
Microsoft states:
Streamline repetitive tasks and
paperless processes with Microsoft
Power Automate — so you can
focus your attention where it’s
needed most.

POWERAPPS PER USER PLANS:
• Named User license to enable a user to access
any number of apps and portals across any
environment
• Licenses are assigned through the Microsoft 365
Admin Center
Typically used for organizations that are using many
applications across many environments
POWERAPPS PER APP PLANS:
• A single license enables a user to access 2 apps within 1 portal within an
environment
• Licenses are allocated to users when an app in an environment is shared
with a user
• Licenses are stackable – meaning if you need a user to access more than
2 apps in an environment, you can (and should) allocate more licenses to
that app
• Licenses are assigned to apps via the Power Platform Admin Center
Best for business with limited apps and environments – when the number of
environments and apps grows, should switch to user based licensing
THE LICENSING MODEL
MICROSOFT POWERAPPS
There are 2 licensing motions for PowerApps
Note: at this moment there are no step-ups from per App licenses to per User

THE LICENSING MODEL
MICROSOFT POWERAPPS
Use portals to allow access for users. Portals need not be licensed, only access to the portals!
External use, portals and additional capacity:
Three
scenarios:
INTERNAL,
AUTHENTICATED
USE:
license according to
previous slide
EXTERNAL, AUTHENTICATED
USE:
license with PowerApps Portals login
capacity Add-On – buy license for the
required amount of monthly logins
Note: multiple logins in a 24-hour period by 1
authenticated user are counted as one billable login
ANONYMOUS USERS:
acquire license for
PowerApps Portals page
view capacity add-on
(100k page views
~$100 per month)

POWERAUTOMATE PER USER PLANS:
• Named User license to enable a user to access
any number of flows across any environment
• Licenses are assigned through the Microsoft 365
Admin Center
Typically used for organizations that are using many
applications across many environments
POWERAUTOMATE PER FLOW PLANS:
• A single license enables an unlimited number of users to use a single
flow across an organization
• Minimum quantity of 5 per Flow plans licenses needed
• Licenses are stackable – meaning if you need a user to access more
than 2 apps in an environment, you can (and should) allocate more
licenses to that app
• Licenses are assigned to apps via the Power Platform Admin Center
Best for businesses that want to have all users access the created flows
within the organization
THE LICENSING MODEL
MICROSOFT POWERAUTOMATE
There are 2 licensing motions for PowerAutomate (DPA):
DPA

POWERAUTOMATE PER USER WITH ATTENDED RPA:
• Base license is the same as the PowerAutomate per User license
• Includes ability to create desktop flows for automation
• The desktop flows must run on the device of the licensed user
• If there are multiple flows, they must be run sequentially
Attended scenarios are triggered by explicit user action
POWERAUTOMATE UNATTENDED RPA ADD-ON:
• Add-on license to PowerAutomate per Flow License or
PowerAutomate per User with Attended RPA license
• Licenses are assigned to apps via the Power Platform Admin
Center
Unattended scenarios are triggered in the background
THE LICENSING MODEL
MICROSOFT POWERAUTOMATE
There are 2 ADDITIONAL licensing motions for
PowerAutomate (RPA):
RPA

CONCLUSIONS
As stated initially: Microsoft Licensing for Cloud services is COMPLEX!
CLOUD LICENSING
LicenseQ often encounters clients
struggling to understand Microsoft
cloud licensing
We can help you make sense of this!!!
Profiling is important! Look at all the
suites there are, this means a one size
fits all approach is usually costing you
money!
Our optimization projects usually deliver a
minimum of 10% of savings on your cloud
spend.
Do not say “no I don’t need cloud licenses”.
Rather say “interesting, what are my
benefits?” We live and breathe this,
allow us or companies
like us to help you with
your optimal
configuration!
Reach out to us and request a free consultation. We are always happy to help! floris.klaver@licenseq.com

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