In 2014 Microsoft sought to simplify its licensing by consolidating the purchasing of cloud services, software and software assurance (SA), into one agreement. At the same time it announced the phasing out (over time) of a number of existing agreements. So, you may fast be approaching having to decide whether this new agreement is right for you.
This new Microsoft Product and Services Agreement (MPSA) is now available virtually worldwide and has also introduced the concept of Purchasing Accounts – a buying entity within your organization that you setup to order and manage products and services by registering them to an MPSA.
What is MPSA?
The Microsoft Products and Services Agreement (MPSA) is a transactional licensing agreement for commercial, academic and government organizations. It is perpetual and designed for organizations with 250 or more users/devices, consolidating Microsoft cloud services, software and Microsoft Software Assurance.
MPSA works best for organizations that want to license Microsoft on-premises software, cloud services, or both as required, with no organization-wide commitment under a single, non-expiring agreement.
It could be argued that there is a top end to this of 500 users as the Enterprise Agreement (EA) offers some benefits that the MPSA doesn’t, and so at this level you will need to decide which is best for you.
Purchasing Accounts Provide New Flexibility
Key to the flexibility of the MPSA is how you setup your Purchasing Accounts. These allow you to effectively sub-divide your organization by department, region or country in any way you want. Every time you buy a license or service you get points. You must purchase a minimum of 500 points for at least 250 users within each product pool by one year after you first sign your MPSA.
You can pool points from each of your pools across your organization and the more points you have, the better your pricing should be. There are annual point minimums for each price level (A- D) and as soon as you have hit these, your price changes accordingly.
This flexibility allows you to cover your entire organization under one agreement as long as you reach the purchase minimum level within one year.
Benefit from Price Protection
When you subscribe to an online service for longer than one year, you will benefit from price protection, as your price will not increase for the duration of your subscription. It also allows you to mix online and on premises licensing to best meet your precise needs.
The MPSA has been designed to involve less paperwork and be a much quicker process than before. All aimed at simplifying your capability to buy and consume Microsoft services.
If your existing Microsoft Services Agreement is now being phased out and you are looking to move to an MPSA, and would like to discuss if this is the right choice for you, our experienced Microsoft licensing consultants will be happy to help.
Gain Control of your Microsoft Licensing
With many options available, Microsoft licensing can be hard and complex to understand. There are a number of different licensing metrics such as for the desktop and virtual environments, the datacentre and the cloud. In order to gain an accurate understanding of your licensing and make the necessary steps to achieve licensing optimization, working with a Microsoft licensing expert for your SAM can be incredibly beneficial.
To find out how Certero can help gain control of your Microsoft licensing please get in touch.