licensing microsoft software for contractors and non employees
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Licensing Contractors and Non-Employees
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About UsTrusted globally by some of the world’s most well-known enterprise companies,
is the leading provider of expertise and negotiation
services around Enterprise software contracts. Combining an unparalleled
knowledge of the DNA that make up software agreements with the ability to
understand company’s individual requirements, is able to drive out
significant costs and align agreements to business priorities NOT to those of
software vendors and their programmatic objectives. Using technology, process and
knowledge derived from the analysis and negotiation of more than a thousand
contracts, we help put explanation around the unknowns that create compliance
gaps and control spiraling costs associated with Enterprise software agreements.
SAVING YOU TIME, MONEY AND AGGRAVATION
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Our Core Value Proposition
Consulting Services
Microsoft Enterprise Agreement Negotiation
Microsoft Audit Assistance
o The value of our retainer relationships is in the personalized, and unrestricted access to all of our experts
o Retainer clients enjoy services such as published resource papers, white papers, webinars and training sessions
o Retainer client receive a 30% discount on additional engagements (outside of retainer)
o Microsoft is getting much more aggressive with audits
o Free up your time and resources
o Method 180 has a proven track record of dramatically reducing compliance costs
o Most organizations leave money on the table with Microsoft during negotiations
o Method 180 averages 25-30% cost reduction on enterprise agreement renewals
o Be informed and educated about how to drive costs out of your enterprise agreement
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Contract Licensing: Contractors
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• Many organizations wonder if they are paying for licenses that their contractors already have.• The answer is most likely
• Many companies want to know if they need to license contractors.• The answer is maybe
• What are indicators that I may have to license contractors?• Are you providing them with hardware?• Are they accessing VDI Infrastructure?• Do you provide them with email addresses?• What does your contract say?
Why do I have to license contractors?
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• The answer is in your contract and the Microsoft Product Terms
• If you have an Enterprise Agreement your answer may be different than if you license products on other programs like the MPSA
• We are looking for ways to exempt them
How do I figure out if I need to license my contractors
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EA: Qualified User
• Language says consultant/contigent staff• User of a Qualified Device – do you provide them hardware?• Access – this is the key word (it’s not use)• Enterprise Products CAL – Exchange, SharePoint and Windows
are your drivers• Enterprise Online Service – Office365 E Plans
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EA: Qualified Device
• If you provide them hardware you need to look here• Capable is the key word – can it run Office or Windows locally or
virtually• Can you exempt them as a non-managed or Industry Device
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EA: Industry Device
• Is the hardware a single use software (Highly unlikely you can exempt)• If the contracter is a developer an outside arguement could be made
around the language of utilizing Office• Best practice would be to make a profile and limit the software in that
profile• Best practice ensure language in your contracts state they are
responsible for Software and Hardware if possible (this helps a lot)
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EA: Managed Device
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Product Terms: Managed Device
• Even if you don’t provide hardware it could be managed (this is the same for BYOD)
• If a device meets any of the 6 criteria above it is managed – even if it’s not your hardware
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EA: Qualified User
• What is a Qualified User Exemption?
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Product Terms: Qualified User Exemption
• The definition itself is not very helpful• Need to look at the products themselves• Hint: This really is about the license type – ie. Core Licenses for
SQL will have this as their is no CAL requirement• This unfortunately is not a list of reasons you can exempt people
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Product Terms: External Connector
• This could be helpful – it says External Users
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Product Terms: External User
• This could be helpful – it says onsite so maybe we can use External Connectors?
• Don’t forget that some of these are even free!
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Product Terms: Universal License Terms
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Product Terms: Universal License Terms
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Product Terms: Universal License Terms
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Product Terms: Universal License Terms
• Nothing in the Universal Terms addresses Contractors
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Product Terms: Office Applications
• It says that qualified user exemption is not available• If you look at Windows Desktop and Office 365 you will see the
same N/A
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Product Terms: Office Applications
• External User Access Requirements are N/A• This means there is no External Connector
• To determine licenses you need to then determine Qualified Device, etc from above
• VDI access would potentally force you to license
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Product Terms: Windows Server
• External User Access Requirements are External Connector• So potential no CALs needed (Especially outside of EA)
• Need to go back to Qualified Employee• Also utilize that language that says onsite contractors
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Product Terms: Exchange and SharePoint
• External User Access Requirements are N/A• External Connector is licensed with the server – potential it’s free
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So where does this leave us?
• There is no standard answer for do I need to license contractors• You have to look at each scenario and determine how best to address• Many organizations have contractors that need to be licensed and
others that do not• Areas where you will have to license for sure:
• VDI• Office365 access• Where you provide hardware
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EA: Contractors Best Practices
• Create Profiles to eliminate Enterprise Products from contractor licenses• Where possible do not provide hardware• Try to create an AD group for Contractors if possible so you can easily
identify them• Put language in your contracts with contractors that they are responsible
for software licenses • Try and list things like Office, Visual Studio, etc
Thank you & Questions?
Mike Austin – VP Service DeliveryPH: 1-888-978-5129 ext 701
@austinmik@infomethod180