Have you heard about the changes Microsoft are making to their licensing programs? How does this affect me?
In order to support partners through these program transitions we have outlined some of the important changes including the recently announced price increase and what steps you should take.
Why are Microsoft retiring Open Licensing?
Open Licensing is a legacy SMB program that has been running for over 20 years now, along the way new cloud offerings have been added to this traditional model but as the Cloud Solution Provider (CSP) Program has evolved and with the introduction of perpetual software on CSP it doesn’t make sense to have two program so similar. Cloud Solution Provider (CSP) Program allows you the partner to have more control to create end to end solutions for your end users.
We highly recommend you start transitioning your Open License customers to CSP
Microsoft has been working over the years to try and simplify their licensing and programs that are offered to both partners and end users. Currently there are at least 6 different ways depending on the size and requirement for the end user and Microsoft’s aim is to get this reduced to 3 Go-To-Market channels, named The New Commerce Experience. If you want to dive deeper on Microsoft Commerce Experience check out this blog here.
Why are Microsoft increasing the pricing on Open Licensing?
To aid in with this change and move from traditional program purchases on Open Licensing and transition to the Cloud Solution Provider (CSP) model Microsoft will be increasing the costings on all products over the next 4 months. There are two types of price increasing happening:
- Microsoft are increasing the Estimated Retail Price (ERP) on certain products
- As of 1st August 2021, Microsoft increase the ERP by 10% on Office Professional Plus, Office Standard and individual apps such as Visio, Project, Exchange Server, Skype for Business Server, Project Server, and SharePoint Server.
- As of 1st August 2021, Microsoft increase the ERP by 21% on EMS E3, 11% on EMS E5 and 33% on Intune
- As of 1st September 2021, Microsoft will increase the ERP by 10% on Windows Server and Remote Desktop Services (RDS) Client Access Licences (CALs).
- Microsoft are increasing partners wholesale pricing by 5% on Open Licensing
- With this wholesale price change you will see a 5% increase in the pricing you receive from TD SYNNEX, this change is over the next 4 months:
- 1st August 2021, 21% increase on EMS E3, 11% increase on EMS E5 and 33% increase on Intune
- 1st September 2021, 5% Increase on Windows Server, RDS CALs and SQL Server
- 1st October 2021, 5% increase on Office Standard and Office Professional Plus
- 1st November 2021, 5% increase on all remaining on-premise products within the Open License Program.
- With this wholesale price change you will see a 5% increase in the pricing you receive from TD SYNNEX, this change is over the next 4 months:
What are the timelines on Open retirement?
As you have seen above over the next 4 months pricing will increase on Open Licensing making Perpetual Software on CSP the better option for end users to transition to. The 31st December 2021 is the last day you can transact through the Open License Program. As of 1st January 2022, partners must be onboarded and transacting through CSP for perpetual software and cloud products.
What if I have a Software Assurance Renewal?
At this time Open Value and Open Value Subscription will remain for partners to transact on. Only Open License only and Cloud services are being pushed to CSP currently. Our team will be able to best advise you on your best solution, email your quote requests to csp@techdata.co.uk and we will come back with the best option.
Are there any price increases coming to Open Value and Open Value Subscription?
Microsoft have announced that there will be a price increase for Open Value and Open Value Subscriptions for a subset of products ranging from 6% to 13% on wholescale pricing from 1st September 2021.
The products confirmed in this price increase include: Windows Remote Desktop Services CALs, Windows Remote Desktop Services External Connector, Windows Server Standard & Datacentre Core Licensing, Core Infrastructure Standard & Datacentre Core Suites, Windows Server CALs, Windows Server External Connector, Windows Rights Management Services CALs an Windows Rights Management Services External Connector.
What are the next steps?
Already a CSP partner? We highly recommend you start transitioning your Open License customers to CSP - our team is currently contacting our partners to the most appropriate options to position to your end users.
In order to support your conversations with customer we have created a series of partner datasheet to help with your GTM – these can be found here here.
Are you new to CSP? We are here to help get you onboarded, talk to you about the commercial benefits of Microsoft cloud solutions and show you why you should partner with TD SYNNEX! please get in touch with us on csp@techdata.co.uk.
