Microsoft makes changes to Select Plus – Improves Discount and Software Assurance Rules

This is the 2nd of a two-part series (the first part was out on April 1st) :    The Select Plus volume licensing program received two updates that preserve discount levels and ease license tracking and management.

Two changes to Select Plus will benefit customers by helping to preserve discount levels and making license and Software Assurance purchases easier to manage

Part 2,  By John Cullen

Initial License and SA Purchase Term Alignment

The second Mar. 2011 change alters the rules for initial purchase of licenses with SA so that the SA renewal dates of multiple purchases fall on a single affiliate anniversary date. This helps organizations to keep track of their renewal dates.

In Select Plus, purchases are made by the affiliate, a business unit or department within the organization that signed the agreement and that is allowed to make independent purchases. An affiliate designates its affiliate anniversary as either the date that it first registered under a Select Plus Agreement or the date it began using a licensed product. Until now, for orders of licenses with SA (called L & SA purchases) in Select Plus, Microsoft ignored an affiliate’s anniversary date when setting the initial term for SA. Specifically, every order for L & SA was required to include a full 36 months of SA coverage. This resulted in multiple orders of L & SA purchases that ended on different dates, giving the affiliate a large number of renewal dates to track. Microsoft mitigated the problem by aligning all SA renewals after the initial 36 months to the affiliate anniversary. This meant that the term of the first SA renewal could be between 25 and 36 months. As a result, initial orders of L & SA had staggered end dates, but their corresponding renewals made within the same year were aligned.

Under the new policy, L & SA orders will be aligned to the next third-year affiliate anniversary from the date of purchase. Therefore, L & SA orders made at any point during a year will terminate simultaneously at the next third-year affiliate anniversary date, and thus they will run from 25 months (for purchases made just before the anniversary date) to 36 months (for purchases made just after). SA renewals are then aligned for a three-year period.

This change improves and simplifies the SA purchase process by avoiding L & SA orders with different end dates for renewal. L & SA orders will align at purchase instead of waiting for alignment upon SA renewal. Customers will still need to consider timing when buying SA for a particular product; however, internal recordkeeping and renewal date tracking should be simplified.

More Like Old Select

With these two incremental changes to how Select Plus operates, customers will have greater ability to retain their discount levels as well as simpler L & SA and SA renewal asset management and tracking. These changes also make Select Plus work more like the Select program that it replaces, which will give organizations currently on Select more reason to consider the newer program. Microsoft’s announcement of the changes is at https://partner.microsoft.com/US/licensing/licensingprograms/ltvolumelicensing/vlselectplus.

 

About the Author: John Cullen is a Research VP at Directions on Microsoft, an independent publisher of information about Microsoft technologies, product roadmaps and licensing rules and programs. For more information, visit www.DirectionsOnMicrosoft.com

Microsoft makes changes to Select Plus – Improves Discount and Software Assurance Rules

This is a 2 Part Series:    The Select Plus volume licensing program received two updates that preserve discount levels and ease license tracking and management.

Two changes to Select Plus will benefit customers by helping to preserve discount levels and making license and Software Assurance purchases easier to manage

Part 1,  By John Cullen

The Select Plus volume licensing program has improved incrementally with two updates effective in Mar. 2011. One enables more companies to carry over earned discounts from year to year, and another provides more favorable terms for purchases of licenses with Software Assurance (SA) coverage, which offers version upgrade rights and other benefits. The updates make Select Plus more similar to the Select “classic” program that it replaces, and they will offer most customers better discounts that are less sensitive to purchase timing and that provide easier SA tracking and management.

What Is Select Plus?

Under the Select Plus program, customers license products at discount pricing based on the number and type of licenses purchased. License purchases yield points that determine price levels for each of three product pools: systems (mainly Windows), applications (Office and similar PC products), and servers. Of the four discount levels, A through D, level D offers the greatest discount.

Select Plus is aimed at midsize and large organizations with 250 or more PCs that want transactional, pay-as-you-go license purchasing. Select Plus offers the widest spectrum of business software of Microsoft’s volume licensing programs. Furthermore, the purchase of SA is not required with Select Plus license purchases, compared to other programs such as the Enterprise Agreement. (SA is Microsoft’s subscription-based software maintenance plan that provides version upgrades and other subscription services.)

Rollover Points for Discount Levels

The Select Plus rules for accumulating points from purchases have changed to enable customers to roll over points from year to year, which will lead to more favorable discounts and make customers less dependent on purchase timing.

At each Select Plus agreement anniversary, a compliance check is done by Microsoft to determine whether the annual points earned for each product pool still qualify the customer for their current price discount level. If the points are not sufficient, the discount level is adjusted downward by a maximum of one level (for instance, from Level B to Level A pricing).

Until now, points have not been carried over to the following year. Each customer’s agreement year began with zero points earned. For example, a Select Plus Level A customer who earned 600 points in year one (100 points more than the minimum threshold for Level A) would stay at Level A for year two and would need to earn another 500 points in year two to maintain Level A for year three. The excess 100 points earned in year one do not carry over to year two and are not applied against the 500-point minimum requirement for Level A pricing in that year.

Under the policy introduced in Mar. 2011, after an annual compliance check, points in excess of the minimum threshold for a specific price level (for example, Level A requires 500 annual points) are considered “rollover” points. These are carried over to the next agreement year. At each anniversary, the compliance check will account for any rollover points to determine whether the minimum threshold for the current price level of each product pool has been met. The Select Plus Level A customer cited above would need to earn only 400 points in the second year to maintain that price level, not 500, because the customer would benefit from 100 rollover points earned in the first year.

Unlike frequent flyer points, rollover points cannot be used whenever the customer chooses. Rollover points are always applied to the following year. Rollover points do not expire: If a customer does not select a year to use them, the points can carry over for a number of years. They will assist customers in retaining their current discount levels, thereby saving them money on license costs. This will also make discounts less sensitive to purchase timing. A customer who has already met a given discount level for the year will have no incentive to postpone additional purchases until the following year to help maintain the discount level for that year.

  Part 2 will be out early next week.

About the Author: John Cullen is a Research VP at Directions on Microsoft, an independent publisher of information about Microsoft technologies, product roadmaps and licensing rules and programs. For more information, visit www.DirectionsOnMicrosoft.com

7 Habits of Highly Effective Brains

The United States Senate has engaged me to deliver a professional development workshop to the Senate staff later this month. This article is a brief overview of that planned presentation.

Recent research of the human brain has surprised the neuroscience community by revealing that our brains can change, and be improved, at any age in our life cycle. By developing simple habits, you can help ensure that your brain remains healthy and operating with improved efficiency for the rest of your life. People of any age can benefit from developing these 7 simple habits – listed in order of importance with the 7^th habit being the most valuable:

1. Have a Nutritious Diet. Eat a low glycemic diet with lots of nutrients. Omega-3 essential fatty acids have been shown to support brain health in countless studies. By the way, surprisingly blueberries are also an excellent food for your brain.
2. Focus Sequentially – Don’t Multitask. John Medina, author of Brain Rules, calculates that a person attempting to multitask takes up to 50% longer and makes up to 50% more mistakes that the person performing tasks sequentially!

Be Physically Active. You don’t need to be overly athletic for your brain to benefit. Studies show that 20 to 30 minutes of moderate exercise, like walking, three times a week is all you need to confer a wealth of benefits to your brain. In addition, such simple changes in lifestyle as taking the stairs at work, instead of the elevator, can help your brain stay healthy.

1. Participate Socially. People who are active socially tend to experience far less mental decline than people who are socially isolated. So look up an old friend, or get together with that aunt or uncle you haven’t spoken to in some time.

Sleep Well – And Long Enough. If you’ve been awake for 17 hours straight your performance is equivalent to having a blood alcohol-level of 0.05%! A sleep-deprived brain works harder, but accomplishes much less than a rested brain.

Challenge Yourself Mentally. When you learn new things, or even think new thoughts, your brain restructures itself. The more you exercise your brain, the better it performs. To really super charge your brain, take a class in a new language, or in computer programming, or practice learning a musical instrument.

1. Have a Positive Attitude – And Laugh Often. Attitude changes everything, including your brain. Research shows people who maintain a positive outlook on life are better equipped to cope with even serious brain disorders. Accept what you have, let go of anger and resentment, and move towards joy.

By making these 7 habits part of your daily routine, you’re taking steps to ensure that your brain stays healthy and efficient for a lifetime.

About the author: Jonathan Jordan, a member of the prestigious Society for Neuroscience, is an entrepreneur, Certified Business & Executive Coach and international speaker.  You can contact him through International Computer Negotiations, Inc at 407-740-0700 or via e-mail at Jonathan@MindfullyChange.com or via phone at (321) 214-5824. For more information visit www.MindfullyChange.com

Fair Deal Philosophy

ICN’s Fair Deal Philosophy was developed in 2001 in response to many client requests for a statement of negotiating philosophy that they could give their vendors at the outset of a negotiation.  Of key interest these days is the our view on partnerships.  While many suppliers claim to be “partners,” how many actually share the risks?

There are inherent risks in developing, implementing and using high technology solutions.  These risks are compounded by today’s rapidly changing and highly competitive environment.

Because of the uncertainty of the marketplace, the increasing complexity of the solutions, and the increased investment required to develop, deliver and implement these solutions, we will pursue relationships with a few select suppliers.

A partnership must be mutually beneficial and share the risks the alliance encompasses.  Such a relationship would embrace the following axioms:

• Our relationship will contribute to our mutual profit and growth.
• The risk of implementing and using technology solutions shall be shared.
  • The relationship will promote continuous and measurable improvement in the people, products and services of both organizations.
  • Our supplier partner shall share our dedication to customer satisfaction and quality.  
  • Both parties will always maintain the highest degree of integrity and ethics in their dealings with each other, their employees and the public.
  • Both parties will always strive to eliminate ambiguities and omissions from the spoken and written terms of the relationship by communicating with clarity of purpose and expectations. 

The Professional Acquisition Philosophy

Nearly twenty years ago, we developed the Professional Acquisition Philosophy.  Its tenets are as relevant today as they were then.  These relationship fundamentals are worth reviewing.

The professional acquisition philosophy is set around the following axioms:

1. In any major business transaction, both parties have a right and, indeed, an obligation to determine the goals and objectives that they wish to achieve in the transaction.
2. The goals and objectives desired by one party may create actual or potential costs or risks for the other party. Where this circumstance occurs, the party facing such costs or risks has a right and an obligation to identify the costs and risks and to limit or protect against them or, alternatively, to require additional consideration for accepting them.
3. Responsibilities, costs, and risks should be discussed, understood, and allocated in an honest and open business manner. Although the advocacy and sales process almost always results in the use of puffery and convincing argument, both sides should avoid efforts designed to foster or permit misunderstanding and deception, regardless of source or reason.
4. Honest mistakes and misunderstandings may occur in the negotiation of any complex business transaction. Neither party should falsely claim such problems, but where these problems occur both parties should work honestly toward their resolution.
5. The best contract is one which accurately sets forth the mutual understanding of the parties on all relevant issues. Such a contract invariably involves compromise, both in substance and specific language. This type of contract should be the negotiating goal.
6. A good contract must contemplate that one or both parties may fail to perform their obligations under the agreement for any number of reasons, including reasons beyond their control. Therefore, the contact should include clear standards of performance and remedies. Such an approach may actually reduce the likelihood of major disputes, by specifying the mutual obligations of the parties on all relevant issues.

            The professional acquisition philosophy recognizes that, in an ideal world, the best method of achieving optimum and mutual success at the bargaining table is for both parties to work together in a professional atmosphere to agree on how responsibilities, costs, and risks will be allocated, and to document the resulting compromise in a clear contractual agreement.

            The philosophy requires that each party treat the other as a professional to be respected for his or her honesty, expertise, and mutual desire to fairly document and consummate the transaction. In this regard, the philosophy requires a cooperative negotiating environment rather than an adversarial one. It also requires that each party be willing to listen and respond to the concerns expressed by the other side.

            In the professional philosophy, neither side “wins” in the traditional sense. Indeed, it might be said that neither side wins unless both sides win. As a result, negotiating factors such as aspiration level and psychological leverage must be directed away from achieving victory at all costs and toward achieving an acceptable, fully-understood, and well-documented compromise. Ploys and manipulative strategies and tactics have no place in negotiations governed by the professional philosophy.  Despite this fact, advocacy, sound reasoning, and effective, forceful communication play strong roles under the professional philosophy.

A Unique Opportunity

            One of my favorite events each year is the IT Procurement Summit produced by Caucus – the Association of Technology Procurement Professionals. 

            What sets the IT Procurement Summit (ITPS) apart from other conferences, seminars and workshops is that its intimate size creates an environment charged with enthusiasm for the profession. 

            Thanks to the efforts of the Caucus Executive Advisory Committee – a dozen dedicated volunteers from some of the nation’s leading enterprises – hundreds of topic suggestions and dozens of speaker applications are distilled into an information-packed two day, multi-track event. ITPS speakers are actual practitioners of the trade, bringing their practical experience and insight into every session. 

            The ITPS isn’t “pay to play;” that is, speakers don’t pay for the privilege, and they don’t attend with the purpose of hawking their wares. (In fact, supplier participation and access is carefully restricted.) 

            Speakers are carefully selected based on their professional experience and the topic of their presentation.  The result: a more compelling presentation and a more compelling conference. 

            And because of its intimate size, networking opportunities abound. So it’s a great chance to meet others in the profession, problem solve, and share ideas, information and experience.

            The 2011 IT Procurement Summit will be held on October 27 & 28 in Orlando, FL.

            There are two unique opportunities in connection with the ITPS will disappear on December 31.

            First, the Caucus Executive Advisory Committee issued its Call for Speakers earlier this fall.  If you’re a dynamic speaker with experience in the technology acquisition field, then you can contribute to the profession by submitting a speaking proposal by December 31.  More information may be found here. 

            Second, the Caucus Executive Advisory Committee has authorized steep discounts for those people who register by December 31 and pay by January 31.  Caucus members can register for $895 per person and non-members can register for $1,295 per person.  Email Caucus Members Services or phone (407) 740-5600 for more information.

            I hope you’ll consider taking advantage of these opportunities, so you can see why I think it’s such a great event.

Did you know?…. Microsoft Licensing Gotcha’s

by Lisa Schick

Educating your architects and IT personnel on the proper use of licenses could help you avoid costly compliance issues.  For example on most server products it is within the license agreement to have an active back up server that is used only in case of a primary server failure but if you allow just one read only instance on that back up server you are required to pay a full server license for the back up server.

Servers and virtualization – Architects often think that when they virtualize servers they are saving money on the hardware but this can become very costly with software licensing.  For example, if you are using SQL server, you can run several instances of SQL on a single server but the minute you turn the server into a virtual machine, you are now are obligated to pay for a server license for each VM you are using.  So if you have 4 VMs running on a server you will need 4 SQL server licenses.  Sometimes it is more cost effective to “beef up” your hardware using higher powered processor, more RAM and faster buses to reduce the number of SQL licenses required. Here is an example: 

Single Server Example: License to allow 16 Windows Server VM’s to simultaneously run on a 2 processor server

            Buy 16 Standard edition licenses for the server

            Buy 4 Enterprise edition licenses for the server

            Buy 2 Datacenter licenses for the server (unlimited VM’s)

Multiple Server example: 16 VM’s that are moved between 4 servers (2 processors each)

            For maximum flexibility, buy one of the three options above TIMES FOUR

            Anything less will limit the number of VM’s that can be simultaneously run on one or more servers

Any Windows server touched by an external source needs to have an “external connector” license.  So if you have a web server running windows that accesses a SQL database, you will need to purchase an EC license for the SQL server and the web server.

When using the Sharepoint application, it is import to really evaluate all of the necessary functionality.  The Sharepoint foundations product is FREE when you purchase a windows server license.  You can often use the free version of this application and build the additional functionality using available tools or possibly purchase whatever added functionality you may need from another vendor at much lower costs.

You need to pay attention to scenarios where you have an application between the end user and the MS servers.  For example, if you are running an application that uses SQL server as the backend database, any person or device that access the initial application is required to have a CAL for SQL.

Lisa Schick is a Senior Consultant for ICN (www.dobetterdeals.com), a Winter Park, Fla., consultancy that educates Professionals on IT Procurement, Sourcing, and Vendor Management. ICN sponsors CAUCUS: The Association of Technology Procurement Professionals. Contact her at lschick@dobetterdeals.com

Do You Care about the Long-Term?

            A few weeks ago, I wrote about the Senior Manager who bought in to the “We’re Your Partners” supplier ploy hook-line-and-sinker.  Later, I had a conversation with an IT procurement practitioner (our hero) at a major NYSE-listed company. 

            It seems that an executive with his company was hell-bent on signing an agreement with a particular vendor despite the fact that the agreement was not in the best interests of the company.  Our hero explained all his objections and refused to sign off.  Despite internal procedures that require our hero’s signing off on all such agreements before they’re executed, the executive went ahead and executed the contract anyway.  (I can’t wait to see how this works out.)

            These two events got me thinking.  Nowadays, do we care more about short term results than the long-term ramifications of our decisions?  Are our decisions being driven by a “git ‘er done” mentality rather than what’s best for the company?  Are bad decisions being made because people know that it’s unlikely they’ll be around when things start to come undone?

            How are decisions botched in your organization?  How are successful decisions made? Feel free to comment – anonymously of course!

Our guest blogger is Dan Wallace, a staff member at ICN and Caucus-The Association of Technology Acquisition Professionals. For information on the time-tested, best-practice methodology called the Managed Acquisition Process^TM, contact ICN.  If you have a story worth sharing, please contact ja4@dobetterdeals.com.