Microsoft Licensing

Microsoft SCE and more Enrollment Types

Microsoft SCE (Server and Cloud Enrollment) is:

  • A component of the Microsoft Enterprise Agreement.
  • Focused on licensing for Microsoft’s server and cloud technologies.
  • Designed for large organizations with significant server and cloud needs.
  • Offers benefits like cost savings and flexible licensing options.

Microsoft SCE and Enrollment Types

Microsoft SCE and Enrollment Types

Choosing the right Microsoft licensing agreement is essential for ensuring that your organization meets its software needs while optimizing costs and maintaining compliance. Microsoft offers various enrollment types to meet the diverse needs of different businesses.

These include the Server and Cloud Enrollment (SCE), Enterprise Agreement (EA), Microsoft Products and Services Agreement (MPSA), and several more specialized enrollments that cater to different scenarios, such as education, core infrastructure, and application platforms.

This article’ll explore server and cloud enrollment (SCE) in-depth and other Microsoft enrollment types to help you understand how each can fit into your organization’s strategy.

What is Server and Cloud Enrollment (SCE)?

The Server and Cloud Enrollment (SCE) is designed for organizations heavily invested in Microsoft’s server and cloud technologies.

This type of agreement is part of Microsoft’s volume licensing offerings. It is ideal for enterprises either running or planning to expand their use of Microsoft’s server technologies and cloud services, such as Azure, Windows Server, SQL Server, System Center, and BizTalk.

Key Features of Microsoft SCE:

  • Commitment to Microsoft Technology: SCE is designed for organizations that want to commit to using Microsoft’s server or cloud technologies. It requires a commitment to one or more of Microsoft’s server technologies, such as Windows Server or Azure.
  • Cloud-Focused: SCE supports cloud adoption and hybrid environments. Organizations can enroll in Azure-only SCE or include other server products.
  • Discounts and Benefits: The SCE agreement provides significant discounts, typically 15-30%, compared to standard licensing. It also includes Azure Hybrid Benefit, which allows organizations to use existing Windows Server and SQL Server licenses in Azure at a reduced cost.
  • Software Assurance: SCE includes Software Assurance, which offers access to new product versions, planning services, support, and training benefits.
  • Flexibility for Growth: The agreement allows customers to grow their cloud usage and scale with organizational needs, making it a cost-effective option for expanding infrastructure.
Benefits of Server and Cloud Enrollment (SCE)
  • Lower Costs: Significant cost savings through volume discounts and using existing licenses for cloud services.
  • Standardization: Encourages standardization across Microsoft technologies, which can simplify management and support.
  • Cloud and Hybrid Support: This option is perfect for organizations moving workloads to the cloud or maintaining a hybrid cloud/on-premises setup.
Examples of Organizations That Benefit from SCE
  • Large Enterprises: Companies with significant investments in server technologies benefit from the cost savings and predictability SCE offers.
  • Companies Migrating to the Cloud: SCE is a natural fit for organizations planning a significant shift to the cloud or running hybrid environments due to its incentives and cloud benefits.

Other Microsoft Enrollment Types

Other Microsoft Enrollment Types

Microsoft offers a range of enrollment options tailored to different customer needs. Below, we cover the main types of enrollments beyond SCE, each serving different use cases.

1. Microsoft Enterprise Agreement (EA)

The Microsoft Enterprise Agreement (EA) is designed for organizations with 500 or more users or devices. It is a volume licensing option that provides discounted pricing based on a three-year term, making it ideal for large enterprises looking for standardized software across their workforce.

Key Features:

  • Three-Year Commitment: EA provides predictable pricing for a fixed three-year period, allowing large enterprises to plan their budgets.
  • Volume Discounts: EA offers volume discounts, making it cost-effective for organizations with many users or devices.
  • Annual True-Up: EA includes an annual True-Up process where organizations report any changes in usage and adjust licensing accordingly.
  • Software Assurance: SA is included by default, offering product upgrades, deployment planning, and support services.

Best for:

  • Large Organizations: Multinational corporations and enterprises need consistent and unified licensing across their workforce.
  • Government Agencies and Educational Institutions: These organizations benefit from EA’s centralized management and predictable pricing.

2. Microsoft Products and Services Agreement (MPSA)

The Microsoft Products and Services Agreement (MPSA) is a transactional licensing agreement that provides flexibility without requiring a fixed-term commitment. It targets organizations that want to purchase Microsoft products and services as needed.

Key Features:

  • No Minimum Requirements: MPSA does not require a minimum number of users or devices, making it suitable for businesses of varying sizes.
  • Pay-As-You-Go: Organizations can purchase licenses when they need them without having to enter a long-term agreement.
  • One Agreement for Multiple Types of Licenses: MPSA allows for the management of on-premises software, cloud services, and Software Assurance under a single agreement.

Best for:

  • Mid-Sized Organizations: Companies that want flexibility in purchasing licenses without committing to a specific term.
  • Organizations with Fluctuating Needs: MPSA is ideal for businesses needing to scale their licenses frequently.

3. Enrollment for Education Solutions (EES)

The Enrollment for Education Solutions (EES) is specifically designed for educational institutions. It provides simplified licensing and pricing tailored to the education sector, including cost-effective pricing options.

Key Features:

  • FTE-Based Licensing: Under EES, licensing is based on the number of Full-Time Equivalent (FTE) employees, simplifying the licensing process.
  • Cloud Services: EES includes access to Microsoft 365 and Azure services, supporting a cloud-first education strategy.
  • Student Use Benefits: Qualified institutions can offer students the use of software at little or no additional cost, helping create a digitally integrated learning environment.

Best for:

  • Educational Institutions: Universities, colleges, K-12 schools, and other learning institutions need an affordable and simple licensing process for Microsoft products.

4. Enterprise Subscription Agreement (ESA)

The Enterprise Subscription Agreement (ESA) is similar to EA but differs in license ownership. Under ESA, licenses are subscription-based, meaning they are only valid if the subscription is active.

Key Features:

  • Three-Year Term: Like EA, ESA is a three-year agreement but allows for subscription-based pricing.
  • Lower Upfront Costs: ESA has lower upfront costs compared to EA, making it more accessible for organizations that prefer to avoid significant initial expenses.
  • Scalable: Organizations can easily adjust the number of licenses as their workforce changes, allowing for greater flexibility.

Best for:

  • Growing Enterprises: Companies looking for a cost-effective way to license products for a growing or fluctuating workforce.
  • Businesses Favoring OpEx over CapEx: ESA is ideal for companies looking to reduce capital expenditure and prefer to treat their licensing as an operational expense.

5. Enrollment for Application Platform (EAP)

The Enrollment for Application Platform (EAP) is targeted towards organizations using Microsoft’s application platform products extensively, such as SQL Server, BizTalk Server, and SharePoint Server.

Key Features:

  • Commitment to Specific Technologies: EAP requires customers to commit to using Microsoft’s application platform technologies.
  • Discounted Pricing: Provides significant discounts for organizations committing to Microsoft’s application products in the long term.
  • Software Assurance: SA is included, providing access to new product releases and support services.

Best for:

  • Application-Intensive Organizations: Companies running core business processes on Microsoft application servers can benefit from EAP’s lower costs and specialized support.

6. Enrollment for Core Infrastructure (ECI)

Enrollment for Core Infrastructure (ECI) is designed for organizations using Microsoft’s core infrastructure technologies, such as Windows Server and System Center. It focuses on providing a unified approach to managing IT infrastructure.

Key Features:

  • Integrated Licensing: ECI provides an integrated licensing system for Windows Server, System Center, and other key infrastructure tools.
  • Cost Savings: Discounts for organizations standardizing on Microsoft’s core infrastructure products.
  • Simplified Management: ECI simplifies management by providing a single licensing solution for all core infrastructure components.

Best for:

  • IT-Intensive Organizations: Businesses relying heavily on IT infrastructure need a simplified and cost-effective way to manage multiple server and tool licenses.
  • Data Centers: ECI can benefit organizations running large data centers by reducing the complexity and cost of managing their infrastructure.

Choosing the Right Enrollment Type

The choice between Microsoft SCE and other enrollment types depends on your organization’s size, budget, existing IT investments, and future growth plans.

  • Choose SCE if: Your organization is heavily invested in Microsoft server products and cloud services like Azure. SCE provides significant discounts and cloud integration benefits, making it ideal for companies focused on cloud adoption and hybrid environments.
  • Choose EA if your organization has over 500 users or devices and prefers a centralized, standardized licensing solution. EA is best suited for large enterprises that need predictable costs and centralized management.
  • Choose MPSA if your organization requires flexibility without a long-term commitment and wants the ability to purchase licenses as needed. MPSA is suitable for mid-sized organizations or those with fluctuating needs.
  • Choose EES if You are an educational institution looking for affordable, straightforward licensing with benefits for staff and students. EES is tailored to the education sector’s specific needs.
  • Choose ESA if you prefer subscription-based licensing with lower upfront costs. ESA is ideal for companies that want scalability without significant initial investments.
  • Choose EAP if: Your organization relies heavily on Microsoft application platforms like SQL Server or SharePoint Server. EAP provides specialized discounts and benefits for long-term commitments to application platform products.
  • Choose ECI if Your organization is focused on core infrastructure, including data centers or server management. ECI helps manage infrastructure with a unified approach, reducing complexity and cost.

Read our comparison article between Microsoft EA and Open Value.

Conclusion

Microsoft offers a wide range of enrollment types to meet the diverse needs of different organizations. The Server and Cloud Enrollment (SCE) is ideal for those deeply invested in Microsoft’s server and cloud products, offering significant savings and support for cloud migration.

Other enrollments, such as EA, MPSA, EES, ESA, EAP, and ECI, each serve specific scenarios that align with varying business goals, size, and IT requirements.

Understanding these options and aligning your choice with your organization’s goals will ensure you get the most value from your Microsoft licensing. Whether your focus is on cost savings, cloud adoption, scalability, or maintaining on-premises infrastructure, a Microsoft enrollment type is designed to fit your unique needs.

FAQs

What is Microsoft Server and Cloud Enrollment (SCE)?

Server and Cloud Enrollment (SCE) is a licensing program that allows organizations to commit to Microsoft server and cloud technologies like Azure, Windows Server, and SQL Server. It offers cost savings through discounts, access to cloud benefits, and flexible growth for those committed to these technologies.

How does SCE support cloud adoption?

SCE helps with cloud adoption by providing significant discounts for Azure services. It also includes the Azure Hybrid Benefit, which allows organizations to use their existing Windows Server and SQL Server licenses in Azure. This reduces overall costs and simplifies moving on-premises workloads to the cloud.

Who should use the Microsoft Enterprise Agreement (EA)?

Microsoft Enterprise Agreement is ideal for large organizations with over 500 users or devices. It provides long-term, standardized licensing at discounted rates and features like Software Assurance, which includes 24/7 support, deployment planning, and product upgrades.

What are the main differences between SCE and EA?

SCE focuses specifically on server technologies and cloud products, providing targeted benefits for organizations investing in these areas. In contrast, EA is a more comprehensive licensing solution for large enterprises that covers a wide range of Microsoft products. It offers consistency across software used throughout the organization.

How does Software Assurance benefit organizations under SCE?

Software Assurance offers access to the latest Microsoft software versions, 24/7 support, and training resources. It also includes planning services and helps organizations upgrade and deploy Microsoft products effectively. With SCE, Software Assurance ensures companies always have the support and resources to maximize their investments.

What is the Microsoft Products and Services Agreement (MPSA)?

MPSA is a licensing option for organizations looking for flexibility without long-term commitments. It is a transactional agreement that allows organizations to purchase products as needed, without any minimum user or device requirements, making it suitable for companies with dynamic needs.

How is Open Value different from EA?

Open Value is tailored for small and medium-sized businesses. It offers annual payments over three years and perpetual licensing, meaning organizations own the licenses forever. Unlike EA, which requires a minimum of 500 users or devices, Open Value is more accessible to smaller companies and offers greater flexibility for software ownership.

What is Enrollment for Education Solutions (EES)?

Enrollment for Education Solutions (EES) is a Microsoft licensing program designed specifically for educational institutions like schools and universities. It bases licensing costs on the number of Full-Time Equivalent (FTE) employees rather than individual devices. This makes it simpler for educational institutions to budget and includes benefits for both students and staff, such as software access and training.

What is the Enterprise Subscription Agreement (ESA)?

The Enterprise Subscription Agreement (ESA) is a subscription-based version of the Microsoft Enterprise Agreement. Instead of owning licenses, organizations lease the software for the agreement term. This lowers upfront costs, making it ideal for companies that want to keep their licensing costs as an operational expense rather than a long-term capital investment.

Who benefits from Enrollment for an Application Platform (EAP)?

Enrollment for an Application Platform (EAP) benefits organizations that rely heavily on Microsoft application platforms like SQL Server, BizTalk Server, or SharePoint Server. EAP provides discounts for long-term commitments to these products and helps lower the total cost of ownership for critical business applications.

What is Enrollment for Core Infrastructure (ECI)?

Enrollment for Core Infrastructure (ECI) is designed for organizations looking to license Microsoft’s core infrastructure products, such as Windows Server and System Center. ECI helps companies standardize their infrastructure on Microsoft technologies while providing significant cost savings and simplified license management for data centers and IT environments.

Is Server and Cloud Enrollment suitable for small businesses?

SCE is typically not ideal for small businesses. It requires a substantial commitment to Microsoft server and cloud technologies, which may be difficult for smaller organizations to maintain. Small businesses are better served by more flexible licensing options like Open Value or MPSA, which have lower entry requirements and more adaptable purchasing models.

How does the True-Up process work under the Enterprise Agreement?

The True-Up process is an annual exercise that allows organizations under an EA to report any increase in users, devices, or services. The company then pays for any new licenses added over the past year. This process ensures organizations stay compliant and accurately licensed as their business grows.

What are the main benefits of committing to SCE?

Committing to SCE offers primary benefits, including substantial discounts on Microsoft server and cloud products, access to Software Assurance benefits, and simplified management of on-premises and cloud technologies. This standardization helps organizations reduce costs while making managing and maintaining their IT infrastructure easier.

How do you decide between EA and SCE?

Choosing between EA and SCE depends on your organization’s size, growth plans, and IT strategy. EA is ideal for large organizations needing comprehensive coverage across multiple Microsoft products. SCE is better suited for organizations heavily invested in Microsoft server technologies or planning significant cloud expansion. If your company wants to standardize server infrastructure while expanding cloud usage, SCE is a more targeted option.

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Author
  • Fredrik Filipsson brings two decades of Oracle license management experience, including a nine-year tenure at Oracle and 11 years in Oracle license consulting. His expertise extends across leading IT corporations like IBM, enriching his profile with a broad spectrum of software and cloud projects. Filipsson's proficiency encompasses IBM, SAP, Microsoft, and Salesforce platforms, alongside significant involvement in Microsoft Copilot and AI initiatives, improving organizational efficiency.

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