Microsoft SPLA vs CSP – Making the Right Choice

Microsoft SPLA vs CSP

• Microsoft SPLA (Service Provider License Agreement):
  • For service providers and ISVs hosting services for end users.
  • Offers monthly reporting and payment.
• Microsoft CSP (Cloud Solution Provider):
  • For resellers and partners to directly manage customer lifecycle.
  • Involves annual or monthly subscriptions.

Microsoft SPLA vs. CSP – The Core Differences

Microsoft SPLA – An Overview

Microsoft SPLA is a licensing model that allows your business to provide hosted applications and software services to your customers using Microsoft products.

As a licensee, you’re not the customer but the service provider, offering software services from one or more data centers through various networks.

However, it’s important to note that SPLA licenses require a Windows Server, limiting the ability to move Microsoft apps to the cloud based on the application.

Microsoft CSP – A Closer Look

On the other hand, the Microsoft CSP program offers a different approach. It allows partners to own their customer lifecycle fully, selling Microsoft Cloud Service and software licenses with added support.

This program provides enhanced security and support to cloud service providers, which SPLA doesn’t offer.

Microsoft SPLA vs. CSP: A Comprehensive Comparison

Microsoft offers two programs tailored for service providers and organizations looking to leverage cloud and software services: the Service Provider License Agreement (SPLA) and the Cloud Solution Provider (CSP) program.

Understanding the differences between these two can help organizations choose the most suitable option for their needs.

Extended Support with Azure

• CSP Program Advantages:
  • Extended Support: Azure, accessible through the CSP program, extends comprehensive support for cloud services, ensuring organizations have the assistance they need for their Azure deployments.
  • Regional Resiliency: Azure Cloud Services provided through CSP offer regional resiliency, enhancing the reliability and availability of services across different geographical locations.
  • Feature Parity: Deploying Azure Cloud Services through CSP ensures feature parity, allowing organizations to leverage the latest Azure features and capabilities.
• SPLA Limitations:
  • SPLA licenses do not include extended support options for Azure, potentially limiting the scope of support available to organizations.

No Hybrid Benefit with SPLA

• Azure Hybrid Benefit:
  • A notable advantage of the CSP program is the Azure Hybrid Benefit. This benefit allows organizations to significantly reduce the costs of running workloads in the cloud by utilizing their existing on-premises Windows Server and SQL Server licenses with Software Assurance.
• SPLA Restrictions:
  • Unlike CSP, SPLA licenses cannot be utilized on Azure, and the Azure Hybrid Benefit is unavailable with SPLA. This restriction may impact the cost-effectiveness and flexibility of cloud deployments for organizations using SPLA.

Profitability with the CSP Program

• Incentives and Profitability:
  • The CSP program is designed to empower providers with incentives that boost profitability. These include:
    • Enhanced customer engagement opportunities.
    • Greater control over investments.
    • There is potential for increased profits through direct billing and the ability to offer managed services and bundled solutions.

Enhanced Support and Security with CSP

• Support and Security:
  • CSP stands out by offering enhanced security measures and dedicated support, which includes:
    • A focused point of contact for all support requirements and questions, streamlining the resolution process.
    • Advanced security protocols and tools to protect data and applications in the cloud.

Conclusion

Choosing between Microsoft’s SPLA and CSP programs depends on an organization’s specific needs, each offering distinct advantages.

CSP stands out for organizations looking for extended Azure support, cost-saving benefits like the Azure Hybrid Benefit, and enhanced profitability and security features.

On the other hand, SPLA may suit service providers focused solely on licensing Microsoft products for hosting services. Understanding these differences is crucial for selecting the most appropriate licensing model to support an organization’s operational goals and cloud strategies.

Additional Differences: Microsoft SPLA vs CSP

1. The partner holds an SPLA license and is not bound to a specific customer.
2. The customer holds the CSP license via a Microsoft License Agreement, delivered and invoiced by a partner.
3. An SPLA license is on a month-to-month basis and does not require any commitment.
4. CSP program participants must commit and pay for 1 or 3 years upfront and define the license’s customer price.
5. CSP partners can also make the cost of licenses part of a managed service.
6. No license mobility applies to SPLA licensing, whereas license mobility is functional for CSP subscriptions.

FAQs: Microsoft SPLA vs CSP

Conclusion: Making the Right Choice – Microsoft SPLA vs CSP

Choosing between Microsoft SPLA and CSP can be a daunting task. However, understanding the core differences, benefits, and potential drawbacks can help you make an informed decision.

While SPLA offers a flexible, pay-as-you-go model, CSP provides enhanced support, security, and profitability. Ultimately, the choice between Microsoft SPLA and CSP should align with your business needs, customer requirements, and long-term goals.

Remember, the cloud journey is not a one-size-fits-all approach. It’s about finding the right fit for your business. Whether you choose SPLA or CSP, ensure it propels your business towards growth and success in the cloud.