Microsoft Outsourcing Licensing Changes

As of October 1, 2022, Microsoft has implemented significant upgrades to their outsourcing and hosting terms.

Microsoft users will now be able to benefit from:

Flexible Virtualization benefit for customers that greatly expands customer choice when outsourcing. Under this benefit, customers with Software Assurance or subscription licenses may use their own licensed software to build and/or install solutions and run them on any cloud provider’s infrastructure—dedicated or shared.

• Microsoft has added the option for customers with Software Assurance or subscription licenses to license Windows Server on a virtual core basis. Under this model, customers can buy licenses for only the virtual cores they need (subject to a per VM minimum), without being tied to a physical number of cores on the server. With the virtual core licensing option, customers can license Windows Server by the number of virtual cores they are using in virtual machines, making Windows Server easier to license when virtualizing or outsourcing.

• Microsoft have also made it easier to virtualize Windows 10 or Windows 11 by eliminating the Virtual Desktop Application (VDA) add-on license requirement for Microsoft 365 F3, Microsoft 365 E3, and Microsoft 365 E5 users who want to virtualize Windows 10 or Windows 11 on servers and don’t have a primary Windows Pro device.

Please feel free to contact your client manager or one of the technical team to find out more.

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