Microsoft Ending Its Open License Program in 2022 – What You Need to Know

 
 

News, TDtransform
28 Jun 21 Author: Ileana Cipca

The Microsoft New Commerce Experience with Tech Data Series is designed to help our customers stay up to date. 

The evolution and expansion for the Cloud Solution Provider (CSP) Program is here.  As part of the new commerce experience initiative, Microsoft has announced the sunset date for the Open License Program on January 1, 2022.

The announcement doesn’t come as huge surprise as Microsoft is committed to expanding opportunities for partners through its new commerce experience, but we’re here to make sure you’re up to date on the changes and what this means for you. 

Here’s what you need to know:

July 2021: Important changes to the Cloud Solution Provider, Open License, and Open Value programs

  • Cloud Solution Provider program
    • Launch perpetual software licenses for public sector customers (Govt/Edu/Charity)
    • Introduce Visual Studio Pro and Get Genuine Windows Agreement (GGWA) perpetual software licenses for all segments
  • Open Value program
    • Additional SKUs available in the Open Value program for education and nonprofit, providing similar offers to the Open License program
  • Open License program
    • Microsoft will no longer launch new offers in the Open License program

December 2021: Last day for new purchases or renewals in the Open License program.

Commercial customers won’t be able to start a new Open License agreement, or buy additional licenses through an existing agreement, after December 31, 2021.

Customers can purchase software licenses through the Perpetual in CSP offering (available on StreamOne today). Partners may be eligible for rebates on these sales. In this license model, customers make a one-time upfront payment for the licenses, like the Open program.

All License & Software Assurance (L&SA) offers available within the Open License program will be available through Open Value (OV) and Open Value Subscription (OVS) agreements.

It is important to note that the price list margin remains for all programs and partners, but incentives for the Open License Program and all Open Value agreements have been discontinued since December 31, 2020. With Open Value agreements, you choose upfront payment or a spread-pay option (annual payments over three years)

Customers with perpetual software licenses will continue to have full rights and access to the licenses acquired through the Open program.

This will not change for customers with existing licenses purchased by the deadline. However, renewing or buying new licenses after December 31st 2021, will need to be made through the CSP program or Open Value/Open Value Subscription.

Now that you are up to speed on the upcoming changes, let’s walk through what the next steps are:

Understand the changes and answer any questions you may still have:

Read the Microsoft’s updated Partner Blog and familiarise yourself with the changes. Understand the difference between Perpetual in CSP versus traditional CSP

Learn about new opportunities:

Find which best fits your needs – review comparison charts for traditional CSP, Perpetual CSP, Open Value and Open Value Subscription

Learn more about the Cloud Solution Provider Program, it’s benefits and how we’re here to help you through the transition.

Help your Customers Transition:

Windows Server and SQL Server on Azure: Grow cloud revenue by helping your customers migrate to Windows Server and SQL Server on Azure – the most cost-effective, frictionless way to move to the cloud. More information from Microsoft here.

Transition from Office to Microsoft 365: Offer your customers the most collaborative and secure, up-to-date features in one seamless, integrated experience with Microsoft 365. More information from Microsoft here.

Get established with the CSP Program:

Connect with Tech Data’s Microsoft Cloud Specialist. 

We all know change can be scary but sometimes change is good.  Luckily for you, there’s good in this change.  With the new changes to the Open License Program, partners take advantage of the new commerce experience for CSP benefits such as: 

  • Faster time to market to value with solutions – Plus, enabling partners to integrate value-added services to their business
  • Increased flexibility without compromising control – Meet your customers’ needs and help them with a clear path to the cloud
  • Optimize costs and unlock new savings – Consistent purchase experience, access to tools to optimize cloud spend and choose most cost-effective solutions
  • Built on a foundation of trust and security - better customer experience for the management of licenses and services

Access to additional Opportunities and Incentives – Microsoft offers revenue opportunities and incentives for partners enrolled in the Cloud Solution Provider program.

Microsoft’s commitment is to expand partner opportunities, drive deeper engagements and deliver innovative solutions and the Tech Data Microsoft Team is here to help guide you through this journey.

Let’s get started!

For more information, contact the Tech Data Microsoft Cloud Team at cloud@techdata.eu