SPLA – Reciprocal Service Providers
Minor Microsoft SPLA agreement refresh affects a small minority of service providers.
In April 2017 Microsoft released a minor agreement refresh to introduce the term “Reciprocal Service Provider”. Reciprocal Service Providers generating more than a billion US dollars per year are no longer eligible for SPLA.
What you need to do
Always read the contract terms before you sign a new or renewal SPLA. Nonetheless, most service providers will be unaffected by the new terms in the April 2017 SPLA. Nearly all service providers will keep the existing SPLA business rules, without disruption or any other changes to their Microsoft relationship.
Reciprocal Service Provider is defined in the April 2017 version of SPLA as follows.
“ ‘Reciprocal Service Provider’ means any entity, collectively with its Affiliates, that (i) makes software available for license by third-party Service Providers, including certification or qualification of end user provided licenses, for use in connection with any software services or managed services that the Service Provider offers to end users and (ii) earns annual revenue from the sale of that software (directly or indirectly) in excess of 1 billion U.S. Dollars (or the equivalent in the applicable currency).”
The Term and Termination section (15d) has also been updated as follows.
“Customer is not eligible to enter into this SPLA if Customer is a Hyperscale Service Provider or a Reciprocal Service Provider. If Microsoft determines, at any time during the term of this SPLA, that Customer satisfied the definition of Hyperscale Service Provider or Reciprocal Service Provider as of the effective date, Microsoft may immediately terminate this SPLA for cause.”
Very few service providers (described as Customers in the above SPLA extract) are expected to fit the definition of Reciprocal Service Provider, due to the billion dollar threshold.
Microsoft will accept and process the previous version of SPLA until July 15, 2017 only.
If you have any questions, please contact us.
Please visit our DXC Software Licensing and Management Solutions (SLMS) Hosting webpages where you’ll find more information on how we can help you exploit the opportunities around Microsoft SPLA, Citrix CSP, and VMware vCAN.
Remember – Microsoft’s Services Provider Use Rights (SPUR) document governs the use of Microsoft software products and is the only complete, up-to-date and legal source of SPLA licensing information.