the microsoft services provider license agreement (spla) is a licensing program that provides a hosting offer to service providers and isvs to lease or rent licenses of microsoft products on a monthly basis, and to provide hosting services and applications to the end customer. if you require 2 licenses this month, you pay two licenses, but if next month you use 30, then you will pay 30 and then you can go back and pay only the 2 initial licenses or the amount you need. with spla, microsoft is investing in the success of their channels and treating the software as a service “pay-for-what-you-use” allows them to increase their flexibility, accelerate profitability and establish a recurring revenue model to expand business.
end customers receive the right to directly or indirectly interact with functionalities of microsoft software through spla licensing service provider. within two weeks the contract must be approved by microsoft corp. microsoft and lol cloud will be sending a welcome email with details of your new spla agreement. lol cloud will send the signed subcontract. payments can be made by bank transfer, check or cash.
including best practices in reducing audit exposure, use rights and guidelines for spla licensing. the key difference between a spla license and a license that comes with a boxed product (similar to something you would buy at a retail store) is the person who uses the software. spla on the other hand, is designed for hosting companies that provide software as a service to their customers. for example, if a company wants to host an exchange server on behalf of another organization, the exchange license needed for this access would be spla.
spla is a month-month licensing program. if a service provider has 10 users who has access to the software in the month of february, they would pay for those 10 users in the first week of march. spla is very flexible, it allows usage to scale up and down on a monthly basis. think of spla as a leased software program designed for hosting companies who want to offer microsoft software as a service. thank you for the correction and for reading.
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