
Blogs
Cytrack.io AI-enabled Productivity Solutions from Crayon
Explore how Cytrack.io solutions meet emerging SMB demand for AI-enabled, unified communications platforms.
Reducing SPLA Compliance Risk
It’s no secret that the economic pressure is on for the major software vendors. The market is more competitive than ever, inflation and the cost of operations continue to climb, and the continuous innovation and product development investment is astronomical.
In these conditions, protecting revenue streams is critical and we should anticipate vendors will vigorously do so. Non-compliance with licensing agreements is a known source of revenue leaks, and Microsoft SPLA is no exception.
Microsoft’s SPLA program enables service providers to offer Microsoft software, including Windows Server, SQL Server, and other Microsoft products, to their customers as a service. This means MSPs and indirect sales partners can deliver Microsoft solutions without having to purchase perpetual licenses for each customer.
SPLA is a very flexible and operationally low maintenance licensing model. The downside is that it’s just as easy to be incompliant. The rules of the game can change quickly as Microsoft makes updates and changes to its licensing programs. Various editions, products and conditions can lead to confusion and misunderstandings about compliance obligations. Transaction and account volumes, changing configurations in customer environments and diverse service portfolios can make it difficult to accurately track and manage SPLA licenses and usage for each customer.
Compliance burden is a pain point for many partners. Few can dedicate resources to constantly monitoring compliance posture. The good news is there are solutions and services that can reduce this pain. Achieving transparency around SPLA does involve some investment, but it’s well worth it to reduce the risk of being exposed.
Despite the headaches, compliance with SPLA is good for business. It ensures that your business has the legal right to use and offer Microsoft services, and that your customers are assured they have access to legitimate, supported software. Bootleg software use is a known issue in some regions, but this is being stamped out as software supply chain security and risk management becomes more of a focus for customers. Businesses want to reduce risk, and they do not seek to become caught up in legal disputes with their service providers or huge vendors like Microsoft. They rely on their partners to act in their best interests. Demonstrating sound licensing management and compliance risk reduction disciplines provides partners with a competitive advantage in the long run.
In general, SPLA has operated on something of an ‘honesty system’ for a long time. Partners are encouraged to self-report and conduct their own SPLA assessments. There are mechanisms in place for partners to proactively address any identified non-compliance, and Microsoft is generally supportive of partners that maintain open lines of communication on this front.
Beyond this, there are many levers for Microsoft to pull when it comes to enforcing SPLA obligations in the partner ecosystem. These include analysis of software usage patterns, license key and activation audits. Such measures can pick up inconsistencies that suggest non-compliance. If it is deemed necessary, Microsoft has the authority to conduct audits of SPLA partners’ records, systems, and licenses. These audits can be triggered by various factors, including suspicious activity, irregularities in reported usage, or random selection.
Microsoft has recently intensified its efforts to enforce SPLA compliance. This means a higher risk of audits for MSPs and indirect sales partners who may not have been vigilant about compliance in the past. The warning bell is ringing, and it’s crucial to heed it.
Facing a Microsoft audit is an experience that no MSP or indirect sales partner wants to go through. It can take many hours to prepare for an audit, and this is valuable time not spent securing new business and servicing customers. If a partner is found to be non-compliant, the consequences can include hefty fines and the risk of legal action.
Of course, auditors do not always get it right and partners can (and should) dispute an unfavourable audit finding. However, this typically relies on partners having a very good understanding of their contract agreements and being able to provide comprehensive documentation, data, and evidence to support their dispute. This can include, but is not limited to license deployment records, Software Asset Management reports, usage data, configuration records, records of license transfers and reassignments, inventory reports and audit logs. It can be a disruptive, lengthy, and expensive exercise with no guarantee of success.
Crayon provides services that can support partners during the audit process and to minimize the exposure long before the chance of an audit. The prudent course of action is to always to reduce the risk before being audited.
In the realm of SPLA compliance, the message is clear: being transparent is far better than being exposed. Rather than taking risks with non-compliance, it’s wise to invest in sound Software Asset Management (SAM) practices. Here’s how SAM can help:
SAM helps you maintain an accurate inventory of your licenses, ensuring that you’re always up to date.
SAM tools can monitor your software usage, alerting you to any potential compliance issues before they become a problem.
SAM can automate the compliance process, reducing the risk of human error.
SAM keeps you informed about changes in licensing terms, helping you adapt quickly.
Sound SAM practices can also solve financial challenges for service providers by providing the data needed to ensure correct billing. SAM aids partners to connect finance, operations and technology data to support sound decision making.
As well as services to support partners with SPLA compliance, Crayon also offers solutions aimed at automation of licencing management, and reducing the administrative burdens involved. These include Octopus Cloud and NinjaOne. Partners that are ready to rethink their operations to reduce costs and risk should reach out to our Technology Advisory Group for Cloud Infrastructure and Platforms. Simply ask your account manager to set up a meeting, or email tag.cloud@crayon.com
Remaining compliant with Microsoft SPLA licensing agreements should be viewed as a non-negotiable aspect of doing business. Microsoft’s renewed enforcement efforts serve as a stark reminder of the importance of compliance. The challenges associated with maintaining compliance are real, but the consequences of non-compliance are far more daunting.
In the end, transparency and a proactive approach to Software Asset Management are your best defences against potential audits and their painful consequences. MSPs and indirect sales partners must take the necessary steps to ensure that they are always on the right side of SPLA compliance, protecting their businesses and reputation in an increasingly regulated IT landscape. Remember, when it comes to SPLA, it’s always better to be transparent than exposed.
Crayon’s SPLA Health Check Assessment is powered by KPMG certified solution provider, Octopus Cloud. Identify gaps in your SPLA licensing management processes and get on the front foot, fast.
Book an AssessmentBlogs
Explore how Cytrack.io solutions meet emerging SMB demand for AI-enabled, unified communications platforms.
Insights
Explore data trends from the Future of Operations and learn how to turn insights into action in the Productivity domain.
Business
Find out why Veeam Immutable Backup is a solution fit for responding to increased demand for optimised security in backup and recovery data.
Insights
SMB operations in the Asia Pacific region are shifting from traditional backup and disaster recovery toward something more transformative.
Insights
The latest in our Future of Operations insights series looks at why SMBs are pursuing hybrid cloud and multi-cloud strategies to achieve their business objectives.
Training
Explore how Azure can help partners respond to dominant trends within SMB customer cloud strategies.
Business
CSP price and margin matter, but Microsoft's program updates mean partners must weigh up short-term discounts over strategic alignment.
Insights
Rhonda Robati, Executive Vice President of Crayon APAC assesses the factors driving Microsoft's channel strategy and the evolution needed to be a Partner of the Future.
Blogs
Warren Nolan believes Microsoft has invited partners to join them on a new journey to value, and the role of Cloud Distribution providers has never been more critical.
Blogs
After decades of experience navigating seismic shifts in vendor strategy, Warren Nolan knows the importance of being pragmatic and proactive in the face of disruption to the Microsoft CSP Program.
Blogs
In the first of a three-part series, Warren Nolan, SVP Strategy and Channel explores the recently announced updates to the Microsoft CSP program and the opportunities it presents.
Vendor Announcements
Microsoft's new CSP requirements mean Direct Bill partners should take proactive steps to re-evaluate current models. Crayon can help.
Guides and eBooks
The Microsoft Fabric Partner Guide curates our recent articles, videos and resources to accelerate Crayon partner learning.
Blogs
Explore how Crayon gets partners and their customers on the road to data-led innovation and growth.
Guides and eBooks
eBook: The world's greatest detective is on his toughest case yet. Find out how human ingenuity combined with unified data analytics unravels a series of wicked riddles!
Training
Join in-house experts and Solentive for an exploration of how Microsoft Fabric supports the journey to data-driven business for your customers.
Blogs
With Windows 10 nearing end-of-life, it's time for partners to prepare customers for the transition to Windows 11.
Insights
SMBs across the APAC are not just increasing their technology investments—they are making strategic, forward-thinking moves to position themselves for long-term growth.
Insights
Small to medium-sized businesses in the APAC region are gearing up tech investments to drive outcomes for customer experience, revenue, business adaptability and innovation. How will SMBs leverage emerging technologies to achieve their strategic objectives?
Insights
What are the most critical business objectives and solution adoption priorities for SMBs in our region? Download the latest Forrester study to find out!
Case Studies
Working with Crayon, AfterDark scaled its ability to build longer-term cybersecurity engagements with customers.
Vendor Announcements
Microsoft changes to its licensing programs means some customers will not be able to renew EAs. Find out how to transition them to CSP in hours, with no disruption or upfront cost, only with Crayon.
Research Reports
The Future of Operations 2023 is an APAC wide study of small to medium sized businesses. It covers outcomes from cloud adoption, intent to invest and what businesses want from their technology service providers.
Podcast
Is high-performance more than just a buzzword? Find out as Dr. Joe explores the importance and impact of internal culture with his guests.
Guides and eBooks
Mission essentials for winning data protection business in education, healthcare, retail and manufacturing.
Blogs
An explosion in ransomware attacks has fueled a nationwide review of the issue, as concern rises that secret payoffs add increased fuel to the cybercrime fire.
Insights
A recent study of small to medium sized businesses (SMBs) across the Asia Pacific region signals a sweet spot for partners that can connect Cloud ERP, Business Process Automation and AI.
Blogs
Crayon cloud security assessments help partners lock down M365 and Azure environments and build profitable cybersecurity practices. Learn how.
If you want to learn more about emerging ERP opportunities, download Crayon’s eBook
What are the most critical business objectives and solution adoption priorities for SMBs in our region? Download the latest Forrester study to find out!
Our APAC channel business is now part of a global organisation. That means there is a whole new world of value on offer for our partners. We can help you to tap into all of it.