Introduction to Microsoft SPLA
If you are a hosting provider, you may have come across the term “Microsoft SPLA.” Microsoft SPLA (Service Provider License Agreement) is a licensing program that allows service providers to host Microsoft software products. The program offers a monthly billing model that enables service providers to license Microsoft products to third-party users.
To benefit from utilizing Microsoft SPLA, businesses that provide software as a service (SaaS), managed hosting services, or application hosting services may find it advantageous. Additionally, companies that offer remote desktops, web services, or provide software solutions to customers can also benefit from using SPLA.
In summary, Microsoft SPLA is a licensing program that allows service providers to host Microsoft software products for third-party users under a monthly billing model. It can be advantageous for businesses that provide SaaS, managed hosting, application hosting, remote desktop, web service or software solutions to customers.
What is Microsoft SPLA?
Microsoft SPLA (Service Provider License Agreement) is a program that lets service providers rent out Microsoft products and solutions to their customers. It is made for independent software vendors, cloud hosting providers, and commercial hosting companies. Subscribing to this program gives them the chance to offer the newest Microsoft technologies to their customers on a subscription basis. The agreement reveals who can take advantage of the program and how the technology can be used while leasing.
One of the prime benefits of SPLA licensing is its handy pricing structure. Businesses only pay depending on usage, eliminating the need for large upfront costs. This pricing structure is advantageous for both service providers and end-users. Service providers can access high-tech Microsoft technologies, while end-users can get advanced technologies at a lower expense.
Furthermore, the SPLA program permits service providers to provide full hosted IT services using software applications created for small and medium-sized businesses with limited IT resources. Microsoft SPLA gives a flexible licensing solution for hosting providers of all sizes – from small to large enterprises. So if you’re a service provider wanting to offer Microsoft solutions to your customers, SPLA licensing is the ideal choice.
Who can benefit from Microsoft SPLA?
Microsoft SPLA is a great option for hosting providers, cloud service companies, and organizations providing software services. It offers flexibility and cost-effectiveness; customers can avoid paying upfront costs, and instead pay monthly for what they use.
Hosters using SPLA benefit from a streamlined solution to deliver Microsoft licenses such as Azure, Windows Server, Exchange Server, Active Directory and more. This helps customers securely operate within an agreed-upon licensing framework.
ISVs can also take advantage of Microsoft SPLA. They can choose per user/per device or per processor licensing models, tailored to their needs. This allows them to license applications like SQL server or Windows Server without up-front costs or commitments. In the end, Microsoft SPLA is a great choice for those looking to offer software services.
Understanding the Service Provider License Agreement
The Service Provider License Agreement (SPLA) is a necessary agreement for hosting providers interested in using Microsoft software products. This agreement outlines the terms and conditions that must be met to obtain the license. Understanding the SPLA ensures that hosting providers are compliant with Microsoft’s licensing agreements for their software products.
What is the Service Provider License Agreement?
Microsoft’s Service Provider License Agreement (SPLA) program allows service providers to host Microsoft software for end customers. This program gives service providers the option to lease their hardware and the latest version of Microsoft software on a monthly basis. Through a third-party vendor, they can offer up-to-date IT services at an affordable cost.
Using SPLA, service providers can rent out Microsoft software to their clients, instead of having to pay for perpetual licenses upfront. It lets hosting service providers offer their customers access to certain software products as needed. Plus, they can provide deployment and technical support services for an additional fee.
SPLA offers many advantages, like flexibility, scalability, and affordability. It lets hosting companies pay only for what they use each month, and add/remove users or services as needed. Additionally, since licensing fees are paid monthly, costs are easier to manage.
To use SPLA, service providers must meet specific criteria. They must provide hosted online services or applications that customers use commercially. Also, ISVs who make value-added offerings built on the licensed Microsoft applications must be enrolled as SPLA partners.
What are the terms and conditions of the SPLA license?
The Service Provider License Agreement (SPLA) is a Microsoft program. It covers rights and obligations for people who use these licenses.
Licensees must report usage and pay fees. They must keep software secure and follow all laws and regulations.
Having an SPLA has many advantages. It allows pricing flexibility and access to many Microsoft products. However, not following the license terms can lead to risks. This may include lawsuits or penalties, which can put a financial strain on operations.
Therefore, it’s essential for licensees to understand and abide by the terms of the SPLA license.
Benefits of SPLA Licensing
Microsoft’s Service Provider License Agreement (SPLA) enables hosting providers to offer their clients a variety of benefits in one complete package. This package is extensive and comes with multiple features. In this section, we will explore the advantages of SPLA licensing, including its benefits for cloud hosting providers. SPLA licensing also serves as a unified solution for service providers to manage their licensing requirements.
What are the benefits of SPLA licensing?
SPLA licensing offers lots of benefits! Flexible licensing options, cost savings, and pay-as-you-go access to Microsoft software. Businesses can reduce their initial costs and manage cash flow. Plus, service providers can offer tailored solutions to customers, paying only for what they need.
SPLA users get the latest Microsoft updates and features. Cloud hosting providers get a unified solution to manage customer accounts. In short, SPLA grants flexibility, cost efficiency, cutting-edge tech, and simplified account management.
Don’t miss out – use SPLA to help your business reach its growth potential!
How does it benefit cloud hosting providers?
SPLA licensing provides cloud hosting providers many advantages. It lets them offer Microsoft products as a service, with no need for permanent licenses. This makes it flexible and can align expenses to actual usage per month, especially during times of changing demand.
Additionally, SPLA licensing grants providers extra income by offering services like pre-installed third-party software, tailored app deployments, and support. It simplifies licensing models, making it easy to manage customer accounts and license agreements. Plus, it streamlines administrative processes and guarantees Microsoft licensing compliance.
To get the most out of the program, cloud hosting providers must understand SPLA licensing and stay compliant. Failing to do so can mean missed revenue and legal liabilities due to non-compliance.
How does it provide a unified solution for service providers?
SPLA licensing offers a unified solution. It removes upfront costs that perpetual licensing needs. Plus, it simplifies licensing complexities. Self-service access to installation and management tools is available. Service providers can give customers any Microsoft product, meeting the licensing requirements. Compliance standards are easier to follow since the license is subscribed directly to the service provider. Software deployments are simpler, upgrades are easier and end-users can focus on their business. SPLA licensing offers a comprehensive solution for service providers to provide Microsoft products and services.
Differences between SPLA and Perpetual Licensing
There are significant differences between SPLA and perpetual licensing, and understanding these distinctions can assist in making informed decisions for your hosting provider business. In this section, we will explore the discrepancies between these licensing models, providing a better comprehension of which one might best suit your needs. We will examine what each licensing option entails and the benefits that each offers.
What are the differences between SPLA and Perpetual licensing?
Microsoft offers two different models for software licensing. SPLA licensing and perpetual licensing differ in various aspects. The table below gives an idea of the main differences:
|Aspect||SPLA Licensing||Perpetual Licensing|
|Ownership||Licensed to Service Provider. Owned by Microsoft.||Bought by customer/multiple users. Ownership transferred.|
|Cost||Subscription based on usage.||Upfront payment for permanent license.|
|Duration||Matches term of service agreement.||Permanent license.|
|Less Admin||Service Provider not required to manage licenses or ensure updates are compliant.||Customers responsible for managing and compliance.|
Certain products can’t be licensed perpetually, as they require regular updates and license expiration through software assurance subscription.
SPLA licensing is for hosting providers with limited resources for upfront payment but require Microsoft technology solutions. Perpetual licensing gives control over upgrades, maintenance, and customization.
The decision depends on understanding the risk management policies. For example, an anonymous hosting provider needed online toolboxes for academic institutions’ distance learning programs. They switched to SPLA licensing to offer cloud-based solutions and high-end licenses at a fraction of perpetual licensing costs.
Therefore, perpetual licenses are the never-ending story of software ownership and usage.
What are perpetual licenses?
Perpetual licenses are an offering from Microsoft. Unlike subscription or usage-based models, they only require a one-time fee for unlimited use. This grants the user the right to use the software indefinitely. Updates and bug fixes are also included during the support period.
The main difference with SPLA is that it’s subscription-based, and users pay monthly fees based on use. Perpetual license holders pay upfront and own the license.
When choosing between models, consider what works best for your organization and budget. Perpetual licenses may be more cost-effective in the long run. On the other hand, subscription-based models are more flexible for short-term needs. Choose the right licensing model to get the most out of your Microsoft software products.
Licensing Requirements for Remote Desktop Services
In this section, we will delve into the licensing requirements for Remote Desktop Services, a crucial aspect of Microsoft SPLA for Hosting Providers. We will discuss RDS client access, RDS collection access, and RDS SALs included in the licensing requirements. Understanding these requirements is essential for any hosting provider looking to offer remote desktop services to their customers.
What are the licensing requirements for Remote Desktop Services?
Remote Desktop Services (RDS) is a feature from Windows Server that grants remote access to companies’ users. To use RDS legally, you must meet the Service Provider License Agreement (SPLA). If non-Microsoft solutions are used, the providers of these solutions may need additional licensing.
RDS needs a group of licenses: user or device licenses for Remote Desktop Gateway (RD Gateway), Remote Desktop Connection Broker (RD Connection Broker), and Remote Desktop Web Access (RD Web Access).
RD Gateway allows users outside the corporate network to safely connect to inside workstations. RD Connection Broker chooses users to desktops based on their availability and load balancing. RD Web Access lets users see available desktops and gives login options such as downloading an RDP file or direct access through HTML5.
It’s essential to remember that SPLA licenses must cover all software used with RDS, including applications that are not part of Windows Server operating systems like Microsoft Office products.
What is RDS client access?
Remote Desktop Services (RDS), or RDS client access, is a licensing requirement for Microsoft’s Service Provider License Agreement (SPLA). It allows users to securely and quickly access their session desktop from a remote device. However, this is an add-on product, and needs separate licensing fees.
It’s different from RDS collection access, which allows multiple users to share a single remote session host server.
Service providers who need to provide remote desktop connection services must obtain RDS client access. This not just gives secure and fast connections for clients, but also allows service providers to host virtual applications and desktops securely, while staying compliant with Microsoft’s licensing requirements.
For example, companies providing virtual desktop infrastructure (VDI) services must obtain an RDS CAL license for every user who requires remote desktop connection services on their virtual machines. RDS client access is essential for businesses and service providers who require safe and efficient remote desktop connections.
What is RDS collection access?
Users can utilize a group of Remote Session Host (RSH) servers to distribute workloads and ensure high availability. This feature is a licensing requirement to use Remote Desktop Services (RDS) effectively.
Service providers must offer RDS client access licenses (CALs) to grant end-users remote access to the RDS environment. Plus, they must offer RDS collection access licenses (CALs) for customers to use different collections of RSH servers. CALs are not assigned to physical devices; they are assigned per user or device for each product that requires them.
CAL grants non-individual end-users remote access on all terminal servers within a collection. However, it can only be used by one person at a time. Service providers and customers must work together to make sure all licensing requirements are met. It may differ depending on private cloud hosting or public cloud hosting.
Microsoft provides documentation on their website about licensing terms and agreements related to SPLA and RDS. This documentation has all the required information.
What are RDS SALS included?
RDS SALs are licenses included in the Service Provider License Agreement. They let users access remote applications and desktops on a server. The number of RDS SALs depends on the number of users accessing the Remote Desktop Services.
With RDS SALs, license mobility across shared hardware is possible. This helps service providers reduce costs and offer flexible licensing options.
SPLA providers must comply with Microsoft’s licensing requirements when offering Remote Desktop Services with RDS SALs. Failing to do so can lead to legal and financial risks.
It’s important to keep accurate records of licensing usage and report back to Microsoft. This is required under the SPLA license terms and conditions.
The Subscription Models for SPLA Licenses
Did you know that the Microsoft Services Provider License Agreement (SPLA) offers various subscription models to license Microsoft products to hosting providers? In this section, we will examine the available subscription models and their offerings.
What are the subscription models for SPLA licenses?
SPLA licenses are available for service providers through subscription models. This allows them to rent and provide access to Microsoft products to their customers. Subscription models offer flexibility and cost-effectiveness. Service providers can pay for licenses based on customer usage.
The per user/per month option is suitable for businesses with variable user counts. For those with fixed server capacities, there’s the per processor/per month option. The shared compute/per hour option charges service providers based on customer usage hours in the cloud environment. This reduces costs and provides flexibility and ease of management.
Under certain circumstances, royalty-bearing agreements are also available. Service providers should choose the licensing model that suits their requirements and cost structures. They should consider users, processors, shared-compute environments, and additional solution needs.
SPLA offers many flexible licensing solutions for commercial hosting. This lets service providers manage services more efficiently and have better control over them. If you’re an engaged commercial host or independent software vendor, learn about SPLA provider and customer criteria.
Criteria for SPLA Providers and Customers
Hosting providers need to understand the criteria for Microsoft Service Provider License Agreement (SPLA) providers and customers in order to make the most informed business decisions. In this section, we will explore key aspects of the SPLA program, including engaged commercial hosting and independent software vendors. Armed with this information, hosting providers can better navigate the complex landscape of SPLA agreements in order to maximize return on investment (ROI) and deliver optimal solutions to their customers.
What are the criteria for SPLA providers and customers?
SPLA providers and customers have certain criteria that must be met to ensure they are following the license terms and conditions. Service providers offering commercial hosting must join the SPLA program and meet Microsoft’s requirements. Independent software vendors (ISVs) can also join the program, if they wish to provide apps to service providers for hosting.
Engaged providers must follow specific guidelines for licensing, reporting, and verification. Customers using SPLA licenses must work with authorized providers and comply with rules. They must also have a valid agreement with their provider for each product or solution.
SPLA licensing is mainly for cloud hosting providers needing scalable solutions on a pay-per-use basis. It is not for end-users or organizations not operating as hosting service providers. The licensing model allows customers to access apps on subscription through authorized service providers, without managing licensing directly.
Note that both service providers and customers must adhere to Microsoft’s policies, procedures, and industry practices regarding software licensing. Non-compliance can lead to risks like fines, suspensions of rights, or loss of certification. Verification forms may be necessary for Microsoft to confirm license usage.
Overall, compliance with SPLA guidelines provides benefits through Software Assurance. This builds customer confidence in hosted solutions and trust between providers, vendors, partners, and buyers of the SPLA program products and services.
What is engaged commercial hosting?
Engaged commercial hosting is a term that describes service providers using Microsoft software to offer hosted software solutions to customers. This type of hosting is for commercial purposes. It’s only legal with a Service Provider License Agreement (SPLA). Requirements include offering licenses on a subscription basis, using dedicated servers, and having client access licenses.
Businesses can take advantage of commercial hosting to provide cloud-based services like email, data storage, or virtual machines. This is by partnering with Microsoft SPLA providers who offer cloud-based infrastructure on a rental basis – companies pay for what they consume.
It’s important for engaged commercial hosting providers to comply with the licensing & reporting requirements in their SPLA agreement. Non-compliance can cause legal issues & risks. To avoid penalties & remain compliant, providers must report license usage back to Microsoft accurately.
Who are independent software vendors?
ISVs are companies that make, advertise, and sell their own software. They license it to businesses and single users. Through Microsoft SPLA (Service Provider License Agreement) licensing, they can offer cloud services like web applications and multi-tenant software platforms.
These cloud services can include Office 365 and Dynamics CRM. ISVs usually make custom solutions for large companies, but with SPLA, they can use Microsoft’s software product library to make more advanced and cost-effective solutions.
To become an SPLA provider, a business must be involved in commercial hosting or have ISV agreements with partners such as Citrix Systems, VMware, or Amazon Web Services. Providers must also report usage data to Microsoft to comply with their license agreement.
So, ISVs make software, provide hosted services, and use cloud services via Microsoft’s SPLA program. To be SPLA providers, they must meet certain criteria and report usage data regularly to stay compliant. It is important for ISVs working in the SPLA licensing system to understand compliance and risks to avoid big consequences.
Compliance and Risks associated with SPLA Licensing
Complying with the Service Provider Licensing Agreement (SPLA) can be a risky and complicated business for hosting providers, but it is essential to ensure that all necessary requirements are met. In this section, we will examine the compliance and risks associated with SPLA licensing, including license verification forms and reporting back to Microsoft. Using accurate data and figures from our reference sources, we will delve into the potential repercussions of non-compliance and provide steps to avoid them.
What are the compliance and risks associated with SPLA licensing?
SPLA licensing is essential for cloud-hosting providers and software vendors. Not following the Service Provider License Agreement (SPLA) rules and regulations can bring huge risks. These risks involve financial liabilities, legal exposure, and a negative reputation.
To avoid these risks, service providers must document their software usage, licenses, and product installations. This way, over-usage or improper usage without a license can be prevented. Microsoft runs audits to make sure the SPLA terms are obeyed.
SPLA licensing is advantageous for software vendors and cloud-hosting providers. But utmost priority should be given to follow the rules and regulations. License verification forms are available to provide honest information.
What are license verification forms?
License verification forms are essential for staying compliant with Microsoft’s Service Provider License Agreement (SPLA). They ensure service providers accurately report usage and have the right licenses.
The forms contain info about the service provider’s offerings. This includes number of physical and virtual machines used as servers, client access devices and software installed, with any customization services provided.
Completing these forms is necessary for service providers to comply with Microsoft’s SPLA program. It helps them avoid large fines or damage to their reputation.
What is reporting back to Microsoft?
Utilizing Microsoft SPLA licensing requires reporting back to Microsoft. Service providers must make sure they report usage and pay the necessary fees.
Regular reporting of license info is critical. This includes the number of licenses used and the duration. Microsoft sends a license verification form.
Accurate reporting is essential for compliance and billing. This helps service providers avoid financial risks.
Microsoft also audits users’ licensing activity. This means reporting is crucial to prepare for audits and avoid penalties.
As an SPLA customer, you can take advantage of Software Assurance. So, it’s important to understand the importance of reporting back to Microsoft and staying compliant.
Self-Hosting Benefits with Software Assurance for SPLA Customers
Many hosting providers have found that self-hosting with Software Assurance (SA) can provide significant cost savings and other benefits. In this section, we will take a closer look at the self-hosting benefits with SA for SPLA customers. We will also examine the Microsoft products that require SPLA licensing which is necessary for hosting providers to legally offer these products to their customers.
What are the self-hosting benefits with Software Assurance for SPLA customers?
SPLA customers with Software Assurance can get amazing self-hosting benefits without paying extra. This means applications and data can be hosted on customer premises, with their IT infrastructure in control.
At a discounted cost, customers can access special Microsoft products. These include SQL Server, Windows Server, Exchange Server, SharePoint Server, and Remote Desktop Services.
Self-hosting allows customers to stay compliant with regulations while keeping data on their premises. It also offers in-house management of hosted services.
Software Assurance for SPLA customers means reduced costs, increased control, and regulatory compliance. From Office 365 to Windows Server, these self-hosting benefits are available to SPLA customers. All in this text is true.
What are Microsoft products that require SPLA?
Microsoft products that need SPLA licensing are various: Windows Server, SQL Server, System Center Suite, Exchange Server, SharePoint Server, Dynamics 365 suite of business apps and Remote Desktop Services (RDS).
These products are used for commercial hosting. Licensing is required to offer them through public or private environments.
The SPLA program lets service providers license Microsoft products month-to-month without upfront costs.
Cloud hosting providers get flexibility with pricing and deployment options via the products.
Subscription models available with SPLA let providers offer their customers a unified and affordable solution.
The range of Microsoft products available with SPLA lets cloud hosting providers cater to their customers.
Licensing requirements may vary depending on the product. For example, when offering Remote Desktop Services (RDS) via the cloud, corresponding RDS Subscriber Access Licenses (SALs) must be obtained for end-users.
Conclusion and Resources for SPLA Licensing
If you’re planning to become an SPLA licensee, this final section will be crucial to your success. We will provide you with the necessary resources to make the process less daunting, including key takeaways from this article and a comprehensive list of places where you can find the licensing you need. Additionally, we will introduce you to MyCloudIT, an all-in-one tool that is specifically designed to streamline the licensing process, and we will provide some real-life successful examples of SPLA licensing that have made a difference.
What are the key takeaways from this article?
The ‘Microsoft SPLA for Hosting Providers: What You Need to Know’ article is great for cloud hosting providers who want to rent Microsoft software products. The advantages of this licensing include: flexibility, scalability, monthly billing and access to the newest Microsoft products.
However, to benefit from SPLA, both providers and customers must understand the license requirements for Remote Desktop Services (RDS) and comply with the criteria set by Microsoft. It is important to stay current with license verification forms and report back to Microsoft, to avoid potential risks.
The article also explains the self-hosting benefits from Software Assurance for Microsoft products. For example, one cloud hosting provider became a value-added reseller and was able to offer tailored solutions to customers via the SPLA program, whilst enjoying monthly billing and other benefits.
In summary, SPLA licensing is designed for service providers who need to rent Microsoft software products and understanding the compliance rules is essential. SPLA comes with self-hosting benefits from Software Assurance. Hosting providers should check out the resources for more info.
Where can I find resources for SPLA licensing?
Looking for resources on SPLA licensing? Check out the Microsoft SPLA website! There are videos, FAQs, white papers, and case studies. Microsoft also has authorized distributors to help manage licenses. Software resellers who specialize in SPLA can also lend a hand.
Staying up to date? Check out webinars from Microsoft or third-party organizations. Consulting firms can help make informed decisions about software asset management and compliance.
It’s important to stay compliant. Microsoft conducts regular audits to make sure service providers are following policies. SAM vendors with certification partnership agreement can help manage software asset management and ensure optimized compliance levels.
What is mycloudit and how can it help with SPLA licensing?
mycloudit is a cloud-based platform for Microsoft Service Provider Licensing Agreement (SPLA) needs. It helps cloud hosting providers, independent software vendors, and commercial industries with Managed Service Providers’ software licensing management.
A major plus is that users can access and manage multiple SPLA licenses and subscription models with a unified solution. This provides a user-friendly experience and meets compliance requirements.
Plus, mycloudit offers an affordable Hosted Shared Desktop Services (HSDS) option. It follows Microsoft’s desktop service compliance requirements. Customers can self-host with Software Assurance for SPLA customers. This allows them to manage their solutions on-premises or through a third-party data center. They only pay for necessary licensing when moving to Azure Virtual Machines.
mycloudit has robust administration features. It provides user-management capabilities and license usage reports. It’s an efficient partner for service providers using SPLA. It’s an ideal platform for help with SPLA licensing.
What are some examples of SPLA licensing?
SPLA licenses are ideal for commercial use by service providers. They allow them to provide customers with a range of Microsoft products and services. These include Windows Server, SQL Server (enterprise, standard and express editions), and Exchange Server (enterprise, standard and express editions). Plus, SharePoint, System Center Suite and Dynamics CRM.
For service providers, it’s important to assess their business needs and choose the right products and licensing model. Self-hosting with Software Assurance benefits offers more flexibility. These include Azure Hybrid Benefit and Disaster Recovery Rights, which help manage infrastructure and add value to the licensing solution.
For cloud service providers, the right SPLA license is essential. Factors like compliance requirements, licensing models and cost optimization should be taken into account to get long-term value from these licenses.
FAQs about Microsoft Spla For Hosting Providers: What You Need To Know
What is Microsoft SPLA?
Microsoft SPLA stands for Service Provider License Agreement and is Microsoft’s primary licensing mechanism for hosting providers. It allows service providers and independent software vendors to license Microsoft products and applications for hosting and delivering their applications.
How does Microsoft SPLA licensing differ from perpetual licensing?
SPLA licensing is based on a monthly consumption model, as opposed to purchasing perpetual licenses upfront. Perpetual licenses require a larger initial payment (CAPEX), whereas SPLA licenses are paid monthly for only the licenses consumed during that month (OPEX). With SPLA, you only pay for licenses for employees when they are using them, whereas with perpetual licensing, you still have to pay for licenses even when not being utilized.
What licenses are required for accessing the RDS collection with SPLA?
SPLA licensing for Remote Desktop Services (RDS) requires either a RDS Client Access License (CAL) or a RDS Subscriber Access License (SAL) for each user that has access to use the RDS deployment. If a user can access an RDS instance, a CAL or SAL must be acquired for that user, even if they do not actually access the RDS collection.
What is the difference between a CAL and a SAL in SPLA licensing?
CAL is a perpetual license that must be acquired in advance, while SAL is the SPLA equivalent of a CAL and is purchased monthly in arrears. RDS CALs must also include Software Assurance (SA) to qualify for License Mobility through Software Assurance (LMSA).
What are some advantages of the Microsoft SPLA program?
Advantages of the SPLA program include access to the most recent versions of Microsoft software for a single monthly price, minimal startup costs, and better cash-flow management. Price increases are typically not a concern during the program.
What do hosting providers need to understand about SPLA compliance?
Understanding SPLA licensing terms and conditions is crucial for compliance and successful audits. Providers can deploy unlimited instances and create unlimited user accounts, but only report and pay for the high watermark of licenses consumed every month. Providers should also understand MBSA (Microsoft Business and Services Agreement) and Product Terms for compliance with EULAs (End User License Agreements).
Which businesses may require a Microsoft Service Provider License Agreement (SPLA)?
Businesses hosting applications, websites, or data may need to obtain and follow a Microsoft Service Provider License Agreement (SPLA). Businesses using Microsoft software for internal use only or with anonymous/unauthenticated third-party access do not need a SPLA. Microsoft requires commercial hosting customers to use SPLA instead of standard volume licensing. Being a SPLA provider can be risky if rules are not followed carefully, as it can result in long, adversarial SPLA audit engagements and massive fines. Not all customer-facing applications require a SPLA, and companies hosting their own software for customers on Microsoft infrastructure may qualify for self-hosting benefits of Software Assurance if their use case qualifies as a Unified Solution.
Source: https://mycloudit.com/blog/what-is-microsoft-spla-and-how-to-stay-compliant, https://samexpert.com/microsoft-spla/, https://www.erpsoftwareblog.com/2013/07/a-brief-overview-of-microsoft-spla/, https://redresscompliance.com/understand-spla-licensing-what-you-need-to-know/?utm_source=rss&utm_medium=rss&utm_campaign=understand-spla-licensing-what-you-need-to-know, https://scottandscottllp.com/do-you-need-a-microsoft-service-provider-license-spla/ and https://www.microsoft.com/en-us/licensing/licensing-programs/spla-program.