Microsoft SPLA vs CSP
- Microsoft SPLA (Service Provider License Agreement):
- For service providers and ISVs hosting services for end users.
- Offers monthly reporting and payment.
- Microsoft CSP (Cloud Solution Provider):
- For resellers and partners to directly manage customer lifecycle.
- Involves annual or monthly subscriptions.
Table of Contents
Microsoft SPLA vs. CSP – The Core Differences
Microsoft SPLA – An Overview
Microsoft SPLA is a licensing model that allows your business to provide hosted applications and software services to your customers using Microsoft products.
As a licensee, you’re not the customer but the service provider, offering software services from one or more data centers through various networks.
However, it’s important to note that SPLA licenses require a Windows Server, limiting the ability to move Microsoft apps to the cloud based on the application.
Microsoft CSP – A Closer Look
On the other hand, the Microsoft CSP program offers a different approach. It allows partners to own their customer lifecycle fully, selling Microsoft Cloud Service and software licenses with added support.
This program provides enhanced security and support to cloud service providers, which SPLA doesn’t offer.
Microsoft SPLA vs. CSP: A Comprehensive Comparison
Microsoft offers two programs tailored for service providers and organizations looking to leverage cloud and software services: the Service Provider License Agreement (SPLA) and the Cloud Solution Provider (CSP) program.
Understanding the differences between these two can help organizations choose the most suitable option for their needs.
Extended Support with Azure
- CSP Program Advantages:
- Extended Support: Azure, accessible through the CSP program, extends comprehensive support for cloud services, ensuring organizations have the assistance they need for their Azure deployments.
- Regional Resiliency: Azure Cloud Services provided through CSP offer regional resiliency, enhancing the reliability and availability of services across different geographical locations.
- Feature Parity: Deploying Azure Cloud Services through CSP ensures feature parity, allowing organizations to leverage the latest Azure features and capabilities.
- SPLA Limitations:
- SPLA licenses do not include extended support options for Azure, potentially limiting the scope of support available to organizations.
No Hybrid Benefit with SPLA
- Azure Hybrid Benefit:
- A notable advantage of the CSP program is the Azure Hybrid Benefit. This benefit allows organizations to significantly reduce the costs of running workloads in the cloud by utilizing their existing on-premises Windows Server and SQL Server licenses with Software Assurance.
- SPLA Restrictions:
- Unlike CSP, SPLA licenses cannot be utilized on Azure, and the Azure Hybrid Benefit is unavailable with SPLA. This restriction may impact the cost-effectiveness and flexibility of cloud deployments for organizations using SPLA.
Profitability with the CSP Program
- Incentives and Profitability:
- The CSP program is designed to empower providers with incentives that boost profitability. These include:
- Enhanced customer engagement opportunities.
- Greater control over investments.
- There is potential for increased profits through direct billing and the ability to offer managed services and bundled solutions.
- The CSP program is designed to empower providers with incentives that boost profitability. These include:
Enhanced Support and Security with CSP
- Support and Security:
- CSP stands out by offering enhanced security measures and dedicated support, which includes:
- A focused point of contact for all support requirements and questions, streamlining the resolution process.
- Advanced security protocols and tools to protect data and applications in the cloud.
- CSP stands out by offering enhanced security measures and dedicated support, which includes:
Conclusion
Choosing between Microsoft’s SPLA and CSP programs depends on an organization’s specific needs, each offering distinct advantages.
CSP stands out for organizations looking for extended Azure support, cost-saving benefits like the Azure Hybrid Benefit, and enhanced profitability and security features.
On the other hand, SPLA may suit service providers focused solely on licensing Microsoft products for hosting services. Understanding these differences is crucial for selecting the most appropriate licensing model to support an organization’s operational goals and cloud strategies.
Additional Differences: Microsoft SPLA vs CSP
- The partner holds an SPLA license and is not bound to a specific customer.
- The customer holds the CSP license via a Microsoft License Agreement, delivered and invoiced by a partner.
- An SPLA license is on a month-to-month basis and does not require any commitment.
- CSP program participants must commit and pay for 1 or 3 years upfront and define the license’s customer price.
- CSP partners can also make the cost of licenses part of a managed service.
- No license mobility applies to SPLA licensing, whereas license mobility is functional for CSP subscriptions.
FAQs: Microsoft SPLA vs CSP
What is the main difference between Microsoft SPLA and CSP?
The main difference lies in the licensing model and the level of support provided. While SPLA provides hosted applications and services, CSP allows you to sell Microsoft Cloud Service and software licenses with added support.
Can I run SPLA licenses on Azure?
No, SPLA licenses cannot be run on Azure. This is a benefit only available with CSP through the Azure Hybrid Benefit.
Does the CSP program offer more profitability than SPLA?
Yes, the CSP program provides incentives that enable providers to be more profitable, allowing for better customer engagement, greater investment control, and increased profits.
Which program offers better support and security?
The CSP program offers enhanced security and support, including a focused point of contact for all support requirements and questions. This level of support is not available with SPLA.
Is there a commitment required for SPLA and CSP?
SPLA licenses are on a month-to-month basis and do not require any commitment. However, CSP program participants must commit and pay for 1 or 3 years upfront.
Can the cost of licenses be part of a managed service in CSP?
Yes, CSP partners can make the cost of licenses part of a managed service.
Conclusion: Making the Right Choice – Microsoft SPLA vs CSP
Choosing between Microsoft SPLA and CSP can be a daunting task. However, understanding the core differences, benefits, and potential drawbacks can help you make an informed decision.
While SPLA offers a flexible, pay-as-you-go model, CSP provides enhanced support, security, and profitability. Ultimately, the choice between Microsoft SPLA and CSP should align with your business needs, customer requirements, and long-term goals.
Remember, the cloud journey is not a one-size-fits-all approach. It’s about finding the right fit for your business. Whether you choose SPLA or CSP, ensure it propels your business towards growth and success in the cloud.
Fredrik Filipsson Fredrik Filipsson brings two decades of Oracle license management experience, including a nine-year tenure at Oracle and 11 years in Oracle license consulting. His expertise extends across leading IT corporations like IBM, enriching his profile with a broad spectrum of software and cloud projects. Filipsson's proficiency encompasses IBM, SAP, Microsoft, and Salesforce platforms, alongside significant involvement in Microsoft Copilot and AI initiatives, improving organizational efficiency.
