Microsoft today announced changes to licensing terms that will benefit cloud providers and their customers. Microsoft is making these changes in response to partner feedback and the changes will come into effect on October 1, 2022. Microsoft claims that these changes will enable new scenarios for how customers can license and run workloads with infrastructure outsourcers. Find the details below.

More flexibility and options for software outsourcing: A new Flexible Virtualization benefit will allow customers with Software Assurance or subscription licenses to use their own licensed software to build and/or install solutions and run them on any outsourcers’ infrastructure (except Alibaba, Amazon Web Services, Google, and Microsoft) — dedicated or shared. This will allow hosting providers’ customers to install customer-licensed products, like SQL Server, Microsoft 365 Apps, and more, on their hosted solutions.

New Windows Server virtual core licensing: There will be a new option to license Windows Server on a virtual core basis. With the virtual core licensing option, customers can elect to license Windows Server by the number of virtual cores they are using in virtual machines.

Simplifying how customers can virtualize Windows 10 or Windows 11 with Microsoft 365: Any user with a Microsoft 365 F3, Microsoft 365 E3, or Microsoft 365 E5 license will be able to virtualize Windows 10 or Windows 11 on their own servers or on outsourcers’ servers (except Alibaba, Amazon Web Services, Google, and Microsoft), regardless of whether the user’s primary device has a Qualifying Operating System.

Microsoft also announced that the Cloud Solution Provider (CSP) program will have a new program option will allow participating partners to more effectively sell hosted solutions to customers, either with licenses included or to customers that are already licensed. Microsoft is also adding more monthly billing options in the CSP program for many of our one-year offers.