Microsoft licensing change impacts existing Public Cloud servers

On August 1, 2019, Microsoft announced a significant licensing change that has a major impact on current and future AWS and other Public Cloud provider workloads. The intent behind this change was to make a clear distinction between licensing rights for Microsoft software on hardware leased and managed by traditional outsourcers verses dedicated hosted services by cloud service providers. As part of their release, Microsoft noted:

“Beginning October 1, 2019, on-premises licenses purchased without Software Assurance and mobility rights cannot be deployed with dedicated hosted cloud services offered by the following public cloud providers: Microsoft, Alibaba, Amazon (including VMware Cloud on AWS), and Google.”

To simplify the impact this change has had on new & existing AWS workload, please see the table above. Here are a few additional points that you should know:

1. Upgrading to a version of Windows Server that was released after October 1, 2019 (i.e. Windows Server 2020) will make your volume licenses ineligible to be applied to AWS workloads. 

2. If the “Effective Date” of your Enterprise Agreement (start date of your three year term) is before October 1, 2019, then any Windows Server licenses that you add via True Up during the three year term of the Enterprise Agreement are still eligible to be applied to AWS workloads, even if the true up is made after October 1, 2019. Please note, this is only valid during the existing three year term if started prior to October 1, 2019.

3. Once your Enterprise agreement is renewed after October 1, 2019, the licenses that you owned on your previous EA are still eligible to be applied to AWS workloads. Software Assurance will not change the “purchase date” for any license purchased prior to October 1, 2019. However, any new Windows Server licenses acquired via true up through Enterprise Agreements that were renewed after October 1, 2019 are ineligible to be applied to AWS or any other Public Cloud workload.

We understand that Microsoft licensing can be confusing. If you have any questions at all, please do not hesitate to reach out to Evolve Cloud Services: info@evolvecloudservices.com

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