Microsoft updated to the Service Provider Use Rights (SPUR) to remove the option for service providers to use their own Service Provider License Agreement (SPLA) licenses in Listed Provider environments (AWS, Google Cloud, Alibaba, Azure) after October 1, 2025. Service providers impacted by this change are advised to contact EVOLVE Cloud Services for help optimizing and/or modernizing their cloud deployments. This will help impacted companies reduce cost while avoiding potential compliance and cost challenges in the future.
What is the Service Provider License Agreement (SPLA)?
SPLA is a Microsoft licensing arrangement used by entities that offer software-as-a-service (SaaS) to third parties. Organizations who may use SPLA include infrastructure providers, webhosters, and independent software vendors (ISVs). For example, AWS uses their own SPLA agreement to licenses services running on Windows in Amazon EC2 and Amazon WorkSpaces. At its inception, SPLA was used primarily by service providers on-prem and or in their co-located servers. With the emergence of the public cloud, SaaS providers began leveraging their own SPLA agreements to license products including (but not limited to) Windows Server, SQL Server, and Microsoft Office in the cloud.
What has changed?
Until October 2025, service providers may use their own SPLA agreements to license user-based products (e.g. Office , Remote Desktop, Dynamics) on shared hardware and server-based products (e.g. Windows Server, SQL Server) on physically dedicated hardware (only). This can be a cost effective and flexible licensing model for service providers which allows them to take advantage of the security, ease of deployment, and cost savings available in the public cloud. Unfortunately, due to a licensing change Microsoft announced in 2022, service providers will no longer be able to use their own SPLA licenses in the environments of Listed Providers (Amazon, Google, Alibaba, Microsoft) after October 1, 2025.
This update is stated in the Product Terms here:
Use of Listed Providers
Customer may use a Data Center Provider (for DCP eligible Products) or an Outsourcing Company that is a Listed Provider (or that uses a Listed Provider as a means of providing services to Customer) through September 30, 2025.
Will Listed Providers still be able to use their own SPLA agreements to offer license included software?
Listed Providers using their own SPLA to offer software-as-a-service and infrastructure to their customers are not impacted by this change. These services, often referred to as “License Included”, will continue to be eligible for the use of customers using Listed Providers.
If I am using my own SPLA in the public cloud, how should I prepare for this change?
If you proactively plan for this change, you will find that there are viable alternatives to using SPLA in the cloud. However, it is important that you identify and evaluate these alternatives as soon as possible. A deep analysis is recommended to identify the most cost-effective go-forward solution and EVOLVE Cloud Services can help.
If you currently use your own SPLA to license core-based Windows Server/SQL Server and/or Microsoft Office on a Listed Provider, you should consider the pay-as-you-go license included offerings available in the cloud. As mentioned previously, public cloud providers can continue to use their own SPLA agreements to license these services with Microsoft. While service providers may enjoy the option to license physical servers with Windows Datacenter and SQL Enterprise for unlimited virtualization under SPLA today, the option to use shared tenant infrastructure (rather than dedicated hardware) and turn instances on and off while paying only for what is used can be cost effective in many scenarios. This is especially true when use cases are highly dynamic. Moving to license included services also allows service providers to leave the complexity and compliance risk of maintaining a SPLA agreement behind. Additionally, this is a great time for service providers to consider modernizing their deployments and leaving behind the cost, complexity, and compliance risk of legacy Microsoft software.
Organizations impacted by these changes are encouraged to engage with Evolve Cloud Services to identify the most cost effective and technically advantageous cloud deployment options.
Evolve Cloud Services has deep licensing and technical experience which can help customers:
- Right size their cloud-based instances and reduce their requirements
- Ensure that they are using the most cost-effective product editions
- Calculate the cost impact of various cloud deployment options (e.g. managed versus unmanaged, alternative hypervisor solutions)
- Identify modernization options and the potential cost savings.
If you are interested in learning more about how you can receive an AWS funded Microsoft Licensing & Optimization assessment, please click here
Please contact EVOLVE Cloud Services today for help addressing these upcoming changes and identifying the best path forward for your business:
Authored by Lance Spratt
Evolve Cloud Services Senior Licensing Specialist