About UsTrusted globally by some of the world’s most well-known enterprise

companies, is the leading provider of expertise and

negotiation services around Enterprise software contracts. Combining an

unparalleled knowledge of the DNA that make up software agreements with the

ability to understand company’s individual requirements, is

able to drive out significant costs and align agreements to business priorities

NOT to those of software vendors and their programmatic objectives. Using

technology, process and knowledge derived from the analysis and negotiation

of more than a thousand contracts, we help put explanation around the

unknowns that create compliance gaps and control spiraling costs associated

with Enterprise software agreements.

SAVING YOU TIME, MONEY AND AGGRAVATION

Our Core Value Proposition

Consulting Services

Microsoft Enterprise Agreement Negotiation

Microsoft Audit Assistance

o The value of our retainer relationships is in the personalized, and unrestricted access to all of our experts

o Retainer clients enjoy services such as published resource papers, white papers, webinars and training sessions

o Retainer client receive a 30% discount on additional engagements (outside of retainer)

o Microsoft is getting much more aggressive with audits

o Free up your time and resources

o Method 180 has a proven track record of dramatically reducing compliance costs

o Most organizations leave money on the table with Microsoft during negotiations

o Method 180 averages 25-30% cost reduction on enterprise agreement renewals

o Be informed and educated about how to drive costs out of your enterprise agreement

4

• General:§ Anunderstanding ofthenewlicensing rules forWindowsServer2016CoreLicensingModel

§ Knowledge thatthismost likely isnotrevenue netural regardless ofwhatMicrosoftisstating(especially ifyoulookbackto2012)

§ Differences between licensing PhysicalServer andVirtualServers§ Understandwhycloud licensing (ServerMobility Rules)donotworkformostdeployments

§ Howtobuildaprocesstovalidate ifyouare lookingatpriceincreases

• Forthosewhoarenewertolicensing:§ UnderstandthehistoryofWindowsServer Licensing§ Knowledgeofkeylicensing termsandconcepts forWindowsServers

§ Basicsoftoolstomeasure inventoryanddeployments

Goals of this Webinar

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• Understandthestepstodetermine if youarefacingapriceincrease§ Howtousetoolsandbuildatemplatetoevaluateyour licenses

• Determine if youhaveanyareaswhereyouareunderoroverlicensed§ Resetyourlicensestooptimizeforyourdeployments

• Knowwhenthenewlicensingruleswill applytoyou§ Forsomepeoplethesechangesmaynotbeinplayfor3+years

• Budgetmoreeffectively forrenewals§ Translatedeployments/usage intonecessarylicenses

• KnowhowmanylicensegrantstoaskforfromyouMicrosoft rep.§ NotallofthesewillnecessarilyrequireSoftwareAssurance

What can you do with what you learn today?

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ProductUseRights&Rules

7

Downgrades and Upgrades

WinSvr2012R2Datacenter

WinSvr2016

Datacenter

WinSvr2012R2Standard

WinSvr2016

Standard

VersionVersion N-1 Version N

Version Upgrade(New License or SA)

$ Step Up(Purchased)

Down Edition(Use Right)

Version Downgrade(Use Right)

Editi

on

Higher Edition

Lower Edition

Versions:• WithwindowsServerthisis

typicalayear(2012/2016)• R2ProductReleases• AlicenseincludesVersion

DowngradeRights

Editions:

• Theleveloffunctionalityincludedintheactualproduct

• Standard,Enterprise,DataCenter

• CrossEditionRightsarenotalwaysallowed(needtoreviewthePUR)

LicenseReassignmentandthe90dayrule

FromtheProductUseRights:

ForWindows Server:

• ServerMobility is notincluded with thelicense norSA• SAalso includes therighttomoveWindows Servers intoa3rd party cloud

environment (newwith 2016)

9

PurchasingSoftwareAssurance

10

Benefits of Software AssuranceBenefit DoIneedtobuy

SA?

NewVersionsRighttoupgradetonewproductversionsreleaseduringsubscriptionterm

Yes

ProudctUseRights UsagerightsoftheproductthatareincludedonlyifyoupurchaseSoftwareAssurance(e.gCloudMobility,ServerMobility, etc)

Yes

ExtrasTrainingvouchers,deployment planning,ProblemResolutionSupport,etc

No

Microsoft iscontinuing toaddmoreandmoreSABenefits totheProductUseRights

11

WindowsServerLicensing

12

• Theyhavemadechangeswith eachnewversion§ WindowsServer2012:

§ Change fromServer toProcessor§ Removed Windows Enterprise Editions§ IncreasedPricing§ Change inVirtualizationRules

§ WindowsServer2012R2:§ IncreasedPrice§ RDSCALs receive anewProductUseRightSAbenefit (ability toutilizein3rd partyDataCenter– limited value)

§ WindowsServer2016:§ Change fromProcessor toCores Licensing Model (CALs arestillrequired)

§ Newfeatures unique toDatacenteredition§ Discounted Azurepricing becomes anewSAbenefit

Changes Microsoft has made since 2012

13

• GeneralInformation

§ Aminimum of16Core licenses arerequired foraserverwith oneortwophysical processors

§ EachProcessor has tohaveaminimum of 8Cores licensed (regardless iftherearefewerCores)

§ 16Cores Licenses tobepriced (minus anyprice increases) asequivalent toa2012 2Processor License

§ Special rules apply tohardware virtualization§ Special rules forhosting public websites§ SABenefit allowing fortransferof licenses toa3rd partydatacenter (Cloud)orAzure

Server 2016 Licensing Overview

14

• ServersmayneedmorethanoneLicensedependingontheHardware§ Licenses assigned tothephysical servermachine§ Alllicenses assigned toaservermust bethesameedition (Can’t mixStandard andDatacenteronthesame server)

§ #ofcorelicenses required for aserver isthegreaterof thefollowing:§ Totalnumber ofcores on allprocessors§ Sixteen cores perserver§ Eightcorelicenses perprocessor

§ Core licenses aresold in 2-packs§ Standard edition: $110per2corepack ($880minimum perServer)§ Datacenteredition: $770per 2corepack ($6,160 minimum perServer)

§ Unlike SQL Server thereis noCore Factorforcertain Processor types (AMD)orfeatures likehyper-threading orclock speed

§ License costswillincrease onServers withmore than8Cores PerProcessor§ Important toreviewarchitecturewhenbuying servers (forboth Windowsand SQL) topurchase things likeRAMbefore Processor/Cores forperformance

Server 2016 Licensing Model: Cores (+CALs)

15

• InMicrosoft”Speak”aVirtualMachine§ IsreferredtoasaOperating SystemEnvironment (OSE)

Virtualization

ApplicationSoftware

OperatingSystem

ApplicationSoftware

OperatingSystem

ApplicationSoftware

OperatingSystem

Virtual Machine Virtual Machine Virtual Machine

Hypervisor

PhysicalHardware(Processors,Cores,etc)

16

Windows Server 2016 Virtualization Rules

Standard Edition DatacenterEdition

#ofrunningWindows ServerOSEs perlicensedserver

One physicalOSEandtwovirtual OSEs Unlimited(does notRequireSA)

Licensereassignment(90dayrule) For onpremiseServers the90dayisinfulleffectForthirdpartyhostedservers canbedonebutmostlikelyrequireCoreInfrastructureServersNeed tolicenseforthehighestnumberofOSEs thatwillbeonahostserver atanytime

• Notmuchhaschangedheresince2012• YoucanstackStandardLicenses onahosttogetmorethan2VirtualOSEs

• Difficulttoproveinanauditdueto90dayrule• Wouldneedproofofserversonhostin90days(e.g.RVTools)

• Datacenteriseasiertomaintaincompliancebutcostsmoreperunit

17

What License Should I use?

þ þ þ þ þ

þ þ þ þ

þ

18

• ForeachLicensecoveredunderActiveSAyouwillreceive16CoresofthatVersion• YoucangetmoreCoresifyourserverhasgreaterthan8CoresperProcessors• TogetmoreCoresyoumust:

§ CompleteaphysicalinventorypriortoexpirationofyourcurrentSA(orEA)thatisactivewhenWindows2016Serverisreleased

• #1:Scananddocumentcorecounts(MicrosoftlovesthisdatafromMAP)§ ProvidesthedetailsofthenumberofcurrentProcessorsandtheNumberofCoresperProcessor

• #2:Considertruingupmore2012R2(Licenses– PURfor2012applies)beforeEAexpires

§ GettheCoregrantsforanylicenseonlyforonly12.5%(finalyearSA)upgradecostorforanynewhardwarerequirements

• #3:UpgradeserverhardwarepriortoSAExpiring(Andyourscanning)§ Ifyou’regoingtohaveanewserverwithmoreCorespurchaseitpriortoutilizegrantsversusnetnewlicenses

• #4:ReviewifyouneedSAuponexpiration§ DocumentadditionalCoreGrants(Getthemtoputitinwriting)§ Reviewupgradeplans,consolidationetc.

SA Core License Grants

19

• Microsoft loves theMAPToolkit• SCCM difficult togetthis datafrom• Method 180likes toutilizeBlock 64

How to Organize Deployment Data

20

Impactof2016LicensingChangesonourDataSet

21

WhySALikelyDoesn’tMakeSense

• Datasetof16,812WindowsServers

• Only1,017Windows2012(6%)• 94%ofSAiswastedonthese

servers

PointofInterest• 3,515Windows2003Servers

comingoffsupportor21%• Hardwareneedstobeevaluated

beforeupgrading(seegranthintsabove)

Windows Server Edition Deployment Data

22

WhythechangefromServertoProcessorincreasedtheprice

• 14,172 of16,857 Servers hadnoimpact due topricing• The2,685 withaprice increase require atotalof6,136

Licenses (or anextra3,451)• Which equates toatotalof a20%Increase inlicense costs

across the16,857 Servers (3,451/16,857 =20%)

Processor Per Server Cost Impact / Increase

NumberofProcessors

NumberofServers

1 58232 83493 3204 18685 26 2608 22712 216 528 1Total 16857

23

WhythechangefromProcessortoCoreincreasedtheprice

• 353of16,857Servershaveapriceincrease• The353withapriceincreaserequireatotalof1,030Licenses

(oranextra677)• Whichequatestoatotalofa4%increaseinlicensecosts

acrossthe16,857Servers(677/16,857=4%)

Conclusion:

• CorelicensingforWindowsimpactsabout2%ofserversandincreasespricebyanaverageof4%

• However,mostorganizationshavenotfactoredintheProcessorchange(orevenaskedforgrants)whichrepresentsa20%priceincrease

• WithinourdatasetMicrosofthasincreasedprices24%justfromlicensechangessince2012notincludingthepriceincreasestheyhad.

Core Per Server Cost Impact / Increase

NumberofProcessors

NumberofCores

NumberofServers

NumberofProcessors

NumberofCores

NumberofServers

1 1 2486 3 3 2771 2 1502 3 6 351 3 30 3 12 71 4 1362 3 18 11 6 201 4 4 14161 8 187 4 8 1981 10 2 4 12 91 12 18 4 16 1171 16 20 4 21 11 24 1 4 24 361 14 4 32 552 2 3329 4 40 252 4 2055 4 112 6 29 5 5 22 8 1339 6 6 2562 10 1 6 12 42 12 916 8 8 2102 16 368 8 16 162 20 145 8 12 24 106 12 12 22 32 36 16 16 52 25 28 28 1

24

Goto:http://www.method180.com/windows-server-offer/

• $9,500 one timetoreviewyourWindows Server deployments andprovide areport onhow tooptimize your serverlicenses

• $5,000 toadd SystemCenter• UtilizeMAP, RVTools orBlock 64(included in thefee)• Your technical teamrunsMAP/RV Tools (weprovide guidance) orBlock 64assists with aninstall oftheirtool• Method 180will analyzeyour license position and createanoptimized license model for current(2012 rules) and future

(2016Cores)• Build a2003 assessment (preparation forMigration)• CreateaCoreGrantmodel andprepare your asks toMicrosoft• Wewill include this linkwhenwesend you alink toarecording of thiswebinar

Special Offer

Don’tforgettogetacopyofmyauditbookforfree?Goto:www.Method180.com/audit-book

ThankyouandQuestions

MikeAustinmike@method180.com