Microsoft Cloud Agreement – The Microsoft CSP Program

In this article, we will provide a short brief on the changes to to the Microsoft Cloud Agreement (MCA) and what it means for all Cloud Solution Provider subscriptions and licenses paid in full.

What is the MCA?

MCA is the end customer agreement for CSP. It details all applicable use rights and governs the end customer’s use of Microsoft cloud solutions.

How often does it change?

Agreement terms are published yearly.

Does Microsoft provide it directly to my end users or is it something I need to provide?

MCA is always provided by the CSP provider, not Microsoft.

What’s new?

Downgrade rights are now available for CSP customers permitting customers the right to install previous versions. Similar to SPLA, the use rights that are in effect when the customer orders software will apply to the customer’s use of the version of the software that is current at that time. All future versions, the use rights that were in effect when the products are first released apply. In addition, customers can now transfer licenses that are fully paid (perpetual licenses) to an affiliate or third-party due to merger or a divestiture.

Any gotchas?

Microsoft has the right to verify compliance. If unlicensed use is 5% or more, the customer must reimburse Microsoft for the cost of the audit and acquire the additional licenses owed for the bargain price of 125% more than the actual price. Similar to SPLA, they can use independent auditors and contractors to determine compliance.

Does the MCA ever expire?

No. The existing agreement remains in effect until the termination or renewal of the customer’s subscription.

My customer accepted the prior MCA terms. Do I need to have them sign this new one?

If the customer is not creating new subscriptions, no. The terms of the existing MCA continue to apply.

Are there templates I can use?

Yes. Go to the Microsoft partner center for details.

Does my customer need to sign off on this?

They have to agree to it but not sign it. Similar to the End Customer Terms and Conditions in SPLA, you must make it available to your customers. As part of CSP, I would make it part of your overall managed services agreement.

Where can I get a copy?

You can get a copy here

Thanks for reading,

CSP Man

In this article, we will explain how Azure works in the CSP program.

Azure can be sold through various channels and programs. If your company would like to purchase Azure, you can continue to purchase through a volume licensing agreement. If you’re a hosting provider and you would like to leverage Azure as your datacenter provider, you can also purchase it through volume licensing leveraging the Microsoft Hosting Exception found in the Online Services Terms (OST). Last, if you are a solution provider, you can resell Azure to your end customers through the Cloud Solution Provider (CSP) program. Let’s highlight how this would work operationally with links to the appropriate documents you should be aware of.

Azure in CSP Direct (Tier 1)

The end customer is the licensee. They are the one to sign off on the Microsoft Cloud Agreement and follow the Online Services Terms. They would also sign your own support agreement with the customer with SLA’s and other terms.
The CSP provider is the reseller. As a CSP, you will sign the Cloud Reseller Agreement. Your responsibility is to resell the licenses to your end customer, provide the support for the consumption, and provide proper billing services.
CSP is the reseller in this model, each end customer would be required to have their own Azure tenant.

Azure in CSP Indirect (Tier 2)

Same rules apply as above, however the Tier 2 provider would provide the platform and support for CSP. The managed service provider (or reseller) would be responsible for the billing and overall management of the end customer.

Azure in SPLA

If a service provider would like to run a multi-tenant hosted solution to their end customers, they could leverage SPLA for all user based applications and Azure through the volume licensing Hosted Exception found in the Online Services Terms.

Thanks for reading,

CSP Man