Actually, SPLA is what fuels part of that market.  There are many datacenters out there that will basically lease you a server for a fixed price and give you unlimited everything and all hardware, hardware support (and some software support), and they all do SPLA for Windows boxes.  They approach the market from the perspective that marketing price is the way to go, kind of like some car dealers, and it does work for them.  I met a guy that just graduated from college and runs a Web hosting company that sells sites beginning at $10/year.  I don't think that is wise, but he does make some money.  I just cater to a different type of customer, and for a serious business, the extra money they pay with me is not something that they think much about.  Commoditization of these markets is however a serious concern of mine, and unfortunately software costs are going up rapidly while service prices are going down.  At least the hardware is dropping in price to offset part of this trend.

Matt


John T (Lists) wrote:

On the one hand, if it that was upheld as true as you say and enforceable, do you think that would help get rid of all those fly-by-night hosting companies out there offering unlimited this and unlimited that with a SQL backend for $9.95 per month?

 

John T

eServices For You

 

"Seek, and ye shall find!"

 

-----Original Message-----
From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED]] On Behalf Of Matt
Sent:
Saturday, March 11, 2006 3:07 PM
To: [email protected]
Subject: Re: [Declude.JunkMail] OT: Microsoft Open License

 

John,

I haven't looked at the SQL Server license, but the Windows 2003 Server Standard Edition license states:

    "Renting, leasing, or lending the Software (including providing commercial hosting services) is also prohibited."

It makes no difference as to who's software you are using on top of Windows, just that Windows is the OS.

Clearly Microsoft's intention is to have service providers of any sort running Windows buy into the SPLA licensing.  I don't however believe that it is enforceable based on the things that I had brought up.  Microsoft would likely lose in court at this point if they tried to press the matter, however, in the future, things may be different and it is clear that they are laying the ground work for that.

Matt



John T (Lists) wrote:

That is where the question comes in. I am not hosting a client or providing a client a service on a server.

 

I have listened in on a conversation between a big client of mine and a lawyer and the lawyer’s thought is that I am providing a package product, in one case a web and e-mail hosting service. However that package includes DNS services, logs and other items depending on service level. That package is facilitated by different software provided by different servers located on various servers. As such, it is that lawyer’s thought that there is no requirement for a service provider licensing. In his opinion, where the service provider licensing would come into affect, no matter what vendor, is when a server or software or what ever is purchased and/or dedicated and/or designated to a client.

 

This conversation came up when this client of mine was having their website rebuilt which would require a MS SQL server. The question posed was if a client requires say SQL server, and I go out and purchase and install it and then charge them a premium for it, who owns it, me or the client. The outcome was that if SPLA was not in existence, then if I was charging that client a premium for it and never used SQL for anything else, then the client owned it. However, if I bought it and I used it, and then offered the client to use it as part of his website, and he had no control over it and could not connect to it, then I owned it. He said the same with SPLA. If I used SQL and then allowed his website to use it but he could not connect to it to run sp or queries and I advertised a hosting service that included SQL to all at whatever service level, then a SPLA is not used.

 

John T

eServices For You

 

"Seek, and ye shall find!"

 

-----Original Message-----
From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED]] On Behalf Of Matt
Sent:
Saturday, March 11, 2006 12:34 PM
To: [email protected]
Subject: Re: [Declude.JunkMail] OT: Microsoft Open License

 

The popular understanding is exactly the opposite in fact, but even Microsoft's own reps don't always tell it the same way.

The fact is that anyone hosting "clients" is violating the standard EULA on Windows since they made that change, and SPLA is required.  Whether or not that is enforceable is an open question.

Matt



John T (Lists) wrote:

Matt, my understanding is that is the server is hosting multiple web sites for multiple clients, and therefore is not dedicated to any one client, the SPLA does not apply. If a server is dedicated for one client, whether that server be for web sites, SQL, ACT, Quickbooks, whatever, then that server must be licensed via SPLA.

 

John T

eServices For You

 

"Seek, and ye shall find!"

 

-----Original Message-----
From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED]] On Behalf Of Matt
Sent:
Saturday, March 11, 2006 12:05 PM
To: [email protected]
Subject: Re: [Declude.JunkMail] OT: Microsoft Open License

 

Shayne (and Kevin),

Rant = on

I see now that under the SPLA program, they seem to indicate in a very round-about way that you have to use SPLA, in fact, you have to purchase a separate license per processor for anonymous access to IIS over the Internet.  What a crock of s#*t that is.  This is the third such program that I recall seeing Microsoft push on the down-low trying to claim some sort of special fees for using IIS on the Internet.  It is clear as day that they don't market their product in a manner consistent with the SPLA program.  They updated their EULA however to include the following; "Renting, leasing, or lending the Software (including providing commercial hosting services) is also prohibited."  This means that everyone using IMail, SmarterMail, or whatever app that runs on a Windows platform and is accessed over the Internet must switch to SPLA and pay a per-processor monthly license if you provide services to anyone that is not a part of your immediate company.

Shrink-wrapped agreements like this aren't by default legally enforceable, especially when a product is marketed one way and the license says differently.  The idea of prohibiting use simply by way of the type of entity and not the functionality appears to be unfair price competition, and based on what 99% of the market does with their software, it may not meet the legal definition of "unconscionable", making that part of the contract void.  The retail software is not labeled "for hosting providers" and "for single entities", in fact they only offer one box, and clearly market the software in that box for hosting Web sites, and they widely make no distinction as to hosting or single entity use (except for the SPLA site).  Limiting fair use outside of industry norms would have a hard time surviving in court under a shrink-wrapped license.  Microsoft would also have a difficult time proving harm by using retail Windows Server software by hosting providers.

To go another step further, Microsoft requires you to be a MCP before you can join the Microsoft Certified Partner program, or at least one part of their site says so, and that requires testing and $1,500/year, but in another part they say that you can be a Microsoft Registered Member and Microsoft Partner Program Member and qualify.  This should be considered an "adhesion contract" since previously a single copy without a doubt required an expensive yearly membership and training, and submitting to even more terms and conditions like agreeing to be audited at the drop of a hat.  Clearly they haven't worked it all out for themselves.  In the following article linked to from their own SPLA site, they admit to at least past issues:

http://download.microsoft.com/download/b/9/b/b9b1f066-51c3-4983-9c53-e65ebe104abe/08-05-02_SummitVision_Microsoft.pdf
"In other licensing-program changes, Microsoft has simplified its contract language, which the vendor thinks will improve compliance with its terms. Even Microsoft admits that the first version of its license was so confusing that SPs often didn’t know if they were in compliance or not."

Again, it's a crock if they want to try forcing this upon SP's.  Essentially they are saying that anonymous connections to IIS need a special license now, and occasionally in the past when they could figure out what their own licensing says or means, but only when you are providing services to third-parties.  Of course that also means that they sell Windows Server Web Edition, but you can't use that for hosting Internet Web sites for anyone except yourself unless you get it under SPLA.  I think not.  Or how about any E-mail, FTP, DNS, Web server, etc. that runs on top of Windows?  They might want to claim that this is the only legitimate way on the SPLA site, but the reality clearly is that hosting on the Internet does not require SPLA, even if you sell services, otherwise thousands of companies products and millions of their customers would be running on top of an illegitimately licensed OS.  It suggests that products such as Commerce Server can't be bought at retail and used on the Internet, and it suggests that the SQL Server per-processor licensing is only for intranet use even though they clearly state that the license is most appropriate for Internet use and make no differentiation among the type of entity, nor do they attempt to make you aware of SPLA.  Not enforcing the terms, nor providing for even basic awareness of the 'proper' program could also make it unenforceable.  I think that I'm done...

Comments on forums are all over the place on this.  One claimed for instance that a MS rep from the SPLA program told him that SPLA was only required if you leased servers to third-parties, but not for providing hosting services.  I'm not even sure that they can force that as a condition.  Clearly SPLA is optional, at least from a legally enforceable standpoint.  I would not put it past Microsoft to try claiming something that they knew couldn't be enforced, and that they wouldn't even try to enforce it despite their claims  This thread pretty much sums it all up:

    http://forums.webhostautomation.com/viewtopic.php?t=13929.

Microsoft's reps still don't know what's going on, and the story also changes depending on which page on their site you read.

I did find the pricing sheet from who apparently a leader in SPLA licensing, Software Spectrum:

    http://www.softwarespectrum.com/microsoft/Advisor/docs/MS_SPLA.xls

The prices are reasonable at these levels if you are using single-processor machines and stay away from licensing SQL Server this way ($169/month, but they sell a per-processor license at retail that goes fairly cheap in comparison on eBay).  Windows Server Standard 1 Processor goes for $18/month, and that's a reasonable price since it is about the same cost over 3 1/2 years for their retail software.  The low upfront costs is a benefit for a single processor system, but it is not competitive for a dual-processor system.  I'm going to keep this in mind should there be a opportunity to use this model (leased servers, big build-out), but I think I am going to start investing more in Linux due to my fear of my business getting trapped by a monopoly of this sort that changed their offering multiple times over the last 5 years.

Thanks for the info.

Matt



Shayne Embry wrote:

Matt,

I think as you continue your investigation you'll find that Microsoft states the only type of "legal" licensing for hosting services is the Service Providers License. We discovered this not-so-well publicized fact last year. It requires a monthly licensing fee. I won't go into all the details here (I'm at home and don't have convenient access to info at my office), but it could very easily cost you more depending on your situation. MS SQL can definitely take a painful bite out of a budget. It's different from the Open License program, which we also did about four years ago.

If you don't get some answers elsewhere, please mail me off list and I'll try to get you more details on Monday.

Shayne


From: Matt <[EMAIL PROTECTED]>
Sent:
Friday, March 10, 2006 6:19 PM
To: [email protected]
Subject: [Declude.JunkMail] OT: Microsoft Open License


I'm considering changing over to Microsoft's Open License program, but I
haven't actually spoken to a reseller yet about the terms. I'm hoping
that someone here could give me an idea about the prices that one would
pay for Windows 2003 Standard and MS SQL 2000 for around 5 to 10 total
licenses. Currently I own full retail versions of all of my software,
but it seems that there might be a better and more flexible way to do
this, and I might be able to convert my current licenses (???). This is
a hosting setup and not a workplace installation. I have seen talk of
prices at around $12/month for Windows 2003 Web Edition, but I am not
sure what the rest of the pricing might be.

Please respond off list if you don't feel it is appropriate for a public
forum.

Thanks,

Matt
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