This content is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, ON THIS PAGE. Please see full disclaimer below.
Outsourcing Software Management
Collapse AllOutsourcing Software Management
Q: What are dedicated hosted cloud services?
Dedicated hosted cloud services are offered by major public cloud providers typically with elastic, on demand, pay-as-you-go resources, like their multitenant cloud services.
Q: What are some examples of dedicated hosted cloud services from the Listed Providers?
Some examples include Azure Dedicated Host, Amazon EC2 Dedicated Hosts, VMware Cloud on Amazon Web Services (AWS), and single tenant nodes from Google.
Q: Where can I find the Listed Providers?
You can find the Listed Providers at https://aka.ms/ListedProviders.
Q: To what on-premeises software products to the Outsourcing Software Management terms apply?
The Outsourcing Software Management terms apply to all on-premises software available through Microsoft volume licensing as of October 1, 2019.
Q: What is Microsoft Azure Dedicated Host?
Azure Dedicated Host is an Azure service that enables organizations to host one or more Azure virtual machines on physical servers that are dedicated to their organization. The server capacity is not shared with other customers and your organization has access to a single tenant dedicated hardware. Learn more at https://azure.microsoft.com/products/virtual-machines/dedicated-host/
Q: How did the October 2019 Product Terms updates affect my option to outsource management of my software?
The October 2019 Product Terms updates generally preserved your historical right to deploy software licenses on hardware that is under the day-to-day management of a traditional outsourcer (“Authorized Outsourcer”). The updates specifically removed the option to deploy licenses without Software Assurance and mobility rights purchased on or after October 1, 2019 on dedicated hosted cloud services through the Listed Providers.
Q: Do we need Software Assurance to deploy volume licensing products on dedicated hosted cloud services (for example Azure Dedicated Host)?
Products licensed on or after October 1, 2019 are subject to the updated Outsourcing Software Management clause, and aren’t eligible for use on Listed Providers’ servers, except as otherwise permitted under the product-specific Use Rights. Examples of product-specific Use Rights that permit use on Listed Providers’ dedicated hosted cloud services include Azure Hybrid Benefit (Azure only) and License Mobility through Software Assurance (Azure or Authorized License Mobility providers). These licenses require Software Assurance. Alternatively, customers can use software hosted by Listed Providers participating in the Services Provider License Agreement program or Microsoft Azure through license included offerings. Use of existing versions of products licensed before October 1, 2019 are subject to the Product Terms in effect when those licenses were acquired. Licensing use on Listed Providers’ dedicated hosted cloud services in these cases is generally consistent with licensing use on your own on-premises hardware or traditional outsourcers’ hardware dedicated to your organization alone.
Q: Can we run a Windows Server on a Listed Provider’s dedicated hosted cloud services or is Software Assurance required?
Windows Server doesn’t have license mobility. For Windows Server licenses acquired on or after October 1, 2019, use on Listed Providers’ dedicated hosted cloud services isn’t permitted whether or not you have Software Assurance, with the exception of Azure Dedicated Host. Use on Azure Dedicated Host is permitted under Azure Hybrid Benefit. Only customers with Software Assurance for Windows Server or equivalent subscription rights are eligible for Azure Hybrid Benefit. Another option for customers who want to use Windows Server in dedicated hosted cloud services is to use license-included services from Azure or Listed Providers that participate in the Services Provider License Agreement program.
For Windows Server licenses acquired prior to October 1, 2019, use on Listed Providers’ dedicated hosted cloud services is generally consistent with licensing use on your own on-premises hardware or traditional outsourcers’ hardware dedicated to your organization alone. If you have Software Assurance or equivalent subscription rights for Windows Server, you can alternatively leverage Azure Hybrid Benefit rights for these licenses.
Q: Can we run SQL Server on a Listed Provider’s (other than Azure) dedicated hosted cloud services and what if we have Software Assurance?
For SQL Server licenses acquired on or after October 1, 2019, use on Listed Providers’ dedicated hosted cloud services isn’t permitted unless you have Software Assurance or equivalent subscription rights, and you invoke your License Mobility through Software Assurance rights. Alternatively, you can use SQL Server hosted by Listed Providers who participate in the Services Provider License Agreement program through license included offerings.
For SQL Server licenses acquired prior to October 1, 2019, use on Listed Providers’ dedicated hosted cloud services is generally consistent with licensing use on your own on-premises hardware or traditional outsourcers’ hardware dedicated to your organization alone. On-premises licensing requires you to license all physical cores on the server or license by virtual machine (minimum of four licenses per virtual machine).
Q: Will I receive unlimited virtualization on Listed Providers’ dedicated hosted cloud services?
For SQL Server or Windows Server licenses acquired after October 1, 2019, you won’t have unlimited virtualization rights on Listed Providers’ dedicated hosted cloud services.
For SQL Server licenses acquired prior to October 1, 2019, with Software Assurance you can get unlimited virtualization with SQL Server Enterprise Edition on Listed Providers’ dedicated hosted cloud services. You must assign core licenses for all the physical cores on the servers you use.
For Windows Server licenses acquired prior to October 1, 2019, you can get unlimited virtualization with Windows Server Datacenter edition on Listed Providers’ dedicated hosted cloud services. You must assign core licenses for all the physical cores on the servers you use.
Q: Can we run Visual Studio on Listed Providers’ dedicated hosted cloud services?
- For licenses acquired on or after October 1, 2019: The existing option for customers with current Visual Studio subscriptions to deploy on Azure multitenant services will also apply to Azure Dedicated Host.
Use of Visual Studio with other Listed Providers’ dedicated cloud services will be permitted using software hosted by Listed Providers who participate in the Services Provider License Agreement program.
- For licenses acquired prior to October 1, 2019, use on Listed Providers’ dedicated hosted cloud services is generally consistent with licensing use on your own on-premises hardware or traditional outsourcers’ hardware dedicated to your organization alone.
Q: How can I license Microsoft products with a Listed Provider?
The following scenarios are supported for licensing Microsoft products on dedicated hosted cloud services from the Listed Providers:
- Microsoft licenses with License Mobility through Software Assurance can be used on dedicated hosted cloud services from any Listed Provider who is also an Authorized Mobility Partner.
- Microsoft licenses with Software Assurance can be used with the Azure Hybrid Benefit including on Azure Dedicated Host.
- Microsoft software is available to you through Listed Providers that participate in the Services Provider License Agreement (SPLA) program and through Microsoft Azure offerings where the licenses are included in the cost of cloud services.
- Licensed software purchased before October 1, 2019.
Q: How do the Outsourcing Software Management terms, as updated in October 2019 and October 2022, impact my choice of outsourcers?
All companies that are not Listed Providers and not using a Listed Provider as a Data Center Provider are deemed Authorized Outsourcers. Authorized Outsourcers may continue to provide outsourcing services as stipulated in Microsoft’s outsourcing policy. Under the Flexible Virtualization Benefit introduced in October 2022, your outsourcing rights are expanded if you have active subscription licenses or licenses with active Software Assurance to include Authorized Outsourcers hosting workloads on shared servers, in addition to hosting on dedicated server.
Q: Do the Outsourcing Software Management terms, as updated in October 2019 and October 2022, impact my use of software under perpetual licenses acquired prior to October 2019?
Microsoft does change use rights for perpetual licenses sold in the past. However, benefits granted via active Software Assurance or active subscriptions are subject to the terms of your latest agreement. The October 2019 updates have no impact on perpetual software licenses acquired prior to October 2019. You may still use software under those licenses on Listed Providers’ dedicated servers under the pre-October 2019 Outsourcing Software Management clause. The October 2022 updates likewise have no bearing on perpetual licenses acquired prior to October 2019. Conversely, your use of software under subscription licenses or Software Assurance coverage renewed since October 2019 is subject to the current Outsourcing Software Management clause, including the prohibition against redeploying on Listed Providers’ servers, if you update your software to a version released after October 2019.
Q: How do the Outsourcing Software Management terms, as updated in October 2019 and October 2022, impact my options to redeploy on Azure?
The October 2019 outsourcing policy updates impacted all Listed Providers, including Microsoft. If you were using the Outsourcing Software Management clause prior to October 2019 to move workloads to Azure dedicated hardware, you no longer have that option except for perpetual licenses acquired prior to October 2019. While your rights under the general Outsourcing Software Management clause changed, some products have product-specific use rights to run on Azure in limited cases. Please see the product-specific sections of the Product Terms for more details.
Q: What impact do the current Outsourcing Software Management terms have on using License Mobility on Listed Providers’ data centers?
There was no change to License Mobility through Software Assurance rights—which allow Software Assurance customers to redeploy certain server products (like SQL Server) to Listed Providers who are Authorized Mobility Partners. The October 2022 policy updates have no impact on License Mobility through Software Assurance.
Q: When did the Listed Providers outsourcing policy go into effect?
This change took effect on October 1, 2019, but did not impact existing perpetual licenses. The policy applies to all licenses acquired on or after October 1, 2019. It also applies to all product versions released on or after October 1, 2019, regardless of the acquisition date. Customers may continue to use perpetual licenses that are not subject to this policy on Listed Providers’ dedicated servers.
Q: If I had an Enterprise Enrollment before October 1, 2019, does the Listed Provider policy apply?
The Listed Provider policy doesn’t apply to licenses acquired prior to October 1, 2019. For all enrollments with an effective date prior to October 1, 2019 (“Existing Enrollments”), you are subject to the Product Terms in effect on that earlier date. True-up licenses acquired under Existing Enrollments after October 1, 2019, for any product version released prior to October 1, 2019, are also exempt. Product versions first made available on or after October 1, 2019, are subject to the Listed Provider policy, irrespective of the effective date of the Enrollment.
Q: May I still move licenses acquired prior to October 2019 to a Listed Provider’s dedicated servers, even if I have not previously redeployed with that provider?
Yes, you still have the option to move your pre-October 2019 perpetual licenses to a Listed Provider’s dedicated servers. Use of software under perpetual licenses acquired prior to October 2019 is governed by the Product Terms in effect when you acquired them. This means you are still permitted to move your pre-October 2019 perpetual licenses to a Listed Provider’s dedicated servers without regard to where the licenses were previously redeployed.
Q: What if I have renewed my Software Assurance or upgraded to new versions released since October 2019?
Software Assurance renewal does not affect a customer’s underlying perpetual use rights for existing versions. However, if that customer upgraded to a new version released on or after October 1, 2019, or it acquired new licenses after its coverage renewal, the customer must redeploy that new version and those new licenses under the Outsourcing Software Management terms (including the Listed Provider policy), as updated in October 2019. Upon the first renewal on or after October 1, 2019, all Software Assurance based use rights are also subject to the updated terms. Customers with subscription licenses or Software Assurance who renewed their licenses or coverage also have access to expanded Outsourcing Software Management rights. Under the Flexible Virtualization Benefit introduced in October 2022, customers with active subscription licenses or active Software Assurance may redeploy licenses to Authorized Outsourcers’ shared servers.
Q: Do I have options to redeploy my licenses to Listed Providers’ data centers if I have active subscription licenses or licenses with active Software Assurance?
Yes, some licenses include License Mobility rights, which allow you to run your software on Listed Providers that are Authorized Mobility Partners. As Microsoft announced in October 2019, the updated Outsourcing Software Management clause prohibits use on Listed Providers’ servers, except as otherwise permitted under License Mobility through Software Assurance rights and certain subscription license or Software Assurance-related product-specific use rights. License Mobility through Software Assurance permits use on Listed Providers who are Authorized Mobility Partners. Further, some products have product-specific use rights that allow use on Listed Providers. As an alternative to using License Mobility through Software Assurance rights or product-specific use rights, you can use software hosted by Listed Providers participating in the Services Provider License Agreement program or by Microsoft Azure through license-included offerings. The October 2022 updates have no impact on License Mobility through Software Assurance or product-specific Azure redeployment rights.
Q: Can I run Windows 11 on a Listed Provider’s dedicated servers?
Yes, use of Windows 11 is permitted (1) on Listed Providers’ dedicated servers with Windows VDA E3/E5 user licenses. Windows 11 is also permitted on Azure servers with certain Windows Enterprise and Microsoft 365 licenses. These entitlements are stipulated in the product-specific use rights for Windows Enterprise. See the Windows License Terms for details on permitted use.
Q: What rights do I have to redeploy Windows 11 licenses to Authorized Outsourcers’ data centers?
If you have active subscription licenses or licenses with active Software Assurance (including Windows device licenses), you may run Windows desktop software on Authorized Outsourcers’ shared or dedicated servers for access by your licensed users or users accessing from licensed devices.
Q: Can I use my Office LTSC licenses on a Listed Provider’s servers?
No, use of Office LTSC is not permitted on Listed Providers’ servers. Unlike Exchange, SharePoint or Skype for Business which have License Mobility through Software Assurance, Office LTSC does not have License Mobility through Software Assurance. However, customers can use Office LTSC software hosted by Listed Providers who participate in the Services Provider License Agreement program (SPLA).
Q: Does SQL Server with License Mobility include unlimited virtualization rights?
There are no SQL Server unlimited virtualization rights under License Mobility through Software Assurance.
Note for customers with SQL Server licenses acquired prior to October 1, 2019: After agreement renewal, customers with perpetual licenses can continue to run on Listed Providers’ dedicated servers (i.e., subject to the Product Terms in effect when those licenses were acquired and without unlimited virtualization); however, their Software Assurance rights (including unlimited virtualization rights) reset to the current Product Terms in effect at the time of their renewal, and therefore unlimited virtualization is not permitted.
Q: Are Microsoft customers permitted to redeploy their Windows Server licenses to AWS’s cloud or other Listed Provider’s clouds?
No, there is no current option for Microsoft customers to redeploy their Windows Server licenses to AWS’s cloud or other Listed Provider’s clouds, as further explained below. Customers choosing to run Windows Server workloads in AWS’s cloud or other Listed Provider’s clouds must use a license-included offering (in which case, AWS or other Listed Providers hosts Windows Server on behalf of its customers under the Microsoft Services Provider License Agreement Program).
The option to redeploy licenses to the cloud under the Outsourcing Software Management clause in Product Terms is not available to customers choosing to use AWS’s cloud or other Listed Providers’ clouds*. The Outsourcing Software Management clause applies to Authorized Outsourcers only. Authorized Outsourcers include only entities that are not Listed Providers. AWS and other Listed Providers are not Authorized Outsourcers. Refer to the Outsourcing Software Management terms.
Additionally, License Mobility through Software Assurance, an option available to customers choosing to redeploy certain server application licenses with Software Assurance to an Authorized Mobility Partner’s data center (for example, AWS), is not available for Windows Server licenses. Refer to the Software Assurance Table in the Windows Server Product Entry and the License Mobility clause on the Software Assurance Benefits page in the Product Terms.
Finally, the Flexible Virtualization Benefit, a newer option available to customers choosing to redeploy subscription licenses or licenses with Software Assurance (such as Windows Server) to a hoster’s data center, is not available to customers choosing to use AWS’s cloud or other Listed Provider’s clouds to host their server workloads. This is because the Flexible Virtualization Benefit is available only to customers using Authorized Outsourcers. Authorized Outsourcers include only entities that are not Listed Providers. AWS and other Listed Providers are not Authorized Outsourcers. Refer to the Outsourcing Software Management terms and the Flexible Virtualization Benefit licensing guidance.
Q: Are Microsoft customers permitted to redeploy their Windows Server licenses acquired prior to October 1, 2019 to AWS’s cloud for use on AWS’s dedicated server offerings, Dedicated Host and Dedicated Instance?
Customers may redeploy their Windows Server licenses acquired prior to October 1, 2019 (and have not upgraded these licenses until today) to AWS’s cloud for use on AWS’s Dedicated Host offering. While licenses acquired prior to October 1, 2019 are not subject to outsourcing limitations related to Listed Providers, customers are still required to comply with the license reassignment clause and other license terms applicable to Windows Server. The license reassignment clause requires that customers assign licenses to a particular server and prohibits reassigning those licenses sooner than 90 days. See the License Reassignment clause in the Universal License Terms for Software in the Microsoft Product Terms.
Note, License Mobility across Server Farms, a right which allows customers to reassign licenses with Software Assurance from one Server to another in the same Server Farm as needed, is not applicable to Windows Server licenses (other than External Connector licenses). Refer to the Software Assurance Table in the Windows Server Product Entry and the License Mobility clause on the Software Assurance Benefits page in the Product Terms.
Q: Can we run Windows Enterprise on a Listed Provider’s dedicated hosted cloud services or is Software Assurance required?
For Windows Enterprise licenses acquired on or after October 1, 2019, use on Listed Providers’ dedicated hosted cloud services isn’t permitted except under (1) Window VDA E3/E5 user licenses on any Listed Provider’s dedicated hosted cloud services or (2) Windows 10 E3/E5 user licenses on Azure or a Qualified Multitenant Hosting Partner’s dedicated hosted cloud services. As an exception, customers renewing Windows Enterprise SA coverage or E3/E5 subscriptions between October 1, 2019 and October 1, 2020 will have until October 1, 2020, to move their existing Windows Enterprise workloads off Listed Providers’ dedicated hosted cloud services.
This content is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, ON THIS PAGE. This information is provided to help guide your authorized use of products you license; it is not your agreement. Your use of products licensed under your volume license agreement is governed by the terms and conditions of that agreement. In the case of any conflict between this information and your agreement, the terms and conditions of your agreement control.
