Microsoft UK Public Sector Cloud Transformation Agreement

The objective of this article is to review the publicly available documentation available on Public Sector Cloud Transformation Agreement (CTA)

This will look at the publicly announced information as of March 1st 2015.

  • This article is not intended to replace the Product Use Rights or Product List or Online Service Terms or other binding contractual documents
  • The Software Use Terms for each Product or Version are available within the Product Use Rights
  • Further Product-Specific conditions, transition terms, or limitations on use of products, including soft benefits are in the Product List
  • Please be aware that any licensing information could be subject to change. This document confers no rights and is provided for information purposes only.
  • Please be aware, my own emphasis may have been added to quotations and extracts from 3rd party sources.
  • This is not official guidance from Microsoft or its subsidiaries.
  • The following article is based on the open telecon briefing with Licensing Solutions Providers (LSPs) and based on only personal understanding.
  • As always, If you would like to book a consultation, available under NDA, please drop me a note via email

Microsoft UK Public Sector Cloud Transformation Agreement

Microsoft have informed Licensing Solution Providers (LSPs) over telecon that PSA12 will expire naturally on April 30th 2015 .

As Microsoft continue to adopt pricing and licensing models to incentivise adoption of cloud based subscription services, Microsoft have agreed a ‘cloud-first’ offer with the Crown Commercial Service (CCS) on behalf of Public Sector organisations in the UK and confirmed expiration of the PSA12 framework on April 30th 2015. The Microsoft Cloud Transformation Agreement (CTA) will be effective May 1st 2015, and is a non-binding Memorandum of Understanding (MoU) with the Crown Commercial Service.

What was PSA12?

  • PSA12 was a Memorandum of Understanding (MOU) with the Government Procurement Service (GPS),  and was an amended continuation of PSA09 contractual concessions and discounts in effect until June 30th 2012.
    •This included update to the eligibility criteria and with reference to a ‘Contracting Authority’
    •The Contract Pack (N39) was retired and replaced with standard Microsoft Contracts with Public Sector concessions in accompanying Amendments
    1st July 2012 – 30th April 2015:
    •PSA12 took effect on July 1st 2012, replacing the PS09 discounting structure with a PSA12 Price List
    •An annual inflation increase was applied to the PSA12 Price List in April of each subsequent year of the framework based on the ONS CPI published in the preceding September
  • From July 1 2012, PSA12 was amended to include Social Enterprise and Charitable Organisations in the Eligibility Criteria
  • Microsoft also made changes to its Academic eligibility criteria for only qualifying Academic organisations and Charities with over 10% donations will be eligible to purchase via Academic Volume Agreement(s), this 3rd sector re-segmentation ‘pulled’ some organisations out of Academic and into PSA12

What Should I do?

This change will not immediately impact organisations with an active Enterprise Agreement (EA) or Enterprise Agreement Subscription (EAS) under PSA12 framework, but organisations should work with a trusted advisor to assess both optimum technology and licensing strategy for Microsoft solutions and services going forward.

The CTA (Cloud Transformation Agreement) will provide a timeline for adoption of Cloud Services, and offer commercial licensing mechanisms and pricing to incentivise adoption of Microsoft Cloud Services like Office365 and the Azure Platform. Microsoft are careful to communicate that Public Sector Customers will be provided sufficient time to assess, and where applicable migrate to public, hybrid and private cloud solutions from Microsoft, incentivised by strategic commercial vehicles like the Enterprise Cloud Suite to adopt Office365 and Azure Services.

It is recommended, working with experienced advisor(s), that organisations should access the following information to make an informed decision over the coming months:

  • Knowledge Transfer on Microsoft Solutions and Services and Microsoft Strategy Update
  • Critical Knowledge Transfer on Microsoft Licensing (Workshop)
  • Confirmation of current License Entitlement and Maintenance Entitlement
  • Cloud Service Solution Alignment, and Technical Validation
  • Assessment of Current and Planned Utilisation of Microsoft Software and Services
  • Predictive Software Lifecycle Management and End of Life (EoL) Planning and Migration Services for Products exiting Extended Support i.e. Windows Server 2003
  • Optimised Microsoft Roadmap and Commercial Investment Plan, Migration Planning, for Microsoft Solutions and Services
  • Assessment of Commercial Options versus Microsoft Strategic Objectives
  • Comparative Commercial Analysis across Contracts and Price Lists
  • Leverage any available Co-Investment Funds or Deployment Planning Services (DPS)
  • Managed Closure Support and Closure Plan with Microsoft Global Account Manager and Operations Team.
  • Work with a Supplier authorised under an applicable Government Framework like G-Cloud 
  • Carefully assess whether to enter an Enterprise Agreement Subscription (EAS) during the CTA ‘Transition Window’

SoftwareONE, as an authorised Licensing Solution Provider (LSP), are an authorised supplier on the G-Cloud framework [Ref: SoftwareONE G-Cloud Press Release] and work with Public Sector organisations to provide independent consultancy services to advise on an optimum technology and licensing strategy for Microsoft solutions and services.


Commercial Options at Renewal for On Premise Software

EA Renewals (expiring prior to April 30th)

  • Customers with active EA or EAS Renewal prior to April 30th will still be able to sign an on-premise Enterprise Agreement Subscription (EAS) or Enterprise Agreement (EA) for on premise software under PSA12 for three years.
    • Commercial pricing incentive offers for Enterprise Cloud Suite (ECS) and Server Cloud Enrollment (SCE)

EA Renewals (after April 30th)

  • Customers with active EA or EAS Renewal after April 30th will be able to sign an on-premise Enterprise Agreement Subscription (EAS) for on premise software on comparable pricing terms
  • Microsoft will also provide “transition window” with commercial G-Cloud pricing incentive for Office365, Intune, Windows Per User, Enterprise Cloud Suite “Add Ons”
    • Commercial pricing incentive offer for Enterprise Cloud Suite (ECS) and Server Cloud Enrollment (SCE)
    • Customers can no longer sign an Enterprise Agreement (EA) after April 30th and can only sign under the comparable EAS only (see above)
    • Microsoft will provide customers with an opportunity to renew on-premise software for one renewal term, providing ‘time to transition to cloud services’
    • The new CTA arrangement, will provide an initial ‘transition window’ and ‘extended transition window’ until 30th June 2017.
    • Organisations with renewals in the following 2018 financial year may likely be able to access ‘early commit’ (subject to approval).
    • This agreement timeline provides a window of ‘discount certainty’ for on premise software, while providing commercial incentive to adopt private, hybrid and public cloud solutions and services from Microsoft.

Government Select Plus Customers

  • Select Plus for Government will be available after April 30th 2015
    • We understand that Government customers procure under Select Plus Government “Level D”
    • Select Plus Government Level D pricing will cost more than current Select Plus Government PSA12
    • The Select Plus for Government will not expire on July 1st 2015
  • Microsoft Product and Services Agreement (MPSA) has been extended with Government and Academic Purchasing Accounts Types from March 1st [Ref: MPSA Licensing Guide: ]
  • Customers that do not have an active Enterprise Agreement (EA) for on premise software can sign a perpetual EA enrollment until June 30th 2015
    • Commercial pricing incentive offer for Enterprise Cloud Suite (ECS) and Server Cloud Enrollment (SCE)
    • Customers may elect to purchase an EA for the desktop environment, and SCE for SQL, Windows Server and System Center
      • If the customer does not accept ‘Enterprise Wide’ term of this SCE agreement, this could be approached as “Additional Product” on EA
      • Customers may alternatively sign a renewal via a 3 year Enterprise Agreement Subscription (EAS) on PSA12 for three years
      • Commercial pricing incentive for Enterprise Cloud Suite (ECS) and Server Cloud Enrollment (SCE)
      • Sign a new Select Plus Government to renew existing with Software Assurance under PSA12
  • Microsoft Product and Services Agreement (MPSA) has been extended with Government and Academic Purchasing Accounts Types from March 1st [Ref: MPSA Licensing Guide: ]
  • The normal sales motion will offer organisations to sign an on-premise Enterprise Agreement Subscription (EAS) for on premise software on comparable pricing terms
    • Microsoft will also provide “transition window” with commercial G-Cloud pricing incentive for Office365, Intune, Windows Per User, Enterprise Cloud Suite “Add Ons”
    • Commercial pricing incentive offer for Enterprise Cloud Suite (ECS) and Server Cloud Enrollment (SCE)
    • Microsoft will provide customers with an opportunity to renew on-premise software for one renewal term, providing ‘time to transition to cloud services’
    • The new CTA arrangement, will provide an initial ‘transition window’ and ‘extended transition window’ until 30th June 2017.

Select Government Renewals (expiring prior to April 30th)

  • Microsoft recommend that customers with commitment to perpetual licenses with active SA, are able to renew a perpetual EA under PSA12 for three years
    • This provides the best pricing available for perpetual licensing model under PSA12
    • Commercial pricing incentive offer for Enterprise Cloud Suite (ECS) and Server Cloud Enrollment (SCE)

Select Government renewals (after April 30th)

For organisations that do not actively purchase software under an active Enterprise Agreement (EA) or Enterprise Agreement Subscription (EAS):

  • Customers will be able to purchase under an Enterprise Agreement Subscription (EAS) on comparable pricing fixed discount terms until June 30th 2015
    • Commercial pricing offer incentive for Enterprise Cloud Suite (ECS) and Server Cloud Enrollment (SCE)
  • Customers who elect not to commit to an Enterprise Agreement Subscription (EAS) prior to June 30th 2015, will then be able to purchase on Select Plus Government “Level D” after April 30th
    • Select Plus Government Level D pricing will cost more than current Select Plus Government PSA12
    • Commercial pricing incentive offer for Enterprise Cloud Suite (ECS) and Server Cloud Enrollment (SCE) and what Microsoft term “Customer Considerations”
  • Microsoft Product and Services Agreement (MPSA) has been extended with Government and Academic Purchasing Accounts Types from March 1st [Ref: MPSA Licensing Guide: ] [Ref: Microsoft Announcement: ]
  • Customers that do not have an active Enterprise Agreement (EA) for on premise software can sign a perpetual EA enrollment until June 30th 2015

Next Steps

Sign Up to the SoftwareONE Public Sector Advisory Webinar on To Be Scheduled – Please Email or drop your details in the form below if you would like to be sent an invitation or arrange an onsite meeting with our Principal Consultants.


About

This website is a way to give back to the licensing community and as an information resource for all customers that work with Microsoft software and licensing. I hope you find it of value.

Tony Mackelworth is Head of Microsoft Advisory Services at SoftwareONE

As always, If you would like to reach out for a coffee or a meeting under NDA, Email or connect via Twitter or LinkedIn

Tony lives with his wife in Oxford, England.


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