Microsoft Contracts Explained

One of the first things that IT firms should try to understand is the various Microsoft contracts available as well as how they all relate to one another. Here, we will discuss the different types of Microsoft contracts to give you a better understanding of how they work.

1. Microsoft Business and Service Agreement (MBSA)

The Microsoft Business and Service Agreement (MBSA) is known as the Master Service Agreement used for volume licensing agreements. It consists of various contract terminologies, such as termination, liability, term, confidentiality, warranties, etc., to bind two parties with an official relationship. This type of agreement is signed between the customer and Microsoft.

2. Enterprise Agreement

The Enterprise Agreement is entered between the customer and Microsoft. It generally explains the terms and conditions of the agreement to the customer pertaining to the software and online services (cloud). It also explains the updates provided by Microsoft and enables other companies (that commit to the agreement) for registration to use Microsoft products and services.

3. Enterprise Enrollment

The enterprise enrollment, also known as the affiliate registration form, is entered between Microsoft and an affiliate or committed customer. This agreement enables the affiliate or committed customer to use Microsoft products or online services. You can also move from premise licensing to an equivalent online service.

4. Server and Cloud Enrollment

The server and cloud enrollment agreement is entered between the affiliate or committed customer and Microsoft. This agreement enables the affiliate to standardize on either one or multiple cloud technologies or key servers from Microsoft.

5. Subscription Enrollment

Subscription enrollment enables the affiliate or committed customer to subscribe to Microsoft products as opposed to purchasing. This provides similar benefits as other enrollments. However, the right to access and run Microsoft’s software is usually valid only as long as the subscription is renewed and maintained.

6. Product Terms

The product terms consist of the terms and conditions of the software licenses for online services and products offered by Microsoft licensing programs. These product terms are updated on a monthly basis.

7. Online Service Terms

The online service terms contain the additional conditions pertaining to the use of online services offered by Microsoft. Note that some of the uses may be reserved by Microsoft if not granted. The service terms and conditions are also updated on a monthly basis and are available under the Microsoft Licensing Terms.

8. Service Level Agreement

The service level agreement states the minimum level of service pertaining to the connectivity and availability of the online services offered by Microsoft. The terms and conditions mentioned in the service level agreement can be found under the Microsoft Licensing Terms.

Conclusion

Microsoft contracts offer varying levels of flexibility and ease depending on several factors. It is essential to map out the controls you can use to encourage more flexibility from Microsoft as part of your cost optimization approach and licensing.