Friday, October 17, 2014

Microsoft significantly changes Office365 licensing

Microsoft, as Microsoft is want to do, has again changed the rules for Office365 licensing

This has ramifications for both existing and new clients

In a move that has both advantages and disadvantages for consumers of Office365 products, Microsoft has shuffled the licensing for Office365 significantly, introducing a new product mix, and changing the way existing product mixes work. This has ramifications for both new and existing customers so best to be sure you understand it.

First the good

Increased max count

In the old office365 world there were small business licenses up to 25 users, and midsize business up to 150.  These numbers have fluctuated and changed over time and the result has been very confusing.  They have done away with this distinction now.  All businesses up to 300 licenses can purchase the small business line of products. This makes it much easier for a company to carefully craft a set of licenses that meets their needs, and opens up the market for the less expensive licenses for many midsize businesses who could not utilize them in the past due to cost constraints of the more expensive midsize and enterprise business license.

Mixing and matching

In the old Office365 world you could not mix and match small business, midsize business and enterprise licenses.  This caused untold consternation when you exceeded the max licensing, or needed a product for one or two clients out of your install with more advanced features. This is no longer the case - you can now mix and match both small/midsize business and enterprise licenses. They have removed the Small/Midsize division and made ONE product line called "Small Business" and ONE product line called "Enterprise".   Companies cannot own more than 300 instances of a Small Business license, Enterprise licenses are unlimited in the number you can buy.  So you can now mix and match and choose products from any of the business lines as needed, as long as you don't exceed the max license limit in any one line.  This is a real bonus as they have also changed the way offline office works so that in some cases you may be required to purchase enterprise licenses now.

License office without email

Some businesses wanted the ability to license MS office on an ongoing basis without paying for an email box. They might already have an internal email server, or are using a different product for email.  You can now - through office365 acquire an office license without online storage or email accounts.  This allows companies doing mass deployments of office upgrades, or those that don't need email to take advantage of licensing office through the cloud.  Remember that each of these licenses allows 5 installs!

More office options


In the old world you either got offline office, or you didn't and if you did get it you got the whole shebang - the full office professional with all the bells and whistles. This was different from their normal process of selling office in that they had tiered the product - with a lower end offering that didn't include Access and InfoPath, and a higher end offering that included these products. The good news is that they now offer an office small business and an office enterprise - distinguishing these products from each other. The bad news I will cover in the next section.

1TB of storage in the cloud


Microsoft now offers ALL office365 email users 1TB of offline storage. That's 1000GB of storage in the cloud PER MAILBOX. That's an unprecedented amount of space, which any user uses. At the $5/month $60/year level you can't even buy that much storage from Amazon Web Services or Azure for a year - without the mailbox.  It's a bold move and one that may spell (for professional use) the end of products like Dropbox.

Buy Office365 from a reseller and use a PO rather than a credit card


You can now buy all but the Kiosk licenses (see below) from a reseller as an open office license. These licenses get applied to your online account, and must be re-purchased each year from your reseller - unlike the credit card accounts they will not renew automatically.  Resellers must be Microsoft Cloud Authorized resellers (Like OS-Cubed, Inc.).

The Bad News

Microsoft has made full office more expensive

If you need all office has to offer (including Microsoft Access) you have no choice now but to buy the full enterprise office at $20/month. They have replace the $12.50/month slot with the small business office which does not include MS Access. Now a lot of clients don't need Access so their price won't change they will just lose the ability to run Access on their machines. But for small business or midsize business clients who do need MS Access on their workstations they are looking at a rather hefty $7.50/month additional charge per set of 5 licenses to use this ability.  This amounts to an additional $90/year to get ONE new office app.  For many clients this is no big deal, but for those that use Access it could get quite expensive. If you had the full 25 Office365 pro plus licenses and need them all to have Access you're talking an extra $2250/year.  That's not chump change for a small business.  Note however that even at $240/year it's still an incredible deal.  You are getting full blown Microsoft Office with 5 licenses to install for the price of less than one over-the-counter license.  You are in addition getting the full-blown all access Microsoft sharepoint, 1TB of storage, yammer, lync, etc.  This is still an awesome deal. It's just too bad that they decided to screw the high end of existing small business subscribers to set it up this way.

Microsoft is not honoring their initial commitment to clients

Once your current subscription runs out - you won't be able to just renew it and continue to enjoy it's benefits.  You will have to purchase one of the new licenses and either suffer a downgrade of office without Access or pay more to get an enterprise pro license.  This sucks.  I think Microsoft should have continued to honor their initial sales of office365 pro to small and midsize businesses as long as they continued to use them.  If they want to buy NEW licenses - sure put them in the new pricing scheme. Why does this suck (beyond the obvious additional expense)?  Office365 was sold with the express idea that it would give you a predictable monthly outlay for your needs.  And then they went and removed that benefit by changing the pricing.  If they can just change (upwards) the pricing any time they want - how is that predictable? How are companies to trust them that they won't increase prices again?  I think this was a very bad move on Microsoft's part. We'll see if outcry from customers as their contracts come up for renewal pushes them to modify this policy.  The bad taste left in people's mouths from having to pay more feels a lot like a bait and switch technique.  One even wonders if attorney generals might end up getting involved.

The breakdown:


Here is the new (simplified) table of options available from Microsoft

Office small business (limited to up to 300 users):

Business essentials (no offline office, 50GB mailbox, 1TB storage, online office): $5/month
Office365 business (No mailbox, 1TB of offline storage, Office small business (no Access), no lync): $8.25/month
Business premium (50GB mailbox, 1TB offline storage, Office small business (no Access): $12.50/month

Office Enterprise (unlimited users):

Office Kiosk K1: 2GB mailbox, no offline storage, no access to sharepoint: $2/month
Office Kiosk K2: 2GB mailbox, No offline storage, Access to sharepoint, access to office online: $4/month
Office Enterprise E1: (No offline office, 1TB Storage, sharepoint, Lync, etc): $8/month
Office Enterprise ProPlus: (No mailbox, Office pro subscription with access, no offline storage, no access to sharepoint, no lync) $12/month
Office Enterprise E3: (Full office pro, 50GB mailbox, 1tb storage, access to sharepoint, lync,
yammer): $20/month

When will this affect me?

If you are a current subscriber and your yearly renewal is after October 1, 2015 you will be forced to renew under the new licensing.  Any renewals in this next year will include your old licensing. If you renew after that date you will be forced into the new licensing. If you are a small business expiring just after that date and Microsoft Access is important to your business you may wish to look into renewing early so you get another year out of the license.

If you are a new subscriber you can no longer get the old licensing plans.  You must choose one of these options. 

Summary

As you can see if you need offline Access expect to pay $20/month after your current subscription expires.  I haven't explored it yet, but it's possible if you're a small business you could buy a $5 business essentials account (for up to 300 users) and a $12 Office pro plus account (remember you get 5 installs per account) and get similar functionality for $17/month.  The only downside would be missing some esoteric and infrequently used functions such as voicemail integration, forensics and other high end exchange functions. 

Wednesday, October 15, 2014

Why is Hewlett Packard already lying to partners?

Hewlett Packard has announced it is splitting it's enterprise/server division off from it's consumer products division.  In this statement from Meg Whitman she claims that it will be business as usual for partners, and that nothing changes.  Unfortunately this is totally a lie.  Within days of announcing the split they also announced the fact that they were creating a set of new requirements to sell ANY HP Printer toner or ink supplies.  Partners now have to sell at least $100,000 a year in HP product to qualify to sell ink or toner supplies.  Small partners like OS-Cubed, Inc. don't do that kind of volume.  So despite a 3 company, 30 year relationship with HP and Compaq for all their products we will no longer be selling or recommending HP printers to our clients.  We won't even be able to buy supplies for the printer we own through our distributor.

Why are they doing this?  The only answer can be to drive up the cost of printer and toner to consumers.  By narrowing the competitive field for supply resale they can more closely control margins and sale prices.  By driving people to big-box stores they can push deeper discounts on the printers (many large stores sell them at a loss) because they know that their customers won't go buy the supplies at another location.

I of course can still sell the printers themselves.  But the margin on those is miniscule because, as I said big box stores sell them at a loss and make up the loss in supply sales.

I cannot fathom why HP is doing this, but it really makes me worried. I like HP, and always have. We EXCLUSIVELY sell their PCs, Laptops and Servers  and . And yet... will they now squeeze me out of sales of those products too because I'm not a high volume purchaser?  Will I be forced to find other vendors? This first move is not promising.  It's not promising for consumers either because let's face it - big box stores just don't offer the service and expertise that a small reseller can provide.

In the next 12 months we will see.  HP absorbed Compaq and there were some pretty serious disruptions when this occurred. I almost cancelled my 15 year relationship with them then, and had to escalate some issues to the vice-presidential level at HP to get them resolved. I will be watching closely and evaluating competing products, vendors and providers over the next few months.  If I see more restrictions or volume requirements on HPs part I will be (sadly) looking to change vendors. This can only hurt HP because small dealers with a lot of expertise like ours are what keep them in front of SMB clients. These clients trust us to recommend a product they can depend on - and to depend on the product we need to be able to depend on our provider - depend on them not to jerk the rug out from under us after we've been selling their product for them for 30 years.

Monday, July 21, 2014

What would you say to $2000 worth of software for $150/year?

Microsoft Office365 will give you $2000 worth of Office licenses for $150/year. 

With their Small business Microsoft Office 365 premium plan you pay no upfront licensing costs, $150/year and get 5 copies of Office 2013 pro (or whatever the current version of Office is).  You also get 1TB of storage for files, and a 50GB mailbox with full calendaring, web mail, mobile mail and outlook support.  You get the equivalent of GoToMeeting in a professional web meeting format, with audio, video, screen sharing and session recordings (Lync).  You get secure instant messaging.  You get online web versions of Word, Excel, Powerpoint and OneNote.  It works in IE, in Google Chrome, Safari and Firefox.  It works with your full Outlook, or with third party email clients.  For $150.   You get your OWN email domain with your own domain name. You get sharepoint online for internal communications. You get a website in the cloud if you don't already have one.  All bundled into ONE product at a ridiculously low price.  To put this in perspective for the full retail cost of 5 copies of office professional 2013 you could instead get all of this for the next 13 years and 4 months.  And that's not even counting the mailbox and mail, the web enabled versions, the 1TB of storage or the 50GB mailbox.  Did I mention all your mail will be virus and spam filtered?  No? Well it will be.

Seriously if you use Office AT ALL this is a no brainer deployment.  Don't need more than the 5 copies of office?  You can mix and match with $60/year mailbox and web only accounts.  Over 25 mailboxes - the same thing is $15/month/mailbox for midsize businesses (though midsize business doesn't have a mix and match option).. 

Need even more flexibility for licensing and email options for $20/month/mailbox you can mix and match enterprise plans that range from $2/month for limited email only to the full $20/month for Office365 Premium.

Contact OS-Cubed today to learn about how to get Office365.  I seriously want to save you tons of money, and we are experts at deployment/conversion.

Friday, June 13, 2014

Microsoft License Compliance....



If you are like many small business customers you probably have wondered - am I in license compliance with Microsoft?  Do I legally own all the software I am using?  If you are NOT wondering these things - you should.  One of my clients got an audit notice the other day from Microsoft requesting that they update them on Microsoft licensing status.  Fortunately this client was good to go - they'd been aggressively being sure that all their machines were compliant, and all we had to do was document some OEM licenses and send a report on to Microsoft for the rest.  But not everyone is in that boat.  One company came to me after they'd received that audit notice in the mail - they had 6 licenses for Microsoft office - and 26 installs.  Not good. Turned out 5 of them were OEM, so that was ok - but the other 16 licenses were illegal.  Bringing them into compliance represented a one time purchase of 16 licenses for Office Professional.  Not an inexpensive day for them at nearly $8000.  The problem with post-install compliance is that you have to retroactively buy the licenses for the most current version of the software (Because you typically can't buy say office 2010 once office 2013 has been released) and you must buy the downgradeable Software Assurance licenses - the most expensive way of upgrading Microsoft has.  There are lots of options but it's almost always better to assess and upgrade or become compliant BEFORE Microsoft Audits you.

So how do you assess your risk?  Fortunately Microsoft has a standalone tool (That's right it does NOT phone home and tattle on you about your licenses) that will assess your Windows Active Directory network and tell you exactly what licenses you have, and which machines or operating systems can be upgraded. It also helps you plan out several scenarios for virtualizing or moving to a private or public cloud install for your existing infrastructure.  The product is called MAPS - Microsoft Assessment and Planning Toolkit and you can download it here.

We use MAPS when planning out office365 migrations to assess the number of office licenses a client might need, versions we're migrating from, etc. 

MAPS is self installing and self contained - you can run it on any server or workstation in your network.  If you need help planning a migration, assistance with becoming compliant, or help in assessing your systems for upgrades or licensing, please give us a call.

Friday, April 25, 2014

It's that time of year again - FIRST Robotics in St. Louis - Penfield Robotics

FIRST Robotics Team 1511 is again competing in St. Louis.  This year the local news caught one of our drive team members as they were entering the field:



(Look for the Red Camo).

You can watch the team compete on the the NASA TV channel on the Newton field.


Zune

Zune Pass Sweepstakes

Followers