Menu
Microsoft hunts service pirates in Australia

Microsoft hunts service pirates in Australia

Microsoft is staging an aggressive attack in Australia on unlicensed hosting service providers, appointing its first Australian reseller to help seek out and recruit those operating without a Service Providing Licensing Agreement (SPLA).

The software giant has signed an agreement with Melbourne-based IT services company and SPLA holder NewLease to resell the hosting licences to managed services providers on a monthly basis.

Microsoft regional hosting specialist Phil Meyer says non-compliance is a key concern in the hosting provider space.

Many companies are unaware that providing hosting services on a commercial basis requires an SPLA, he says.

"You can't fault a reseller for wanting to make a buck, but many have inappropriate licensing for hosting," he says. "These guys are undercutting those who charge the correct pricing fees."

Meyer says Microsoft has legally pursued various service providers because they did not hold a suitable licence. In several cases, it sent letters explaining why they should be moving to an SPLA arrangement.

The introduction of an indirect sales channel will allow Microsoft to reach the lower end of the services provider market and hopefully cut back the number of players working without the right licences, Meyer says.

"NewLease is going to a lot of these companies offering web hosting and telling them that they need to be operating under an SPLA," says Meyer. "They told us we have a lot of service providers that are not compliant."

Significant SPLA growth in terms of volume and partner numbers was also a deciding factor in adopting a reseller, he says. NewLease general manager Dawn Edmonds says the company already maintained relationships with about 100 hosting providers across Australia. These were predominantly small to medium-sized organisations.

"Microsoft had approached other SPLA holders with the view to do this," she says. "But I think they saw our offering was more suited to this market than the larger data centres." The main catalyst for the deal, however, was the poor understanding of licensing terms in the services market, Edmonds says.

"Many are under the impression they can pick up a licence off the shelf or under their standard select licensing agreement," she says. "But this is not the case when offering a commercial hosted service."

NewLease will be entitled to a rebate on customer sign-ups as well as payments based on the total value of the transaction.

While the new contract will bring in extra revenue, Edmonds says it will also help it to grow take-up of its new managed service offerings. These include hosted Microsoft Exchange and Share Point.

Meyer says Microsoft will continue to look after its existing SPLA holders, because most of the major ISPs already hold direct agreements with them. The majority of new agreements will be undertaken through NewLease.

"There are more than 700 providers today and we've only got 62 now — so you see we have a long way to go," he says.

Microsoft's existing SPLA holders include Telstra, WebCentral, IBM and Optus, Meyer says.

"NewLease offers support programmes and other technologies above Microsoft to smaller providers," he says. "They make the costs more justifiable for this market. The client can have a consolidated relationship for services through NewLease."

Microsoft will look to appoint a second reseller in the next six to 12 months as take-up of SPLAs increased, Meyer says.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments