On Aug. 1, under the guise of easing management, Microsoft announced several significant licensing changes for its on-prem and cloud-based services. Starting with launch of its Azure Dedicated Host services and Azure Hybrid Benefits program, Microsoft changed its definition of outsourcing on-prem software licenses being hosted on some of its biggest rivals (Amazon Web Services, Alibaba, etc.). After Oct. 1, the often-touted cost benefits of using a bring-your-own-licensing (BYOL) model for Microsoft software in the public cloud will fall, victims of monetization, and it’s striking fear in the hearts and budgets of enterprise IT.

 

Let’s be honest, this isn’t an unexpected move by Microsoft -- nor would it be for any of the major hosted providers. Licensing has become a highly complex dance as the cloud era matures, creating a challenge for enterprise data centers.