Microsoft changes SPLA terms: What awaits us from October 2025?
If you have a SPLA license and public cloud from a reseller, you will likely be significantly impacted by these changes.
The Services Provider License Agreement (SPLA) has been a key tool for IT service providers and hosting providers for many years, offering flexible ways to lease Microsoft software to customers.
The SPLA allowed for monthly licensing without the need to purchase perpetual licenses – simply reporting usage and paying for it.
But Microsoft is making significant changes starting October 2025. How will the new approach impact providers and customers? And what alternatives are there?
What Changes Is Microsoft Planning?
Starting September 30, 2025, SPLA licenses will no longer be available in public clouds. The so-called “Listed Providers” include Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform (GCP), and Alibaba Cloud.
IT service or hosting providers that have previously used SPLA on these platforms will have to switch to a license-included model, CSP Hoster model, or other licensing frameworks.
An alternative is the BYOL (Bring Your Own License) model, where the customer purchases their own licenses and uses them in a dedicated environment. However, this model has stricter rules and cannot be applied to multitenant solutions.
What Does This Mean for You?
Microsoft is taking this stance against companies that do not own the computing infrastructure and only profit from reselling licenses.
The SPLA program was originally created so that infrastructure operators could offer their customers Microsoft licenses on better terms than if the customers had bought them themselves.
But then a specific group of companies entered the market that only resold infrastructure from large players and did not own anything themselves. These companies indirectly leased licenses, which was in violation of the SPLA rules. And Microsoft has now run out of patience.
So Who Do these Changes Affect?
On the one hand, the changes affect companies that do not provide SPLA services on their own infrastructure, but use AWS, Azure, GCP or Alibaba Cloud. These can be managed solution providers (MSPs), IT partners or hosting providers.
On the other hand, the changes will affect the customers of such companies. So if you have your IT and SPLA licenses handled through resellers, not infrastructure providers, you should already be considering how to align your solution with the new terms. We will be happy to advise and help you with the change.
Are There Any Alternatives to the SPLA?
If the licensing changes affect you, here is a short list of possible alternatives to the SPLA program.
SPLA on a Local Hyperscaler
It is possible to switch to a provider that operates its own cloud infrastructure (such as our CLOUDPOINT). For such companies, the licensing conditions do not change.
License-included Model for Global Hyperscalers
Instead of your own SPLA, you can use an offer where the license is part of the service. For example, a Windows Server VM in Azure or AWS has a license already included in the price. However, such a solution carries the risk of vendor lock-in and higher prices for the same service.
Dedicated Host + BYOL
A dedicated physical server can be used under certain conditions with its own perpetual license. This server can be purchased or rented, but you are already tied to the physical infrastructure.
CSP-Hoster program
Microsoft is offering partners a new framework that allows them to license software in the style of SPLA, but tied to a CSP business model. It allows for longer commitments (1-3 years) and includes license-included and BYOL models. However, it requires a new partner status.
While the CSP-Hoster program brings new commitments and the risk of vendor lock-in, it also allows companies to legally provide multitenant solutions in accordance with the new rules and without the need for their own infrastructure.
Refactoring to Native Cloud Services
Instead of a classic Windows server, you can consider switching to services such as Azure SQL, App Service, Amazon RDS, etc., where there is no need to license the infrastructure and OS.
In this case, however, the company is locked into vendor lock-in and future changes will be difficult to implement.
What Do We Recommend?
For providers, the key step is to evaluate the pros and cons of each alternative to continue providing the same service to their customers. The first direction is to deploy their own infrastructure and continue in the standard SPLA mode. The second direction is to consider Microsoft’s CSP-Hoster program.
For customers, the key step is to map the current use of SPLA licenses as well as current and future needs. It is necessary to consider which alternative brings the highest efficiency without sacrificing quality and freedom.
Right now is the best time to evaluate the impacts of this change and prepare steps to deal with these changes. The solution exists – we will help you find it.
