Many clients, especially those with Enterprise Agreements, are being asked by Microsoft to convert their licensing agreements into Office 365 based subscription solutions and are confused by their options. This comparison is for clients who currently own just the Core CAL (client access license) and are considering moving to an Office 365 E1 plan with a Bridge CAL.
Let’s start with what is the same.
Both E1 and the Core CAL give you the right to run Exchange Standard CAL, Skype for Business Standard CAL (formerly known as Lync), and SharePoint Standard CAL on premise, in your own data center for your users. Both plans would require the requisite Server licenses purchases.
The Bridge CAL completes the traditional functionality of the Core CAL by licensing you for a Windows CAL, System Center Configuration Manager CML, and the Microsoft EndPoint Protection Antivirus service.
Things that are included in the E1 plan that are not in the Core CAL:
- Skype for Business Enterprise CAL functionality is included. This enables unlimited audio, video, and web conferencing.
- Yammer is designed for social collaboration and is popular for millennials which will be beneficial to help the organization collaborate.
- OneDrive gives unlimited storage per user and the ability to protect data on laptops, on the go, and sync data from multiple devices.
- Office Online is a lightweight version of Office available via any modern browser – great for quickly editing documents from anywhere.
- Office Video is your organization’s own internal video channel. Share the latest news from your management, a video on your latest product, or demonstrate weaknesses in your competitor’s product.
Benefits of leveraging the cloud for deployment:
The E plan components can either be run in the cloud, on premise, or a hybrid between the two. So, fundamentally the E1 plan provides the cloud infrastructure as an option to the purchaser.
- Servers, storage, server licenses, power, cooling, etc. are offered by Microsoft in their data centers included in the pricing of E1.
- All future cloud upgrades done by Microsoft. Automatically!
- Global redundancy - now you have a built in disaster recovery plan.
- Pre-integrated functionality, i.e. Lync is federated and mobile out of the box. Saves a ton of time and effort.
- Easy to add functionality like encrypting outgoing mail for your executives which can be added for $2 a month and be up in running in minutes.
- Mail filtering is included with a 100% Service Level on malware. Microsoft promises not to let viruses through.
What is included in the Core CAL that is not in E1?
Fundamentally the Core CAL is a license and is typically sold with maintenance from Microsoft called Software Assurance. The license portion is good perpetually and clients are entitled to the last version Microsoft published under their maintenance period. Therefore, a client can stop paying maintenance and legally continue to run the software. The subscription model of E1 is different. It does not include any perpetual licensing rights and rights to run the software will terminate when the agreement ends. Clients who move to the cloud on an Enterprise Agreement can transition back to legacy on premises licensing at an anniversary date if they desire. Check with us or a licensing specialist for details and restrictions.
Cloud Return on Investment
Is all of that worth extra money a year to your organization? We can help you figure that out. We are happy to run an ROI calculation using your data! Some quick thoughts on where savings can be found:
- Admin savings – a low estimate around $20k per year
- Hardware / maintenance costs - $10k per year, higher for redundant configurations
- Storage costs – reuse expensive fast disk for other workloads - totally get rid of email archives
- Mail filtering software – approximately $10 per user per year
- Data protection - An executive’s laptop is stolen, but not their data because of OneDrive
- Backups – reuse existing disk / tape, remove agents from maintenance
- Server licensing costs if workload is deployed in the cloud. For example, SharePoint would require a SharePoint server license, a Windows Server license, and SQL licensing
- An email system that stays up and running even in the event of a natural disaster – priceless!
If you would like to learn more about your options as you consider your Enterprise Agreement renewal, we would be happy to walk you through your options and how to get the most out of your Microsoft licensing! Give us a call at 800-900-1150 or contact us here.