Understanding New SharePoint 2013 Licensing Changes: Why Intranet Hosting is gaining popularity

Intranet Hosting with new SharePoint License

First, let’s cut to the chase of how the changes to SharePoint 2013 licensing affects you:

BAD NEWS: The new SharePoint Server-side licensing changes have increased the overall cost.
GOOD NEWS: By consolidating certain licensing, you can actually save on cost.

BAD NEWS: SharePoint Server licensing cost increased by 40% for SharePoint 2013.
GOOD NEWS: Fpweb.net eats the additional licensing cost and has kept our price consistent.

BAD NEWS: On-premises hosting now requires an upgrade to latest Microsoft stack, increasing cost.
GOOD NEWS: Hosting providers mitigate that cost with the latest technology bundled together.

BAD NEWS: FAST Search Server licensing used to be expensive.
GOOD NEWS: FAST Search licensing is now built into SharePoint Server 2013.

BAD NEWS: The increased licensing costs makes hosting on-premises more expensive than before.
GOOD NEWS: Fpweb.net’s SPLA model saves on large, upfront cost with manageable CAL leasing.

Okay, let’s back up…

Microsoft is mixing things up in a big way and organizations and hosting providers are shuffling to find where they fit into the new pricing game. With the latest SharePoint 2013 platform comes the latest server-side licensing changes.

How does the new SharePoint 2013 licensing cost work?

While the overall costs of the base server license has risen from SharePoint 2010 (significantly), the merging of licenses with SharePoint 2013 has provided saving opportunities for specific deployment scenarios. Basically, SharePoint 2010 once required five different types of licenses: one general purpose and four specific scenario purposes.  SharePoint 2013 has smashed them all into one. Bigger price. Bigger value.

But while the SharePoint licensing has increased by 40% and hosting providers are feeling the pinch with the total cost of hosting SharePoint rising, Fpweb.net uses a Services Provider License Agreement (SPLA) model which means we are able to effectively lease the Client Access Licenses (CALs) to our customers and help them save on the large, upfront costs that come with purchasing licensing directly. Basically, rather than pass Microsoft’s up-charges to their customers, Fpweb.net eats the costs and provides the same service that was found with SharePoint 2010.

It’s just one of the ways that customers can avoid increased costs with a SharePoint 2013 deployment. Another footfall for a SharePoint 2013 in-house deployment is found in the hardware itself. As the platform has changed, so has the requirement to upgrade to the latest Microsoft stack. To run most versions of SharePoint 2013, businesses will be expected to update their SQL Server license as well as their Windows Server license to the most compliant versions, adding considerable cost to their upgrade.

How to easily avoid hardware deprecation and utilize the latest technology:

Deprecation remains one of the harshest foes of on-premises deployment and SharePoint 2013 makes it more apparent than ever. Hosting with a provider keeps your infrastructure on the latest hardware with continuous maintenance and patching to ensure that everything is working at optimal performance. An Fpweb.net Hosted SharePoint 2013 environment, for instance, comes with SQL Server 2012 and Windows Server 2012 already bundled in so you have the latest technology at your environment’s fingertips with no worries of deprecation of software or hardware. We ensure your SharePoint site is running on the best technology available so you can focus on your business.

FAST search meets SharePoint 2013

In an interesting twist, Microsoft has attached FAST search to SharePoint 2013, making one of the greatest assets and add-ons of SharePoint 2010 readily available with SharePoint Server 2013. In fact, the FAST Search Server 2010 license would typically cost four times as much as the SharePoint Server 2010 license. Where you used to have separate servers with separate FAST search licensing, you can currently put built-in search into your index servers without having to purchase separate licensing.  Now SharePoint 2013’s search employs FAST and is delivered through the general purpose SharePoint Server 2013 server license. Quite the upgrade.

So, where does Intranet Hosting come in?

Simply put: New SharePoint Server-Side Licensing Changes Make Intranet Hosting Attractive.

To run SharePoint intranet on-premises, it requires both a SharePoint server license along with a user CAL. As we addressed, the pricing of the Server license is increasing by 40% due to built-in features like FAST server that now come with SharePoint Server. In addition, the Standard and Enterprise CALs are increasing by 15%.

With all these licensing changes, hosting your Intranet has shown a clear advantage over running it in-house. Fpweb.net has kept our licensing pricing the same from SharePoint 2010 to SharePoint 2013, so now is a better time than ever to move your SharePoint intranet to our private cloud and gain increased ROI.

And don’t forget that one of the great things about hosted SharePoint with Fpweb.net is that if you have an Enterprise Agreement with Software Assurance and already have your own SharePoint CALs, we can use those CALs so you don’t need to worry about any wasted licensing.  We can put it to good use for you on your Fpweb.net hosted SharePoint environment!









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One Response to Understanding New SharePoint 2013 Licensing Changes: Why Intranet Hosting is gaining popularity

  1. Daisy says:

    Interesting blog…. It contains many necessary information on Benefits of intranet hosting .

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