This worked fine for well over two decades until customers started looking at DaaS options that were hosted by third parties. You could purchase SA for the Windows OS for your internal devices, you could purchase an M365 E5 or E5 subscription, or you could purchase a VDA license for those thin-clients or contractor owned PCs. When clients were simply hosting their VDI environment on their own internal infrastructure, you simply needed to ensure that the client was covered with Software Assurance for the Windows OS.
Microsoft felt, rightly or wrongly, that the virtual desktop was receiving the benefit of the graphic user interface and it couldn’t be sure that it had received the OEM revenue.
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The licenses that are purchased under the volume licensing programs are upgrade licenses, requiring an original OEM license.
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A quick primer on the OEM license is that virtually all personal computers sold to enterprises come with a full version of the Windows operating system from the Original Equipment Manufacturer (OEM). The VDA license was designed to recoup Microsoft’s loss of revenue for the underlying OEM license. These devices would typically be thin clients or contractor-owned PCs – or, in other words, devices that an enterprise was not managing. Microsoft first introduced a product called the Windows Virtual Desktop Access (VDA) a number of years ago to help organizations license devices that do not qualify for Windows Software Assurance while providing access to a virtual desktop hosted in their VDI environment. Let’s begin with the Windows Operating System – we’re talking about the personal operating system – Windows 10. Remote Hosting of the Windows Operating System In this blog post, we dig further into these changes and explain your options if you’re an AWS customer. We recently published a bulletin on how remote hosting and access will cost more for some customers. Both scenarios were impacted by the October 2019 changes.
It is important to understand the two most likely scenarios that have been impacted by Microsoft’s use rights changes: (1) Remote hosting of the Windows Operating System, and (2) Remote hosting of its application products. In October of 2019, Microsoft quietly changed some of its use rights that affect Microsoft licensing on AWS in an effort to further nudge its customers towards Azure. With the advent of virtual desktops being hosted at Amazon, Microsoft has changed its tune somewhat. Back in the day I used to tell clients that Microsoft didn’t really care who owned the hardware – as long as the product was being used for the exclusive benefit of the licensed customer.
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