Brief: In this article, we explain why getting your Microsoft Cloud Licensing through your MSP is smarter and more cost-effective than going through a discount reseller. We also highlight the advantages of choosing F12.net, a Canadian MSP and a Microsoft Direct Partner, as your Microsoft Cloud Licensing provider.
Imagine you are an IT manager at a medium-sized business that relies on Microsoft Cloud services. Your organization has used Microsoft 365, Azure, or Dynamics 365 for a few years, and you have been getting your licenses through your MSP (Managed Service Provider). You are happy with the service and support you receive from your MSP, and you trust them to handle your Microsoft Cloud Licensing needs.
However, one day you receive a call from a discount reseller who offers you a lower price for your Microsoft Cloud licenses. They claim they can save money and provide the same services as your MSP. They also tell you that your licensing renewal is coming soon, and you should switch to them before it is too late. The offer tempts you, but you are also unsure of the consequences of changing your Microsoft Cloud Licensing provider. Will you save money? Will you get the same level of service and support? Will it cause complications when provisioning users or navigating subscription changes? What are the benefits of getting your Microsoft Cloud Licensing through your MSP?
The Benefits of Getting Your Microsoft Cloud Licensing Through Your MSP
When you get Microsoft Cloud Licensing through your MSP, you are not just buying a product; you are buying a service. Your MSP is the trusted partner to help you through the many nuances of Microsoft Cloud Licensing:
Support
MSPs provide technical support, troubleshooting, and guidance on your Microsoft Cloud Services. They also help with migration, integration, and security needs. Your Microsoft Cloud Licensing partner is your first point of contact for support. If the problem is related to the service, the provider works with Microsoft on your behalf to resolve the issue.
If you buy your licenses from a discount reseller, you may not get the same level of support and expertise. A reseller won’t know your business as well as your MSP, who services your day-to-day IT needs and is tightly involved in your existing business processes. Also, few resellers have the depth of technical knowledge and experience as MSPs, who employ technicians trained and certified by Microsoft.
A production manager contacts their Managed Service Provider (MSP) about an issue opening an Excel file. Excel reports being unlicensed. The problem could be the Excel version, license type, subscription date, account status, password sync, software corruption, or Microsoft’s online subscription management. Only the MSP can explore all possibilities.
Continuity of Services
As part of their service obligations, your MSP configures and secures your Microsoft Cloud services and ensures you have the correct licenses for your needs. The MSP typically adds and removes users, assigns licenses, and manages your subscription entitlements.
If you buy your licenses from a discount reseller, you may face delays, errors, and interruptions in your services. For example, if you need to add a new user or change a license type, you may have to wait for the reseller to process your request, which could take hours or days. Or worse, the reseller may point you to a portal and insist that you self-manage licensing. Microsoft licensing is surprisingly complex, and you have a short 7-day window to rectify subscription errors before they lock in until renewal.
An HR administrator navigating a reseller’s portal subscribes to Power BI Pro. Unfortunately, their unfamiliarity with Microsoft licensing accidentally leads them to purchase a Power BI Premium P5 subscription. Seven days pass, and the realization dawns: this subscription costs over $100,000 a month for twelve months.
When provisioning or decommissioning users or investigating problems with your service, you don’t want to deal with multiple parties, which could cause confusion and frustration. With your MSP, you have a single point of contact for your Microsoft Cloud services and rely on them to handle your requests and issues quickly and efficiently. Fewer portals, fewer handoffs.
A new VP of engineering is starting soon, and the HR manager wants her laptop upgraded to Windows 11 before she starts. Subscribing to Microsoft 365 E3 makes the most sense since it includes Windows 11 Enterprise. However, the MSP is waiting for the reseller to handle the new subscription procurement process before they can provision the laptop. Meanwhile, the HR manager grows impatient.
NCE Licensing and Obligations
MSPs help you understand and comply with the Microsoft NCE (New Commerce Experience) licensing program, which offers discounted prices for customers who commit to annual subscriptions and renewals. Your MSP also helps you meet your obligations as an NCE customer, such as reporting your usage, verifying your eligibility, and renewing your licenses. If you buy your licenses from a discount reseller, you may not be aware of the NCE program and its requirements, and you may risk losing your discounts or facing penalties.
Some insiders report a bait-and-switch strategy by discount resellers, whereby fees are increased shortly after onboarding (read the fine print!).
The NCE program is a new way of licensing Microsoft Cloud services that aims to simplify and streamline the customer experience, but it also requires careful management and planning. Different subscriptions may renew at various dates. Microsoft constantly innovates new cloud services and routinely changes licensing packages and entitlements. Your MSP can help you navigate the NCE program and get the best value for your Microsoft Cloud services.
An account manager at an MSP helps a client navigate a looming licensing renewal. Armed with usage insights and knowledge of her customers’ business practices, she facilitates the transition from Office 365 to Microsoft 365. She also ensures monthly flexibility for some subscriptions to proactively prepare for workforce adjustments.
Other Licenses and Services
MSPs help you with other licenses and services alongside your Microsoft Cloud services, such as 365 backup services, multifactor authentication (MFA), security awareness training and other third-party
applications. Your MSP manages these licenses and services as employees come and go, and they ensure everything works with your Microsoft Cloud services. If you buy your licenses from a discount reseller, you may have to deal with multiple vendors and contracts, which could complicate and disrupt your IT operations. By getting your Microsoft Cloud Licensing through your MSP, you streamline your processes and engagements and enjoy a seamless and consistent IT experience.
A controller oversees licensing costs at a bustling manufacturing company. New hires and terminations are regular occurrences. Their MSP manages monthly licensing automatically, thanks to its integrated license management system. Meanwhile, the discount reseller adds additional Microsoft licenses upon request. Unfortunately, the controller did not explicitly direct the reseller to remove licenses from terminated users. Months later, he stumbles upon an unpleasant surprise: they have far more Microsoft licenses than they need, and they’re locked in for the entire annual term.
MSP Value Proposition
Organizations hire MSPs not to save money but to offload distractions, reduce risk, and gain expertise. MSPs bring business processes, tools, services, and experience to each engagement. In turn, MSPs receive a small margin from selling Microsoft Cloud services, which helps offset the costs of managing your licensing and providing high-quality services.
IT providers pay for Microsoft service and support, employee training and certification, and the tooling necessary to automate licensing and billing management. Therefore, some MSPs charge licensing management fees to cover the complications and missed revenues when managing Microsoft Cloud services procured through a third-party reseller.
| Benefits | Description |
| Support | MSPs provide technical support, troubleshooting, and guidance on your Microsoft Cloud Services. They also help with migration, integration, and security needs. |
| Continuity of services | Your MSP configures and secures your Microsoft Cloud services and ensures you have the correct licenses for your needs. The MSP typically adds and removes users, assigns and reassigns licenses, and manages your subscription entitlements. |
| NCE licensing and obligations | MSPs help you understand and comply with the Microsoft NCE (New Commerce Experience) licensing program, which offers discounted prices for customers who commit to annual subscriptions and renewals. |
| Other licenses and services | MSPs help you with other licenses and services alongside your Microsoft Cloud services, such as 365 backup services, multifactor authentication (MFA), security awareness training and other third-party applications. |
The Advantages of Choosing F12.net as Your Microsoft Cloud Licensing Provider
F12.net is a Canadian MSP and a Microsoft Direct Partner, meaning we have a direct relationship with Microsoft and offer you the best value, services, and support for your Microsoft Cloud Licensing. Here are some of the advantages of choosing F12.net as your Microsoft Cloud Licensing provider:
F12 Connect
F12.net has a custom tool called F12 Connect, which simplifies your license management, provides license reporting, consolidates billing, and more. With F12 Connect, you can easily view and manage your Microsoft cloud services, monitor your usage and costs, and access your invoices and statements. F12 Connect also integrates with your F12.net service portal, where you can request support, access resources, and communicate with your F12.net team. F12 Connect is a powerful, unique tool that gives you more control and visibility over your Microsoft Cloud services.
Automated Renewals
F12.net handles your licensing renewals automatically, reducing your licensing subscriptions to the number of assigned users on subscription renewal. In addition, F12’s propriety licence management system automatically detects and recycles unused licenses within the 7-day window so that staffing changes don’t lead to overcommitments in licensing. This means you only pay for what you must and don’t have to worry about overpaying for your licenses. F12.net also notifies you before your renewal dates and gives you the option to adjust your subscriptions as needed. F12.net makes your licensing renewals easy and hassle-free.
Consolidated Billing
F12.net streamlines billing, providing a single clear invoice for all your services. This clarifies your Microsoft licensing consumption against other licensing fees and overall employee headcount. F12 also offers per-user licencing reporting to easily cross-reference license assignments against employee names, network user IDs, and IT support fees.
Licensing Compliance
Effective software license compliance requires a central registry of licenses and regular audits. Surprisingly, fewer than 10% of companies follow this practice. Most organizations are over-licensed or under-licensed, so firms have sprung up that pursue license violations to reclaim revenue for software vendors. F12’s license management system is a central registry of subscriptions tied to users, minimizing administrative burden and streamlining the audit process.
Microsoft Expertise
F12.net has a team of Microsoft experts who can help you with any questions or issues related to your Microsoft Cloud Licensing. F12.net also stays on top of the latest developments and changes in the Microsoft Cloud ecosystem and can advise you on optimizing your Microsoft Cloud services for your business goals. F12.net has the knowledge and experience to help you get the most out of your Microsoft cloud services.
Conclusion
Microsoft Cloud Licensing is not just a matter of price; it is a matter of value. When you get your Microsoft Cloud Licensing through your MSP, you get more than just a license; you get a service. Your MSP helps you with support, continuity of services, NCE licensing and obligations, and other licenses and services. When you choose F12.net as your MSP and your Microsoft Cloud Licensing provider, you get even more benefits, such as F12 Connect, licensing renewal services, consolidated billing, and Microsoft expertise.
F12.net is your partner in Microsoft Cloud Licensing. We are here to help you get the most out of your Microsoft Cloud services. Contact us today to learn more about how we can help you with your Microsoft Cloud Licensing needs.