Staying Informed: A Look at Microsoft's 2023 Year-End Updates

Happy New Year! 2024 is upon us, so we want to catch you up on the major product announcements and licensing updates from the last few months of 2023.

At CloudServus, our commitment is to keep you updated on the dynamic landscape of Microsoft products and licensing, ensuring you're well-prepared for any changes that might affect your organization. In this blog post, we'll review the significant updates from Microsoft regarding licensing and product releases.

Here are the noteworthy developments in Microsoft licensing from the last quarter of 2023:

Azure RI Exchange Policy Update

In October 2022, Microsoft announced a pivotal update to Azure compute reservations: the deprecation of the exchange feature, originally set for January 1, 2024. However, to support organizations in their resource planning, an extended grace period has been granted. You now have until at least July 1, 2024, to make any necessary exchanges to your Azure compute reservations. Check out our blog about the upcoming changes for more details.

What Changes Are Coming?

While the policy start date remains January 1, 2024, the grace period offers additional planning time. Compute reservations purchased prior to the end of the grace period can be exchanged one more time after the grace period ends. This flexibility is key for businesses adjusting to long-term strategies in a dynamic cloud market.

What Stays the Same?

Instance size flexibility remains available for VM sizes, allowing some leeway in adapting to varying workload demands. However, take note that exchanges for regions and instance series will no longer be possible under the new policy.

Microsoft 365 Archive and Microsoft Backup Now in Public Preview

Overview of Microsoft 365 Archive

Microsoft unveiled Microsoft 365 Archive earlier this year, and the much-anticipated product is now in preview. It provides a cost-effective storage solution for inactive SharePoint sites, addressing the need for long-term data retention. It's important to note that features of Microsoft 365 Archive are still rolling out and may not be available to all organizations yet. Before utilizing Microsoft 365 Archive, you need to first associate your Azure subscription with Syntex pay-as-you-go.

Once Syntex pay-as-you-go billing is activated in the Microsoft 365 admin center, Microsoft 365 Archive can be enabled. Microsoft 365 Archive services are billed using Syntex meters in the Azure subscription that you specified when you set up Microsoft Syntex. The charges for Microsoft 365 Archive are based on storage consumption and site reactivation. Storage consumption is charged at a per-GB monthly rate and notably, you will only be charged for archiving data once the tenant has exceeded its allocated SharePoint storage quota limit. Site reactivation is charged at a per-GB rate but is only incurred if reactivation occurs more than seven days after the site was last archived. You can find the costs for these services at 'Pay-as-you-go services and pricing for Microsoft Syntex'.

Overview of Microsoft 365 Backup

A response to the rising need for cybersecurity, Microsoft 365 Backup enables recovery of OneDrive, SharePoint, and Exchange Online data at unprecedented speeds. It ensures data security within Microsoft 365's boundary and offers features like granular search and filtering of backup content. Microsoft has collaborated with partners such as AvePoint, Cohesity, Commvault, Rubrik, Veeam, and Veritas to extend the capabilities of Microsoft 365 Backup. Once organizations have set up billing for Microsoft 365 Backup, they can go to the Microsoft 365 Admin Center to enable it.

It should be available in customer tenants by late 2023; however, some customers may not see it available until early 2024. Microsoft 365 Backup pricing is simple. You’re billed for the number of gigabytes (GB) of data backed up. The services are billed using Syntex meters in the Azure subscription that you specified when you set up Microsoft Syntex.

Windows Server 2012/R2 Extended Security Updates Available Now

Windows Server 2012/R2 reached its end-of-life on October 10, 2023, leaving systems vulnerable without regular security updates. ESU helps protect servers from security risks and ransomware. Azure offers automatic ESU activation for applicable virtual machines (VMs) for three years post-support end date, free of charge. Organizations can acquire ESU licenses through Enterprise Agreement (EA) resellers or Cloud Solution Providers (CSP). To qualify to purchase ESU, you need to have either active Windows Server Software Assurance (SA) or Subscription Licenses.

ESU coverage is available in three consecutive 12-month increments, and continuous coverage is required. Alternatively, ESU can now be procured via Azure Arc, which offers monthly billing through an Azure subscription. There's an upfront charge for late enrollment post-support end date. The number of licenses required depends on which program you purchase it on, so having a knowledgeable licensing partner like CloudServus by your side to help you determine the best route is crucial.

Azure Savings Plan Update: Azure Container Apps Now Qualify for Discounts

Microsoft announced that Azure Container Apps now qualify for Azure Savings Plan discounts. With Azure Container Apps, you have the capability to create and deploy fully managed cloud-native applications and microservices using serverless containers. By committing to a 1-year plan, customers can enjoy savings of 15%, and those opting for a 3-year plan can benefit from savings of 17% when compared to Pay-As-You-Go costs. You can learn more about Azure Container Apps here. Additionally, you can find further information about Azure Savings Plan for compute here.

Microsoft Viva Updates

The Viva family had some updates last quarter. Two new mini-suites were introduced last quarter: the Viva Employee Communications and Communities User SL (MSRP $2 per user per month), and the Viva Workplace Analytics and Employee Feedback User SL (MSRP $6 per user per month). Viva Employee Communications and Communities facilitates effective internal communication and community-building within organizations, enhancing employee engagement and collaboration. Viva Workplace Analytics and Employee Feedback provides organizations with valuable insights into employee productivity and engagement through analytics and feedback mechanisms. Additionally, Viva Amplify is now generally available worldwide, as announced in the Microsoft Community Hub.

Furthermore, Copilot in Viva Goals is in private preview. Viva customers interested in participating in the Copilot in Viva Goals private preview will need to meet specific prerequisites and complete a form. Lastly, Skills in Viva is slated to enter private preview soon, but please note that there will be several prerequisites companies will need to meet in order to participate.

CloudServus, a recognized Gold Tier Microsoft Partner, provides expert support via a comprehensive Microsoft Licensing Assessment to help organizations derive the most value from their Microsoft licensing across the lifecycle.

Our consultants leverage their extensive expertise in Microsoft licensing to ensure that your Microsoft licenses meet your business requirements and goals. By performing an analysis of your programs, licenses, and pricing structures, we can pinpoint areas where enhancements can be made. We find that many customers are unaware that there are less expensive O365 plans that would meet their requirements, or that piecemealing stand-alone licenses based on business needs may result in significant cost savings. On average, our efforts in optimizing licenses and offering more competitive pricing have resulted in savings of up to 17% for new customers.

Don't hesitate to contact CloudServus today for an assessment of your current Microsoft licensing and a conversation regarding your expectations and goals. We are eager to assist you in exploring the available options.