Microsoft MPSA (Microsoft Products and Services Agreement):
- Simplified Licensing: One agreement for both on-premises and cloud services.
- Flexible Purchasing: Buy products when needed, no minimum purchase.
- Consolidated Management: Manage licenses through a single portal.
- Global Use Rights: Apply for licenses across multiple geographies.
- Suitable for All Sizes: Tailored for mid-sized to large organizations needing flexibility.
Introduction
The Microsoft Products and Services Agreement (MPSA) is an essential licensing program designed to simplify businesses’ purchase and management of Microsoft products.
The MPSA contract provides organizations with a straightforward approach to licensing Microsoft products. It offers flexibility, ease of management, and a wide variety of options for companies of all sizes.
If you’re an IT manager or business decision-maker, understanding how the MPSA can streamline your organization’s software procurement process is crucial. Let’s explore the core elements of this agreement, its benefits, and how it compares to other Microsoft licensing models.
What is the Microsoft Products and Services Agreement (MPSA)?
The Microsoft Products and Services Agreement (MPSA) is a volume licensing contract that aims to streamline the procurement of Microsoft products and services.
Unlike older models, where different agreements were required for various services, MPSA consolidates all purchases under a single agreement.
- Unified Purchasing: With MPSA, organizations can purchase software licenses, cloud services, and additional products in one place.
- Better Management: Consolidating multiple licenses under one agreement allows better control and simplifies company assets management.
For example, suppose an organization previously used the Select Plus program for software licenses and another contract for cloud services like Microsoft Azure. In that case, the MPSA combines these into a single, easy-to-manage document.
Why MPSA is Beneficial for Businesses
The MPSA provides multiple benefits, making it an ideal choice for many businesses. Here’s why:
1. Simplified Licensing Process
- One of the MPSA’s biggest advantages is its simplicity. Organizations no longer need separate contracts for software licenses, online services, and other offerings.
- This agreement allows companies to easily add products as needed without worrying about managing separate agreements.
2. Flexible Purchasing
- MPSA allows for flexible purchasing with the “purchase-as-you-go” model.
- There is no minimum purchasing requirement, which makes it ideal for organizations that may need to adjust their licensing over time based on their requirements.
3. Transparent Costing
- With MPSA, businesses have transparent access to the cost of their licenses. This enables effective budgeting and planning, which is crucial for controlling IT expenses.
- For example, a small business with changing needs can scale up its services gradually without large upfront commitments.
4. Manageability through the Microsoft Business Center
- Microsoft Business Center is an online platform that assists with managing all the licenses acquired through the MPSA.
- Users can easily track and manage licenses, renew software assurance, and view purchasing history.
Eligibility and Requirements for MPSA
The MPSA best suits medium to large businesses with multiple departments and locations.
Here are the general requirements:
- Commercial Businesses, Government Agencies, and Educational Institutions are eligible for MPSA.
- There is no minimum purchase requirement to start using MPSA, which makes it accessible to both small businesses and large enterprises.
- To access MPSA, companies must work with a Microsoft licensing partner who can help determine the best options and provide the appropriate agreements.
For instance, a medium-sized educational institution can benefit from MPSA by unifying all software licenses and services into a single framework, easing the management burden across various departments.
Key Features of MPSA
Understanding the key features of MPSA can help organizations better evaluate whether this licensing model suits their needs:
1. Single Agreement for All Purchases
- The main feature of MPSA is that all purchases—whether Office 365, Microsoft Azure, or other software licenses—are consolidated under a single agreement.
- This approach reduces paperwork and administrative overhead.
2. Product Pools
- MPSA provides product pools for different categories like applications, systems, and services.
- Organizations can purchase from these pools, allowing for greater flexibility and choice.
3. Software Assurance
- Software Assurance (SA) is an add-on service with MPSA that gives access to new product versions, support, and planning services.
- For example, if a business purchases Windows Server licenses, adding SA allows them to upgrade to new versions without incurring additional costs.
4. Microsoft Business Center Access
- Companies can access self-service tools that help manage and optimize their licenses through the Microsoft Business Center.
- This platform allows users to track purchasing, view reports, and manage assets seamlessly.
5. No Expiration Date
- The MPSA doesn’t expire and is always open for additional purchases.
- This helps businesses grow without needing to negotiate new contracts frequently.
MPSA vs Other Licensing Options
Microsoft offers several licensing options, and it’s important to understand how MPSA compares with other popular agreements, such as the Enterprise Agreement (EA) and Cloud Solution Provider (CSP) program.
1. MPSA vs. Enterprise Agreement (EA)
- Target Audience: The EA is intended for large enterprises with over 500 users or devices, while the MPSA is suitable for organizations of all sizes, including those with fewer users.
- Commitment: The EA requires a 3-year commitment, whereas MPSA allows pay-as-you-go flexibility.
- Flexibility: MPSA is generally considered more flexible since no minimum purchase requirements exist.
2. MPSA vs. Cloud Solution Provider (CSP)
- The CSP program is focused on cloud services and involves ongoing subscriptions managed by a cloud partner.
- On the other hand, MPSA offers a broader array of products and services, including on-premises licenses, making it an ideal choice for hybrid environments.
How to Transition to MPSA
For organizations currently on other Microsoft agreements, transitioning to MPSA can bring significant benefits.
Here are the steps to make this change:
1. Assess Your Current Licensing Needs
- Identify all current agreements—such as Select Plus, Enterprise Agreement, or Open License—and determine which products are currently in use.
- Work with a Microsoft licensing partner to review your licenses and determine if MPSA would simplify your management.
2. Engage with a Licensing Solution Provider (LSP)
- Connect with a Microsoft Licensing Solution Provider (LSP) who can guide your organization through the transition process.
- The LSP will handle paperwork, assess specific needs, and ensure a smooth transition.
3. Create an MPSA Account via Microsoft Business Center
- Once you have the MPSA agreement, your organization will have access to the Microsoft Business Center, a centralized platform for managing purchases and renewals.
4. Transfer Existing Licenses
- Transfer licenses from previous agreements to the MPSA to consolidate assets.
- If your organization has Software Assurance, the LSP will assist in transferring benefits to the new agreement.
Examples of How MPSA Works in Real Life
To better illustrate how MPSA can benefit businesses, here are some practical examples:
- Medium-Sized Marketing Agency: A marketing agency with 150 employees managed separate agreements for Office software and cloud services. After switching to MPSA, they could consolidate everything into a single agreement, resulting in lower administrative costs and less complexity.
- Educational Institution: A university previously managed its licenses through multiple agreements—Select Plus for software and CSP for Office 365. By switching to MPSA, the university unified its purchasing, gained control of all assets, and enjoyed the flexibility to expand licenses as they added new students and staff.
FAQ for Microsoft MPSA (Products and Services Agreement)
What is the Microsoft Products and Services Agreement (MPSA)?
MPSA is a licensing agreement designed to simplify purchasing products and services under one flexible contract.
Who is MPSA ideal for?
MPSA is best suited for medium—to large businesses that want a single agreement covering multiple products and services across cloud and on-premises environments.
How does MPSA differ from other Microsoft agreements?
MPSA is more flexible, allowing businesses to purchase various licenses under one contract, whereas other agreements may be more product-specific.
Can I use MPSA for both cloud and on-premises products?
MPSA supports purchasing licenses for cloud, on-premises, and hybrid environments under one agreement.
What is the benefit of having one contract under MPSA?
It reduces administrative overhead by consolidating multiple licenses and services into one agreement.
Does MPSA support software assurance?
Yes, MPSA includes the option to add Software Assurance to your license purchases.
Is there a minimum purchase requirement for MPSA?
MPSA has no minimum purchase requirement, making it accessible for various business sizes.
Can I manage multiple accounts with MPSA?
MPSA allows organizations to manage multiple accounts and legal entities under one agreement.
How flexible is MPSA for changing business needs?
MPSA provides the flexibility to adjust product and service purchases as your business needs change.
What types of products are available under MPSA?
MPSA covers many Microsoft products, including software, cloud services, and support offerings.
Can MPSA purchases be tracked online?
Yes, purchases and usage can be tracked and managed online via the Microsoft Volume Licensing Service Center (VLSC).
What are the payment options under MPSA?
MPSA offers flexible payment options, including pay-as-you-go and fixed payment structures.
Is there a renewal process for MPSA?
MPSA agreements are typically renewed based on your business needs and contract terms, offering continued flexibility.
Can I transfer licenses purchased through MPSA?
MPSA supports license transfers by Microsoft’s licensing policies.
What kind of support is available with MPSA?
MPSA offers access to Microsoft’s standard support options and allows for adding premium support if needed.
