SPLA and Beyond: A Guide to Microsoft CSP and Licensing Options for Flexible IT Businesses
There’s no one-size-fits-all journey to the cloud. In the world of technology, every business follows a different path with different needs. If you're an IT service provider, developing your own solutions or looking to legally offer Microsoft products, this article is for you.
Microsoft SPLA Licensing – a Flexible Service-Based Model
The Services Provider License Agreement (SPLA) is a flexible Microsoft licensing model that allows IT providers to offer Microsoft software as a service with monthly billing.
It's a great fit for cloud service providers, hosting companies, and Microsoft Partners operating in a service-based model.
Who are Microsoft SPLA Licenses for?
- Provide hosting services (including internet service providers)
- Deliver applications over the internet (Application Service Providers) or via hosting
- Offer collaboration and communication services
- Deliver platform infrastructure or streaming media services
- Sell software licenses as part of IT outsourcing or BPO models
- Provide consulting services related to Microsoft software
SPLA licenses cater to a wide range of IT service providers, enabling flexible service delivery.
Working with a Microsoft distributor is essential to help you navigate licensing, while also offering technical and business support.
Flexible Virtualization Benefit and Self-Hosted ISV – Microsoft CSP in Practice
Flexible Virtualization Benefit
Have a customer with their own CSP licenses? Thanks to the Flexible Virtualization Benefit, available for SPLA partners, you can provide them with a hosted environment in your own data center. Check the Microsoft CSP Guide to explore licensing scenarios and business models.
Key Takeaway: Flexible Virtualization Benefit
Allows SPLA partners to host environments for customers with their own CSP licenses in the partner's data center, leveraging their existing investments.
Self-Hosted Applications Model
If you’re an ISV looking to host your own applications, Microsoft also offers the Self-Hosted Applications model. This route requires solid planning and partnership.
Strategic Advantage: Distributor Partnership
Working with a Microsoft distributor can be a strategic advantage for successful implementation and growth.
A Full Menu of Options in the Microsoft CSP Guide
Microsoft SPLA isn’t the only model for service-based businesses. Depending on your business scenario, you can choose from several licensing paths—many of them outlined in the Microsoft CSP Guide.
And when it’s time to switch models, for example from SPLA to CSP, a Microsoft distributor can help you make the move smoothly and compliantly, without service disruption.
Real-World Scenarios
Company A
Offers hosting services using Microsoft SPLA licenses.
Company B
Plans to become a Microsoft Partner and expand its SaaS offering via CSP.
Company C
Uses the Flexible Virtualization Benefit through its SPLA status and partnership with a Microsoft distributor.
Company D
Became a Microsoft Partner to flexibly use SPLA and CSP models.
Company E
Chose Microsoft SPLA licenses with monthly billing.
What’s Next?
Urgent Update: Important Licensing Changes Ahead!
For many partners, Microsoft SPLA licenses remain a stable and proven model—but upcoming regulatory changes make now a good time to evaluate your strategy.
If your infrastructure is hosted with a Listed Provider (Azure, AWS, Google Cloud, Alibaba), time is running out. As of September 30, 2025, hosting SPLA licenses in those data centers will no longer be allowed—with no exceptions.
This isn’t just a technical shift. It’s a push to strengthen the ecosystem of local Microsoft Partners who operate on their own infrastructure. Microsoft is clear: we support those building their own value, not just renting it.
If you haven’t reviewed your licensing model yet—now’s the time. Explore your options. Consider a shift to another licensing path. And if you need support, talk to us or your Microsoft PDM.
We have the knowledge, tools, and experience to help you navigate this transition calmly, confidently, and in a way that benefits your business.
⏳ Don’t wait until September 2025. Start planning today.
The Right Licensing Model is the Foundation of a Successful IT Business
Explore Microsoft SPLA licenses, get familiar with the Microsoft CSP Guide, choose to work with a trusted Microsoft distributor—and most importantly, become a Microsoft Partner.