MS Licensing Presentation

MS Licensing - Today • Out of compliance in many areas, particularly in a couple of colleges • Current campus spend is over $400K/year, and we’re still not compliant • Significant risk – recall CU Denver audit result costing ~$1m/yr.

A New Model to Consider • Opportunity to license Office for all fac/staff – Part of our move to Office 365

• Simplifies: Licensing & Office 365 deployment • MS License renewal due June 30, 2014 – So need to act very quickly

Benefits • All faculty, staff and students would be eligible to download 5 copies of MS Office – For any device (Mac, PC, iPad, phone) – Very significant costs savings here

• Guaranteed 99.9% uptime SLA • Unlimited email archiving and legal hold capabilities • Ensures compliance because it is FTE-based • Greatly simplifies the annual licensing exercise

Current EES (formerly Campus Agreement) Licensing • Most areas license Windows Upgrade / CALs / Office via EES on formula-based FTE count • FY15 EES Enrollment numbers: Desktop Core Bundle ($53.98): Desktop Enterprise Bundle ($67.47): Office Only ($25.60): • FTE formula under EES:

3,935 1,771 738

Full Time Faculty + Full Time Staff + (Part Time Faculty / 3) + (Part Time Staff / 2)

• Only “Information Workers” are included in counts

Current EES (cont.) • Desktop Core Bundle includes: – Core CAL Suite • • • • • •

Windows Server CAL SharePoint Server CAL Standard Exchange Server CAL Standard System Center Configuration Manager CML Lync Server CAL Standard System Center Endpoint Protection (AV)

– Microsoft Office Pro Plus – Windows Enterprise Upgrade

• Desktop Enterprise Bundle includes: – Desktop Core Bundle (i.e., all of the above) – Enterprise CAL versions for Exchange, SharePoint, Lync

• Office Only includes Office Pro Plus – no CALs or Windows Upgrade rights

Proposed Licensing Model • Hybrid on-premises (EES) + Office 365 cloud model • New model pricing (guaranteed for 3 years, includes a 45% discount from Microsoft) per FTE: EES Core CAL Suite: $9.98 EES Enterprise CAL Suite: $16.59 EES Windows Enterprise Upgrade: $16.42 Office 365 A3 SKU: $24.31 (i.e., license Office Pro Plus via Office 365 A3) • With proposed supplemental funding from Telecom, UTFAB, and ASCSU, Office 365 A3 drops to $15-$16/Person (fairest way to distribute savings).

Proposed model (cont.) • For current Desktop Bundle customers: – Purchase appropriate CAL Suite (Core or Enterprise) plus Windows Enterprise Upgrade under EES; FTE formula applies – Purchase Office 365 A3 SKU; no FTE formula applies

• For current Office Only and not-currently-EES areas: – Purchase Core CAL Suite under EES; FTE formula applies – Purchase Office 365 A3 SKU; no FTE formula applies

• Office 365 A3 SKU is licensed by head count (full and part time faculty/staff), no FTE formula is allowed.

Proposal for getting there • ASCSU and UTFAB interested in contributing @ $1 per student FTE per year => $54K • Telecom contribution – Total contribution: $40k/yr. for Unified Messaging – An additional $20k/yr. above current costs

• At the campus level, budget neutral, but – Redistribution of expenses at the unit level

Costs Current MS EES College of Agricultural Sciences $ 19,162.90 Ag Experiment Station $ 5,398.00 College of Business $ 9,393.56 College of Natural Resources $ 3,227.88 College of Veterinary Medicine $ 60,106.09 College of Liberal Arts $ 36,976.30 College of Natural Sciences $ 18,457.60 College of Engineering $ 41,456.64 College of Health & Human Sciences $ 22,293.74 Colorado State Forest Service $ 6,981.70 CSU Extension $ 3,022.88 President $ 6,801.48 Provost $ 34,007.40 VP Operations $ 6,153.72 VP Research $ 8,906.70 VP Student Affairs $ 54,831.30 VP University Advancement $ 5,128.10 BoG/General General Counsel/IA $ 1,403.48 Totals $ 343,709.47

Proposed EES+A3 $ 21,745.79 $ 6,797.01 $ 14,147.59 $ 38,089.00 $ 63,811.56 $ 41,859.18 $ 40,840.65 $ 44,269.17 $ 27,117.97 $ 4,457.64 $ 8,698.47 $ 9,622.69 $ 35,229.15 $ 11,688.27 $ 8,342.84 $ 50,841.28 $ 4,234.01 $ 759.33 $ 432,551.60

Difference $ 2,582.89 $ 1,399.01 $ 4,754.03 $ 34,861.12 $ 3,705.47 $ 4,882.88 $ 22,383.05 $ 2,812.53 $ 4,824.23 $ (2,524.06) $ 5,675.59 $ 2,821.21 $ 1,221.75 $ 5,534.55 $ (563.86) $ (3,990.02) $ (894.09) $ (644.15) $ 88,842.13

Proposed+Telecom $ 19,777.12 $ 6,135.63 $ 12,673.99 $ 33,366.51 $ 58,632.68 $ 38,076.55 $ 36,226.46 $ 40,451.73 $ 24,538.20 $ 4,326.14 $ 7,549.76 $ 8,620.95 $ 32,270.34 $ 10,307.49 $ 7,708.53 $ 47,182.41 $ 3,959.40 $ 747.73 $ 392,551.60

Difference $ 614.22 $ 737.63 $ 3,280.43 $ 30,138.63 $ (1,473.41) $ 1,100.25 $ 17,768.86 $ (1,004.91) $ 2,244.46 $ (2,655.56) $ 4,526.88 $ 1,819.47 $ (1,737.06) $ 4,153.77 $ (1,198.17) $ (7,648.89) $ (1,168.70) $ (655.75) $ 48,842.13

Proposed+Telecom+Student $ 17,119.41 $ 5,242.77 $ 10,684.62 $ 26,991.14 $ 51,641.19 $ 32,969.99 $ 29,997.29 $ 35,298.18 $ 21,055.51 $ 4,148.61 $ 5,998.99 $ 7,268.60 $ 28,275.95 $ 8,443.44 $ 6,852.22 $ 42,242.94 $ 3,588.68 $ 732.06 $ 338,551.60

Difference $ (2,043.49) $ (155.23) $ 1,291.06 $ 23,763.26 $ (8,464.90) $ (4,006.31) $ 11,539.69 $ (6,158.46) $ (1,238.23) $ (2,833.09) $ 2,976.11 $ 467.12 $ (5,731.45) $ 2,289.72 $ (2,054.48) $ (12,588.36) $ (1,539.42) $ (671.42) $ (5,157.87)

Example • Today, licenses Desktop Core Bundle, formula-based FTE count is 100; head count is 150: – 100 * $53.98 = $5,398.00

• Proposed, license Core CAL Suite+Windows Enterprise Upgrade+Office 365: Base: (100 * ($9.98+$16.42) + (150 * $24.31)) = $6,286.50 With Telecom supplement: (100 * ($9.98+$16.42) + (150 * $20.44)) = $5,706.00 With Telecom and UTFAB/ASCSU supplements: (100 * ($9.98+$16.42) + (150 * $15.22)) = $4,923.00

• Areas that don’t currently utilize EES will pay more (but some utilize MS Select, so must consider annualized Microsoft expenditures)