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End of Microsoft’s Open License Program Leaves Door Open for CSPs

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Microsoft’s 20-year-old Open License program for small and midsize organizations will be phased out in just over a year, leaving a crucial role open for Cloud Solution Provider (CSP) partners to fill.

On Monday, Microsoft announced that it won’t be possible for organizations to purchase Open License offerings as of Jan. 1, 2022. Organizations with existing Open License program licensing also won’t be able to renew that licensing on that date.

This plan to end the Open License program right now just pertains to Microsoft’s commercial customers. However, Microsoft expects to “announce our plans for other agreement types in the coming months.”

Here’s how the announcement explained the coming end of the Open License program:

You can continue to renew and purchase new software licenses, Software Assurance, and online services through the Open License program until December 31, 2021. As of January 1, 2022, commercial customers won’t be able to buy new or renew software licenses or online services through the Microsoft Open License program. New license-only purchases should be transacted through partners in the Cloud Solution Provider program.

Some Open License program participants may have purchased “tokens” to use Microsoft’s online services. Those tokens will remain “active for five years from the purchase date,” the announcement explained.

Cloud Solution Provider Partner Role
Microsoft Cloud Solution Provider (CSP) partners will be the partners that will offer perpetual licenses after the end of the Open License program. Perpetual licenses are pay-once, non-subscription licenses that don’t expire.

If organizations are using Software Assurance (SA) with those perpetual licenses, which lets them migrate to the latest software release, then they’ll only be able to buy SA through a program different from the Open License program in 2022. The announcement recommended a switch to the Open Value program, which has an SA option for perpetual licenses.

The announcement also touted the Open Value subscription as offering an SA option, although it doesn’t offer perpetual software licensing.