Key Licensing and IT Updates from Microsoft, Broadcom, and IBM | December 2024

Welcome to the December edition of our Newsletter! This month, we bring you crucial updates from Microsoft, Broadcom, and IBM. Let’s dive into the key developments that could impact your licensing strategies and IT infrastructure.

?Microsoft Licensing Terms Update

Microsoft introduced significant updates to its product terms and privacy policies effective November 1, 2024:

1. Windows 10 Extended Security Updates (ESU): Organizations planning to continue using Windows 10 beyond its support end date (October 14, 2025) can opt for a paid ESU subscription. This program provides critical and important security updates through an annual subscription model, ensuring compliance and protection post-support.
2. Fabric & Azure Maps: Updates include new conditions for embedding Azure Maps and using its API. Additionally, a new section under Microsoft Fabric highlights ‘Healthcare Data Solutions in Fabric,’ requiring a separate subscription and subject to Azure Services terms.
3. System Centre & Windows Server 2025: Microsoft has refreshed release dates and references for System Centre 2025 and Windows Server 2025, signalling the next steps in these critical product lines.

?Microsoft Enterprise Agreement (EA) Updates

Microsoft announced on November 12, 2024, that a small percentage of direct-market cloud Enterprise Agreements (EAs) for organizations with fewer than 3,000 employees will not be eligible for renewal under the EA framework. These customers may transition to the Microsoft Customer Agreement for enterprise (MCA-E) or explore Cloud Solution Provider (CSP) options.

While the EA offers predictable pricing with structured agreements over 3-5 years, the MCA-E introduces transactional pricing without long-term commitments, simplifying agreements with a single digitally signed document.

Additionally, price increases effective April 1, 2025, include:

• A 5% increase on all per-user monthly billing plans for annual-term subscriptions.
• Teams Phone Pricing Changes: Standard: $10/user/month (up from $8). Standard for Frontline Workers: $5/user/month (up from $4).
• Power BI Pricing Changes: Pro: $14/user/month (up from $10). Premium Per User: $24/user/month (up from $20).

These updates emphasize the need for organizations to evaluate cost structures and consider adjusting billing models to mitigate price increases.

?Broadcom Expands VMware Cloud Foundation Portfolio

Broadcom announced significant enhancements to its VMware Cloud Foundation (VCF) portfolio, adding VMware vSphere Standard and VMware vSphere Enterprise Plus. These new offerings cater to customers seeking entry-level functionality without additional, unnecessary features.

Additionally, Broadcom increased the vSAN capacity for VMware vSphere Foundation by 2.5x, providing 250 GiB per core. This change, effective November 2024, offers enhanced value and optimized IT infrastructure for enterprise-class HCI solutions.

Notably, Broadcom made its VMware Workstation and Fusion desktop hypervisors free for personal, commercial, and educational use. While support for commercial customers will phase out post-contract, updates and improvements will continue, ensuring sustained usability.

However, a recent update to Broadcom’s End User License Agreement (EULA) introduces a clause tying multiple product lines together, complicating contract termination. Organizations should carefully review renewal strategies to avoid unintended implications.

?IBM: ILMT and BigFix Support Changes

IBM announced that the License Metric Tool (ILMT) will stop supporting BigFix 9.5 due to HCL's withdrawal of support in June 2024. Key timelines include:

• Q4 2024: ILMT environments with BigFix 9.5 will function without support for related issues.
• Q2 2025: Data imports to ILMT from BigFix 9.5 will cease, requiring an upgrade to BigFix 11.

IBM advises customers to plan quarterly upgrades for the ILMT server to maintain compliance and eligibility for sub-capacity benefits. Stay informed by regularly reviewing IBM’s sub-capacity eligibility list to avoid unexpected disruptions.

?Key Takeaways and Recommendations

The latest updates from Microsoft, Broadcom, and IBM highlight the evolving nature of licensing and IT infrastructure. Organizations must remain vigilant in reviewing contract terms, planning upgrades, and evaluating cost implications to optimize their investments.

At Silver Leaf Solutions, we specialize in helping businesses navigate these changes, ensuring compliance while optimizing licensing costs. Contact us to learn how we can support your organization in staying ahead of these industry shifts.

Write to us at [email protected] for more information.

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