Internal Use Rights for Software

A question from Nigel: “Do MS Partners have to take out MAP or a Silver/Gold Competency to get access to Office 365?”

Excellent question Nigel and I fear you already know the answer; yes.

Internal use rights (IUR) are licences that allow companies to use selected Microsoft software for their production use.  As you can imagine this can save thousands.  So why does Microsoft allow this and how can commercial companies get these?

Why Does Microsoft Allow Internal Use Rights?

Why do Ford sales staff drive Ford company cars?  They don’t normally need to travel as they’re showroom-based.  The dealership tends to do this so the salespeople understand the product better and that translates into sales figures.  Microsoft wants their partner channel to do the same.  The amount of partners I see that aren’t using Office 2013 on their primary machines is pretty high and these are often the same partners that struggle to sell Office 2013.  Use the software and you’ll soon discover little gems that make brilliant anecdotes, demos and proof points for customers.

How Can a Partner Obtain Internal Use Rights?

Up until the early part of 2014, any organisation registered on the Microsoft Partner Network could enrol into a program called Cloud Essentials which allowed partners to sell Office 365 and other cloud solutions.  Becoming a registered partner is free and very easy; my mum could do it.  Furthermore, becoming a Cloud Essentials partner was easy.  It required no minimum purchase and just involved taking an online test (which shows you the answers afterwards) and signing an online agreement.  Again, my mum could have registered, taken the test once, got it wrong but noted the answers and taken it again.  Cloud Essentials partners then had access to 250 seats of Office 365 E3 plan, 100 seats of Dynamics CRM online as well as Intune.  This was over £50,000 in software and more than most small and medium business (SMB) partners required.  It also devalued ‘real’ partners.  By that I mean Microsoft has a lot of inactive registered partners; companies that perhaps only registered to get access to a webpage that asked them to register or companies that only registered to gain the IUR.  I’ve even seen a couple of registrations where the partner’s registered web address was along the lines of Daddy@TheStevensFamily.org (names changed to protect the innocent).

Cloud Essentials is now closed to new enrolments and existing IUR benefits will not be renewed at the end of the enrolment period for those partners who were Cloud Essentials partners.

Internal Use Rights are now obtained by purchasing a Microsoft Action Pack (MAP) or by gaining a competency (e.g. Small Business, Communications, Server Platform or Learning).  Simply being a registered partner (aka community) does not accrue IUR.  This makes them harder to obtain but means Microsoft are concentrating on committed partners.  IUR have also changed to become more flexible as they allow partners to allocate their licences on-premises, in the cloud or as a mixture of both.  At the time of writing the Action Pack subscription costs £310 + VAT.  Competency fees vary according to the competency you earn but are in the ball park of £1,000-£2,000 for Silver and £2,000-£3,500 for Gold.

Microsoft partner Network Levels

Again, as a guide an Action Pack would earn 10 Windows 8.1 Pro licences and 5 Office licences which can be a mix of Office 2013 on-premises or Office 365 E3.  This is in addition to a host of other software titles.  A Silver competency would earn 25 windows 8.1 Pro and 25 office licences.  A Gold competency would earn 100 of each.

Partners who were enrolled in Cloud Essentials could enjoy £65 of free credit for Microsoft Azure per month; the offer states this is no longer available but it will continue for previously-enrolled Cloud Essentials Partners.  I’m hoping this free credit will still be available to any registered partner but I’m yet to test this.  Looks like I’ll need to set up one of those Daddy@TheStevensFamily.org partner accounts.

For more information on the number of licences you can obtain through IUR as well as how to increase the IUR seats, you can read this page directly on the Microsoft Partner Network.

If you currently enjoy IUR and you want to read up on the transition, this Cloud IUR guide will help you.