Notes From Microsoft Inspire 2021
Microsoft recently held its annual partner conference Inspire 2021 virtually, for the second year running. This marquee event in the Microsoft conference calendar gives partners an insight into the Microsoft roadmap and associated innovations for the coming 12 months. Not having an opportunity to network with industry peers is an unfortunate side effect of not being able to have an in-person event. However, the recent heat wave we were experiencing here in Ireland did create some Las Vegas style weather to add to the atmosphere, albeit virtually.
Microsoft’s CEO Satya Nadella’s keynote evidenced how the pandemic is accelerating digital transformation and adoption of Cloud Computing. In his own words “There is no going back to digital adoption levels two years ago — there’s only going forward. And this will require a step function change in the level of tech intensity in the years ahead. Every company will need to be a technology company in their own right.” He also described what we are seeing in the tech industry as a “… generational shift — not just in technology platforms, but in digital adoption curves.”
This acceleration in digital transformation translates into hard numbers for Microsoft when we examine their Q4 earnings call where results surpassed analyst expectations. With sales in their final quarter ending in June hitting $46.2 billion, up 21 percent from a year earlier, profits rose 47 percent to $16.5 billion.
In my blog below I will explore some of the key updates I have gathered from my attendance at this years’ event with specific focus on announcements that may impact on how organisations license Microsoft technology over the coming 12 months.
Windows Cloud PC
This is a new way to experience Windows 10 or Windows 11 as a cloud service, that lets you stream a full Windows experience including apps, data, and settings to any device from the Microsoft Cloud.
Microsoft will make available two flavours; ‘Business’ and ‘Enterprise.’ This managed service offering is built on Azure Virtual Desktop (AVD) formally known as Windows Virtual Desktop and Microsoft’s hosted virtual desktop infrastructure (VDI) service. The service will be licensed on a per user basis with pricing linked to the size of the Cloud PC versus AVD licensed on a consumption basis. Windows 365 is in essence a Cloud PC with enhanced management by Microsoft as opposed to session-based desktops or pooled VMs normally associated with VDI deployments.
Windows 11
At Inspire 2021, we got to learn more about the benefits of the latest version of Windows arriving later this year. Organisations will be able to receive free upgrades to Windows 11 for PCs that support it. However it’s worth noting that Windows 11 hardware requirements are significant. Therefore careful planning for its use should be considered to avoid performance issues on existing or new hardware within your estate.
Dynamics 365 & Teams
Customers licensed for Microsoft Teams will now receive access to view and edit Microsoft Dynamics 365 data in Teams at no extra cost whether or not users have a Dynamics 365 license. This flexibility could provide organisations with a way to streamline licensing costs for light users where full Dynamics licenses can be removed. However it could also lay the foundation for increased Dynamics 365 licensing costs where users require advanced features in the short to medium term. Either way this should be viewed as a positive move by Microsoft as it removes productivity barriers by allowing employees to see Dynamics 365 records directly within Teams.
Other Teams News
Microsoft also announced that new and enhanced Collaborative apps are coming to Microsoft Teams in partnership with independent software vendors (ISVs). This includes Atlassian Confluence, Salesforce, SAP Cloud for Customer (C4C), ServiceNow and Workday. These integrations bring structured business processes and data together for enhanced collaboration. In addition to the above, ISVs will soon be able to sell their apps within Microsoft Teams. This will enable ISVs to monetize their offerings and provide a streamlined experience for Teams IT admins to purchase apps and subscriptions within the Teams admin centre on behalf of their organisation.
Azure
It could be said that a central theme for this year’s Inspire conference is that Microsoft are accelerating its investment in Azure. This includes investment at a product level and partner program level to drive and expedite adoption of Azure — some of the highlights include:
· New features within Azure Stack HCI
· Azure API Management integration with Azure Event Grid
· Smart defaults for Azure Kubernetes Service (AKS)
· Azure Synapse, a new Azure partner centre
· Introduction of the Azure Migration and Modernisation Program formally called the Azure Migration Program
App Governance
As an individual that works with organisations to manage assets, I have seen how Shadow IT can create legal, financial, and operational risk. At Inspire 2021, Microsoft announced App Governance, a paid add-in capability for Microsoft Cloud App Security (MCAS). With this new set of capabilities organisations can get:
· Deeper visibility into apps that access Microsoft 365 data with actionable insights
· Policy driven governance
· Detection of abnormal app behaviour with machine learning models
At a glance, this appears to be a useful add on to enhance your security posture in a world full of apps.
Retirement of Open Licensing
Partners were again reminded at Inspire 2021 about the pending demise of the Open Licensing Program with December 31, 2021 being the last day to transact licenses under this program. At a high-level, organisations that would normally acquire Open Licenses without Software Assurance can now purchase perpetual licenses via the Cloud Solution Partner Program (CSP). Organisations that need to continue Software Assurance or who need to acquire licenses with Software Assurance can do so under Open Value or Open Value Subscription.
Conclusions
It’s no surprise that FY22 (starting July 2021) will see Microsoft continue to focus its attention on growing market share across a broad range of tightly integrated cloud services within its technology stack. There is also a continued focus on ‘holistic’ security over ‘point solutions’ across the stack.
Vendor lock in is a major concern for organisations however Microsoft are demonstrating openness to interoperate with other vendors.
In addition to the variety of product announcements made at Inspire 2021, I did note the following quote from Satya Nadella during his keynote; ‘We want to be the best partner for our partners.’ This will translate into significant investment by Microsoft into its partner community. By working with suitably qualified partners, organisations can attain competitive advantage by being the indirect recipient of this investment.
As Microsoft License experts, we are best placed to provide independent advice and guidance on a broad range of Microsoft license concerns and opportunities. From helping organisations assess their license position, renewing your Enterprise Agreement or effectively licensing Microsoft technology in the cloud, contact us with any questions.
About The Author:
Karl is a Principal Licensing Consultant at Version 1, providing Microsoft license expertise to organisations globally and ensuring customers get the best value from their Microsoft assets.
