Volume Licenses Available for Self-Hosting

Independent software developers can now use volume software to host their own software-as-a-service (SaaS) applications for commercial customers. The change, announced as part of a broad “refresh” of Microsoft’s volume licensing agreements in Oct. 2009, significantly reduces the licensing and operational costs associated with hosting applications on the Microsoft platform. Other changes in the refresh include elimination of a grace period for Software Assurance (SA) renewals and a change in buyout fees for subscription licensing.

Rules Target Application Developers

The new right to self-host with volume software requires that the developer’s software “add significant and primary functionality” and be “the principal service and/or application, and sole point of access” to the Microsoft products. For example, an ISV could host its own application for medical office or hotel management. The ISV’s application must be delivered over the Internet or a private network, and it cannot be loaded onto end-user devices. Accessory applications, such as dashboards, HTML editors, and utilities, do not qualify as valid self-hosted ISV applications.