When customers move their server environment to a cloud provider they have the option of two software licensing models. Bring your own or SPLA licensing. Bringing your own software is a good option for customers who already have licenses that include software mobility rights and want to maintain control over their software. Rental SPLA is a good option for customers who want a more flexible and cost-effective model. Microsoft's Services Provider License Agreement (SPLA) is a licensing model that allows FirstNet to offer software as a service to their customers. It is particularly useful for those operating in a private cloud environment as you have the option of renting your Server, SQL and RDS licenses on a per core or per user model without having to commit to long commitments. 

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Benefits of using Microsoft SPLA licensing in a private cloud environment

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• Cost-effective: The SPLA licensing model allows service providers to pay for the software they use on a monthly basis. This means they don't have to invest in expensive licenses upfront, making it a more cost-effective option. It also allows providers to offer more affordable pricing options to their customers.

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• Flexibility: SPLA allows service providers to add or remove licenses as needed, giving them the flexibility to adjust to changing customer demands. This is particularly useful in a private cloud environment, where resource utilization can fluctuate based on customer demand.

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• Scalability: The pay-as-you-go model of SPLA also makes it easy for service providers to scale their offerings up or down as needed. Providers can add or remove licenses to meet the needs of their customers, allowing them to provide the right level of service without overspending on licensing.

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• Compliance: With SPLA licensing, service providers can ensure they are always in compliance with licensing agreements. This is because the licenses are rented on a monthly basis, meaning they always have the latest version of the software and are covered by the appropriate licensing agreements.

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• Reduced administrative burden: The SPLA licensing model reduces the administrative burden for service providers. They don't have to worry about managing multiple licenses or tracking usage across different customers. Instead, they can focus on providing quality services to their customers.
   

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