Which Is Better: Microsoft SPLA Or Microsoft Self-Hosted Applications?

Many businesses that identify a need to acquire "commercial hosting rights" in connection with hosted solutions incorporating Microsoft software have two options for acquiring them: through a Services Provider License Agreement (SPLA) with Microsoft or through the Self-Hosted Application (SHA) benefit that is included with Software Assurance under an Enterprise Agreement or other volume-licensing agreement. For service providers whose offerings make them eligible to opt for either of those alternatives, it sometimes can be difficult to decide which path to choose. Here are some points to keep in mind:

• Costs Often Favor SPLA. SPLA is a subscription model under which companies measure their monthly Microsoft product usage and then report and pay for the kind and quantity of Microsoft product licenses used, typically as an operating expense. Financial considerations often favor SPLA. Usage "floats" from month to month, with no obligation to forecast future usage. In