Tuesday, May 22, 2012

Was OnLive just a precursor to Microsoft providing DaaS? (1st post in a series of 4 posts)


Earlier this year there was a buzz in the industry that for little or no fee, OnLive, a hosting facility, would provide access to a virtual Windows Desktop.  I first learned about the service in February as I overheard a hallway conversation where an executive asked our network group to open a port to our firewall to allow access to the service.  I was not sure whether or not a port in our firewall needed to be opened, but I did know that the offer seemed a little extraordinary given the restrictions Microsoft has that prohibits hosting facilities from providing Windows desktops on shared servers.  I immediately asked if I could be involved and explained that I was concerned that while OnLive was the entity providing this service, we could be the ones in violation of Microsoft’s licensing rules.
My first action was to contact OnLive’s customer service and ask them if they had a special agreement with Microsoft.  After several attempts at getting an answer to my question and getting a complete runaround, I decided to contact Microsoft to see if they could confirm that OnLive was properly licensed.  The answer was no, they could not confirm that OnLive was properly licensed.  Given that I was going to need to tell an executive that we would not be able to complete his request and that I wanted to stay in the good graces of my employer, I asked that Microsoft put their response in writing.  The representative was not willing to provide their response in writing, which started to make me nervous.  At that point I did what I always do when I have a tough decision to make I research more.  Hoping that I would find some clue that would make the OnLive service seem legal, I looked at the leaders of OnLive.  This did not help my cause any and to further confuse the issue OnLive’s leaderships’ biographies read like the who’s who of technology.  After continued research and fretting, I finally just gave in and provided my write-up stating that I did not feel comfortable that we would be in compliance with Microsoft’s licensing if we allowed this service.  Fortunately, a few weeks after I wrote my statement, Joe Matz, Corporate Vice President of Worldwide Licensing and Pricing for Microsoft issued a statement that Microsoft was working with OnLive to ensure license compliance.  The media immediately questioned how OnLive could ever make such a mistake without checking the licensing first.
Ever since this incident, I have been puzzled by the actions of OnLive.  It seems to me that these guys running OnLive must be far too smart to simply forget about the licensing of third party software.  I just do not buy it.  In the meantime, Microsoft has continued to open up virtualization rights to their products that are covered by Software Assurance, which started to get me thinking, “Maybe Microsoft is about ready to put Windows desktops in the Cloud and change their licensing to make it more feasible.”  I have worked in the direct marketing business which has an industry term, “dry test”, which is done to gauge the market demand before the product is ready to be put on the market.  What if the whole OnLive event earlier this year was a dry test for Windows Desktop as a Service?  Do I have proof?  No, but it would help to explain a pretty bizarre event.  Actually, this scenario may be a complete fabrication of my mind but I do feel that Microsoft is approaching the time when they will be providing DaaS.  Over the next few blog posts I will be examining why I believe Microsoft is about ready to make DaaS a viable solution.  The postings will provide:
·         A background of what Microsoft needs to put into place before they can allow DaaS
·         Changes that have already occurred to Microsoft’s products and licensing that could make virtualization and cloud processing a reality 
·         Finally, I will examine the upcoming product changes that will allow Microsoft the ability to change their licensing to make DaaS a possibility
During this effort I encourage feedback, in the event that I am missing some key pieces of information.

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