Mike AustinFounder & CEO, Metrixdata 360 Inc. · Mike Austin | Helping enterprises take control of software costs through data, strategy, and relentless execution

What are Microsoft Audit Penalties?

Name: What are Microsoft Audit Penalties?
Uploaded: 2020-04-27T12:00:13+00:00
Duration: 2 min 26 s
Channel: Mike Austin
Description: Mike Austin (CEO, Metrix Data 360) explains what penalties may apply if an organization is found non-compliant in a Microsoft license audit. He outlines…

27 Apr 2020 · 2 min

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2:26

Mike Austin (CEO, Metrix Data 360) explains what penalties may apply if an organization is found non-compliant in a Microsoft license audit. He outlines differences by licensing program: under Enterprise Agreements/MPSA there is commonly a threshold (often cited as 5% non-compliance) that can trigger liability for list price plus 10% and audit costs; Open License penalties vary by country and must be checked in local rules; SAM (Software Asset Management) engagements typically carry no penalty, are often funded by Microsoft, and require only payment of normal licensing costs to remediate.

Questions this video answers

If you're found to be 5% or more non-compliant (as cited).

Microsoft may charge list price plus 10% and the cost of the audit itself.

Penalties vary by country and are determined by local rules for the Open License program.

Typically there is no penalty; you pay normal license prices to settle, and the SAM engagement is usually funded by Microsoft (you generally don't pay auditor fees).

Chapters

Hi there, I'm Mike Austin, CEO of Metrix Data 360. A lot of the times I get asked the question, what are the penalties of a Microsoft audit if we're found to be non compliant? In this video today, I'm going to answer just that question. So the answer to that question really depends on the what program from Microsoft am I buying my licenses under? Most large enterprises are going to be purchasing through the Microsoft Enterprise Agreements or their MPSA program. That program, the audit penalties are within your master Business agreement with Microsoft or in the MPSA themselves. Usually it is going to say something like if you're found to be 5% or more non compliant, Microsoft has the right to charge you list price plus 10% and the cost of the audit itself. The challenge sometimes is that Microsoft doesn't necessarily define what 5% is. So going into an audit you'll want to make sure you get that defined because is that 5% based on revenue? Is that 5% based on license counts? Just make sure you're clear on that as you go into the audit. The other program that people buy under is the Open License program. The penalties under Open License vary from country to country, so they determine what the audit penalty is. You would just need to read the rules and regulations as it relates to the country you're in. Sometimes Microsoft doesn't do an official audit and they have something called a Software Asset Management Engagement or SAM Engagement, something to that effect. SAM engagements follow a little bit different rules. Typically under a SAM engagement, if you're found to be non compliant, there's no penalty. You just pay what your normal price would be when you're settling up. Also, the SAM engagement is usually funded by Microsoft, so you wouldn't pay the auditor's fees. Those are the three different things that you should be watching out for if you're concerned with what a Microsoft audit penalty is. If you have any questions, don't forget to leave us a comment and click like and subscribe to follow our channel. Until next time, I'm Mike Austin. Have a great SAM.