SPLA (Services Provider License Agreement) is a Microsoft licensing program designed for service providers that offer IT services based on Microsoft products. The provider receives the right to rent Microsoft licenses and deliver them as cloud, hosting, or managed solutions. Unlike the classical licensing model, SPLA allows paying only for actual software usage on a monthly basis, without the need to purchase perpetual licenses.
How SPLA works
The SPLA program is created for companies that deliver services based on infrastructure, including hosting Microsoft software in data centers, cloud environments, or as part of managed services. The provider signs an SPLA agreement, gains access to the product catalog, and supplies licenses to clients using a rental model. At the end of each month, the provider submits a usage report: the number of users, active instances, or processors (depending on the product type). Payment is based on actual consumption, making the model flexible and economically predictable.
Features and key advantages
SPLA is convenient for companies working in hosting, SaaS, IaaS, MSP services, and corporate support. The main advantage of the program is the absence of capital expenses. The provider does not purchase licenses but rents them, adjusting the volume up or down as needed. This allows scaling services according to real demand and quickly launching new offerings.
It is also important that SPLA licenses can be used in multi-tenant environments, where different clients are hosted on the same platform. Such scenarios are not available with standard corporate licenses.
In addition, the provider can offer full-fledged services: virtual desktops, application servers, databases, corporate email, CRM systems, and any solutions built on Microsoft technologies. SPLA does not limit the number of clients or projects — the provider pays only for actual usage.
Where SPLA is used
The program is actively used by data centers, cloud providers, companies offering SaaS solutions, DevOps platforms, corporate outsourcing, or support services. For example, a virtual server provider uses SPLA to install Windows Server and SQL Server in customer environments. An MSP company can deliver managed services based on Microsoft 365 or RDS, paying for them under a flexible model.
This approach works for both startups and large operators, as it eliminates the need to purchase large license packages.
Advantages of using SPLA
SPLA provides high flexibility: the provider can easily adjust licensing to match its services and business model. There are no long-term commitments — the subscription lasts one year, but consumption volume can be changed monthly. The program supports a wide catalog of Microsoft products, including server solutions, applications, development environments, and cloud components.
Another important advantage is usage-based reporting, which enables transparent service economics and helps avoid overpayments. For clients, this model provides a simple pricing structure and removes the need to manage licenses independently.