An Authorized Outsourcer is a third-party provider formally recognized by Microsoft to host and manage eligible customer-owned licenses, including Microsoft 365 Apps, Windows Server, and SQL Server, in a dedicated or multitenant cloud environment. Under Microsoft’s evolving licensing policies such as the Flexible Virtualization Benefit, customers with software licenses purchased under Volume Licensing programs (such as Enterprise Agreement, MPSA, or Open Value) can assign these licenses to run in data centers operated by Authorized Outsourcers. This model empowers organizations to leverage specialized cloud service providers for infrastructure flexibility, scalability, and cost optimization, without being restricted to Microsoft’s own Azure cloud or legacy Listed Providers.
Authorized Outsourcers comply with strict Microsoft requirements to ensure software compliance, security, and customer control over licensing entitlements. They facilitate the deployment and management of workloads, ensuring adherence to licensing rules, resource isolation, and legal protections for customers’ intellectual property. Additionally, this arrangement supports hybrid and multi-cloud strategies, offering migration pathways from traditional on-premises environments or restrictive hosting models.
Leveraging an Authorized Outsourcer streamlines software asset management, licensing audits, and renewal processes by providing transparency and guidance tailored to Microsoft's frequently evolving license terms. This flexibility is especially valuable for organizations seeking to optimize their IT investments while maintaining regulatory and contractual compliance across complex, outsourced cloud infrastructures.
