Hoster pillar guide

SPLA Audit Defense Guide

Microsoft and SPLA audit defenseBuyer side onlyNew York and London

If you license Microsoft software through SPLA and a Big Four firm has been appointed to audit you, the exposure is built every month across a 36 month lookback. This guide explains the mechanics and the reporting discipline that protects your margin.

What SPLA is and how it is verified

SPLA is Microsoft's monthly licensing program for hosters, managed service providers, and outsourcers that deliver Microsoft software to external customers. It is pay as you consume. You report each month, and compliance is verified for every monthly reporting cycle, not just your current position. A SPLA audit does not photograph today. It reviews every monthly cycle across a 36 month window, so a single recurring error becomes 36 instances of that error.

The mechanics

Who runs the audit and what they can request

A Big Four firm conducts the audit under the MBSA audit clause as an independent third party with broad authority. It can request deployment records, server configuration data, customer contracts, and usage logs. Treat every request as a question of scope and evidence rather than a reflex to hand over everything.

Hosters apply the SPUR, the Services Provider Use Rights, and report SAL or processor counts each month. Misapplied SPUR cuts both ways. Under reporting is a compliance risk that the lookback magnifies. Over reporting quietly wastes margin month after month.

Back fees versus the penalty uplift

This distinction decides where you fight. Back fees at the price file rate are not negotiable. The penalty uplift is. The uplift ranges from 25 to 125 percent depending on severity, duration, and the nature of the under reporting. The whole commercial battle is fought on the uplift and on the scope of what is counted.

Worked monthly SPLA finding
ItemAmount
Under reported SAL, one month, at price file rate$10,000
Repeated across the 36 month lookback$360,000 back fees
Penalty uplift at 25 percent, negotiated low$90,000
Penalty uplift at 125 percent, left unmanaged$450,000

Figures are indicative and depend on your agreement and the facts.

The structural defense is reporting discipline

The hosters that survive an audit cleanly share the same habits, in place before the auditor arrives because the window to correct a reporting mistake is short.

  • Monthly SAL reports submitted on time, every month
  • Sealed daily authentication counts
  • Customer mapping for each reported SAL block
  • Product version mapping kept current
  • Documented multi tenant boundaries
95 to 100%
Of penalty exposure defended
$500M+
Microsoft exposure defended
300+
Microsoft and SPLA audits
20+
Years combined
How we are paid

Two ways to engage, no downside

Engagement A

Fixed Fee

From $18,000. A scoped price agreed before we start, backed by our guarantee.
  • One agreed number, no surprises
  • Best when the scope is known
  • Reimbursed if we do not reduce your exposure
Engagement B

Gainshare

A share of verified savings or avoided penalty. Zero retainer.
  • You pay only from what we remove
  • No risk to the customer, by design
  • Reduce nothing, owe nothing

Our guarantee: we reduce your exposure or we reimburse our service fee.

Keep reading

Related reading

Build the defense before the auditor arrives.

Download the guide and a short readiness review, or talk it through with us.

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