Bacloud installs a user account named "Bacloud" by default on each Windows dedicated server and VPS (typically with administrative privileges). This requirement is strictly for Microsoft SPLA licensing compliance purposes. In other words, having this account ensures Bacloud can fulfill Microsoft’s licensing rules – it is not intended for unauthorized monitoring of customer data or activities. Below, we explain this policy for both new and existing customers, covering Microsoft’s SPLA obligations, the risks of non-compliance, and how Bacloud uses (and limits) the access provided by this account.

Microsoft SPLA Licensing Compliance Requirements

Microsoft Service Provider License Agreement (SPLA) Compliance: Bacloud, as a hosting provider, operates under Microsoft’s Service Provider License Agreement. The SPLA program allows Bacloud to offer customers Microsoft software (like Windows Server, Office packages, RDP access licenses) on a monthly rental basis. In exchange, Bacloud must adhere to Microsoft's strict licensing and reporting rules. Microsoft’s SPLA mandates that service providers report all Microsoft software usage monthly and comply with all software usage terms​. Every instance of Microsoft software installed or deployed on Bacloud servers for customers must be accounted for. Bacloud must submit monthly license usage reports to Microsoft covering all Microsoft products on customer servers​. These reports ensure Microsoft can track software usage and confirm we are following their copyright and licensing guidelines.

Copyright and Usage Guidelines: Along with monthly reporting, SPLA requires compliance with Microsoft’s Services Provider Use Rights (SPUR) – essentially the rules for how Microsoft software can be used in hosted environments. Bacloud must strictly follow these Microsoft SPLA rules to avoid any licensing violations​. Practically, this means only properly licensed Microsoft software may be installed on a customer's server. Microsoft’s terms strictly forbid unauthorized or pirated Microsoft software, and Bacloud is obligated to prevent such scenarios. The dedicated Bacloud user account on the customer's Windows server helps us verify what Microsoft software is installed to ensure each installation is correctly licensed and reported. Without Bacloud user access, Bacloud would have no reliable way to confirm compliance or include all usage in the monthly SPLA report. In short, a Bacloud user account enables Bacloud to fulfill Microsoft’s licensing requirements on the customer's behalf and keep the server in good legal standing.

Consequences of Not Complying with SPLA

Failing to meet Microsoft’s SPLA requirements can have severe consequences for Bacloud (and by extension, for customer services). Microsoft’s SPLA program includes audit provisions – Microsoft regularly conducts audits of service providers to ensure all usage is being reported and all software on the servers is properly licensed​. If Bacloud could not account for software installed on a customer’s server (for example, if Bacloud did not have access to the server or access is disabled and the customer installed unlicensed Microsoft software), it would appear as unreported or unlicensed usage in an audit. Microsoft’s definition of “software use” is very broad – even installing Microsoft software counts as usage that must be licensed and reported, regardless of whether the customer actively uses that software.

Risk of Fines and Penalties: Non-compliance with SPLA can lead to steep financial penalties and other sanctions. Microsoft explicitly warns that breaching SPLA terms (such as under-reporting usage or allowing unlicensed installations) can result in heavy fines or even termination of Bacloud’s licensing agreement​. Such incidents occur when providers cannot verify and report those installations, putting us in violation of the SPLA. For example, if a customer were to install a Microsoft application without a license, Microsoft would still hold Bacloud responsible under SPLA for that unreported “use.” Significant penalties can be imposed based on the value of the unlicensed software and how long it went unreported​. These penalties can be substantial, especially if the issue spans multiple months of reporting. Compliance is not optional – every Microsoft product on a server must be correctly licensed and reported each month, or Bacloud faces liability​. This is why Bacloud insists on having its administrative account: it allows us to periodically check for any Microsoft software installations and ensure nothing slips through Bacloud's reporting process.

Bacloud’s Access is for Licensing Verification Only

While Bacloud’s user account does grant us access to the server, we do not monitor or interfere with customers' day-to-day activities. The sole purpose of this account is to perform licensing compliance checks. Bacloud does not snoop on server files, usage, or any non-licensing-related content on the customer server. Bacloud licence checks are limited to verifying the presence of Microsoft software that needs licensing (e.g., checking installed programs or Windows features for Microsoft products). This helps protect Bacloud customers from inadvertent license violations. Ensuring all Microsoft software is licensed protects the customer's server from the risk of Microsoft enforcement actions that could disrupt the customer's service.

Customer Oversight and Transparency: We understand that trust is essential. If customers like to, they are welcome to monitor the activity of the Bacloud-provided user account on the customer's server. For instance, a customer can review Windows Event Logs or use auditing tools to see when and how that account is used. The customer will find its usage is infrequent and only related to routine license audits or maintenance. We encourage customers to change the default password of the Bacloud account (if provided) to one known only to the customer and our team, or to coordinate with Bacloud's support team on access procedures – this way, customers have full visibility and control. The key point is that the account exists as a safeguard for licensing compliance, not for the general administration of the customer's server. Its presence should give confidence that the customer's Windows server is always correctly licensed under Microsoft’s rules.

Conclusion

In summary, Bacloud’s requirement for a user account on Windows dedicated/VPS servers is driven entirely by Microsoft SPLA licensing compliance. It enables us to accurately report monthly Microsoft software usage and ensure no unlicensed software is running on customers' servers​. This protects us as a service provider from severe penalties and protects customers from service disruptions or legal complications arising from licensing infractions. We value our customers’ privacy and therefore strictly limit Bacloud's use of this account to compliance checks. By maintaining this practice, Bacloud upholds Microsoft’s licensing standards and provides a fully compliant Windows hosting environment. Thank you for understanding the importance of this policy in keeping our services reliable, lawful, and in line with Microsoft’s requirements.