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Licensing Update
What is a Software and What is a Software License?• Software is an intellectual property that
requires a license for its usage.
• A software license is the legal right to install, use, access, display, run, or otherwise interact with a software program.
• Rights in using software are controlled by the terms of a software license and these rights are detailed in a license agreement.
• Customers benefit from license compliance because:
‒ They are protected from the risks of mislicensed and counterfeit software.
‒ They have access to technical services and support.
Licensing Documentation
• End User License Agreement (EULA) – Governs a single software title acquired by an individual and software acquired with the purchase of a computer from an OEM.
• Volume License Product Use Rights – Provides the use rights for a specific license in the Volume Licensing programs.
• For more information, visit: www.microsoftvolumelicensing.com
Type of Licenses
Perpetual Non-Perpetual
Everlasting Temporary
Valid if software is used in accordance with the EULA
Provides a time-limited right to use a particular product until a specific
end-date
Available when acquiring software from a local computer store
Available through certain Comprehensive Programs
Microsoft Licensing ProgramsSmall & Med Business
5 – 249PCsEnterprise Customers
250+ PCsIndividual0 – 4 PCs
Full Packaged Product (FPP)
OEM
Open License
Open Value
Open Value Company-wide
Open ValueSubscription
Select License
Select Plus
Enterprise Agreement
Enterprise SubscriptionAgreement
Windows GenuineAdvantage (WGA)
Get Genuine Kit (GGK)
Get Genuine Solution (GGS)
Get Genuine Windows Agreement (GGWA)
Le
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Open Value Price Level C
OV 250
Lic
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Pro
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Why Volume License?
• Volume Licensing helps to create long-term customer relationships. You can:
‒ Connect with customers more frequently
‒ Become a trusted advisor
‒ Increase total revenue with each customer by building more benefits in a customer solution
• Volume Licensing programs provide customers solutions—the ability to choose the software they need and the flexibility in acquiring it.
Why Volume License?
– Attractive pricing and predictable cost options
– Software assurance
– Additional productivity use rights
– Software reimaging rights to facilitate deployment
– Downgrade rights
– Rights to transfer licenses to new hardware
– Electronic management of licenses (thru VLSC)
• Volume Licensing help to generate future revenue streams:– Simple purchasing options for additional products
– License maintenance renewal with Software Assurance
• Volume Licensing programs provide additional benefits that you can leverage in your solution and the management and maintenance of your customers’ software:
Microsoft Part Numbers
• All software has a unique SKU• Prices for SKUs are available from the distributor• Each SKU is defined by core attributes:
• Software name
• Version• Language• Software type• License type
• Volume level• Purchase unit• Purchase period• Offering
Software Offering Payment Terms Price Point Ordering Activity
Office Pro All Languages Lic/SA Pack OV NL 3YR Acq Y1 Ent
Prepaid 3-year priceLicense + 3 years SA
Acquired in year 1Order once
License & Software Assurance (L&SA)Microsoft License (L) SKUs:
• Provides the rights to a specific version of a product
• No pre-requisites to buy (except for Windows Professional Upgrade, which must have an underlying OS license)
• Available through Open License and Select License
Software Assurance (SA) SKUs:• Product upgrades: rights to new versions released during the agreement term
• Available through Open License, Select License and Enterprise Agreement (EA) for eligible customers
• Priced as a percentage of License for each year of the agreement: approximately 29% for desktop products and 25% for servers
License + Software Assurance (L&SA) SKUs:• Combines the benefits of Microsoft License and Software Assurance
• No pre-requisites to buy (except for Windows Professional Upgrade, which must have an underlying OS license)
• Available through Open License, Select License, EA and EA Subscription
Software Assurance Benefits Maximize Value Across the Life Cycle
PlanNew Product Versions
Spread Payments
Step-Up Licensing
UseSystem Center Advisor
MDOP: Desktop Management24x7 Problem Resolution SupportTraining Vouchers for IT Training
TechNet
E-Learning for End Users
Office Home Use Program
Extended HotFix Support
Cold Back-ups for Disaster Recovery
DeployServices
Planning Services
Training Vouchers for IT Training
E-Learning for End Users
Office Home Use Program
24x7 Problem Resolution Support
TechNet
Enterprise Source Licensing
Technologies
License Mobility
Windows Thin PC
Windows 7 Enterprise
Windows Virtual Desktop Access
MDOP: Deployment Tools
Office Multi-Language Pack
Office Roaming Use Rights
Microsoft Licensing ProgramsL
eg
ali
zati
on
So
luti
on
s
Small & Med Business5 – 249PCs
Enterprise Customers250+ PCs
Individual0 – 4 PCs
Full Packaged Product (FPP)
OEM
Open License
Open Value
Open Value Company-wide
Open ValueSubscription
Select License
Select Plus
Enterprise Agreement
Enterprise SubscriptionAgreement
Windows GenuineAdvantage (WGA)
Get Genuine Kit (GGK)
Get Genuine Solution (GGS)
Get Genuine Windows Agreement (GGWA)
Open Value Price Level C
OV 250
Lic
en
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Pro
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IndividualIndividual:
1 to 4 PCs licensing options:
FPP or retail:• Per unit application pricing with no
volume discounts• Downgrade rights not included, but
there are some exceptions• Recovery media included, depending
on hardware vendor• Software Assurance can be purchased
under a Open License or Open Value within 90 days
OEM:• One license per system• Downgrade rights not included, but
there are some exceptions• Recovery media included• Software Assurance can be purchased
under a Open License or Open Value within 90 days
OEM (Original Equipment Manufacturer)• OEM is licensed with a new device/hardware (PC, notebook)• OEM product is attached to the initial device, meaning it can
not be transferred to other device• Proof of license is COA (Certificate of Authenticity) that can be
found in the device• In addition, customer may get the CD/DVD as the media to
install• Other supporting documents to be kept by customer: media,
EULA, invoice
Sample COA Label
FPP (Full Packaged Product)• Proof of license is COA (Certificate of Authenticity)
that can be found in the FPP box• Other supporting documents: disk kit, media book,
EULA, and invoice
Sample FPP
Small and Medium Business CustomersSmall and Med Business Customers:
5 to 249 desktops license options are:• Open License
• Open Value
• Open Value Company-Wide
• Open Value Subscription
Open License:
• Provides pricing discount over FPP, easy entry minimum of five license purchases (each license is assigned points and a 500 point minimum is required), no reorder minimum for ad-hoc purchases.
Open Value Programs
• Includes Software Assurance, is three year term with ability to make annual payments, and has Company-wide and Subscription options.
Note: Open License was previously referred to as Open Business
Open License and Open Value Comparison
Open License (OLP) Open Value (OV)
Initial Purchase Five licensesFor Open Volume commercial and government, 500-point minimum is required within a specific product pool (applications, systems, and servers) on initial order; each license carries a point value
Five licensesOne license for Microsoft Dynamics products, MSDN, TechNet, and other products designated in the product list
Single Agreement for Multiple Entities
No Yes
Reordering For two year agreement term For three year agreement term
Downgrade Rights Yes Yes
Spread payments No Yes
Media Separate purchase Included
Software Assurance Purchased within 90 days Included
Enterprise CustomersEnterprise Customers with 250+ desktops:Select:
• Available only from Large Account Resellers (LARs) and for corporate, government, and academic customers
• Global organization agreement available
• Optional Software Assurance
• Volume Discounts based on volume forecasts, each product is assigned specific point values to determine price levels
Select Plus:
• Same Select features plus a single organization-wide volume purchasing program that never expires
Select and Select PlusAspect Select Plus Select
Initial price level set by Initial purchase order, EA, EAS, CASA or previous 12-month Select consumption
Three-year forecast, EA, EAS or previous 12-month Select consumption.
Automatic adjustment to higher level (A D)
Yes, immediately Yes, on next anniversary
Automatic adjustment to lower level (D A)
Yes, limited to one level per year
Yes, unlimited
Price level A 500+ points/1 year 1,500+ points/3 years
Price level B 4,000+ points/1 year 12,000+ points/3 years
Price level C 10,000+ points/1 year 30,000+ points/3 years
Price level D 25,000+ points/1 year 75,000+ points/3 years
Enrollment minimum None for Registration Form
750 points/3 years
Academic 500+ points/1 year 1,500+ points/3 years
Government 500+ points/1 year 1,500+ points/3 years
Enterprise Customer with 250+ desktopsEnterprise Customers with 250+ desktops:Enterprise Agreement (EA):
• Available only from Enterprise Software Advisors (ESAs) or direct from Microsoft
• Customers must standardize their choice of platform company-wide
• 3-year global agreement with volume discounts based on number of PCs
• Includes Software Assurance, annual payments, eLearning, Training Vouchers, etc.
EA Subscription:• Offers cost savings on a subscription
basis
• License buy-out option at end of term.
EA – How the Program Works• Minimum initial order is for 250 qualified desktops• Choose between Professional Desktop (Pro Desktop) or Enterprise
Desktop• Pro Desktop consists of:
- Windows 7 Enterprise Upg- Office Pro Plus 2010- Core CAL (Windows Server CAL, SharePoint Standard CAL,
SCCM CAL, Exchange CAL, Lync Standard CAL, Forefront Endpoint Protection)• Enterprise Desktop consists of:
- Windows 7 Enterprise Upg- Office Pro Plus 2010- Enterprise CAL (Core CAL, plus additional Active Directory
RMS, Forefront Unified Access Gateway, Forefront Protection Suite, System Center Client Management Suite, SharePoint Enterprise CAL, Exchange Enterprise CAL, Lync Enterprise CAL)
Cont’d
• Licensing Offerings: License and Software Assurance (L&SA), and Software Assurance renewals.
• Software Assurance coverage runs to the end of the agreement term.• Pricing: Price levels based on the number of qualified computers in
the enterprise:. Level A: 250–2,399 computers. Level B: 2,400–5,999 computers�. Level C: 6,000–14,999 computers�. Level D: 15,000 plus computers�
• Agreement Term: Three years, renewable• Payment Options: Annual payments for all items (L&SA, SA-only)
ordered initially only. True-up payments for growth.• How to Buy: Purchase thru LAR (Large Account Reseller)
Placing the Volume License Orders
Microsoft
Distributors
Enterprise Software Advisors (ESAs)
Large Account Resellers (LARs)
Authorized EducationResellers (AERs)
Independent SoftwareVendors (ISVs)
Original EquipmentManufacturers (OEMs)
Value Added Resellers(VARs)
System Builders
Orders for Microsoft Open Licenses (including Academic Open) must be placed with the Distributors
Licenses for Enterprise Agreement,Select, and Academic Select must be ordered directly from Microsoft
Resellers
Windows Legalization Solution• Volume Licensing agreements cover
Windows operating system upgrades only— not the initial operating system license.
• A portfolio of Windows legalization offerings is available through different channels to meet the needs of how customers prefer to buy.
‒ Can only be used for existing PCs already in the customer’s environment that have a qualifying Windows Legalization issue. Cannot be used on a new PC.
‒ Qualifying legalization issues include: counterfeit software, unlicensed software such as hard disk loading, version piracy, and mislicensing scenarios such as improper use of a Volume Licensing agreement.
Base Qualifying of Windows OS
Windows Legalization SolutionGGWA-Small Organizations*
GGWA- Large Organizations
Get Genuine Kit (GGK)
Customers Small & Med Business, Govt.
Med & Large Enterprises
Small Business, Home Consumer
Product Availability Windows 7 Pro Windows 7 Pro Windows 7 Pro
Minimum Purchase 5 licenses 100 licenses 1 license
Downgrade Rights Yes Yes No
Channel USD countries: Open price list , resellersNon-USD countries: off price list, resellers
LARs or direct from Microsoft, off price list
Resellers; ordered from OEM distributors
Terms Non-signed commitment to buy legal going forward
Pre-signed agreement; buy legal going forward, audit clause, must legalize all out of compliance Windows PCs, MBSA required
Includes DVD style case with FFP media and COA attach is required.
Software Assurance
Purchased within 90 days
Purchased within 90 days
Benefits Open License
Open Value*
Open Value Subscription Select
LicenseSelect Plus
Enterprise Agreement
Enterprise Subscription Agreement
Minimum Number ofDesktop PCs
5+ x x x
250+ x x x x x
Licensing Offerings Available
License x x x License & Software Assurance x x x x x x x
Software Assurance x x x x x x x
Pricing
Based on Product Pools x x x Based on Desktop PCs x x x x xBased on License & Software Assurance x x x
Agreement Term
No Expiration x 1 Year +/- x 2 Years x 3 Years x x x x x
Payment Options
Up-Front x x x x x x
Annually x x X x x
How to BuyDirect x xIndirect x x x x x x x
Product Fulfillment Acquired Separately x
Provided x x x x x xSoftware Assurance
Option to Add x x x Included x x x x
Online Services Offered x x x x x x
Volume Licensing Chart
Server LicensingMicrosoft Server Software License • Applies to Server product itself: e.g.
Windows Server, Exchange Server, or Small Business Server (SBS)
• 1 Server License required for each machine running Server software
Client Access License (CAL)• A CAL is not a software product;
rather it is a license that gives a user the right to access the services of the server
• CAL version # must be equal to the highest version of Server in the mix (i.e. if there is both Windows Server 2003 and 2008 in the network, all device or user CALs must have 2008)
• A small number of servers have limited access requirements
• A separate CAL is required for each User or Device
• Device CALs represent each physical device that connects to the server
‒ This includes remote access devices
‒ Does not include unauthenticated devices (web clients)
• User CALs represent each physical user who connects to the server
– Users can connect from many different devices without purchasing more licenses
Per User CALs
Per Device CALs
User vs Device CAL
(6) PCs(Devices
)
(5) Users
Choosing User CALs would save money
Licensing Resource
http://www.microsoft.com/licensing/
© 2011 Microsoft Corporation. All rights reserved. The information contained in this document represents the current view of Microsoft Corporation on the issues discussed as of the date of publication and
is subject to change at any time without notice to you. This document and its contents are provided AS IS without warranty of any kind, and should not be interpreted as an offer or commitment on the part
of Microsoft, and Microsoft cannot guarantee the accuracy of any information presented. The information in this document represents the current view of Microsoft on the content.
MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED, OR STATUTORY, AS TO THE INFORMATION IN THIS DOCUMENT.
The descriptions of other companies’ products in this document, if any, are provided only as a convenience to you. Any such references should not be considered an endorsement or support by Microsoft. Microsoft cannot guarantee their accuracy, and the products may change over time. Also, the descriptions are intended as brief highlights to aid understanding,
rather than as thorough coverage. For authoritative descriptions of these products, please consult their respective manufacturers.