jillian goodman smb licensing marketing manager (independent contractor) microsoft new zealand
TRANSCRIPT
Open Programs
Jillian GoodmanSMB Licensing Marketing Manager(Independent Contractor)
Microsoft New Zealand
Agenda
Open Programs OverviewPricing and Program Comparison:
Open Value SubscriptionOpen ValueOpen Business
Partner and Customer Value
Summary
Resources
The “Open” Program line-up
Microsoft Open ValueMicrosoft Open Value SubscriptionMicrosoft Open Business
All programs have in commonVolume Licensing – no need to manage boxes and disksRequires a level of commitment
In some cases a minimum of 5 licensesSometimes licensing every desktop in the company
Discounts depend on commitment and vary by programPrograms offer many benefits
Programs meeting unique needs
Open Value Open Value Subscription For Organisations requiring: • perpetual (everlasting) licenses • payment of licensing costs
annually or upfront • the benefits of having Software
Assurance • additional discounts for
CompanyWide commitment • simplified software management
For Organisations requiring: • non-perpetual (temporary) licenses • minimum financial outlay • to reduce software licenses annually • payment of licensing costs annually • the benefits of having Software
Assurance • additional discounts for
CompanyWide commitment • simplified software management
Open Business For Organisations requiring: • ability to purchase ad-hoc • perpetual (everlasting) licenses • option of License only (no Software Assurance)
Evolution of licensing
SMB Licensing over the last decade
FPP and OEM
Open Business (here now)
Open Value
Open Value
Three Open Programs available:
Open Value Open Value Subscription
Open Business
CompanyWide Platform
(Three Platform products)
Yes New: 23% Renew: 9%
Yes 23%
No
CompanyWide Non Platform
(1-2 Platform Products) Yes
New: 10% Renew: 5%
Yes 10%
No
Non CompanyWide
(ad-hoc purchasing)
Yes No Yes
Non CompanyWide/Ad-hoc purchasingOpen Value:
5 L&SA or 5 x SA Annual purchasing (over 3 year agreement)
Open Business: 5 x mixture of L, L&SA, SA,L&SA/SA should be via Open ValueUpfront only (2 years)
Same Price - two different ways to procure.
Open Value Open Value Subscription
Open Business
Non CompanyWide
(ad-hoc purchasing)
Yes No Yes
CompanyWide
How CompanyWide Licensing works:Programs: Open Value, Open Value Subscription
Requires licensing across every desktop in Company of at least one Platform ProductCustomer chooses from a list of “Platform” productsPlatform products are grouped into three families:
1. Microsoft Office2. Client Access Licenses3. Windows OS Upgrade
Discount depends on commitment All products other than Platform Products can be licensed in any quantity within the same agreement
Platform Products
Platform Products* Product Family Platform Product Options*
Microsoft Office choose one or mix and match
Office Enterprise
Office Professional Plus 2007 Office Small Business
Client Access Licenses (CALs) choose one
Enterprise Client Access License
Core Client Access License
Small Business Server CAL Std/Premium (may mix and match CAL editions)
Essential Business Server CAL Standard/ Premium (may mix and match CAL editions)
Operating System choose one or mix and match
Windows Vista Business Upgrade
Windows Vista Business Upgrade (with Microsoft Desktop Optimisation Pack)
*Please refer to Product List on www.microsoft.com/licensing for latest Platform Product options available
Licensing products other than those listed above? Products such as Servers etc may be licensed in any quantity within the same Open Value or Open Value Subscription agreement, and are referred to as ‘additional products’. Additional products
are simply ordered as needed, an paid for by the end of the month of deployment.
CompanyWide Platform: Up to 23% discount
Professional Desktop (bundled)Microsoft Office Professional Plus 2007Core Client Access LicenseWindows Vista Business Upgrade
Small Business Desktop (bundled)Microsoft Office Small BusinessMicrosoft Small Business Server CALWindows Vista Business Upgrade
Custom Platform (mix and match) Choose three Platform ProductsMicrosoft Office Suites (3 options, can mix and match) andClient Access Licenses (4 options, choose one product) andWindows Operating System (2 options, choose one product)
Open Value Open Value Subscription
Open Business
CompanyWide Platform
(Three Platform products)
Yes New: 23% Renew: 9%
Yes 23%
No
CompanyWide NonPlatform – up to 10% discount
Commitment:One or two Platform Products CompanyWide
Open Value Open Value Subscription
CompanyWide Non Platform (1-2 Platform Products)
Yes New: 10% Renew: 5%
Yes 10%
Platform Products* Product Family Platform Product Options*
Microsoft Office choose one or mix and match
Office Enterprise
Office Professional Plus 2007 Office Small Business
Client Access Licenses (CALs) choose one
Enterprise Client Access License
Core Client Access License
Small Business Server CAL Std/Premium (may mix and match CAL editions)
Essential Business Server CAL Standard/ Premium (may mix and match CAL editions)
Operating System choose one or mix and match
Windows Vista Business Upgrade
Windows Vista Business Upgrade (with Microsoft Desktop Optimisation Pack)
*Please refer to Product List on www.microsoft.com/licensing for latest Platform Product options available
Summarising Open Value/SubscriptionOpen Value
CompanyWide Platform; Three Platform Products CompanyWide Non-Platform; One or two Platform Products Non CompanyWide; No Companywide commitment required. Minimum of five Licenses with Software Assurance (SA)
Open Value Subscription CompanyWide Platform; Three Platform Products CompanyWide Non-Platform; One or two Platform Products
Programmatically: Open Value Subscription works the same way as Open Value
Except for:Software purchased via Open Value Subscription are non-perpetual (temporary)
There is no ad-hoc purchasing option available in Open Value Subscription
Open ProgramsComparison
Reminder: Three Open Programs available:
Open Value Open Value Subscription
Open Business
CompanyWide Platform
(Three Platform products)
Yes New: 23% Renew: 9%
Yes 23%
No
CompanyWide Non Platform
(1-2 Platform Products) Yes
New: 10% Renew: 5%
Yes 10%
No
Non CompanyWide
(ad-hoc purchasing)
Yes No Yes
Pricing Comparison
Pricing Comparison
Platform Families/Products CompanyWide
Subscription Open Value
Microsoft Office* Platform Non
Platform Platform Non
Platform Non
CompanyWide Office Small Business $272 $286 $366 $431 $479 Office Professional Plus $317 $334 $428 $503 $560 Office Enterprise $388 $408 $523 $615 $683
Client Access Licenses* Platform Non
Platform Platform Non
Platform Non
CompanyWide Core CAL $113 $119 $165 $194 $216 Enterprise CAL $282 $297 $360 $418 $462
Windows OS Upgrade* Platform Non
Platform Platform Non
Platform Non
CompanyWide Windows Professional $123 $130 $131 $154 $217 Windows Pro (with MDOP) $141 $148 $145 $170 $236
IMPORTANT NOTES: Pricing is based on Recommended Retail pricing only. Prices stated here are annual (based on starting a 3 year agreement). Based on License & Software Assurance
For latest pricing/quotes, please contact your Microsoft Reseller or Distributor
Programs meeting unique needs
Open Value Open Value Subscription For Organisations requiring: • perpetual (everlasting) licenses • payment of licensing costs
annually or upfront • the benefits of having Software
Assurance • additional discounts for
CompanyWide commitment • simplified software management
For Organisations requiring: • non-perpetual (temporary) licenses • minimum financial outlay • to reduce software licenses annually • payment of licensing costs annually • the benefits of having Software
Assurance • additional discounts for
CompanyWide commitment • simplified software management
Open Business For Organisations requiring: • ability to purchase ad-hoc • perpetual (everlasting) licenses • option of License only (no Software Assurance)
Program Comparison: Agreement TermOpen Value Subscription Open Value Open Business
• Three-year agreement • Non-perpetual
agreement term • Option to renew for an
additional three years • Customer may “buy
out” perpetual licenses when agreement ends
• Three-year agreement • Renewable for an
additional three years • After the initial term,
the customer owns perpetual licenses and has the option to extend SA coverage
• Two-year agreement • No renewal option • All licenses purchased are
perpetual • Renewal of SA may be in
a new Open Business or Open Value agreement.
Program Comparison: Purchasing OptionsOpen Value Subscription Open Value Open Business
Two purchasing options Both options require all qualifying desktops in the company be licensed with at least one platform product, and have a minimum of five PCs to start an agreement. 1. CompanyWide Platform;
Three Platform Products 2. CompanyWide Non-
Platform; one or two Platform Products
Three purchasing options Options 1 and 2 require all qualifying desktops in the company be licensed with at least one platform product, and have a minimum of five PCs to start an agreement. 1. CompanyWide Platform;
Three Platform Products 2. CompanyWide Non-
Platform; One or two Platform Products
3. Non CompanyWide; Minimum 5 Licenses with Software Assurance or for eligible products SA only - no Companywide commitment required
Customers must have a minimum of five licenses to start an Open Business agreement. Open Business allows customers to purchase on an ad-hoc basis, for the licenses they require. License options available: 1. License only (L) 2. License and Software
Assurance (L&SA) 3. Software Assurance
(SA), when eligible
Program Comparison: BenefitsOpen Value Subscription Open Value Open Business
Annual licensing payments. Low Upfront Costs. Reduce licensing costs if PC count
declines “Up-to-Date” discount: up to 50% off
in year one Add additional desktops during the
year and pay nothing until the next agreement anniversary (for Platform Products)
Software Assurance included means hassle free upgrades, training, support, home use & much more!
Standardisation keeps your IT infrastructure current, more secure, and easier to support
Easier software management Be confident you’re correctly licensed View purchase history and download
products online
Spread licensing payments over three years
Discounts of up to 23% (CompanyWide Platform)
Price protection for initial purchases Simplified purchasing. License per
desktop and pay annually (for CompanyWide products)
Software Assurance included means hassle free upgrades, training, support, home use & much more!
Standardisation keeps your IT infrastructure current, more secure, and easier to support
Easier software management Be confident you’re correctly licensed View purchase history and download
products online
Offers savings off retail prices
Ability to purchase License only
One time transaction Minimal paperwork No boxes/disks to manage
Open Value Subscription Open Value Open Business Single agreement for multiple entities?
Yes (must be in same region) and more than 50% owned
Yes (must be in same region) and more than 50% owned No
Install before ordering
Yes - Annual orders for Platform Products Monthly orders for Additional Products
Yes, monthly ordering (all products)
No
Payment Three annual payments Three annual payments or up-front at time of order
Upfront only
Price protection Yes (for products purchased at start of agreement)
Yes (for products purchased at start of agreement) No
Software Assurance Included Included Optional Media included Yes Yes No. Available for purchase
License management Web based via Microsoft Volume License Services (MVLS) site https://licensing.microsoft.com
Web based via Microsoft Volume License Services (MVLS) site https://licensing.microsoft.com
Web based via eOPEN site https://eopen.microsoft.com
Program Comparison - details:
Open Value Subscription
Today's marketEconomic Cli
mate
Organisations
need to remain
competitive.
Ability to
access technology solution
s critical
Busines
s Uncertainty
Solution: Open Value Subscription
Subscribe to licenses
Lower upfront cost
Either increase or reduce licensing
commitment annually
Open Value Subscription in action
20
3530
40
0
10
20
30
40
50
Agreement start (with 20 desktops)
1st anniversary (pay 35 desktops)
2nd anniversary (pay 30 desktops)
Agmt end. If renew, renew 40 desktops
Open Value Subscription
true down5 PCs
true up10 PCs
if renewing/ buying out
Added 15PCsduringthis year
Reduced 5PCs during this year
Added 10 PCs during this year
true up 15 PCs
Ability to reduce licensing costs should PC count decline
Up to date (UTD) Discount of up to 50%
For Platform Products onlyProgrammatic benefit for Open Value SubscriptionGives customers credit for past purchases of Microsoft productsUp to 50% “UP TO DATE” Discount (UTD) in year 1 of 3 year Open Value Subscription agreement
Criteria:Customer must have a qualifying version of the product listed through
OEM (preinstalled on hardware)FPP (boxed product via a retailer)Volume Licensing (Open Business, Open Value etc)
Proof of purchase may be required when UTD skus are purchasedUpdated eligible products in Microsoft Product List: http://www.microsoftvolumelicensing.com/userights/PL.aspx
“Up to date” qualifying products
Up to date License Qualifying Previous Version
Core CAL (Device or User) Any Core CAL Office Professional Plus Edition 2007 Office Enterprise Edition 2007
Office Professional Plus Edition 2007 Office Ultimate Edition 2007 Office 2007 Professional Edition Office 2003 Professional Edition
Office Small Business Edition 2007 Office 2007 Small Business Edition (or Prof edition)
Office 2003 Small Business Edition (or Prof edition)
Small Business Server 2003 CAL (Device or User)
Windows Small Business Server 2003 Small Business Server 2000
Windows Vista Business Upgrade Windows Vista Business Windows XP Professional
Three options at end of agreement:
1. Renew for another three years under Open Subscription
2. Let Open Value Subscription Agreement expire. Would no longer have licensing rights to any software received through Open Value Subscription and would need to uninstall and cease using the software.
3. Elect to ‘buyout’ the licenses Buy-out fee is 1.75 X annual fee. Customer can then enroll perpetual licenses into Software Assurance within 30 days of the expiration of the Open Value Subscription Agreement.
Buyout Order Intricacies
The buyout SKUs are on the price listHave “Each” in the Purchase Unit column or product description e.g. Office Pro 2003 All Lng OLV NL Each Ent.
Customer can choose to buy out:Platform products: All qualified desktops covered by the orders placed during the final year of the agreement term. Additional products: Any quantity of additional products ordered during the final year of the agreement.
Buyout License will be for the most current versionIf a customer is licensed for the professional version of a product, then they cannot buy-out the Standard version of the product
Buyout order must be at least 30 days before agreement expiration date
Partner & Customer Value:Open Value and Open Value Subscription
The evolving customer conversation...
Encourage customers to move from reactive to proactive licensing
Reactive = immediate need. Often stress/time constrained, budget constrained. Proactive = looking at things long term Understand the business benefits of the technology. Choose a licensing STRATEGY. Understand options. Compare licensing options over a 6 year period. Consider tax effects on purchasing. Use of money etc Need SA? Always Open Value. Open Business = License only Buying individual CALs? Consider the suite. Look long term.There is a minimum way to buy and a best way to buy
Partner Benefits:Establish your company as THE partner for 3 yearsSecure additional revenue streamsEnsure future revenue streamsGet predictability in your sales businessHelp your customers maximize the value of their technology investmentsStretching your customers costs out over the three-year agreement term, frees up cash for software deployment and additional services.Drive your revenue and service opportunities.Less hassle than with Open License because Microsoft sends media kits directly to the customer.Ability to include affiliates in the agreement increases volume and strengthens the relationship with the customer.Lower overhead costs than with Open License because customers are allowed to order licenses at the end of the month or in some cases on each anniversary of their agreement
Value for PartnersA number of case studies available including:
VL SystemsOpen Value helped increase Microsoft business by 25% Learn how this partner leveraged the up-front savings to customers into demand for additional IT services
Northwest Computer Support Open Value helped grow services revenues by 20%-30%. See how this partner sees revenues1. when it implements the solutions and2. when upgrades become available.
Partner quotes...
“Knowing that we’ll be collecting payments on an Open Value agreement in years two and three makes it easier to forecast our budgets and develop plans to keep growing our business.” Les Green, Director of Marketing, VLSystems
“We’re seeing a 20–30 percent growth in service revenue that we can trace back directly to the software included in Open Value.”Tom Rash, President, Northwest Computer Support
“Almost 80 percent of our sales generate a support contract. This recurring revenue is the name of the game for our business.” Tom Barnes, Sales and Marketing Manager, NSPI
“Open Value helps us get new clients and gives us a three-prongedopportunity to build our business: recurring license revenues, largerimmediate sales, and incremental service contracts.” Matt Scherocman, Director, IT Advisor Group
Summary
Reminder: Discounts/Programs
Open Value Open Value Subscription
Open Business
CompanyWide Platform
(Three Platform products)
Yes New: 23% Renew: 9%
Yes 23%
No
CompanyWide Non Platform
(1-2 Platform Products) Yes
New: 10% Renew: 5%
Yes 10%
No
Non CompanyWide
(ad-hoc purchasing)
Yes No Yes
Reminder: Customer Profiles
Open Value Open Value Subscription For Organisations requiring: • perpetual (everlasting) licenses • payment of licensing costs
annually or upfront • the benefits of having Software
Assurance • additional discounts for
CompanyWide commitment • simplified software management
For Organisations requiring: • non-perpetual (temporary) licenses • minimum financial outlay • to reduce software licenses annually • payment of licensing costs annually • the benefits of having Software
Assurance • additional discounts for
CompanyWide commitment • simplified software management
Open Business For Organisations requiring: • ability to purchase ad-hoc • perpetual (everlasting) licenses • option of License only (no Software Assurance)
Deeper into profiles...Need to simplify license trackingLook for customers who have retail, original equipment manufacturer (OEM), and/or multiple volume licensing agreements across departments or affiliates as they often find value in consolidating to a single Open Value agreement to ease their license tracking. Want to run the latest software versionsLook for customers who want or need to keep their software current. These customers understand the value of running the latest software versions but often find it a challenge to justify the cost of technology upgrades. Open Value removes one barrier to upgrade projects by including rights to new versions of licensed software. Up-front software costs are a significant concernLook for customers who are running outdated versions of Microsoft licensed products. They may be struggling with the potential cost of upgrading their server infrastructure to the latest server operating system and application server versions. The ability to spread payments annually and move to a licensing model that automatically keeps licensed products up to date can be a compelling proposal.
Step-Ups – another great revenue driver
Must have active Software Assurance (for the underlying qualifying product), so for all Open Value customers this is a huge benefit!Approximately 40 step up paths in volume licensing range of products, mostly servers, desktop applicationsAfter a customer has purchased a step up, they can renew the higher level product in their next agreement SA only.Important note: If you are stepping up platform products, the platform pricing discounts apply too!
A step-up license allows a customer to move from a lower level edition of a product to a higher level edition of a product
i.e. Office Professional » Office EnterpriseWindows Server Standard » Windows Server Enterprise
Resources
Resources
1 page Quick References
New Zealand licensing web site: www.microsoft.com/nz/licensing
Partner Licensing Web:https://partner.microsoft.com/nz
Your account Manager
Jillian Goodman, SMB Licensing Marketing Manageremail: [email protected]
Licensing helpdesk
FREE service funded by Microsoft New Zealand:Volume license purchase historiesLicense information (product or program)Average response time (94% in less than 4 hours)
If you can’t find the information use the services of the Microsoft NZ internal Licensing helpdesk.
email: [email protected]
Questions?