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)

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Open Value Price Level C

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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

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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

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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.

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