Microsoft licensing overview

Mikhail Rossiev

Licensing Manager, EPG

What is a License?

A software license is the legal right to install, use, access, display, run, or otherwise interact with a software program.

The license can be:- Perpetual- Non-Perpetual

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$

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License Types

• Full Packaged Product (FPP)

• Volume Licensing

• Original Equipment Manufacturers (OEM)

• Downloaded Software

Full Packaged Product (FPP)

• The license for FPP is called the End-User License

Agreement (EULA). Each FPP:

– sold through: distributor -> resellers -> consumer.

– Generally one license per box + media + documentation.

Protected by Product Activation.

– Has a perpetual license

Original Equipment Manufacturers (OEM)

• The EULA is between the consumer and the OEM. The software that OEMs provide with their hardware have the following restrictions: – Customers do not have the right to transfer software from

one computer to another. – Downgrading to an earlier version of the software (with

the exception of Microsoft Windows XP Professional and Microsoft Windows Server 2003) is not permitted.

– Software installed at the factory requires Activation by the consumer.

– The OEM attests the validity of the software license by attaching a Certificate of Authenticity (COA) to the computer case.

Original Equipment Manufacturers (OEM) - GGWA

GGWA – a tool for legalization of not previously purchased OEM.• GGWA uses Open License channel . • Contains COA – Certificate of Authenticity• Minimum order is 5 licenses• Windows Vista Business is available in GGWA offering. • Organization can purchase licenses for the affiliates under single

purchase.• Downgrade right including Windows XP Professional, Windows 2000

Professional, Windows NT Workstation 4.0, Windows 98 or 3.51. Proof of licenses in Get Genuine Windows Agreement• СОА sticker on the PC body and Open License sertificate

Volume Licensing

Microsoft Volume Licensing programs:- provide potentially substantial savings, - ease of deployment, - flexible acquisition, - numerous payment options, - other benefits such as Software Assurance*. Volume Licensing programs:

– Serve the needs of organizations that acquire multiple licenses, but do not need numerous copies of the media and the documentation, or thousands of individual EULAs.

– Are usually distributed through a variety of channels, including LARs

– Use rights are more flexible, less costly, easily upgradeable and downgradeable, and provide a suite of additional benefits.

Downloaded Software

Customers can also obtain some types of software by downloading them from the Microsoft Web site.

Is subject to the usage restrictions of the online EULA that displays when the software is being downloaded.

Perpetual Licenses

• Perpetual licenses are: – Everlasting licenses – Valid if the software is being used in accordance with the

EULA requirements

• Volume Licensing programs are perpetual licenses for small and mid-sized organizations: – Open License (MOLP)– Open Value

• Volume Licensing programs are perpetual licenses for large organizations: – Enterprise Agreement – Select License

Non-perpetual Licenses

• Non-perpetual licenses: – Are temporary licenses – Provide a time-limited right to use a particular product

until a specific end-date – Are only available through certain Comprehensive

Programs

• Volume Licensing program provides for non-perpetual license for small and mid-sized organizations: – Open Value Subscription

• Volume Licensing program provides for non-perpetual license for large organizations: – Enterprise Subscription Agreement

Volume Licensing Programs

• Open License – Open License Business for organizations that need 5+ licenses.

• Open Value (packaged with Software Assurance). – Best for organizations that have an existing network of 5-250+

computers. – ability to spread payments annually. – The Company-wide option is similar to Enterprise Agreement, and

provides additional discounts over Open Value.

• Open Value Subscription (with Software Assurance). – Best for organizations that have an existing network of 5-250+

computers. – Organizations can avoid any unforeseen expenses that might disturb

the balance of their finances due to intense cost pressures.

Volume Licensing Programs (contd)

• Enterprise Agreement (with Software Assurance)– For corporate customers with 250+ desktops. – Customers can license Microsoft software, based on a three-year

agreement term.

• Enterprise Subscription Agreement (with Software Assurance)– For corporate customers who have 250+ desktops and who prefer to

subscribe to, rather than acquire, Microsoft software licenses. – Customers can license Microsoft Enterprise Platform products at

discounted prices, based on a three-year agreement term.

• Select License – For customers with 250 or more desktops and mixed product and

purchasing requirements. – Customers receive a volume price level based on a three-year software

forecast.

Volume Licensing Programs, mapping

t

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t

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21 31

t

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2 3

One-off purchase purchase in 3 instalments

Subscription in 3 installments

250+ PCs

5-250 PCs

C

NL

Price comparison

SASASANon-Perpetual License

Perpetual License SA 25%

SA 25%

License

SA 25%

LicenseSA

25% SA

25%100

150

Discount: 25%

58 5858

SA SASA44..56 44..5644..56

175

132..168

44 4444131

Discount: 4-24%

SASASANon-Perpetual License Discount: 28%-43%

33..42 33..4233..42100..126

NL Discount C: 2%

Enterprise Agreement• Software Assurance a combination of benefits:

– new version rights– the Home Use Program, – many other advantages, including education, support, tools etc.

• Volume pricing. • Predictable annual price per desktop for enterprise products based

on the initial number of desktops enrolled. • Annual True Up. Businesses can run software on desktops as they

are acquired, then pay a predetermined price for the software licenses annually for the remaining term of the enrollment.

• Step Ups allow customers to migrate software licenses, giving them the flexibility to upgrade software as their company needs increase over time.

• Cover Affiliates* by Agreement

*A company or legal entity which owns, is owned by, or is under common ownership with, the customer. Ownership is defined as more than 50% ownership.

Enterprise Agreement (cntd)True-Up

Enterprise Subscription vs. Enterprise Agreement

Offering Enterprise Agreement Enterprise AgreementSubscription

License Perpetual Licenses Non-Perpetual Licenses

Agreement lifecycle 3 years, can be extended to next 3 years

Affiliates It is possible to include affiliates located in CIS countries.

Enterprise Subscription vs. Enterprise Agreement (Cntd)

Offering Enterprise Agreement Enterprise AgreementSubscription

Price Levels

Price is fixed for the period of the Agreement

Price level is fixed Can be changed depends on # of PCs in Agreement

At the end of Agreement Perpetual Licenses License is expired, buy-out option

Additional Licenses True-Up price Single license price

Price Level # of PCs

A 250—2399

B 2400—5999

C 6000—14999

D 15000 and more

Select License

• The Select Licensing program is based on the Forecast Licensing Model - license consumption is measured against the forecast.

• Worldwide agreement with a three-year term. Customers can extend the agreement by one year or three years.

• Customers forecast their software needs for the three year

• Offers flexibility through monthly ordering. • Offers optional inclusion of Software Assurance. • Select License customers can access Microsoft Volume

Licensing Services (MVLS) for license details.

Select License (Cntd)

• Each software has a specific point value. • Software is divided into three pools. Applications,

Systems, and Servers. • Customer forecast is based on projected points

accumulated in each pool. • A customer should forecast a minimum of 1,500

points to enter into a Select License Agreement for that pool.

• Customers receive a volume price level based on their forecast for each product pool.

• Cover Affiliates* by Agreement

Documents Structure

SelectAgreement

ServicesAgreement

MBSA

EA Agreement

Enrollment#2

EnrollmentEnrollment

#1

EA/Select Channel (Indirect)

Customer

Microsoft(MIOL)

LAR(Large Account

Reseller)

EA/Select documents

(MBSA, Agreement, Enrollment)

LAR Agreement

Contract

Software Assurance

Plan: New Version Rights helps lower the costs associated with software acquisition while simplifying procurement.

Step-Up License Availability enables you to migrate your software from a lower-level software edition to a higher level edition of certain products.

Spread Payments allows predictable payments and easier budget management.

Use:Microsoft Desktop Optimization Pack (MDOP) desktop manageability, reduce total cost of ownership, enable delivery of applications as services. E-Learning improve employee productivity through interactive self-paced training.Home Use Program offering Microsoft Office software to employees for use at home.Microsoft Office Multi-Language Pack enables IT to deploy a single Office 2007 image with support for 37 languages.

Software Assurance (Cntd)

Maintain:24x7 Problem Resolution Support helps reduce downtime and support costs by providing 24-hour incident support.Cold Backups for Disaster Recovery helps maintain IT operating efficiency and protect mission-critical solutions.TechNet Benefits through Software Assurance provides access to experts and technical information.Transition:Extended Hotfix Support helps reduce support costs and makes it easier to get the support needed as software transitions from Mainstream Support to Extended Support.

Software Assurance (Cntd)

Q&A