Licensing for Large Organizations A good presentation consists of a strong verbal message plus supporting audiovisual material such as slides. This presentation has been designed to be delivered by a knowledgeable person, but has also been scripted to enable would-be presenters with less knowledge to prepare for and deliver an excellent presentation. Hints for the presenter: These slides contain little text, so you can decide exactly how much detail you want to include in your presentation. Invite the audience to participate and ask questions. That way, you can ensure the training is as effective as possible. This training uses a hybrid model, where most of the information is conveyed using the presentation. But at some points, you will see a slide containing case material. These cases contain additional information to be used in role plays. In each role play, attendees act as Account Managers and customers to convey information to one another. We are very keen to hear how you feel about this approach.
Licensing for Large Organizations
Licensing for Large Organizations In this session, we will first look at some concepts. If you attended the Licensing for Small and Mid-Sized Organizations training, you will see some overlap because the concepts are the same. One of the concepts is Software Assurance (SA). All enterprise Volume Licensing programs can be deployed by organizations that consist of multiple entities. But what is an entity? We aim to answer these questions. We will also look into the three different licensing programs: Select License: a transactional program that provides perpetual licenses Enterprise Agreement: an annuity-based program that provides perpetual licenses Enterprise Subscription Agreement: an annuity-based program that provides non-perpetual licenses. We will then wrap up this session with some guidance as to the best program to choose.
Licensing for Large Organizations
Licensing for Large Organizations What does Volume Licensing offer the customer? Volume Licensing allows customers to buy just the rights they require without the additional cost of the packaging, media (CDs) and documentation that is inherent with every individual license purchased as FPP.
Licensing for Large Organizations Customer benefits Volume Licensing is about options. It is about offering businesses the choice of how they buy their software licenses. By separating the license from the secondary offerings of media (to install the software), documentation (to support the user), technical support and packaging, Volume Licensing offers pricing based on what is needed and the size of the purchase. Licenses purchased through Volume Licensing often come with wider rights than Full Packaged Product (FPP) or Original Equipment Manufacturer (OEM). Volume Licenses may be transferred between PCs without limitation. *By obtaining Work At Home Licenses (Select and Enterprise Agreement only) or Software Assurance.
Licensing for Large Organizations Licenses can be obtained in two distinct ways: Transactional licensing means that the license follows the product. If you decide to install a particular copy or make another copy, then a license is needed. This approach is very flexible: you only obtain licenses if and when needed. Volume licensing programs that use this approach are Open License for small and mid-sized organizations and Select for enterprises with at least 500 PCs. When many installations take place, the administrative overhead of monitoring installations, placing purchase orders and processing invoices make licensing a time-consuming process. As an alternative, customers can deploy annuity-based licensing , which means that the customer only needs to count its desktops or installed copies, place a purchase order and pay one invoice per annum. Volume licensing programs that are annuity-based are Multi-Year Open and Open Subscription License for organizations with 5 to 250+ PCs, and Enterprise Agreement and Enterprise Subscription Agreement for larger organizations.
Licensing for Large Organizations Transactional licenses follow products – the customer doesn’t obtain a license until it is needed and only if it is needed. When using an annuity-based program, the number of desktops must be counted and reported, even if the software isn’t installed on all clients. This commitment means that product follows license: the customer first commits to entity-wide standardization and then rolls out the software.
Licensing for Large Organizations Transactional or annuity-based licensing determines how and when you will buy licenses. Now let’s look at the kind of licenses. A perpetual license is bought once and provides the right to use a particular version or a particular product forever. This is also referred to as an “ever-lasting license”. In the long run, this is often most cost-effective, but it does impact on a customer’s cash flow. Compare this to the choice between buying a new car or leasing one. A non-perpetual license is temporary, and provides a time-limited right to use a particular product until a specific end-date. Non-perpetual licenses are only available though annuity-based licensing programs: Open Subscription License and Enterprise Subscription Agreement.
Licensing for Large Organizations We offer different Volume Licensing programs, in two dimensions. The vertical dimension is the customer segment . We distinguish between small and mid-sized businesses, typically any company between five and 500 PCs, and large organizations with 250+ PCs. Note that there is an overlap between these segments. For each of these two segments, we have a separate Volume Licensing training. Please bear in mind that large organizations sometimes also use a Volume Licensing program that is meant for small and mid-sized businesses, for example, when they need relatively few licenses. This is why we do recommend that Large Accounts Resellers (LARs) and Enterprise Software Advisors (ESAs) attend both Volume Licensing training sessions. On the horizontal dimension you see transactional and annuity-based programs . A transactional program requires a license to be obtained before the installation takes place. Original Equipment Manufacturer (OEM), Full Packaged Product (FPP), Open License and Select are all based on this approach. The administrative overhead can be a major burden for both you and your customer. That is why we also have annuity-based programs, which allow an annual count of the number of PCs or installed copies, annual ordering and annual payment. The benefits are obvious: a massive reduction of the administrative overhead and spread payments.
Licensing for Large Organizations An important mechanism for supplying licenses with new hardware is OEM licensing. In this section we will see what rules apply to OEM licenses.
Licensing for Large Organizations
Licensing for Large Organizations If you buy a car, you would be annoyed if an essential part such as the battery was missing. The same applies to a PC: without an OS, it is useless. Hardware vendors want to offer their customers a turn-key solution, i.e. a preinstalled system with an OS and drivers. Lower cost OEM Licensing provides the lowest cost because the software is bundled and sold with new hardware. But there are some perceived drawbacks: 1. OEM Licensing cannot be redeployed on a different system. 2. The product portfolio is quite limited. Naked PCs Many customer order naked PCs (PCs without an OS) to move their existing OS from the old to the new system. This is not allowed because OEM Licensing can only be transferred with the hardware with which it was sold. Cost savings Microsoft Office and Microsoft Windows OEM software cost much less than full versions. E.g. in some cases Microsoft Office XP Professional is half the price of a full version. No second thoughts Windows is available as either a full version, only available as FPP, or an OEM version with a non-peripheral hardware component e.g. a memory module. Selling opportunity Every hardware sale is a potential OEM license selling opportunity.That’s why OEM Licensing is so important for us. Bundling vs. unbundling Application and server programs may only be distributed with a fully assembled computer system. 1 OEM licenses may not be downgraded with the exception of Windows XP Professional and Windows Server 2003. 2 Pre-installation is mandatory when a PC operating system such as Windows XP is bundled with a complete system. It is optional for server products and applications.
Licensing for Large Organizations Whoever installs the OS onto hardware acts as a system builder and should comply with the terms of the agreement. If you distribute Windows with a hardware component, you should inform the purchaser that they are acting as a system builder and are subject to the terms of the agreement. One of the questions raised about this content is likely to be about the term “non-peripheral hardware component”: A non-peripheral hardware component is any component essential to running a PC. The definition includes memory, internal drives, mice, keyboards, power supplies and internal devices. Components that are not considered essential are scanners, printers, cameras and external modems/networking devices. For more information check out the online system builder product guide.
Licensing for Large Organizations OEM customers who purchase Office 2003 Pro or Small Business will be eligible for Software Assurance (SA) starting September 1, 2003. Along with the benefits of SA, the customer gains license transfer rights, re-imaging rights and InfoPath, which is a component of the volume license version of Office 2003 Professional.
Licensing for Large Organizations Support Support is an important issue with regards to OEM licensing. License agreements between Microsoft and OEM partners clearly state that the support is to be provided by the OEM in all cases. This is reflected in the amount that Microsoft charges OEMs for its software.
Licensing for Large Organizations What materials should a customer receive? The documentation accompanying software will vary according to the solution that the OEM has opted for, but some items remain constant, regardless of who the OEM partner is. These are: A printed manual (if applicable) A Certificate of Authenticity (COA) OEMs with a direct relationship (multinationals and named accounts) may choose to put their logo on the manual, but this isn’t mandatory. Recovery media options Recovery media is the means by which customers can rebuild the OS in the event of a complete failure. Direct OEMs have three options: BIOS locked recovery allows OEMs to create CDs with the OS and device drivers that restore factory settings. The CD features the OEM’s name and is locked into the machines to combat piracy. OEMs can also place additional back-up copies of the OS onto the hard drive – usually on a separate partition. Sometimes OEMs do not provide any back up media. However, the OEM is still obliged to provide a recovery solution on a case by case basis. System builders are required to distribute the hologram CD as part of the complete OEM system builder software package: The Edge to Edge (E2E) hologram CD acts as the recovery CD. In addition to the CD, system builders can also put an additional copy of Windows onto the hard drive, configured to each customer’s requirements.
Licensing for Large Organizations
Licensing for Large Organizations
Licensing for Large Organizations
Licensing for Large Organizations Microsoft Open License is a flexible license program for small and mid-sized organizations with more than two desktop PCs (Usually 2 - 500) that want to buy licenses outright. It is designed for all organizations who want to get value from Microsoft software and offer savings over purchasing the retail product. For organizations, it is the simplest way to acquire multiple licenses at attractive prices. For the channel, it represents an easy program for selling more Microsoft products licenses worldwide. Key advantages: Value – It helps customers manage overall costs and stay compliant. Simplicity – It’s easy to understand and administer. Choice – It meets the needs of a broad range of organizations. Flexibility – Customers can reorder as little as one license, and order only what they need. Perpetual (everlasting) licenses Optional Software Assurance (stay-current maintenance). Pricing based on initial volume – optional reordering with ongoing discounts.
Licensing for Large Organizations Products and media All Microsoft products for business use are available through the Open License program. Note, however, that Windows XP Professional is only available as an upgrade license. Full licenses are available as OEM license or FPP.
Licensing for Large Organizations SA is renewable in two-year blocks, paid for at the point of purchase and expires on termination of the customer’s agreement. It is an entirely optional purchase under the Open License program. However, it is available for all Microsoft products and is offered for the term of the customer’s agreement (which will be two years). Under the SA agreement, the customer will always be able to install the latest released version of Microsoft software acquired. At the end of the two-year agreement, customers can buy additional SA and extend their benefits. Renewing under Open License All Upgrade Advantage licenses will be treated as Software Assurance. Customers who have purchased Upgrade Advantage or Software Assurance or similar upgrade protection under an Open License authorization number prior to October 1, 2001 and wish to renew that upgrade protection coverage under Software Assurance, will have 90 days from the expiration date of the previous Open License authorization number to renew Software Assurance under a new Open License 6.0 authorization number.
Licensing for Large Organizations
Licensing for Large Organizations This table indicates in more detail the specific Software Assurance desktop offerings for Open licensing.
Licensing for Large Organizations This table details the specific Software Assurance server offerings for Open Licensing.
Licensing for Large Organizations Home Use Program is a desktop only benefit. Users are allowed to install Office Professional, regardless of the edition that they are licensed for in the office. Complimentary home use ends when the Software Assurance coverage ends. Home users order media directly from Microsoft and only pay for media, support, packaging and shipping. TechNet Online Concierge Chat is a server only benefit. The TechNet Online Concierge Chat provides one-to-one web-based chat to help you locate technical resources on the TechNet CDs and Microsoft’s websites. Microsoft's eLearning delivers a comprehensive student experience, using streaming audio and video software demonstrations, hands-on exercises and animations, and courses designed by professional instructors. Employees can take interactive modules and tutorials on various applications at any time at their own computer, even offline. Courses are available for applications, operating systems and server products. Customers who want to benefit from eLearning must obtain a media kit at a regional fulfillment center. They may make additional copies of media as needed in order to install eLearning courses on licensed machines.
Licensing for Large Organizations As previously discussed, Open License agreements last for two years, enabling customers to enjoy the benefits of ongoing discounts. Key talking points: The size of the initial order sets the price level. Open Business: any combination of five licenses will do, e.g. 2 x Windows XP Pro upgrade + 3 x Office XP. Open Volume: separate calculation per product group or product pool. The outcome may be different across product groups, e.g. Open Volume C for applications and Open Business for some Windows XP and Windows Server Licenses. 1 The license count of a license with Software Assurance (“L & SA”) is 2, so 3 L & SA licenses are also sufficient to qualify for an Open Business agreement. Some products carry a license count of 5, e.g. Small Business Server 2000 (which includes 5 CALs) and most Per Processor licenses.
Licensing for Large Organizations Open Licenses must be paid for in full when purchased. Software Assurance (SA), linked to the agreement term, must also be purchased in full, so SA can only be bought with a maximum coverage of two years. So it makes sense to establish new agreements with SA at the time of purchase. At the end of the agreement term, new agreements may be established to purchase SA alone – extending SA coverage for a further two years. If SA is not applicable and subsequent purchases are to be made on an existing agreement, this can be done with any reseller by quoting the authorization number that defines the initial agreement.
Licensing for Large Organizations Summary Entry level Volume Licensing: Easy to qualify. Flexible: buy as much or as little throughout term of agreement. Software Assurance entirely optional. Purchases accessible via secure, online portal (eOpen).
Licensing for Large Organizations
Licensing for Large Organizations Microsoft Select License is quite similar to Open License. Both programs are transactional and provide Perpetual Licenses. Select License, though, is meant for customers with at least 500 PCs and provides lower prices and more flexibility. Unlike Open License, which requires the license to be ordered before the product is installed, Select allows monthly ordering of new licenses, if needed. Select does not require customer commitments such as standardization or the mandatory inclusion of SA.
The Open Value licensing program is the result of extensive customer research to determine small and mid-sized customer licensing needs. Open Value builds on the success of Open Business and is designed for customers that understand the value of technology to their business and recognize the value of future technology solutions. Microsoft Open Value has three program options available to meet the various needs of customers. Open Value – subscription (not available in North America) is for customers that prefer to subscribe (or rent) to software. It is a companywide program, requiring standardization on any of the Enterprise products on the agreement, that simplifies the tracking of desktop software licenses and is available at an attractive annual cost. For customers that prefer to own their software licenses, the Open Value program is available with or without the companywide option. The companywide option delivers simpler license tracking along with additional discounts. This option requires standardization on one of the Enterprise products. The Open Value non-companywide option provides more value than Open Business for customers who want to acquire any licenses with Software Assurance. As with Open Business, there is no need to standardize desktop software when choosing this option. <CLICK TO ANIMATE SLIDE> All Open Value agreements include Software Assurance, which provides rights to the latest versions of licensed software as well as other productivity, training, and support benefits. Software Assurance benefits vary by program and by the number and type of covered licenses. As you will learn in today’s session, Open Value provides substantially more benefits than are available through Open Business. Each Open Value agreement is for a term of three years and software media are included with each new software title ordered. Open Value has requires a minimum of five licenses with Software Assurance to begin a new agreement and there is no reorder minimum. For instance, a customer could start a new agreement with five licenses for the same software title (such as Office Professional Edition) or five different licenses (such as one license for Windows Desktop Upgrade, two licenses for Office Professional Edition, and two licenses for Microsoft Office Visio®). <CLICK TO ANIMATE SLIDE> With both Open Value – subscription and Open Value with the companywide option, customers have the additional choice to standardize desktop software on one or all three of the Enterprise products available with either the Desktop Professional platform or Small Business platform. If a customer is running Windows Small Business Server (SBS), the Small Business Platform provides the Office licenses and server client access licenses (CALs) that Windows SBS customers need. If a customer is running a Windows Server 2003 infrastructure, the Desktop Professional Platform is more appropriate. Remember, the Small Business Server limits devise access to 75 devises.
Open Value permite que los clientes difieran el costo de adquisición de la licencia a lo largo del contrato del programa de tres años. Cada uno de los tres pagos anuales incluye un tercio del costo de la licencia por año, así como la cuota anual de Software Assurance, que proporciona derechos para nuevas versiones de software con licencia y muchos beneficios adicionales de los que hablaremos más tarde. Los clientes que renuevan su contrato de Open Value después de tres años pueden reducir sus costos continuos para simplificar la cuota de Software Assurance para los PCs con licencia. De la misma forma, los clientes existentes de Software Assurance que están en transición a un contrato de Open Value o aquellos que agregan Software Assurance a las licencias al menudeo o de OEM que se adquirieron dentro de los 90 días anteriores, sólo pagan por Software Assurance debido a que ya poseen las licencias con cobertura. Durante la vigencia del contrato, los clientes pueden implementar nuevos PCs y simplificar la actualización de su contrato mensualmente. Esto ayuda a facilitar la carga de dar seguimiento a la licencia y garantiza que los PCs tengan licencias legales al instalarlos incluso si aún no se ha actualizado el contrato. Open Value proporciona tres opciones de programa que cubren las necesidades de distintos clientes: 1) La opción de la plataforma para toda la compañía proporciona los mejores precios de Open Value a los clientes que se estandarizan en Windows, Office y core CALs de servidor. Hay dos opciones de plataforma disponibles, de las cuales hablaremos en la siguiente diapositiva. Microsoft ofrece un descuento del 23% sobre el precio de referencia de Open Value a los clientes que eligen esta opción. 2) La opción para toda la compañía ofrece ahorros en los costos a los clientes que se estandarizan en uno o dos productos de software de plataforma incluyendo Windows, Office o core CALs de servidor. Microsoft ofrece un descuento del 10% sobre el precio de referencia de Open Value a los clientes que eligen esta opción. 3) La opción que no es para toda la compañía es la mejor solución de licenciamiento para los clientes pequeños y medianos que necesitan adquirir cualquier software Microsoft con Software Assurance y que no necesitan estandarizar su infraestructura de PC. Por ejemplo, es posible que su cliente sólo necesite adquirir licencias para software de servidor y para software de PC no central tal como Microsoft Office Visio®. Los clientes también pueden elegir esta opción cuando adquieren Windows, Office o core CALs de servidor para un número seleccionado de PCs (inferior a todos los PCs de la compañía). Una vez más, los distribuidores establecen sus propios precios independientemente del precio de referencia de Microsoft, lo que significa que los precios para los resellers pueden variar.
La suscripción a Open Value permite que los clientes se suscriban para recibir el software a lo largo de un periodo de tres años. Esto puede proporcionar ahorros potencialmente sustanciales en los costos iniciales al tiempo que ofrece costos anuales predecibles. Ya que hablamos de precios, es importante recordar que Microsoft no puede controlar los precios reales para los resellers . Eso lo determinan los distribuidores, independientemente de los precios de reventa o los precios de referencia estimados de Microsoft. Aunque el día de hoy hablaremos en términos de un precio de referencia, recuerden que el precio del distribuidor e incluso su participación puede variar. La suscripción a Open Value ofrece ahorros en los costos en el primer año que pueden ser muy atractivos para que los clientes obtengan la versión más reciente del software de PC. Microsoft ofrece un 50% de descuento en el precio de referencia de Open Value en el primer año en el software de plataforma (incluyendo Windows, Office y core CALs de servidor) para las licencias que están en transición de licencias perpetuas a licencias de suscripción. Para calificar, las licencias perpetuas deben ser licencias completas para la versión más reciente o para la versión anterior. El seguimiento de licencias con la suscripción a Open Value es sencillo. Durante la vigencia de su contrato, los clientes pueden implementar PCs adicionales a lo largo del año sin dar seguimiento a las nuevas implementaciones de Windows, Office o core CALs de servidor. Debido a que es un programa para toda la compañía, los clientes sólo necesitan contar sus PCs calificadas y actualizar su contrato cada año. Si hay menos PCs calificadas en uso al final del año, los costos totales de suscripción se pueden reducir. Microsoft ofrece ahorros en el precio de referencia de Open Value para los clientes que se estandarizan ya sea en la plataforma profesional (incluyendo Windows Professional Desktop Upgrade, Office Professional y Core CAL de Microsoft) o en la plataforma para la pequeña empresa (incluyendo Windows Professional Desktop Upgrade, Office Small Business Edition y la CAL de Windows Small Business Server 2003). Al final del contrato de suscripción a Open Value de tres años, los clientes tienen la opción de renovar su contrato de suscripción, comprar su contrato y convertir sus licencias de suscripción a licencias perpetuas, o simplemente desinstalar y dejar de usar el software. La opción de compra es atractiva para los clientes que deciden que quieren ser dueños de sus licencias de software. Los clientes que eligen la opción de compra pueden continuar con sus beneficios de Software Assurance simplemente al celebrar un nuevo contrato de Open Value sólo para Software Assurance
I would like to review customer license purchase options with Open Value: Open Value subscription option: Customers must initiate the agreement with at least one Enterprise Product companywide. <advance> Any other Enterprise Products must also be companywide. <advance> Customers may add any additional products to the agreement as needed. <advance> Open Value companywide option or non-companywide option: Only Enterprise Products ordered with the initial order are eligible for companywide or platform discounts. <advance> Enterprise Products and additional products may be ordered as needed or non-companywide, with or without an Enterprise Product on the agreement. <advance>
A continuación proporcionamos una rápida revisión de las recomendaciones de licenciamiento para sus clientes. Utilice estas cuatro funciones del programa para determinar qué programa es el más adecuado para su cliente. Si se prefiere un plan de suscripción, elija Open Value – suscripción. De lo contrario, elija cualquier otro programa Open License. Si se desean derechos para nuevas versiones elija cualquier programa Open Value. Si su cliente necesita minimizar los costos iniciales o desea cambiarse a un modelo de licencias con costo anual, elija cualquier programa Open Value. Si su cliente va a estandarizar software de PC, elija Open Value – suscripción u Open Value con la opción para toda la compañía. Si su cliente no se beneficiará con los derechos para obtener la tecnología más reciente, la capacidad de diferir pagos o con los ahorros adicionales en costos, elija Open Business.
Como ya mencionamos antes, Open Value está diseñado para clientes con más de cinco PCs o que necesitan adquirir cinco o más licencias con Software Assurance. Para clientes con más de 250 PCs, los contratos Select Agreement o Enterprise Agreement pueden ser una mejor opción. El simplificar el seguimiento de licencias es la razón número uno por la que los clientes eligen un contrato de Open Value. Busque clientes que tengan contratos al menudeo, de un fabricante de equipo original (OEM) o varios contratos de licencias por volumen ya que a menudo encuentran el valor de consolidarse en un contrato único de Open Value. También busque clientes que deseen mantener su software actualizado. Estos clientes entienden el valor de ejecutar las versiones más recientes de software pero con frecuencia consideran que el justificar el costo de las actualizaciones de la tecnología representa un desafío. Open Value derriba la barrera de actualizar proyectos al incluir los derechos para nuevas versiones de software con licencia. Para algunos clientes, los costos iniciales para la tecnología son una inquietud importante. En particular, los clientes que posiblemente tienen una infraestructura anticuada que ejecuta software tal como Microsoft Windows NT® Server, una mezcla de PCs con Windows y una mezcla de versiones de Office están concientes de los beneficios de administración y soporte y de los costos potenciales implicados en la actualización de su infraestructura. Open Value proporciona una solución atractiva para estos clientes, ya que pueden ahorrar en costos iniciales al tiempo que implementan una estrategia para encargarse de actualizaciones futuras.
Licensing for Large Organizations
Licensing for Large Organizations Microsoft Select License is quite similar to Open License. Both programs are transactional and provide Perpetual Licenses. Select License, though, is meant for customers with at least 500 PCs and provides lower prices and more flexibility. Unlike Open License, which requires the license to be ordered before the product is installed, Select allows monthly ordering of new licenses, if needed. Select does not require customer commitments such as standardization or the mandatory inclusion of SA.
Licensing for Large Organizations The software programs that Select License provides are an extension of the Open License portfolio, featuring the same product pools and the same choice between a license with or without Software Assurance, or Software Assurance-only in the case of an agreement renewal. Select adds optional Work At Home licenses. Work At Home licenses are available for Microsoft Office Standard, Office Professional and the Terminal Server Client Access License. The need for Work At Home licenses has decreased because customers who choose Software Assurance for their Office licenses are entitled to free home use and by choosing the Terminal Server User CAL, most customers will receive a better solution. However, the Work At Home license remains an interesting option for customers who do not take Software Assurance for their Office licenses. You may want to review the Microsoft Select pricelist to check actual Work At Home license availability.
Licensing for Large Organizations SA expires on termination of the customer’s agreement. It is an optional purchase under the Select License program unless the customer has chosen SA Membership, which provides additional benefits to customers who commit to obtain SA for all their new licenses. Under the SA agreement, the customer will always be able to install the latest released version of Microsoft software acquired. At the end of the three-year agreement, customers can renew SA through a renewed Select Agreement and extend their benefits. Renewing under Select License All Upgrade Advantage (UA) licenses (available under previous versions of Select) will be treated as SA. Customers who have purchased UA, SA or similar upgrade protection under any previous Microsoft Volume Licensing agreement (other than any v6.0 or subsequent version agreement) and wish to renew that upgrade protection under SA, will have 90 days from the expiration date of their previous upgrade protection coverage to sign a new 6.0 Select Agreement and Enrollment. To ensure that the upgrade protection coverage does not lapse, the new 6.0 Select Agreement and Enrollment will be backdated to no later than one day following the expiration date of the previous coverage, and the customer must place their SA renewal order at the time the new Enrollment is submitted.
Licensing for Large Organizations This table indicates in more detail the specific Software Assurance offerings for Select and Select SAM licensing.
Licensing for Large Organizations This table details the specific Software Assurance enhancements around the Select and Select SAM licensing options for the server.
Licensing for Large Organizations The starting point of every Select Agreement is an MBA (Microsoft Business Agreement). The MBA is discussed in the Specialist Track. The Select Agreement determines the choice of product pools, the forecast and the price level per product pool. When placing orders, the customer must enter into a Select Enrollment. In the Enrollment, a customer affiliate or set of customer affiliates assigns a Large Account Reseller (LAR). The price level is the same for all enrollments because it is set at the Select Agreement level. The consumption across all Select Enrollments determines the price level, so economies of scale can be achieved quite easily.
Licensing for Large Organizations The volume forecast is made for each of the product pools that the customer wants to include in the agreement. In order to do this, Microsoft has assigned a unit count to every license. If the forecast for a product pool is smaller than 1,500 points, the Select Agreement will not cover that pool.
Licensing for Large Organizations Once the Select Agreement has been signed, the customer can start installing software and ordering licenses. License consumption is measured against the forecast. On the first anniversary, three scenarios can happen: The volume is lower than one third of the three-year forecast, e.g. less than 4.000 for a Level B agreement. The customer will then be re-levelled, i.e. the new price level will match the volume that has been consumed. If the consumption is too small for Level A, then the agreement will be terminated for that pool. There is no other penalty. The customer does not have to pay extra for licenses that have been bought at the old price level. The volume is higher than one third of the required volume for a more attractive price level. The customer will then be re-levelled to that more attractive price level. There is no other bonus. The customer does not receive a refund for licenses that have been bought at the old price level. The volume sits between these two boundaries. The price level will stay the same for another year. On the second anniversary, a similar check is carried out, only this time against two thirds of the three-year volumes.
Licensing for Large Organizations
Licensing for Large Organizations
Licensing for Large Organizations
Licensing for Large Organizations The Enterprise Agreement is quite similar to Multi-Year Open (MYO) License Enterprise. The main difference is the target audience (250+ rather than 5+ PCs) and the channel (channel-assisted instead of a two tier model).
Licensing for Large Organizations In the Enterprise Agreement and Enterprise Subscription Agreement programs we offer the Desktop Platform: a set of products that form the central part of the agreement. This Desktop Platform consists of Windows XP Professional Upgrade, Office XP Professional and Core CAL. The Core CAL is a Client Access License for Windows Server, Exchange Server, SharePoint Portal Server and Systems Management Server. A customer can choose one, two or all three Desktop Platform products. If he chooses all three, then he receives a 15% Platform Discount.
Licensing for Large Organizations These programs also offer additional products that may be purchased through the same agreement. This provides the same benefits as the Desktop Platform products: The costs of L & SA are amortized for the initial number of licenses. Once added, the customer only needs to count the number of copies once per annum and place a true-up purchase order if it has grown. Additional licenses are paid in one lot if and when they are added. Please note that unlike Desktop Platform products: The customer can add an additional product at any time during the agreement. The customer does not have to standardize on an additional product. More details about handling additional products are provided in the Specialist Track. The alternative to adding products to the Enterprise Agreement is using a Select Agreement.
Licensing for Large Organizations This table indicates in more detail the specific Software Assurance offerings for the Enterprise Assurance and Enterprise Subscription Assurance licensing options.
Licensing for Large Organizations This table details the specific Software Assurance enhancements around the Enterprise Assurance and Enterprise Subscription Assurance licensing options for the server.
Licensing for Large Organizations The starting point of every Enterprise Agreement is an MBA (Microsoft Business Agreement). The MBA is discussed in more detail in the Specialist Track. The Enterprise Agreement then provides the foundation for a set of Enterprise Agreement Enrollments. Since the choice of a set of Desktop Platform products is made in the Enrollment rather than in the Enterprise Agreement itself, affiliates are free to choose their own set of products on which to standardize.
Licensing for Large Organizations The Enterprise Agreement pricing per desktop is based on Microsoft Select License. The customer essentially pays for a full license plus three years Software Assurance, and is rewarded for standardization with a volume discount of 15%. The total cost is spread over three annual payments. As we have seen earlier, Select offers four price levels. The Select price level to use for calculating the annual cost per desktop is determined by the initial number of desktops, as shown in the table.
Licensing for Large Organizations If the number of desktops grows over time, then additional desktops must be accounted and paid for by means of a so-called True-Up Order. This process happens once a year, which reduces the administrative overhead as compared to Select License. But an increase in the number of desktops will not lead to a more attractive price level.
Licensing for Large Organizations All in all, an Enterprise Agreement leads to only four payments over the entire three-year duration. The initial number of desktops is paid in three equal annual installments, which are due at the start of the first, second and third year. Additional desktops are to be paid at the end of the first, second and third year.
Licensing for Large Organizations When the Enterprise Agreement expires after three years, the customer owns a Perpetual License for the then-current version. Customers then qualify for renewal pricing, which is based on the then-current price of SA.
Licensing for Large Organizations
Licensing for Large Organizations
Licensing for Large Organizations In this section, we will cover the Enterprise Subscription Agreement. As you can see from this agenda, we need to cover fewer topics than for the Enterprise Agreement. That is because these agreements have so much in common, so we will only look at the differences.
Licensing for Large Organizations The only real difference between Enterprise Subscription Agreements and Enterprise Agreements is the fact that the Enterprise Subscription Agreement provides Non-Perpetual Licenses. This has a number of ramifications on the pricing model.
Licensing for Large Organizations The Enterprise Subscription Agreement provides a single annual price per desktop. This price is calculated in the same way as the Enterprise Agreement price, i.e. a license plus three years’ Software Assurance, minus a 15% volume discount and a 15% Platform Discount (if the customer chooses the entire Desktop Platform). Since these licenses are Non-Perpetual, the customer receives another 15% discount.
Licensing for Large Organizations At the start of the Enrollment, the annual prices are calculated and frozen for all four price levels. The initial price level is determined by the initial number of desktops. In this example, the year 1 cost will be the initial number of desktops at the Level B price. On the second anniversary, the number of desktops has increased, and the customer will pay the Level C price for the second year. On the second anniversary, the number of PCs has declined and Level B pricing will apply to the cost for the third year. Growth in the third year is not charged unless the customer exercises the Buy-Out Option.
Licensing for Large Organizations So how is the Enterprise Subscription Agreement pricing model more attractive than the Enterprise Agreement? The annual price per desktop is 15% lower, which is very important for customers who have limited cash and/or need to pay a high interest rate on their loans. The customer can reduce the number of licenses over time because these licenses are Non-Perpetual. The pricing model is easier: there is just one annual price per desktop – no true-up prices. The fact that the customer does not buy licenses but instead subscribes to software may have financial benefits.
Licensing for Large Organizations
Licensing for Large Organizations
Licensing for Large Organizations So let’s wrap up by taking a look at the pros and cons. A transactional program like Select License is flexible because the customer can only buy what is needed and when it is needed. The downside is the administrative overhead: every month licenses must be ordered for new installations. Managing that process can be overwhelming. Since Select does not provide price protection, customers may experience difficulties forecasting their future license costs. Annuity-based programs like Enterprise Agreement and Enterprise Subscription Agreement are much easier to manage and budget. The subscription-based model may be attractive for customers who don’t want to buy licenses. The drawback of annuity-based license programs could be the fixed standardization.
Licensing for Large Organizations When should Select License be offered? If an affiliate does not want to commit to entity-wide standardization: Select is flexible and allows any number of copies to be ordered. If an affiliate insists on not taking Software Assurance: Select allows the customer to purchase just the license. If an affiliate wants to obtain Office Standard rather than Professional – although this will be more difficult to manage. If an affiliate does not want the Core CAL but only some of the ingredients, e.g. the Windows CAL and the Exchange CAL, but not the SMS CAL and the SharePoint Portal Server CAL. If an affiliate will enter into an Enterprise (Subscription) Agreement, but wants to obtain extra products. These products can be provided through the annuity-based programs as additional products though.
Licensing for Large Organizations The second trade-off is between buying and subscribing. Buying may be more cost-effective in the long run, but only if the number of PCs remains stable or goes up. If a substantial reduction of the number of PCs cannot be ruled out, subscribing is usually more cost-effective. Subscribing may also have other financial benefits over buying licenses.