When I set out to write a series on Microsoft software licensing, I never expected there to be a total of nine posts.

For those who missed the others, they were:

1. Client and server.
2. Licensing without CALs.
3. Server products.
4. System Center products.
5. Virtualisation.
6. Forefront security products.
7. How to buy Microsoft software.
8. Software Assurance.

In this final post in the series, I’ll provide some useful links to Microsoft software licensing resources.

To start off with, there’s the Microsoft Licensing Reseller Handbook – intended for partners but publicly available and packed with links.

For those interested in volume licensing, the Microsoft Volume Licensing Reference Guide is intended for customers and explains the various options that are available.

Next up, there’s Emma (Lady Licensing)’s Licensing and Software Asset Management blog… which has a stack of information but I do find it a little odd that almost the first thing you read on the site is a notice that shouts “DO NOT COPY CONTENT WITHOUT MY EXPRESS PERMISSION” when the whole point is about sharing information (try Creative Commons) and much of that information appears to be a direct copy and paste from information provided by her employer (Microsoft)!

Other links that might be useful include:

• How to buy and license your Microsoft software.
• The Microsoft Licence Advisor.
• How to tell if your media is genuine (Microsoft’s Michala Alexander has also produced an anti-piracy video with channel partner Blue Solutions).

If you have a licensing query and it’s not covered in any of the links here, call Microsoft – for UK customers the number is 0870 60 10 100.

Finally, I mentioned in the first post that this series has been based on information from a TechNet presentation at Microsoft UK – thanks to Jackie Elleker at Microsoft UK for presenting the information in a way that even I could understand – and for answering my many questions. Jackie has also produced a short video with Blue Solutions in which she explains many of the key points of Microsoft Licensing – including payment options.

In my earlier post on how to buy Microsoft software, I mentioned Software Assurance (SA).

SA includes upgrade rights for all software released during the period of the agreement along with a number of additional benefits. Purchased as part of a volume license agreement or on an individual product, SA is a contraversial subject – Microsoft will highlight the many advantages that it offers to customers, whereas IT Managers will often question its value.

Unless included within the terms of an Open Value License or Enterprise Agreement, SA costs between 25 and 29% of the accompanying license price and, although it can be renewed, it ends when the accompanying agreement terminates. An ROI tool is available to help assess the likely financial benefits of SA but the trouble with software is that it’s a bit like the proverbial London Bus – you wait years for a new release and then they all come along at once…

For an IT Manager, this may mean that they don’t percieve their SA as having provided much benefit (e.g. if they didn’t see many new releases during the period of their agreement) but it can also work the other way. For example, I know of at least one Microsoft customer that has not resigned their EA because in the last few years they have gained the rights to upgrade their desktop from XP to Vista, their Office productivity suite from Office 2003 to 2007, their server infrastructure from Windows Server 2003 R2 to 2008 and to perform a number of server application upgrades (Exchange Server 2003 to 2007, Live Communications Server 2005 to Office Communications Server 2007, SharePoint Portal Server 2003 to Office SharePoint Server 2007, Systems Management Server 2003 to System Center Configuration Manager 2007, Operations Manager 2005 to System Center Operations Manager 2007, etc.). Now they have the right to use all of that software so they have their infrastructure upgrades for the next few years “in the bag” and see no reason to resign the EA. That’s not good for Microsoft, but very good for my anecdotal customer.

The full list of SA benefits, at each stage in the lifecycle, includes:

There exact benefits that are available depend on the volume licensing agreement in place and an SA benefits comparison chart is available for download.

One of the major benefits for corporate users with Select or Enterprise agreements is the Microsoft Desktop Optimization Pack (MDOP). This contains five additional technologies: Microsoft Application Virtualization (formerly Softricity SoftGrid); Microsoft System Center Desktop Error Monitoring; Microsoft Asset Inventory Service (formerly AssetMetrix); Microsoft Diagnostics and Recovery Toolset (formerly Winternals Administator’s Pak); and Microsoft Advanced Group Policy Management (formerly DesktopStandard GPOVault).

MDOP is a big pull for many organisations – particularly the Application Virtualization element – but it is a subscription service which means that when the accompanying volume license agreement ends so does the right to use the MDOP tools.

For many, a crystal ball would be useful when deciding if SA is appropriate – it all depends on how an organisation’s roadmap is aligned with new product releases and consequentially whether the benefits of SA will actually be of use. My view is that there are some substantial benefits available – and I’d suggest that the MDOP benefits might actually help to reduce operational costs and therefore finance the SA.

In the final part of this series on software licensing, I’ll summarise the eight posts so far and provide links to further information.

Continuing the series on Microsoft licensing, I’m going to look at how to buy Microsoft software. Basically, there are three ways to buy a license:

• Full packaged product (FPP) – purchased from a retailer and typically a single box contains a single license.
• Original equipment manufacturer (OEM) – software supplied with a computer and which “lives and dies” on that machine.
• Volume licensing – purchased from resellers with a variety of programmes to suit different types of organisation.

Technically, there is a fourth method too – software may be made available for download free of charge from the web (although this is still subject to an end user license agreement).

There’s not much to say about buying FPP software – except that it’s the most expensive way to buy software and should be avoided where possible.

OEM software packs are intended for system builders only and are not intended for distribution to end users unless the end users are acting as system builders by assembling their own PCs. Often, it’s possible to purchase OEM software from distributors but there are conditions attached. OEM software is intended for system builders and the system builder license agreement is effectively accepted when the shrink-wrap on the software is broken and acceptance of those terms involves offering support on the product.

Effectively, if I buy OEM software from a distributor and build a PC for someone (even family) with that software pre-applied, I need to offer end-user support.

OEM software requires product activation, is only available as a full product (no upgrades – although software assurance may be available if enrolled by the end user within 30 or 90 days, depending on the product) and must be pre-installed with the certificate of authenticity or proof of license label attached to the hardware. Once installed, the product is only available for use with that computer and cannot be transferred.

Certain OEM software may be legally downgraded, for example Windows Vista Business and Ultimate Editions may be downgraded to Windows XP Professional and Windows Server 2008 may be downgraded to Windows Server 2003 or Windows Server 2000. One notable exception is Office 2007, which cannot be downgraded. Instead, Microsoft has the concept of an Office Ready PC – a 60-day trial version of Office 2007 for pre-installation by the OEM, sold with a medialess license kit (MLK). The end user can upgrade to a full version of Office when the trial ends and end-user technical support is offered by Microsoft, rather than by the OEM.

OEM copies of Windows also include the rights to produce images of the software for deployment.

Before moving on to look at Volume licensing, let’s examine licensing Windows desktop operating systems, where there is one point I need to make crystal clear – FPP and OEM are the only ways to purchase a full Windows desktop operating system license.

This means that if an organisation thinks it can save money by buying PCs without Windows (certain vendors will do this, e.g. a grey box PC with Linux pre-installed) and then apply copies of Windows obtained through a volume license programme, they are not licensed to use Windows. The only way to become legal from this situation is to an FPP copy of Windows. Windows Vista Business upgrade licenses sold though volume license agreements are upgrades only (for Windows XP Professional computers) and are not intended for installation on a “naked” PC.

For any organisation with more than 5 users, Volume licensing programmes are available. Volume licensing separates the license from the media, packaging and support as well as offering flexible rights such as:

• Downgrade rights.
• Transfer and reassignment rights (except Windows Vista upgrade – and FPP products have a one-time transfer right).
• Imaging rights.
• Flexible payment options.
• Alternative language use rights.

The type of agreement will depend on the number of users, and whether or not the software is to be purchased (a perpetual license) or leased (non-perpetual):

In the case of leased (non-perpetual) software, the agreement can be converted or re-purchased upon expiry but if these options are not exercised then the organisation is no longer licensed to use the software.

Open Licenses are sold by resellers via the distribution channel, whereas Select and Enterprise agreements are sold by specialist Large Account Resellers (LARs) via Microsoft.

For organisations looking to standardise their PCs (e.g. for support reasons), Open Value Company Wide or Enterprise Agreements (EAs) can be advantageous.

Software Assurance (SA) includes upgrade rights for all software released as long as the agreement is current. It also includes a number of other benefits (which is why I’ll save a full explanation for another post). SA can either be purchased as part of a volume license agreement or on an individual product.

There are also a number of special licensing arrangements for educational establishments – in addition to Open and Select licensing, Campus Agreement subscriptions and School Agreement subscriptions are available to schools, colleges and universities, as well as local education authorities, public libraries, public museums and some charitable organisations.

Further details of Microsoft Volume Licensing arrangements are available in the Microsoft Volume Licensing Reference Guide.

Microsoft also takes part in the Charity Technology eXchange (CTX) programme, donating software to eligible organisations with a very heavy discount (all that is charged is an administrative fee). Charities can request up to 50 licenses from each of 6 titles (selected from 13 available products) in a two-year product. Eligible charitable organisations are defined as non-profit or non-govermental organisations holding charitable status with the aim of releif to the poor, advancement of education, social and community welfare, culture, the natural environment or other purposes that are beneficial to the community. An FAQ is available with further details on Microsoft’s involvement in CTX.

In the next post in this series, I’ll take a more detailed look at software assurance.