1 Microsoft Volume Licensing Basics

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1 1 Microsoft Volume Licensing Basics

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3 Acquiring IT solutions for your organisation can be challenging. You may be faced with meeting today s demands while predicting tomorrow s, and all within a fixed budget. This guide is designed to explain licensing basics and clarify the various ways to acquire licences for Microsoft software and services. Use it as a reference to help you choose the right licensing for your company s needs all while balancing your bottom line.

4 What is a licence? Q: What does Microsoft sell? A: Microsoft licenses the rights to use software and services. Software is intellectual property and licences provide the right to use the software and define conditions of use. What is Volume Licensing? In general, Microsoft Volume Licensing programmes align to two main categories: Programmes for organisations with fewer than 250 PCs, devices or users Programmes for organisations with more than 250 PCs, devices or users To help you choose the best option for your organisation, keep in mind these key characteristics as you explore Microsoft Volume Licensing programmes: The size and type of your organisation The products you want to license The way in which you want to use those products

5 Volume Licensing considerations +/- 250 PC devices or users Products + Usage Licensing Programme

6 Ways to buy a Microsoft licence There are three key ways to buy a Microsoft licence depending on the volume of licences you need for your organisation today or in the future. Full packaged product (FPP) Purchased from retailers Typically 1 box = 1 licence Original equipment manufacturer (OEM) Preinstalled on a new computer The software is associated with the device Volume Licensing agreements Purchased direct from Microsoft or resellers Variety of agreements to suit different types of organisations This guide focuses on Microsoft Volume Licensing programmes for your organisation and is designed to help you learn the basics.

7 How to buy Full packaged product (FPP) Original equipment manufacturer (OEM) Volume Licensing agreement

8 Why a Volume Licensing agreement? Simply stated, a Microsoft Volume Licensing agreement is the most cost effective, flexible, and manageable way to acquire Microsoft software and cloud services. By acquiring software licences through Microsoft Volume Licensing programmes, you only pay for the software licence. Boxed software, on the other hand, includes media (the CD-ROM or DVD), a user s guide, and other packaging items. Eliminating these physical costs and purchasing in volume often reduces cost and provides more customised purchasing options and improved software management. A Microsoft Volume Licensing agreement provides you with: Pricing advantages Predictable cost options based on your company s needs, with volume discounts Software Assurance A range of benefits including rights to new product versions, support, training, tools, and planning services to support Microsoft software and cloud services A range of offerings Based on size and type of business, payment, structure, ownership of software, or standardisation preferences Benefit from standardisation Achieve savings by deploying standard sets of products across the organisation

9 Why a Volume Licensing agreement? Predictable cost options to optimise budget Programme choices for organisations of varying sizes Broad range of benefits support software use and deployment Streamlines licence management

10 Volume Licensing programmes In general, Microsoft Volume Licensing commercial programmes align to two main categories: programmes for companies with fewer than 250 desktop PCs, and programmes for companies with more than 250 devices or users. For organisations with 250 or more devices or users, Microsoft offers the Microsoft Enterprise Agreement and Select Plus. For organisations with up to 250 devices or users, the Microsoft Open programmes offer flexible, low-entry requirements. Perpetual vs Non-perpetual licences You can buy licences in two ways depending on the needs of your organisation. Perpetual: Once you have purchased and paid for the licence, you have the rights to use the software for as long as you wish. Non-perpetual: More commonly associated with subscription programmes, a non-perpetual licence grants you the rights to use the software for as long as you maintain your subscription(s).

11 Fewer than 250 devices or users More than 250 devices or users Open Licence SA optional Select Plus SA optional Perpetual Open Value SA included Enterprise Agreement SA included Open Value Company Wide SA included non- Perpetual Open Value Subscription SA included Enterprise Agreement Subscription SA included Software Assurance Software Assurance (SA) is a set of benefits unique to Microsoft Volume Licensing. It combines the latest product versions with support, planning services, training and IT tools to help you deploy, use, and manage your Volume Licensing purchases. SA is included with some Volume Licensing programmes and is an optional purchase with others. To learn more about Software Assurance, visit

12 Programmes based on your organisation s type and size Microsoft Volume Licensing provides several options depending on the size and needs of your organisation. Enterprise Agreement (EA) is the optimal Volume Licensing programme for midsize and large enterprise customers with 250 or more devices and/or users. The EA gives you the option to standardise on one or several Microsoft enterprise products and cloud services, yet retain the flexibility to purchase software and cloud services for different user types. Based on a three-year agreement term, with the ability to add and adjust products and services over time, it offers price advantages beyond standard licence and subscription pricing, and includes Software Assurance benefits for on-premises licences. Enterprise Subscription is a Volume Licensing programme option for midsize or large organisations that want to subscribe to, rather than purchase, Microsoft software licences. This programme provides similar advantages to the Enterprise Agreement with a lower initial cost based on a three-year subscription, and the ability to increase or decrease subscription counts on an annual basis. Select Plus is for midsize and large organisations with 250 or more desktop PCs with multiple affiliates that want to license software and services at any business unit level while still getting the price saving advantages of being a single organisation.

13 For organisations with fewer than 250 desktop PCs, the Microsoft Open programmes provide the following licence options: Open Value is for organisations with as few as five desktop PCs and offers the advantages of Software Assurance, simplified licence management, and an annual payment structure. Open Value Subscription provides the lowest upfront cost of the Open programmes and is for customers who want to subscribe to, rather than acquire, Microsoft product licences. This programme is available in select regions. Open Licence is a good choice for customers who prefer a pay-as-yougo model with the ability to change the licensing programme as their business grows.

14 Cloud services available through Volume Licensing Microsoft cloud services provide new choices to optimise IT for different priorities and situations. Microsoft offers licensing that embraces the flexibility needed to mix and match cloud with on-premises software over time and by workload. A range of online services is available spanning public, private and hybrid cloud scenarios. Microsoft delivers a comprehensive set of cloud services and enterprise applications for user productivity, customer management, communication services, and custom business applications. These products are delivered as a subscription service hosted by Microsoft.

15 Microsoft Office 365 combines the familiar Microsoft Office desktop suite with cloud-based versions of next generation communication and collaboration services from Microsoft, including Microsoft Exchange Online, SharePoint Online and Lync Online. Windows Intune helps businesses secure and manage their Windowsbased PCs and mobile devices from virtually anywhere through Windows Intune cloud services. Windows Azure is an open and flexible cloud platform that lets businesses develop and deliver applications using familiar tools and languages.

16 Choosing the right licensing programme for cloud services With the Enterprise Agreement (EA), organisations have the flexibility to choose among on-premises software and cloud services to best suit users needs, and help optimise technology spend for changing business priorities. Customers can sign a single companywide agreement for cloud services, on-premises software, software enrolments, and additional products, and realise price advantages based on their organisation size. Designed for businesses with a minimum of 250 qualified users or devices, the EA allows the flexibility to match and adjust workloads for different types of users, utilise a grace period when transitioning to cloud services, and enable broader per-user licensing options. For smaller organisations interested in online subscription services, Microsoft provides the Microsoft Online Subscription Programme (MOSP). Through this programme, organisations are offered standard, non-negotiable pricing and the ability to transact their subscription online versus directly through the Microsoft direct sales channel or through resellers. The subscription is suitable for companies with five or more users and the term length varies depending on service chosen.

17 Programme Comparison Enterprise Agreement (EA) Microsoft Online Subscription Programme (MOSP) Single companywide agreement for on-premises software and cloud services 250 or more devices or users Purchase online via credit card or invoice Suitable for 5 or more users Best overall pricing 3-year agreement Non-negotiable monthly subscription price Term length varies

18 Summary Microsoft Volume Licensing programmes are designed to support organisations of varying sizes and industries and are the most cost effective, flexible, and manageable way to acquire Microsoft software and cloud services. A Microsoft Volume Licensing agreement provides you with pricing advantages, offerings based on organisation size and type, and payment options. Depending on the programme you choose, Software Assurance may be included or can be added to your agreement, providing benefits to help you prepare your users and deploy the latest Microsoft software. To determine the best solution for your organisation we recommend you: 1. Work with your reseller to determine the right Microsoft Volume Licensing programme for your organisation. For more information and to locate a reseller near you, go to 2. Manage your agreements and Software Assurance benefits using the Microsoft Volume Licensing Service Center (VLSC) at To learn more about Microsoft Volume Licensing, visit

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20 2012 Microsoft Corporation. Microsoft provides this material solely for informational purposes. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS DOCUMENT. Eligibility for Software Assurance benefits varies by offering and region and is subject to change. Customers should refer to the Terms and Conditions of their Volume Licence Agreement for a full understanding of their rights and obligations under Microsoft s Volume Licensing programmes.