Licensing Update

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3/20/12

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.

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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

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Type of Licenses
Perpetual Everlasting Valid if software is used in accordance with the EULA Available when acquiring software from a local computer store Non-Perpetual Temporary Provides a time-limited right to use a particular product until a specific end-date Available through certain Comprehensive Programs

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Microsoft Licensing Programs

Individual 0 4 PCs
License Programs

Full Packaged Product (FPP) OEM

Small & Med Business 5 249PCs Open License Open Value Open Value Company-wide Open Value Subscription

Enterprise Customers 250+ PCs Select License Select Plus Open Value Price Level C OV 250 Enterprise Agreement
Enterprise Subscription Agreement

Legalization Solutions

Windows Genuine Advantage (WGA)

Get Genuine Kit (GGK) Get Genuine Solution (GGS) Get Genuine Windows Agreement (GGWA)

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Why Volume License?

Volume Licensing programs provide customers solutionsthe ability to choose the software they need and the flexibility in acquiring it.
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

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Why Volume License?

Volume Licensing programs provide additional benefits that you can leverage in your solution and the management and maintenance of your customers software:

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

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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
3-year price License + 3 years SA

Ordering Activity
Acquired in year 1 Order once

Office Pro All Languages Lic/SA Pack Prepaid OV NL 3YR Acq Y1 Ent

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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 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 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 (SA) SKUs:

License + Software Assurance (L&SA) SKUs:

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Software Assurance Benefits Maximize Value Across the Life Cycle Plan Deploy
New Product Versions Spread Payments Step-Up Licensing Services Planning Services Training Vouchers for IT Training E-Learning for End Users

Use
System Center Advisor MDOP: Desktop Management 24x7 Problem Resolution Support Training Vouchers for IT Training TechNet E-Learning for End Users Office Home Use Program Extended HotFix Support Cold Back-ups for Disaster Recovery

N LA P

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

DEPLOY

US E

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Microsoft Licensing Programs

Individual 0 4 PCs
License Programs

Full Packaged Product OEM (FPP)

Small & Med Business 5 249PCs Open License Open Value Open Value Company-wide Open Value Subscription

Enterprise Customers 250+ PCs Select License Select Plus Open Value Price Level C OV 250 Enterprise Agreement
Enterprise Subscription Agreement

Legalization Solutions

Windows Genuine Advantage (WGA)

Get Genuine Kit (GGK) Get Genuine Solution (GGS) Get Genuine Windows Agreement (GGWA)

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Individual
Individual: 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 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:

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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

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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

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Small and Medium Business Customers

Small and Med Business Customers: 5 to 249 desktops license options are:

Open License Open Value Open Value Company-Wide Open Value Subscription 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. Includes Software Assurance, is three year term with ability to make annual payments, and has Companywide and Subscription options.

Open License:

Open Value Programs

Note: Open License was previously referred to as Open Business

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Open License and Open Value Comparison

Open License (OLP) Initial Purchase
Five licenses For 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 No For two year agreement term Yes No Separate purchase Purchased within 90 days

Open Value (OV)

Five licenses One license for Microsoft Dynamics products, MSDN, TechNet, and other products designated in the product list

Single Agreement for Multiple Entities Reordering Downgrade Rights Spread payments Media Software Assurance

Yes For three year agreement term Yes Yes Included Included

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Enterprise Customers
Enterprise 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 Same Select features plus a single organization-wide volume purchasing program that never expires

Select Plus:

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Select and Select Plus

Aspect Initial price level set by Select Plus Select Initial purchase order, EA, Three-year forecast, EA, EAS, CASA or previous 12- EAS or previous 12-month month Select consumption Select consumption. Yes, immediately Yes, on next anniversary

Automatic adjustment to higher level (A D) Automatic adjustment to lower level (D A) Price level A Price level B Price level C Price level D Enrollment minimum Academic Government

Yes, limited to one level per Yes, unlimited year 500+ points/1 year 4,000+ points/1 year 10,000+ points/1 year 25,000+ points/1 year 1,500+ points/3 years 12,000+ points/3 years 30,000+ points/3 years 75,000+ points/3 years

None for Registration Form 750 points/3 years 500+ points/1 year 500+ points/1 year 1,500+ points/3 years 1,500+ points/3 years

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Enterprise Customer with 250+ desktops

Enterprise 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. Offers cost savings on a subscription basis License buy-out option at end of term.

EA Subscription:

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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 3/20/12 Center Client Management Suite, SharePoint Enterprise CAL, Exchange

Contd

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: 2502,399 computers . Level B: 2,4005,999 computers . Level C: 6,00014,999 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) 3/20/12

Placing the Volume License Orders Licenses for Enterprise

Orders for Microsoft Open Licenses (including Academic Open) must be placed with the Distributors

Microsoft
Distributors Resellers

Agreement, Select, and Academic Select must be ordered directly from Microsoft

Value Added Resellers (VARs) System Builders

Enterprise Software Advisors (ESAs) Large Account Resellers (LARs) Authorized Education Resellers (AERs)

Original Equipment Manufacturers (OEMs) Independent Software Vendors (ISVs)

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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 customers 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.

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Base Qualifying of Windows OS

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Windows Legalization Solution

GGWA-Small Organizations* Customers Product Availability Minimum Purchase Downgrade Rights Channel
Small & Med Business, Govt. Windows 7 Pro 5 licenses Yes

GGWA- Large Organizations

Med & Large Enterprises Windows 7 Pro 100 licenses Yes

Get Genuine Kit (GGK)

Small Business, Home Consumer Windows 7 Pro 1 license No Resellers; ordered from OEM distributors

USD countries: Open price LARs or direct from list , resellers Microsoft, off price list Non-USD countries: off price list, resellers

Terms

Non-signed commitment to Pre-signed agreement; buy Includes DVD style case buy legal going forward legal going forward, audit with FFP media and COA clause, must legalize all out attach is required. of compliance Windows PCs, MBSA required Purchased within 90 days Purchased within 90 days

Software Assurance

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Volume Licensing Chart

Open Value Subscription Benefits Open License 5+ Minimum Number of Desktop PCs Open Value* Select License Select Plus Enterprise Agreement Enterprise Subscription Agreement

x x x x x x x

x x x x

x x x x

x x x x x

x x x x x

x x x x

x x x

250+

License License & Software Assurance Licensing Offerings Available Software Assurance Based on Product Pools Based on Desktop PCs Based on License & Software Assurance Pricing No Expiration 1 Year +/2 Years Agreement Term

x x x

x x

x x

x x

x x

x x

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Up-Front

Server Licensing
Microsoft 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)

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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

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User vs Device CAL

Choosing User CALs would save money

(6) PCs (Devices )

(5) Users 3/20/12

Licensing Resource
http://www.microsoft.com/licensin g/

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 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. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED, OR STATUTORY, AS TO THE INFORMATION IN THIS DOCUMENT. The descriptions of other companies products in this document, if any, are provided only as a convenience to you. Any such references should not be considered an endorsement or support by Microsoft. Microsoft cannot guarantee their accuracy, and the products may change over time. Also, the descriptions are intended as brief highlights to aid understanding, rather than as