Este documento proporciona una introducción al programa Select License de Microsoft para grandes empresas. Select License ofrece licencias perpetuas para 500+ PCs, con precios basados en volumen y flexibilidad para ordenes mensuales. El documento explica los detalles de los programas de software, Software Assurance, y la estructura y pagos del acuerdo Select License.
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 In this training, we will address licensing solutions for Large Organizations, i.e. 250+ PCs.
Licensing for Large Organizations This course consists of three parts. The first, Licensing Essentials, deals with the basics of licensing. The second one focuses on Volume Licensing solutions for Small and Mid-Sized Organizations, and discusses Open License, Multi-Year Open License (MYO) and Open Subscription License (OSL). This module, Licensing for Large Organizations, is specifically targeted at Large Account Resellers (LARs) and Enterprise Software Advisors (ESAs). Licensing for Small and Mid-Sized Organizations is optional for LARs and ESAs, whereas Licensing Essentials is suitable for all trainees. There is also a Specialist Track which builds on the knowledge gained here and will probe into these areas more deeply, in addition to covering agreement expiry and extension.
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 All volume licensing programs offer Software Assurance (SA), which has been discussed in the Licensing Essentials training. SA is either optional (Open License) or included in every license (MYO and OSL). Selling the value of SA is the key to selling OSL and MYO.
Licensing for Large Organizations It is important to emphasize that SA lasts for the Agreement term. This makes processing and renewing easier to manage, but also means that maximum value can be extracted from purchasing SA at the start or on the anniversary of an agreement. SA is optional in Open (where it is sold in two year blocks) and in Select (where it is pro-rated annually). It is integral to Multi-Year Open and Open Subscription Licenses and also carries point values at a rate of half of the license’s point value per year. This means that more points can be accrued at a lower cost, potentially having positive impact on the price band of an Agreement.
Licensing for Large Organizations The enhancements around Software Assurance are a new series of benefits designed to give customers more value around their Software Assurance agreements. These enhancements are also designed to give Microsoft partners new sales and customer-relationship building opportunities. The main objectives of the new enhancements around Software Assurance are to build long-term customer relationships and to provide renewal and new business opportunities. In trying to increase sales, SA will give partners a better customer value proposition and allow them to speak of a greater value from the new SA enhancements.
Licensing for Large Organizations The new enhancements to Software Assurance answer these customer problems. The SA offering promises to deliver better Productivity, Support, Tools and Training. Customers said that they needed upgrades that were not time consuming and costly. Software Assurance would improve this productivity by allowing access to the latest technology through the life of the agreement and by creating annualized payments, thereby increasing buying power. Customers also wanted improved help and technical information. SA offers more support with extended life-cycle support and increased resource and problem resolution alternatives. Our customers said that they wanted more sufficient tools for deployment. Software Assurance is now speeding up the deployment process through new automation tools and with a new ability to analyze and fix errors. Lastly, customers felt they needed more training on technical information. SA enhancements now offer customers certified instructor-led classes and self-paced eLearning alternatives.
Licensing for Large Organizations From September 1 st 2003, Software Assurance will include new enhancements to its desktop and server offerings. Both offerings will include the ability to Spread Payments, New Version Rights, TechNet Online, Concierge Chat, Corporate Error Reporting, WinPE, and eLearning. Specific new Desktop features include a Home Use Program, an Employee Purchase Program, an Enterprise Source Learning Program, and Training Vouchers. New Server features include problem resolution support, TechNet Plus, and extended lifecycle hot-fix support. There will be no increased cost to the customer for these new enhancements.The new enhancements to SA will reach a worldwide audience, but will vary in availability by feature and region.
Licensing for Large Organizations The pricing of SA is linked to the price of the license for the product it applies to. It is priced at 29% of the license price per year for desktop OS and applications. For Server products (OS and applications), it is priced at 25% of the license price per year.
Licensing for Large Organizations Unlike Open License – which cannot be used across multiple entities, even if they are part of the same organization – all Enterprise Volume Licensing programs can be used by multiple entities.
Licensing for Large Organizations All Volume Licensing programs for Large Organizations can be used by multiple entities, unlike Open License, which is limited to a single legal entity. Select, Enterprise Agreement and Enterprise Subscription Agreement all fit under a so-called Microsoft Business Agreement (MBA), an umbrella that defines rights and restrictions and explains the concepts. The MBA explains that a legal entity can participate in an agreement if the lead customer owns at least 50% of the shares.
Licensing for Large Organizations All annuity-based programs are fit for decentralized organizations. Multiple entities can share an agreement if they are part of the same organization. This brings two advantages: Unlike Open License, where price levels are set by the volume required by one of the affiliates, Enterprise Volume Licensing pricing is determined by the overall total required. This means that it is much easier to achieve economies of scale. MBA’s centralized agreement structure, Select Agreement with Select Enrollments and/or Enterprise Agreement with Enterprise Agreement Enrollments, enables an organization to manage software consumption across all entities. Open License and the other Volume Licensing programs for Small and Mid-Sized businesses don’t offer this level of scalability and manageability.
Licensing for Large Organizations The Enterprise Volume Licensing programs are based on the opt-in mechanism: every entity can decide whether or not to participate in the agreement. If it participates, initially and at every anniversary, the number of qualifying desktops must be counted and a single purchase order (EA) or monthly orders placed (Select License).
Licensing for Large Organizations The benefits of this approach are obvious: A single agreement for multiple entities is a lot easier to manage than a set of agreements. This can assist a decentralized organization in the process of enforcing standards on its affiliates. The number of qualifying desktops is determined by the sum of all participating affiliates, not by the biggest affiliate, as we’ve seen with Open License. This means that maximum use can be made of economies of scale. If jobs are moved across affiliates, this won’t have a negative impact on the cost of licenses. If the customer had used Open License, a surplus could not have been moved from one legal entity to another.
Licensing for Large Organizations
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 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. The Employee Purchase Program is a desktop only benefit.
Licensing for Large Organizations Problem Resolution Support is a server only benefit. The Standard Edition receives two Web-based incidents. 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. TechNet Plus is a server only benefit.
Licensing for Large Organizations
Licensing for Large Organizations
Licensing for Large Organizations Extended Lifecycle Hot-fix support is a server benefit only. Enterprise Source Licensing Program is a desktop benefit only.
Licensing for Large Organizations Extended Lifecycle Hot-fix support is a server benefit only. Enterprise Source Licensing Program is a desktop benefit only.
Licensing for Large Organizations Example: a customer has 500 qualifying Windows Software Assurance licenses plus 700 qualifying Office Software Assurance licenses. The customer then receives 10 + 20 training days = 30 training days.
Licensing for Large Organizations Select licenses are sold through a one-tier channel. The customer orders the licenses from an authorized Large Account Reseller (LAR). The LAR orders the licenses from Microsoft. The price level is based on the customer’s volume forecast. Final pricing is agreed by the LAR and the customer.
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 Select pricing is based on the customer’s volume forecast, which is part of the Select Agreement. Note that Microsoft does not have an obligation to enter such an agreement: if the forecast is unrealistically high, then Microsoft will suggest a lower volume (and hence a less attractive price level).
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 As mentioned before, multiple entities can share a Select Agreement. The total volume is calculated across all entities, which makes it easier to achieve economies of scale. (Please note that the total volume of 260 Office licenses is quite low for a Select Agreement. Even when ordered with SA, such a purchase order represents 1,300 points.)
Licensing for Large Organizations Once the price levels have been set, the LAR and the customer will agree final pricing. This can be a cost-plus or ERP-minus price.
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 After three years the Select Agreement expires and can be renewed. Instead of submitting a new forecast, the new price level is now determined by the license consumption over the first three years.
Licensing for Large Organizations For every Select Enrollment, the customer receives a complimentary Select CD-ROM subscription. The initial shipment contains all products available through the selected product pools. Subsequent monthly shipments contain new and updated products. Products are redistributed at least once a year, so CD-ROM sets can be discarded after twelve months. The customer can order additional CD-ROM subscriptions through its LAR. Extra media sets, which contain a single product, are available through the two-tier channel shown here. These media sets are key-less, i.e. a key is required to install, but no Product Activation is required. Volume License Keys can be found on the MVLS website.
Licensing for Large Organizations One of the key elements of the Select Agreement is the use of separate enrollments, e.g. for different regions or different affiliates. The price level is shared across all affiliates and all affiliates contribute to the organization’s license consumption.
Licensing for Large Organizations Office Upgrades are available as FPP. Pricing is substantially lower than full licenses in Select. Position the FPP Upgrade as a short-term solution with higher long-term costs.
Licensing for Large Organizations Not every affiliate will decide to enter into an Enterprise Agreement, so those who don’t may worry whether this will affect Select pricing. As we will see in the next part of this training, the volume achieved through the Enterprise Agreement can contribute to the Select license consumption and hence to the Select price level.
Licensing for Large Organizations Many customers confuse the Select contract duration with upgrade frequencies. Even if a customer’s upgrade frequency is longer than three years, obtaining SA can make sense. Renewing SA by means of a Select renewal is only possible if new licenses are bought with SA. Position L & SA as a once-in-a-lifetime opportunity.
Licensing for Large Organizations
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 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. The Employee Purchase Program is a desktop only benefit.
Licensing for Large Organizations Problem Resolution Support is a server only benefit. The Standard Edition receives two Web-based incidents. 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. TechNet Plus is a server only benefit.
Licensing for Large Organizations Extended Lifecycle Hot-fix support is a server benefit only. Enterprise Source Licensing Program is a desktop benefit only.
Licensing for Large Organizations
Licensing for Large Organizations
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 Using multiple Enterprise Agreement Enrollments may be necessary for customers that cannot commit to enterprise-wide standardization. An Enrollment can be entered into by a defined set of affiliates – those who are ready to standardize entity-wide. Warning : chances are that by entering separate Enrollments some of the economies of scale are lost, because the price level is set per enrollment. We will look into this in more detail in the Specialist Track.
Licensing for Large Organizations Some customers don’t want to standardize on the entire Desktop Platform. An Enrollment can also be signed for one or two products, but then the customer won’t get the 15% Platform Discount. The missing product or products can be added later by adding another Enrollment. The customer will only get the Platform Discount, though, if he chooses all three Desktop Platform products in the same Enrollment.
Licensing for Large Organizations Customers may argue that under Select, the penetration of Microsoft Access is much lower than 100%. In real life, however, most customers want to deploy a single disk image across all PCs – with Microsoft Access. The incremental cost of Access is easily outweighed by the benefits of standardization.
Licensing for Large Organizations This concern is typical for a mediocre sales process: first, the business value of the products must be sold. Only then should licensing be discussed.
Licensing for Large Organizations
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
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.
