1 Microsoft Volume Licensing

Basics
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.
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
Volume Licensing considerations

+/- 250 PC devices or users

Products + Usage

Licensing Programme
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.
How to buy

Full packaged product (FPP)

Original equipment manufacturer (OEM)

Volume Licensing agreement

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
Why a Volume Licensing agreement?

Predictable cost Programme choices

options to for organisations
optimise budget of varying sizes

Broad range of
benefits support
software use Streamlines licence
and deployment management
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).
 Fewer than More than
250 devices or users 250 devices or users

Open Licence SA optional Select Plus SA optional

Perpetual

Enterprise
Open Value SA included SA included
Agreement

Open Value
SA included
Company Wide
Perpetual

Enterprise
Open Value
non-

SA included Agreement SA included

Subscription
Subscription

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 www.microsoft.com/softwareassurance.
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.
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-you-
go model with the ability to change the licensing programme as their
business grows.
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.
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 Windows-

based 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.
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.
Programme Comparison

Enterprise Microsoft Online

Agreement (EA) Subscription Programme (MOSP)
Single company- 250 or more Purchase online Suitable for 5 or
wide agreement devices or users via credit card more users
for on-premises or invoice
software and
cloud services

Best overall 3-year Non-negotiable Term length

pricing agreement monthly varies
subscription
price
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. W
 ork 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 www.pinpoint.microsoft.com.
2. Manage your agreements and Software Assurance benefits
using the Microsoft Volume Licensing Service Center (VLSC) at
www.microsoft.com/licensing/servicecenter.

To learn more about Microsoft Volume Licensing,

visit www.microsoft.com/licensing.
© 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.