MICROSOFT LICENSE

Microsoft License

Microsoft License

Blog Article

1. License Types by Channel

  • Retail (Full Packaged Product)
    – Sold “off the shelf” in stores or online marketplaces.
    – Transferable between PCs, but generally only one active installation at a time.

  • OEM (Original Equipment Manufacturer)
    – Pre‑installed on new PCs by the manufacturer.
    – Tied to the hardware it shipped with—cannot be moved to another machine.

  • Volume Licensing
    – Designed for organizations of varying sizes; sold through partners or directly.
    – Includes programs like Open License, Microsoft Products & Services Agreement (MPSA), Enterprise Agreement (EA), and Cloud Solution Provider (CSP).

2. Licensing Models by Product

  • Windows Client (Pro/Enterprise)
    – Per‑device or per‑user; covered under Volume programs for Enterprise features and downgrade rights.

  • Microsoft 365 (formerly Office 365)
    – Subscription‑based, per‑user licensing that bundles Office apps + cloud services (Exchange, Teams, SharePoint).

  • Windows Server, SQL Server, SharePoint, etc.
    – Often licensed by core or processor, with Client Access Licenses (CALs) required for users/devices.

  • Azure & Cloud Services
    – Pay‑as‑you‑go or reserved‑instance billing models; managed via Azure subscriptions rather than traditional perpetual licenses.

3. How to Choose the Right Program

Program Best For Term Payment Structure
Open License Small orgs (5–250 PCs) Perpetual Up front, one‑time
CSP (Cloud SP) Any size; want cloud + hybrid capabilities Subscription Monthly or annual
MPSA Mid‑sized orgs (>250 users/devices) Perpetual & subscription One portal, flexible ordering
Enterprise Agmt Large enterprises (≥500 users/devices) 3‑year term, renews Annual payments, true‑up

4. Key Terms to Know

  • Perpetual vs. Subscription: Traditional “buy once” license vs. ongoing service fee.

  • CAL (Client Access License): Required for each user or device accessing a server product (Windows Server, SQL Server, SharePoint).

  • SA (Software Assurance): An add‑on that provides upgrades, training, support, and virtualization rights.

  • Downgrade Rights: Ability to use an earlier version of the software (e.g. Windows 10 instead of Windows 11) under certain Volume Licensing programs.

5. Next Steps

  1. Define Your Needs: How many users/devices? On‑prem vs. cloud?

  2. Pick a Program: Match your size and deployment strategy to Open, CSP, MPSA or EA.

  3. Engage a Partner: Microsoft licensing partners can provide quotes, guide you through SA options, and manage renewals.

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