MASTERING THE MICROSOFT LICENSING MAZE

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1 MASTERING THE MICROSOFT LICENSING MAZE Learning about the different Microsoft licensing options aimed to save Governments money Chris Sosnowski General Manager - B&W Control Systems Integration Cathleen (CJ) Godfrey Microsoft Licensing Specialist, SLG

2 Outline Qualifications/Background: BWCSI Why we think this seminar is important Microsoft Licensing Overview/What s new Microsoft Licensing Detail Microsoft Subsidies, Discounts, Payment Options, and Promotions Summary / Takeaways Prize Giveaway Questions

3 About B&W Control Systems Integration Wholly-owned subsidiary of Baxter & Woodman Microsoft Certified Partner 10 Employees dedicated to technology Consulting, Planning, Design, Implementation, and 24x7 Service Strategic Consultation for Government licensing selection

4 Why is This Seminar Important Our Experience Observation of many (unintentional) license violations based on a misunderstanding of what is legal Most governments don t seem to have the time to figure out what their options are IT is frequently seen as a cost center and rarely strategically analyzed Fund-based municipal accounting frequently focuses on the current or upcoming fiscal year Saving money seems to be in style nowadays

5 Microsoft Licensing Overview Original Equipment Manufacturer (OEM)* Retail Open* Open Value* Open Value Subscription* Select (State of Illinois & Wisconsin)* September expiration Enterprise* * Includes an option for Software Assurance

6 Microsoft Licensing Options Overview OEM Original Equipment Manufacturer Retail Full Packaged Product (FPP) Government Open launched spring 2008 Government Open Value / Subscription launched spring 2009 Select Overview Enterprise Agreement / Subscription 25 PCs

7 Typically 250+ PCs (25 dsktps) Central/Federal Minimum 5 PCs Local/Regional Comprehensive Transactional Comprehensive Transactional Enterprise Agreement Select Plus/Select License Open Value Open License Perpetual Non-perpetual 3-year period 1- or 3-year renewal option Media included Software Assurance Organization-wide only Volume Licensing Service Center (VLSC) tool Mid-term cancellation addendum EA Subscription Can reduce licenses if PC count declines Software Assurance Buy-out available Media included Organization-wide only VLSC tool Mid-term cancellation addendum 3-year period 1- or 3-year renewal option Media included Software Assurance option VLSC tool Mid-term cancellation addendum n/a 3-year period 3-year renewal option Non-Organization-wide option is available Media with license purchase Software Assurance VLSC tool Open Value Subscription* 1-year/3-year options available Can reduce licenses if PC count declines Media with license purchase Software Assurance Buy-out available (3+yrs) Organization-wide only VLSC tool 2-year purchase period Easy purchase process Media sold separately Up-front payment only Software Assurance is optional eopen tool n/a FPP OEM Large Account Resellers (LARs) Distributors Resellers *Not available in all regions.

8 Flexible Access to the latest Microsoft software technology and license management tools Managing licenses is easy (consolidate agreements) Standardized platform to help business growth & minimize support Affordable w/options Up-front or spread-out payments Software Assurance benefits add value Government-focused Special government pricing on Microsoft technology Predictable planning and budgeting Supported specialized government requirements (e.g., nonappropriation of funds situation)

9 Open Value Open Value Subscription Open License Initial purchase Five licenses. One license for Microsoft Dynamics products, MSDN, TechNet, and other products designated in the product list. Five licenses. One license for Microsoft Dynamics products, MSDN, TechNet, and other products designated in the product list. Five licenses. Agreement term 3 years 1 year or 3 years 2 years Platform Discount Yes Yes No Standardization Benefits Yes, reduced pricing, price protection, and additional Software Assurance benefits. Yes, reduced pricing, price protection, and additional Software Assurance benefits. Software Assurance Included Included Optional Spread payments Yes, optional Yes No No

10 The Microsoft Open License program is designed for eligible* government organizations that want to make a minimum initial purchase of five software licenses with a pay-as-you-go model. The Open License program provides small and midsize government organizations with a convenient and simple way to license the latest Microsoft software technology. *eligibility requirements at licensing-options/for-industries.aspx

11 Simplified License Management Order and start using software immediately. Acquire additional licenses in any quantity, at any time over the agreement s term. Licensing Affordability Lower pricing in comparison to retail or commercial purchase options. Simple one-time transaction with no forecasting. Pay for what you need when you need it. Licensing Flexibility Electronically manage your license orders, review purchase history, download Volume License Keys (VLKs) for software product installation, track compliance, and receive order confirmation information. Downgrade rights so that you control which version you set up in your organization. Acquire licenses from a broad reseller channel.

12 Five licenses are required to enter the program. Place orders for any amount after the initial order. (Sever + 4 CALs) Single level and affordable government pricing offered no points, no pools. The agreement is a two-year term. License (L), License with Software Assurance (L&SA) and Software Assurance renewal are available.

13 Features Single, fixed cost per license Customer-focused purchasing experience Ability to migrate to higher discounts with the Microsoft enterprise offerings Single agreement to better track, manage, deploy licenses Benefits Improves asset management. Reduces licensing complexity. Helps increase organizational flexibility. Increases Software Assurance value.

14 An Easy Way to Manage Licenses Get a single agreement for all Microsoft licensed product. Upgrade at any time no need to track versions or open new agreements. (built in SA) Manage licenses easily at Microsoft Volume Licensing Service Center (VLSC). Better Management of Expenditure Gives the customer the licensing solution for the way they want to buy. Provide rights to new software version releases and spread out payments to make acquiring and forecasting licenses easier. Offers single price level regardless of the number of licenses (minimum five licenses) Cost/Value To help balance your organization s growing technology needs with an existing IT budget, Open Value provides a flexible licensing option at a discount for volume purchases.

15 Two program options Company(organization)-wide Non-company(organization)-wide Additional savings available with the platform discount Three-year term: If you cannot commit to a multiyear term or want to subscribe to software rather than license, consider Open Value Subscription for Government

16 Company(Organization)-wide if you want to standardize software throughout your organization. Standardizing your software helps to reduce support costs and to offer solutions that require a common technology platform. Benefits for this include the following: Count your qualified desktop PCs at the beginning of the agreement. Receive additional savings on Company(Organization)-wide licenses. Pay a per-desktop PC license price for new licenses during the month of installation. Spread out costs through the remaining years. Add software products at any time and pay for them during the month of installation. Transition original equipment manufacturer (OEM) licenses onto your Open Value Agreement by purchasing Software Assurance on the OEM licenses.

17 Typically used for licenses for servers or for some desktop PCs Annual spread-out payments Upgrade rights and other Software Assurance benefits You can obtain all licenses through Open Value Manage both Company-wide and Noncompany-wide licenses through a single agreement

18 The Microsoft Select Agreement for Government program is a transactional program designed for customers with 250 or more computers who have mixed software requirements. (IL & WI already have Select Master Agreements) Select Agreement for Government: 3 -year term agreement but tied to Master State Agreement timing No Forecasting for Government Customers Offers flexibility through monthly ordering Offers optional inclusion of Software Assurance. SA Benefits associated with initial purchase

19 The Microsoft Enterprise Agreement for Government program is designed specifically for eligible large organizations that want a simple, flexible, and affordable way to standardize their organizations on the latest Microsoft software technology. The Enterprise Agreement for Government: Standardizes IT across your organization. Helps streamline licensing administration and budgeting. Builds a flexible IT infrastructure that responds to your changing needs.

20 Receive a price advantage of up to 15 percent with enterprise-wide agreements and up to an additional 15 percent for platform-wide agreements.* Microsoft Professional Desktop Platform Microsoft Enterprise Desktop Platform Software Assurance Coverage *Enterprise-wide = Purchase of at least one application, operating system, or server component Platform-wide = Purchase of all three components

21 Consolidation Move multiple existing licensing agreements into a single payment and make managing them easier. Replace aging solutions with a lower total cost of ownership (TCO) and comprehensive partner solutions. Get access to world-class support with Software Assurance and Premier Support. Software Assurance adds more value beyond upgrade rights. Windows Software Assurance provides value (access to Windows Vista Enterprise & MDOP) Being on the latest product version, such as Microsoft Office and Windows, helps drive efficiencies. Purchasing Client Access Licenses (CALs) via Suite provides the best value and discount when combined with Windows Client and Microsoft Office. Elearning libraries, free consulting days, training vouchers and other SA benefits.

22 More Value by Design Amortized payments during a three-year term, with the option to renew for Software Assurance only. A predictable, annual price per desktop PC for Enterprise software products based on the initial number of desktop PCs enrolled. Centralized purchasing for your organization, including qualified affiliates. Lower total cost of ownership and improved workplace productivity by standardizing on Microsoft licensed products across your organization.

23 Receive a price advantage of up to 15 percent with enterprise-wide agreements and up to an additional 15 percent for platform-wide agreements.* Microsoft Professional Desktop Platform Microsoft Enterprise Desktop Platform Software Assurance Coverage *Enterprise-wide = Purchase of at least one application, operating system, or server component Platform-wide = Purchase of all three components

24 Add desktop PCs through a one-time annual process. Consolidate orders for additional software licenses run during the year under one order annually. True Up multiple times throughout the year. Benefits: Manage costs more effectively. Reduce time and expense by reporting multiple additional software use under one purchase order (PO).

25 Overview and Benefits

26 The Enterprise Agreement includes Software Assurance, Microsoft s enhanced maintenance program that helps organizations get the most value from Microsoft software products through a broad range of benefits. These benefits help increase the return on your technology investment by doing the following: Supporting budget predictability Lowering operating expenses Helping improve employee productivity Minimizing IT downtime

27 Windows Fundamentals for Legacy PCs Extended Hotfix Support New Version Rights Spread-out Payments SOFTWARE LIFECYCLE 24x7 Problem Resolution Support TechNet Subscription through Software Assurance Cold Back Up for Disaster Recovery Packaged Services: Desktop Deployment Planning Services SharePoint Deployment Planning Services Windows Vista Enterprise Training Vouchers E-Learning Home Use Program (HUP) Employee Purchase Program (EPP) Enterprise Source License Program

28 Subsidies, Discounts, Incentives Historical Subsidies Big Easy Various % discounts on different licensing programs Current Subsidies & Discounts See (Select Government & Education) Big Easy 3.0 (Ends July 3, 2009) Up to 15% off certain Select purchases (Ends June 30, 2009) 20-35% off Exchange - Open & Open Value (Ends Sept 30, 2009)

29 Start Date: March 2, 2009 End Date: June 26, 2009 Target Audience: Market Segments: Products Included: Microsoft Volume Licensing Programs and License Agreement Types Customer Eligibility Requirements: Offer: Promotion SKU List: How to Participate: Small and midsize organizations Commercial and local government organizations Designer and Developer Tools Dynamics CRM Exchange Server Forefront Office Communications Server Office System Project and Visio SharePoint Server SQL Server System Center Windows Server Windows Server Solutions This promotion is available for the following Volume Licensing programs and license agreement types: Open License: Corporate and Government Open L for corporate and government Open L&SA for government Open Value: Corporate (now) Government (April 1) Customers must make a qualifying purchase as defined in the offer Terms and Conditions. Customers who make a qualifying purchase during the offer purchase period will earn money back in the form of a partner subsidy payout that can be used for implementation of their Microsoft solution including software, hardware and services. Customers who purchase more than one product group can earn higher payout amounts. Will be posted to Customer Website: Government Partner Website: Partner Website:

30 Volume Licensing for Government Evaluate your license needs and choose: Subscription or License-based agreement Organization-wide or not organization-wide Standardize on entire Microsoft platform Find a Microsoft Licensing Reseller Microsoft in Government rnment/default.mspx

31 Software Assurance details Software Assurance Benefits Chart Licensing Briefs helpful reference docs Microsoft Incentives & Offers

32 2009 Microsoft Corporation. All rights reserved. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. Microsoft is a trademark of the Microsoft companies. For more information, visit

33 Wrap-up / Takeaways What is your next step? OEM/Retail customers, consider government licensing options Making the Licensing Decision <5 licenses >5 licenses and <25 licenses >25 licenses Visit to find current promotions Enlist a consultant of a good partner who knows what is current

34 Windows 7 Demo & Giveaways

35 Questions

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