A Guide to Software Asset Management

Transcription

1 A Guide to Software Asset Management 2002 Microsoft Corporation. All rights reserved. Microsoft, the Microsoft logo, Office, the Office logo and Windows are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. All other trademarks are held by their respective companies. VMS /02

2 About this Guide This guide has been developed to help businesses understand the fundamentals of Software Asset Management, to equip your organisation with the essential information, tools and tips to ensure that your company, however complex, has a robust Software Asset Management system in place. In it you will find valuable information about how Software Asset Management can benefit your business and, importantly how you can protect your organisation from the risks associated with poorly managed software. With its help you will be able to perform a quick assessment of your organisation s current Software Asset Management needs and, where appropriate, develop a whole range of best practices for your business, to optimise the return on your software investment. We have designed this guide purposely with practicality and portability in mind, to be viewed as a working document that you can carry with you, refer to frequently and store safely. 1

3 Follow our step-by-step approach Use the index pages and Table of Contents opposite to explore Software Benefits and Risks 4 How can your business benefit from 5 Software Asset Management? A software policy can protect you from risk 7 Legal basics 9 Asset Management in more detail. How can Software Asset Management benefit your business and what are the risks of failing to manage software correctly? Are you curious as to whether your business could be at risk? Complete the ten-question assessment to find out. Committed to putting a Software Asset Management program in place? Follow our four-step implementation plan (Policies, Procedures, Records, Review). Want more help and information? Turn to the Tools and Resources Are you at Risk? 11 Quick ten-question assessment 12 Performing a self-audit 13 Software Asset Management 16 The principles of Software Asset Management 17 Establishing corporate policies 19 Designing and implementing procedures 24 Managing and maintaining records 31 Ongoing management and review 35 section. Looking for the right licensing solution for your company and how to protect your business from Software Piracy? Turn to the Licensing and Anti-Piracy Section. Tools and Resources 37 Software management tools 38 Microsoft Software Inventory Analyser 39 A Guide to Licensing and Anti-Piracy 48 Microsoft licensing what to look for 49 Anti-Piracy guide 59 Microsoft Product Identification Service 61 Quick Reference Guide

4 Benefits and Risks How can your business benefit from Software Asset Management? Improved software planning and cost control: Software acquisition can represent a significant proportion of the IT budget. So it makes good fiscal sense to control these costs effectively. Good Software Asset Management Computer software is a central part of many businesses operations but its increased importance brings new risks. An effective Software Asset Management policy can help protect you against these risks. can help you determine which software programs you need and which you don t. It can also help you take advantage of volume licensing discounts offered by many software publishers and determine how to deploy software most efficiently across your organisation. Manage technological change: Software Asset Management can help your company identify its software needs, avoid obsolescence, and ensure proper technology to help meet business goals to stay ahead of the competition. Alleviate communication and data transfer problems: In organisations where technology has proliferated without controls, many different software platforms and versions may exist, contributing to communication problems. Managing software can help address and resolve these issues, improving workflow and efficiencies. Justify investments in technology: Managing software can help organisations understand the value they receive from their software investment as well as identify parts of the organisation that may be in need of software upgrades or new software programs. 4 5

5 A software policy can protect you from risk Non-compliance risks Legal costs: Abuse of software licenses can result in financial penalties, damages and legal costs. Additionally, company executives can be held personally liable, for any copyright infringement that occurs within the organisation, if they are found to have authorised the infringement. Setting up a software policy may not seem like a pressing concern but, without one, your business will be exposed to a range of risks some of which could be highly damaging. Damaged reputation: Abusing software licenses can damage your company s reputation. Viruses that can harm computers and networks: Unauthorised copies of software can contain viruses with the potential to damage both individual computers and entire networks. Viruses can and do cause irretrievable data loss, which would be devastating to most companies. Ineligibility for technical support or product upgrades: When using unlicensed software, you are not eligible for technical support from the software publisher. If you have a technical issue in need of resolution, often at times a work-stopping issue, you are on your own. In addition, product upgrades (less expensive upgrades of existing products) are not available to you. Legal costs and fines, damaged reputation, computer viruses, ineligibility for technical support and software compatibility issues all equate to lost time, which means lost opportunities to your business. 6 7

6 Legal basics What is a software license? Software licensing Microsoft offers many licensing programs designed to meet the needs of differing customers. The software license that accompanies these programs will vary. A summary of the licensing programs in place can be found in the Guide to Licensing and Anti-Piracy section of this guide, beginning on page 48. When you buy software you are acquiring a license. A software license grants you the legal right to run a software program. For each software program you use, you need a license granted to you and documented in the license agreement. Breaching the terms of the license agreement is software piracy. Typical breaches include: Using legally acquired software on more computers than the license allows. Allowing employees or contractors to make unlicensed copies of software. Making or selling illegal copies of software. Using illegal copies of software, even unknowingly. (The law does not require you to know that your activity is illegal. The mere act of using an illegal copy of the software can make you liable.) Please see for further information on these licensing programs, including the documentation you ll need to retain to verify license compliance. Allowing or asking a consultant (for example) to install software on your system when you do not have a license for it. 8 9

7 Risk of legal action Use of unlicensed software exposes you and your organisation to the real risk of legal action. Damages for copyright infringement are unlimited. You also face the expense and disruption of legal action, regardless of whether or not you go to court. It can be easier than you think to be found out The software publishers trade association, the Business Software Association of Australia (BSAA), offers a reward of up to $5,000 for accurate information on the illegal use of software *. See the BSAA Web site for more details: *Conditions apply. Are you at Risk? A fragmented or poorly managed Software Asset Management system can lead to the use of unlicensed software, thus putting your company at technological and legal risk. Your business could be at risk if any of these scenarios sound familiar: Your company has grown, expanding rapidly in recent years. Your organisation has undergone a merger, de-merger or acquisition. Your business is geographically diverse, with many subsidiaries. You are operating with a decentralised purchasing/procurement policy. Your company has witnessed a high turnover of IT staff over recent years. Your reputation could suffer if it is made public that your business has been using illegal software. We understand that maintaining control of and managing your valuable software assets in any of these very common circumstances can be extremely challenging! 10 11

8 Quick ten-question assessment Step 1 Curious about whether your company is at risk for using unlicensed or pirated software? Answer the following questions to help assess your risk: QUESTIONS YES NO UNSURE 1. Do you know how many PCs, laptops and servers your company currently has in use? 2. Do you have a software license for all software programs installed on your PCs, laptops and servers? 3. Are you confident that no company employees have made unauthorised copies of software? Step 2 If you have identified that your organisation may be at risk then there are a number of things you can do; for example, you can undertake a self-audit or ask an appropriate company for assistance in doing one. Step 3 Performing a self-audit Should you elect to undertake a Software Asset Management audit internally, you will need to ensure the following: 4. Did you acquire all the software installed on your PCs, laptops and servers from reputable sources? 5. Does your company have a written policy for copying software and/or purchasing software licenses? 6. Does your business have a clearly written software management policy approved and sponsored by senior management? That overall responsibility for development and implementation is assigned to an individual. That the assigned individual has the ability to delegate specific tasks to appropriate personnel within your organisation. 7. Does your business maintain an accurate inventory of software, hardware and license ownership? The next stage is to perform an initial software inventory. 8. Are license confirmations reconciled with your organisation s orders? 9. Does the person who is responsible for software license compliance have specialist knowledge about software licensing issues? 10. Do you operate regular audits of installed software against software licenses held? If you answered no to any of these questions, or if you are unsure about any of the answers, you need to evaluate your organisation s software situation in greater detail

9 Step 4 Perform a software inventory by doing the following: Step 5 Establishing software policies and procedures Establish the number of PCs, laptops and servers your company has in use and the type of software installed on each machine. Compare this information against the number of legal software licenses your company owns. While the number of policies and procedures your organisation needs will vary depending on the company size, scope and culture, at a minimum they should cover the following: Software use and copyright policy: Your company should have a clear Account for any license deficiencies and purchase sufficient additional licenses to bring your organisation into compliance. Depending on the size of your organisation, and the condition of your records, this may be quite simple, or it can take a bit of effort. In either case, establishing this initial inventory is critical to effective Software Asset Management. To see the number of software management tools available to you, visit and enforceable policy on copyrighted software, which addresses your company s adherence to software license agreements, and employees responsibilities to follow the software procedures set by management. Procurement policies and procedures: Your company should have written policies covering how employees request software, responsibility for software acquisitions, approved software vendors, software installation procedures, personal software policies and disposition of software assets. For more detailed information, please refer to the Software Asset Management section of this guide, beginning on page 16, which covers the principles of Software Asset Management in greater detail

10 Software Asset Management How to keep your business compliant Managing your software assets can lead to improved performance. As businesses invest more in technology, Software Asset Management plays an increasingly critical role in promoting efficiency, productivity and performance. The principles of Software Asset Management Once you have identified that you need to implement a Software Asset Management program, then we recommend you follow these guidelines. CORPORATE POLICIES Evidence that a company is committed to Software Asset Management Here we guide you through some of the principles of Software Asset Management: Establishing Corporate Policies PROCEDURES To ensure the implementation of the policies Designing and Implementing Procedures Managing and Maintaining Records Ongoing Management and Review REVIEW To ensure that processes are working and being implemented, so that records always remain accurate RECORDS Software Inventory Hardware Inventory License Inventory 16 17

11 Establishing corporate policies Developing a policy Before anything else, your company culture must be one in which all your There is no universally correct solution to Software Asset Management or Software License Compliance, and there can be no guarantee that, by following any set of guidelines, that all problems will be avoided. employees understand the value of software, learn the difference between legal and illegal use, and pledge their commitment to the proper use of software. To do this, you must have a clear statement of policy on the legal use of software. The statement should express the company's goals to manage software for maximum benefit, use only legally licensed software, and spell out the company's procedure for acquiring legal software. However, by following the guidance in this section, many of the most common problems should be avoided and the major underlying issues clarified. Your organisation can more easily find a unique solution, tailored to your own business-specific needs and circumstances. Establish policies If your business has no written policies or procedures, now is a good time to write them. While the number of policies and procedures your business needs will vary according to company size, scope, and culture, at a minimum they should cover the following: Software use and copyright policy Is there a clear and enforceable policy on software copyright? (Creating and communicating a policy on software use and copyright protection is an important step in reducing the business s risk of copyright infringement.) 18 19

12 Personal software Do you permit personally owned software to be installed on PCs? If so, under what conditions? We recommend that if a user needs access to software at home, the company purchases a separate license and records Make your software policy part of a wider IT policy designed to safeguard the security of your systems and data and protect you against a range of legal risks. it as an asset on the software register. Communicate the policy to all employees Tell them that the company will not allow or tolerate the use of illegal or pirated software. The policy should: State what you consider to be acceptable and unacceptable use of your IT system. Consider referring to the policy in your statement of employment terms. Set out who is responsible for administering and repairing systems and Alternatively, ask employees to sign a statement saying they understand enforcing your policy. and accept the policy. Regularly remind employees of the policy, particularly when breaches Regulate how the Internet and are used. are suspected. Protect your own intellectual property rights. Employees can use the Encourage employees to tell you if they think they may have dubious software, or if they have any other concerns. Internet and to copy and pass on your intellectual property or other confidential material, perhaps unwittingly. Rigorously enforce the policy Make sure that following the implementation of your software policy, all employees understand the consequences of not adhering to it. The more effort you put into enforcing your policy and making sure that employees know that use of illegal software is not acceptable within your organisation, the less vulnerable your organisation will be. Implementing an effective policy and a good document management system is essential. Whatever your policy, make sure it is included in the packet of information given to new employees and visible to all, so that everyone can abide by it

13 Corporate policy regarding the use of personal computer software 1. (Name of Business) licenses the use of computer software from a variety of software vendors. (Name of Business) does not own the rights to this software or its related documentation and, unless authorised by the software developer, (Name of Business) does not have the right to reproduce it, other than expressly allowed by the software developer (e.g., for back-up purposes). 2. With regard to Client/Server and network applications, (Name of Business) employees shall use the software only in accordance with the terms of the relevant license agreements for that software. Manage organisational change A common requirement for most organisations is to manage mergers and de-mergers, or other radical organisational change, effectively. This should include reviewing and transferring licenses. Due Diligence: If your organisation is acquiring or merging with another, you should ensure that the other organisation is legally licensed for all of its software usage. If not, you will acquire its legal exposure as well, irrespective of whether or not you are aware that you are doing so. 3. (Name of Business) employees shall not download or up-load unauthorised software over the Internet. 4. (Name of Business) employees learning of any misuse of software or related documentation within the company shall notify their department manager or relevant personnel. 5. According to Australian copyright law, persons involved in the illegal reproduction of software can be subject to civil and criminal penalties including payment of damages (for a civil claim) or fines and imprisonment (following a criminal prosecution). 6. (Name of Business) does not condone the illegal duplication of software. (Name of Business) employees who make, acquire or use unauthorised copies of computer software shall be disciplined as appropriate under the circumstances. Such discipline may include or lead to the termination of the individual s contract of employment. 7. Any doubts concerning whether any employee may copy or use a given software program should be raised with a responsible manager before proceeding. I confirm that I have read and understood the software use policy of (Name of Business) and I agree to abide by and uphold that policy. Employee signature Date 22 23

14 Designing and implementing procedures Centralise purchasing Require all software purchase requests to be in writing with department manager approval. Appoint a Software Asset Manager Clearly identify a Software Asset Manager who is responsible for ensuring that your company s Software Asset Management policy is understood, implemented and adhered to. Don't permit employees to buy software directly or charge it to their expense accounts. Ensure that employees cannot download software from the Internet without special approval. Purchasing software Be careful about how you buy and install software. This is essential if you want to be sure that the software you buy is legitimate. Only buy software from reputable sources. Typically, this will be an authorised distributor or partner. If in doubt, make further checks (e.g., through the Microsoft Product Identification Service * ) or buy the software elsewhere. Be particularly wary of software sold through e-auction houses. Much of it is illegal and you also risk paying for software that you will never actually receive. Keep proof of purchase Always keep the original documentation including the Certificate of Authenticity (COA), End User License Agreements (EULA) and purchase invoices they are your proof of purchase. Keep a formal inventory of what these documents relate to, and where the software has been deployed, in a safe place. More information can be found in the Managing and Maintaining Records section on page 31. *Turn to page 61 to find out about Microsoft s Product Identification Service

15 Procurement policies and procedures How do employees request copies of software or upgrades of existing software programs? Specifically: Who makes the acquisition decisions and on what criteria are these based? From which vendors is the software acquired? What effort does your business make to find the best pricing? We recommend that all software be purchased through the IT department and that users must obtain approval from their manager to do so. We also recommend that software is not paid for by cash, credit cards or on general expenses. If all software is purchased centrally, detailed purchasing records can be maintained. Software installation procedures Who is responsible for the software when it first arrives? Who records serial numbers, sends in the registration, and records this information? We recommend that the Software Asset Manager (or someone authorised by him/her) is the only person authorised to install software. We also recommend that manuals (if supplied), along with other materials (e.g., Certificate of Authenticity (COA), End User License Agreement (EULA) and CD-ROMs with the Once software is installed on the hard drive, the original software CDs should be locked in a secure storage facility with a tracking number to help identify who the supplier was and when the supply was made which the Software Asset Manager will be responsible for maintaining. Carry out basic checks to make sure the software is legitimate Software packages should typically contain a license document with a serial number, a registration card and a manual. If you are buying multiple copies of software for use on a number of computers, (e.g., through a volume licensing program such as Open or Select), you will receive only one license document. Preinstalled software supplied with computers may only have an electronic manual. Check the packaging Poor quality labels, photocopied manuals and the like are often signs of pirated software. (For information on the Microsoft Product Identification Service, please see page 61.) Obtain original licenses and receipts for each purchase. software program), should reside permanently in the IT department

16 Disposal of software What happens to the old copies of software that have been upgraded or are no longer used? Retire obsolete workstations The software inventory process will let you identify and retire workstations and the accompanying software that are no longer in use. You should note that Microsoft software acquired with the purchase of a new machine (also Electronic licenses Where licenses are electronic only (e.g., Microsoft Open or Select), then a notification procedure should be followed, in accordance with the terms of your relevant license agreement. Change of ownership Change of ownership and responsibilities must be evidenced in writing. Where licenses have been registered to a specific named organisation, we recommend that the change of ownership document is stored safely. known as "OEM software") is not transferable to new or other workstations and must be retired along with the PC. However, software purchased through Microsoft retail (Full Packaged Product) and volume licensing programs can be redeployed to other PCs, in accordance with the terms of the License Agreement for those programs. This can provide your business with additional savings. Transfer of licenses If an organisation being acquired or divested has been part of a larger organisation, it is possible that its software licenses have been ordered and are owned by an affiliate which is not part of the divesture. In this situation, licenses do not transfer automatically, but must be formally transferred. Technical Ensure that the software being requested is on the company's list of supported software. Standardise software If you discover that employees are using out-of-date or various versions of software programs, this may be a good time to look at standardising the software usage through upgrading existing licenses. This can often lead to greater productivity, as all employees are standardised on the same version of software, thus reducing file share or transfer issues and promoting greater employee efficiency. You must read your own agreement for details, but the following are general principles: Physical licenses Physical evidence of licenses must be transferred where this exists. (Refer to the Guide to Licensing section, beginning on page 48, for more details.) 28 29

17 Review procedures Managing and maintaining records It is usual to find that software acquisition is not coordinated well between one department and the next. In such a case, centralising the software acquisition function could lower costs by allowing you to take advantage of volume licensing options. Further, those businesses who centralise their software acquisition tend to: 1. Exhibit greater compliance with license terms and conditions. 2. Generate cost savings by purchasing the correct type of license as it is Principal inventory databases Installed software inventory Hardware inventory License inventory generally known what existing licenses are on hand and whether these licenses can be upgraded or not. 3. More readily align the software IT budget with actual spending against that budget, which can lead to more efficient resource allocation. All of the above points in this section should be addressed in your company s procedure for Software Asset Management to ensure consistency, to aid in the record-keeping process and to generate cost savings for your business. The software register A software register is the simplest way of keeping tabs on the software you are using, helping you to control purchases and upgrades and pre-empt potential license problems. Create an inventory of all the software you use Record the product name, version number and serial number for every software program loaded on every computer. Note down the same details for software you have not yet installed. If you own licenses which allow you to use multiple copies of a piece of software, record how many copies are installed, and on which computers. Include details of any software preinstalled on computers you have bought

18 Keep all the information in a secure software register. Hardware register You may want to design your own software register or consider using an off-the-shelf product. Many solutions are available with a range of functionalities from simple inventories which must be updated manually to more sophisticated inventories which are updated automatically by software scanning tools. Locate the exact number of workstations deployed in your organisation. Know the quality, type and function of hardware. Create a Hardware Asset Register where all stations and servers are logged. A list of some of today s most popular Software Inventory and Asset Management Tools can be found at This information can also be found on the Software Asset Management CD, * which is inserted into the front of this guide. N.B. This is not a Microsoft endorsement of any particular tool. If you are in the process of selecting a tool, we recommend you extend your search beyond what is listed on this Web site. Store original software and documentation securely As with the software register, you may wish to consider off-the-shelf solutions. The more complex solutions will combine software and hardware registers with automated software scanning capabilities. Such tools can often deliver benefits outside of Software Asset Management, such as the ability to remotely take control of PCs for help desk support. A list of some of today s most popular Software Inventory and Asset Management Tools can be found at This information can also be found on the Software Asset Management CD, * which is inserted into the front of this guide. This should include original software CDs or floppy disks, and any manuals, Certificates of Authenticity (COA), license documents and invoice details. (Note that you should not attempt to remove COA labels that are affixed to your PC.) If you cannot find all the relevant information, you may want to contact the software publisher to check that your software is legitimate. N.B. This is not a Microsoft endorsement of any particular tool. If you are in the process of selecting a tool, we recommend you extend your search beyond what is listed on this Web site. File manuals and documentation properly so you can find them easily. *This CD carries out its review remotely on your systems and servers and produces a report for your review. It does not transmit any information to Microsoft

19 License register Locate licenses or other proof of purchase documentation and summarise the number of total licenses owned. Proof of license purchase may exist in a number of forms, depending on the type of license you have acquired. Please refer to the Guide to Licensing section, beginning on page 48, for information and examples of Microsoft license proof of purchase. Good Software Asset Management provides good Software License Management as an inexpensive by-product. It provides benefits which are greater than the associated costs. For example, Software Asset Management addresses the areas of help desk support, version control, and deployment planning which allows an organisation to respond quickly to changing business requirements and opportunities. With volume licensing programs, e.g., Open or Select, license confirmations from Microsoft, either hard copy or electronic, are the only legal evidence that a license is owned. The certificate sent by some resellers as a proof of purchase is not proof a license is owned. It is the responsibility of the enduser organisation to check that they have received the appropriate Microsoft License Confirmations. Microsoft Enterprise Agreements do not eliminate the need for Software License Management. They just simplify the process and reduce the volume of work required for the software products covered. Proper systems and procedures are still required for these reduced requirements. Furthermore, standard Software License Management requirements will continue to exist for all software not covered by Enterprise Agreements. Ongoing management and review Ongoing management Effective Software Asset Management is a continual process. You need to monitor adherence to your organisation s software policy, and perform periodic reviews of the software, hardware and license registers to ensure they remain accurate. It makes sense to have someone within your company responsible for these review processes. Review of procedures The procedures you have designed for good Software Asset Management are there to protect against the risks mentioned earlier in this guide. It is, therefore, a good idea to review the procedures from time to time to ensure that they still address the risks appropriately. For example, a company may wish to change its Software Asset Management procedures if there has been a development in technology which will help in reducing the administrative effort for a particular process. It is also appropriate to perform reviews to ensure that the processes which have been defined are actually being followed

20 Review of registers Unfortunately, it is a fact of life that records become inaccurate over time. Tools and Resources It is therefore important to perform periodic checks on sample workstations to ensure that unapproved software has not been installed. As with hardware and software, license registers should periodically be reviewed to ensure all purchases have been included and all important license documentation can still be found. If your organisation has an audit function, this is probably the best group to perform the review of procedures and determine the accuracy of the registers. We recommend that you carry out such a review once a year at the very minimum. This publication is just one element of Microsoft s campaign to help customers understand how to manage software in their business and to ensure their licensing is fully compliant

21 Software management tools Software Inventory and Asset Management Tools There are many Software Inventory and Asset Management Tools available on the market. Software Inventory Tools primarily inventory the software installed on PCs, while Software Asset Management Tools are designed to help you manage your network of computers and the associated software. A list of some of today s most popular Software Inventory and Asset Management Tools can be found at This information can also be found on the Software Asset Management CD *, which is inserted into the front of this guide. N.B. This is not a Microsoft endorsement of any particular tool. If you are in the process of selecting a tool, we recommend you extend your search beyond what is listed on this Web site. *This CD carries out its review remotely on your systems and servers and produces a report for your review. It does not transmit any information to Microsoft. Microsoft Software Inventory Analyser The Microsoft Software Inventory Analyser (MSIA) * is a tool made available by Microsoft at no charge, designed to help businesses conduct an inventory of their key Microsoft software programs. It's easy to use, lets you perform the inventory yourself, and works whether you have a single computer or are part of a networked environment. After running the tool, a summary report of Microsoft Product Installations will be generated which will allow you to enter corresponding license purchase information for a complete analysis of your company s license compliance status. It takes only a few minutes and it's easy to do. *Internet connection required. Reports The MSIA generates a summary report of the core Microsoft software products it discovers on your machines and provides a table for you to add license information so you can quickly and easily determine if your software is correctly licensed. Language support The MSIA tool and interface are both written in English; however, the MSIA does identify international language products

22 Systems requirements You can run the MSIA on any computer with the following characteristics: Microsoft Software Inventory Analyser Step-by-step guide An Intel 486 or greater processor, 25 MHz or faster. Each step of the MSIA program has been documented here to help answer At least 2 MB of free hard disk space to run Setup. Microsoft Windows 95 or higher operating system. Note that if you are attempting to inventory a network of PCs which utilise Microsoft Windows 95, Windows 98, or Windows Millennium operating systems, there are a few initial procedures necessary for the scan to work. any questions you may have as you run through the MSIA Wizard. The MSIA can be found on the CD inserted into the front of this guide. 1. The welcome screen The welcome screen briefly states the purpose of the tool. 2. Local or network scan The MSIA provides the option of scanning either the local machine or the Microsoft Windows Network. Sample screen is shown. If you select "Network" as the mode of scan, the screen will appear as shown

23 If you chose "Network scan" mode, you must have administration rights over the network you chose to scan. The MSIA will use the user name and password used to log on to the current machine as the default setting. If you do not have such rights and would like to log in under a different name, click the Login As button which appears as follows: 4. Download updated data files Using this screen, you can download the latest version of data files from Microsoft's Web site. This step is necessary only if you are running the product from a CD or disk, 3. Machine selection This screen displays the entire network in a tree view, and appears only if the "Network scan" mode option was selected. Selecting a domain will select all the machines in the domain along with child domain's machines, if any. as the database of Microsoft Products may have been updated since the CD or disk was produced. If you are downloading the MSIA from the Web site at the database will be current and there is no need to download updated files. To download the latest version of the data files, click the "Download..." button. Please note that you need to have Internet connection for this operation to be successful. Please note that you need to select a minimum of one machine for scanning. 5. Product selection Using this screen, you can specify the products you wish to scan for. Please note that you need to select a minimum of one product to scan for

24 6. Report formats Using this screen, you can specify the report formats in which you wish to view the results of the scan. You can have the report generated in one of the following three formats: 8. Scanning This screen displays the approximate percentage of progress with regards to the scanning process. If "Local Machine" scan mode was chosen, the progress bar graphically HTML Excel Text indicates the amount of progress. The text below the progress bar denotes the folder being scanned. You can specify the path for storing the reports in the Select a directory for reports text box. Please note that the applications required for generating and viewing reports need to be present in your machine. For instance, Microsoft Excel 97 or above should be installed in the machine to generate and view reports in Excel format. If "Network" scan mode was chosen, the text below the progress bar indicates the number of machines scanned and the total number of machines yet to scan. The progress bar will graphically indicate the same. 7. Confirm settings Use this screen to verify the settings for the scan. Clicking the Scan button will initiate the scanning process

25 9. Completing the MSIA Wizard This screen appears at the end of the scanning process. If the View reports now check box is selected, the chosen reports will be displayed after clicking the Finish button. Want to know more about Software Asset Management? Check out our Web site at or, alternatively, refer to the Software Asset Management CD at the front of this guide. At this time you may hit the "License" button which will allow you to enter information regarding your company s inventory, which should correspond to the software programs installed. If there is a discrepancy, you need to purchase appropriate licenses to cover the shortfall. Please refer to the Guide to Licensing Section, beginning on page 48. Please note that the settings you selected using the wizard will not be saved if you do not click the Finish button. Back and Cancel buttons are disabled in this screen. Unsure about the legitimacy of the software you've purchased? Microsoft s Product Identification Service can tell you if the software you have bought is genuine or not. We do not charge customers for this service. For more details about this service, visit See the Anti-Piracy section at the back of this guide for more details on the Microsoft Product Identification Service. Unsure how to license your business? Check out the details on all Microsoft licensing programs that could provide your business with significant volume discounts on Microsoft software. Visit our Web site at or call the Licensing Hotline on

26 A Guide to Licensing and Anti-Piracy Microsoft has many licensing programs to meet the differing needs of customers. Microsoft licensing what to look for The information on this and the following pages changes from time to time. Please check for the most up-to-date information. Preinstalled software on new PCs (OEM software) The program and product specifics can vary greatly. The information contained in this section will help you determine the right licensing program for your needs. Additionally, you will learn what anti-counterfeiting features you should look for when purchasing specific products as well as the documentation you need to retain to verify license compliance. When you purchase a new PC, it should be preinstalled with an operating system, such as Microsoft Windows. To ensure you are getting genuine Microsoft software with your PC purchase, you should first look for the Certificate of Authenticity (COA) label affixed to your new PC. The COA assists you in determining whether your Microsoft software and components are genuine. The COA has a holographic strip that reveals the words Microsoft and Genuine. The product name and a unique product key are in the centre of the label and the How to Tell URL appears at the bottom of the label. COA labels are not designed to be removed. In addition to the COA label, you may also receive an OEM Product CD. The CD or DVD will be clearly marked with either the PC manufacturer s brand or an edge-to-edge hologram CD. (Please refer to the Retail product section of this guide on page 51 for more information on the edge-to-edge hologram CD.) 48 49

27 See Microsoft s How to Tell Web site at: for detailed information on Windows operating system security features. In order to establish license ownership, you should retain the End User License Agreement (EULA), which is the agreement between the PC manufacturer and the end user; the COA; media; manuals (if applicable); and your purchase invoice and receipt. You should not attempt to remove the COA label from the PC. PCs may also come preinstalled with application software such as Microsoft Office. To ensure you are getting genuine Microsoft application software, look for the COA. The COA is not required to be affixed to the PC chassis and may be found on the product CD wallet, the product manual and/or the product jewel case. Certain preinstalled Microsoft applications such as Microsoft Office XP incorporate the edge-to-edge hologram CD as Retail product Sold in single-unit quantities at retail outlets and by Microsoft resellers, retail Full Packaged Product is packaged in boxes as shown and typically includes media and documentation. It is ideal for low-volume software needs, such as companies with fewer than five PCs. To assist in determining if you have a genuine Microsoft product, look for the COA label on the box top. The heat-sensitive green dot changes colour from green to yellow when lightly rubbed. The document that serves as your proof of license is the EULA, which may be enclosed in hard copy form or online within the software product. To establish license ownership, you should retain the hard copy EULA (if enclosed), COA and a copy of your purchase invoice. Microsoft s family of Windows and Office CD-ROM retail products feature edge-to-edge hologram technology. described on the previous page. In order to establish license ownership, you should retain the EULA*, the COA, and your purchase invoice and receipt. *N.B. The EULA may be online within the software product

28 You should be looking for these special CDs to confirm that the retail products you ve purchased are genuine. The hologram covers the entire surface of the CD and when tilted in the light, the product name and product-specific graphics are revealed from the hub to the outer edge of the CD. The hologram is produced on the CD. It is not a sticker. Open License 6.0 Best for customers needing as few as five licenses, Open License is a great way to save on genuine Microsoft products. Under Open License, you determine the number of software products you wish to license, place an order with a participating Microsoft reseller, and obtain the licenses you need. You may then install the software by ordering media directly from Microsoft. Your proof of license is posted on a secure site on the Internet at Log on using your Microsoft Passport ID and your unique Open License Authorisation number(s) to verify the number of licenses purchased. The terms of your license, such as license grants, conditions, etc., are in the Open License agreement, which is also available on the eopen Web site. Visit for more information on Open License. N.B. Full versions of Microsoft Operating Systems are not available via Microsoft s Volume Licensing programs only operating system upgrades. You must acquire full version operating system products via the OEM or retail channel. Select License 6.0 Microsoft Open License 6.0 offers you two great ways to save on Microsoft products: Open Business allows customers to save on estimated retail prices by placing an initial order for five or more licenses. With Open Business, customers can combine any set of Microsoft products to qualify for the five-license minimum. Best for customers with 250 or more PCs and mixed Microsoft product requirements, the Microsoft Select License is available through Microsoft authorised Large Account Resellers (LARs). Select Open Volume potentially saves you even more if your organisation is able to make a larger initial order in one or more product pools (applications, systems, servers)

29 Under the Select License, customers receive volume discounts based on a three-year forecast of products required. There are three product pools (applications, systems and servers) available for forecast under Select License, and point values associated with each product within the pool. Visit for more information on Select Licensing. After you have signed your Select Agreement, you will receive a Welcome Kit from Microsoft. This kit will contain Microsoft software CDs, based on the product pools you have selected. On a monthly basis, you are required to submit to your Large Account Reseller (LAR) an order for the number of units of Microsoft software you have installed during the past month. Your LAR will invoice you and pass the order on to Microsoft. Please refer to your Select Agreement for further details on complete proof of license requirements. Your signed Select Agreement and Product Use Rights will contain the terms of use applicable to these products. You should retain these documents which define your rights and obligations under the agreement. N.B. Full versions of Microsoft Operating Systems are not available via Microsoft s Volume Licensing programs only operating system upgrades. You must acquire full version operating system products via the OEM or retail channel. Enterprise Agreement 6.0 The Enterprise Agreement is designed for customers with 250 or more PCs who want to standardise on certain Microsoft products and have the ability to centrally purchase and track software. The Enterprise Agreement is available through Microsoft authorised Large Account Resellers (LARs), or Enterprise Software Advisers (ESAs). Enterprise Agreement Enterprise Agreement customers choose to standardise their selection of Microsoft products for the three-year term of their Enterprise Agreement. The price is based upon the number of qualified desktops within a defined enterprise and is divided into three equal annual payments. During the term of an Enterprise Agreement, you are permitted to run the chosen Microsoft products on all desktops, including those added after signing the agreement, subject to an annual True Up requirement. An Enterprise Subscription Agreement gives you the ability to lease your software licenses, while staying current on the products over the term of the agreement

30 Under the Enterprise Subscription Agreement, you do not own the product licenses but, rather, the rights to use the software for as long as you continue to maintain your Enterprise Subscription Agreement. If at the time your Agreement expires, you elect not to renew with either the one- or three-year option, then you relinquish your rights to continue running the software. After you have signed your agreement, you will receive a Welcome Kit directly from Microsoft. This kit will contain Microsoft software CDs, based on the product pools you have selected. N.B. Full versions of Microsoft Operating Systems are not available via Microsoft s Volume Licensing programs only operating system upgrades. You must acquire full version operating system products via the OEM or retail channel. Academic and Government product Special Academic and Government pricing is available to qualified entities under numerous Microsoft Licensing programs. Your signed Enterprise Agreement and Product Use Rights will contain the terms of use applicable to these products. You should retain these documents which define your rights and obligations under the agreement. Visit for more information. Academic programs Retail Academic Product. Sold in single-unit quantities by Microsoft Authorised Education Resellers, Retail Academic product is packaged in boxes as shown and may only be purchased by customers who meet Microsoft s qualifications for Academic pricing

31 Academic Volume Licensing Programs. Academic product is also available via Microsoft s Volume Licensing programs such as Academic Open License, Academic Select License Agreement, Campus Agreement and School Agreement. Visit for additional details on Academic licensing options and for Academic eligibility requirements. Government Open License program Special government pricing is available via the Government Open License program. This volume licensing option is available to eligible small- and medium-sized government entities and is ideal for those who need to purchase smaller quantities of licenses and need a simple and flexible model. Visit for additional information on the Government Open License program. N.B. Proof of license requirements for Academic and Government product are identical to that of commercial entities; however, you must first ensure you are eligible as an Academic or Government entity. Anti-Piracy guide What is software piracy? Software piracy is the same as software theft. It can take many forms and happens for many different reasons, whether intentional or through lack of awareness: 1. End user copying/corporate copying Unlicensed software copying by individuals or businesses. Alternatively, in the case of volume licensees, it can mean under-reporting the number of installed copies of software. 2. Hard disk loading Practised by dishonest OEM system builders or dealers who sell PCs with unlicensed software preinstalled. The dealers use one copy of a program to install illegal copies on multiple machines. Original disks and documentation that should come with the PC are often missing or incomplete and in many cases, where they are supplied, they are counterfeits. 3. Counterfeiting This is when software and sometimes its packaging is illegally reproduced to look like the real thing and is then onsold (often to unsuspecting resellers or customers) as being genuine