Successful contract license management is a key factor in remaining in compliance.
Here are the key steps in the process:
·Forecasting – looking at what is needed and getting the necessary approval. In this step you must also be sure that your licensing meets your architecture.
·Negotiation – Go in and negotiate with your vendor, this can be done at anytime and the process will vary depending on what you need.
·Repository – Update, update, update! Be sure to continuously update your repository to be sure that you are in compliance. The repository will give you the foundation for determining whether you are in compliance and give you the centralized database that everybody in the company who has their hand in it will know what is going on. A thorough repository will also keep you prepared should you face an audit.
One of the big benefits of having a repository, an inventory of your licensing, is to better leverage the flexibility of your license types.
Just when you think you have everything in order, another new Microsoft release comes out and you are faced with the decision of whether or not to upgrade or just stick with what you have installed. The option of upgrading to the new Office 2010 has many organizations pondering whether or not they really need it, and can sacrifice the costs to do so, especially considering the current economic climate.
For those organizations that have Software Assurance (SA), you are in luck. You may not need to pay to upgrade as its part of your SA contract. Those that opted out of SA, or smaller businesses that are buying their software from the local Staples of Office Depot are facing a significant spend to upgrade. There is, however, a loop hole. Yes, a Microsoft loop hole! If you currently have Office 2003, you should consider upgrading to Office 2007, and then to Office 2010. Because Office 2007 offers upgrade pricing, which gives you a discount not available with Office 2010, you could save as much as $200 per installation.
If you want to upgrade from Office 2003 to Office 2010, you have to buy, install, and validate a copy of Office 2007. Then you will get a free upgrade from Office 2007 to Office 2010. So, you can move from 2003 to 2010 for the discounted cost of moving from 2003 to 2007. The only downside is all the extra installation time and effort.
Two things to watch out for when considering this move on the licensing front – pay attention to each version and the licensing terms. You may need to buy a specific version of 03 and/or 07 in order to qualify for the right free upgrade. If you really want to upgrade, and save some money while doing so, make sure you have copies of Office 2007 handy, or get them while the getting is good!
No matter what day or week it is, we’ll always get a question about “how else can we use our license” with a very specific example. The short answer is - you must always use licenses as they are intended for use, otherwise you will be out of compliance, and penalties can be steep! We understand that there are a lot of gray areas in your licensing agreement, but this usage is usually not one of them.
One example of this is the Microsoft Developer Network (MSDN), one of several subscription-based offerings from Microsoft. It gives a licensed user access to many tools, to support forums, to trial version software, and many more features. However, the applications supported by the software available under the MSDN subscription can only be used in a development environment. Once these applications are deployed in production, the proper licensing is required. For example, SQL Server can be downloaded by an MSDN licensee. Once the application is to be deployed in production, SQL Server licensing for the production environment must be purchased. However, one of the benefits of MSDN is that licenses do not have to be purchased for proof-of-concept initiatives.
Be sure that you are properly licensed at all times, non-compliance is a big issue and most organizations don’t even realize they are doing it!
Some good news regarding Microsoft licensing in virtual environments - near the end of March, Microsoft announced that customers with active Software Agreements on Windows desktop software can freely access virtualized Windows desktop instances without additional charge. This is an important and welcome departure from the prior model of Virtual Enterprise Centralized Desktop (VECD) which resulted in additional costs to customers contemplating the move to a virtual desktop environment.
The critical point here, of course, is an active Software Assurance agreement. Recent cost cutting measures, coupled with reluctance in moving from the stability of a Windows XP platform to the Vista platform, have resulted in Software Assurance being dropped in some instances.
For all of you that are using Itanium versions of Microsoft products, be aware that the company plans on phasing out support of the architecture. Don’t panic though - this process will take about 8 years to fully take effect. Microsoft claims that Itanium is being replaced but more capable technologies from makers Intel and AMD, and will be the way of the past in a few short years, although Intel has just introduced a new version of Itanium as recently as February.
According to Dan Reger of Microsoft, Windows Server 2008 R2 will be the last version of Windows Server to support Itanium along with SQL Server 2008 R2 and Visual Studio 2010, which have yet to be released. Windows Server 2008 R2 will be supported until July 9, 2013, while extended support will continue until July 10, 2018. Red Hat is also mimicking Microsoft as phasing out support as well.
Online services are one of the easier licensing models from Microsoft. Yet, even simpler are developer tools - one license is required for each user that accesses the software. Regardless of how many copies are installed on however many of devices, each user must be licensed individually and the software must be used only to “design, develop, test or demonstrate” programs.
In order to remain in compliance, be absolutely sure each user is licensed properly and you use the software as intended for development and development only!
Microsoft online services, which are growing in popularity, are a subscription-based model and are very specific in its use. Licensing is much simpler to decipher, especially due to the lack of hardware associated with the service. Just like any other web-based service, you can buy one or multiple licenses, or a company-wide unlimited usage plan. For certain products, such as Forefront Protection for Exchange, you can purchase it in either a per device or per user subscription, dependent on your Exchange licensing model.
Online services are great for companies that need a Microsoft product, but don’t want to commit to purchasing them or, for example, will only need to use the service for a limited time. The subscription-based model makes licensing simple and is great for companies on the go, because they can be accessed from anywhere.
With Microsoft desktop operating systems (OS) are surprisingly simple when it comes to licensing. For each physical or virtual client that uses that operating system you can install one copy per license. This includes thin clients also. The only exception to this rule is if you have a volume licensing program - the desktop OS license is an upgrade. Typically, the licenses that come with your PCs when you purchase them are considered base licenses; therefore, you should only have to apply a volume licensed desktop OS license and you will be set.
Microsoft users with software assurance (SA) have the advantage of being allows to run up to four additional copies or instances of the OS without purchasing extra licenses. This will come in handy for virtualization.
For Desktop applications - a single license is required for each physical device running or accessing the software, therefore you may be required to purchase additional licenses if you have a virtual or thin client accessing that application.
