Client Access Licenses (CALs) are needed when you would like your clients to access your server (s). You will see on many business websites a client log-in section which is a great tool for many types of businesses and are often used for customer service and even client communication. Of course, this incident has its own licensing requirements. Each device or user that plans to access the server requires its own license, whether it’s direct or indirect use of the server. (Note - a hardware partition or blade is considered a separate device to Microsoft so these must be counted as well).

There are two types of CALs - one for devices and one for users. Each device CAL permits one device, used by any user to access the server software. The user CAL permits one user, using any device - a combination of the two can be used, based on your needs.

Microsoft provides detailed information on which software applications require each CAL, which can be found here.

Tis a tricky game - this licensing!

There is a lot of talk about server licenses and how exactly it works. For each software license you acquire, you must assign that license to one of your servers. You can assign as many software licenses as you would like to one server but if you were to assign the software to more than one server you would be out of compliance.

One thing to keep in mind here also - a hardware partition or blade is considered a separate server, so would need its own licensing. Also, for each software license you assign, you can only run one instance of the software at any one time - this doesn’t include one physical and one virtual environment - its one or the other (which is why it is very important to be sure you have virtual employees logging into any server application).

If you need to reassign a software license you must wait at least 90 days before doing so. The only exception would be if you are having problems with the server and plan not to use it again.

No one said this stuff was simple!

Benchmark testing - although this may be something that seems like it should be done for your own benefit it’s important to know that Microsoft requires that you get their written approval before disclosing the results to a third party.

This does NOT apply to the following applications:

.NET Framework, Class Server, Live Communications Server, Systems Center Operations Manager, SharePoint Portal Server, System Center Data Protection Manager, System Center Essentials, Systems Management Server, Virtual Server, Windows Server, Microsoft Services for Netware, Windows Services for UNIX, Windows Small Business Server

However if your software contains one or more components of the .NET Framework you may conduct internal benchmark testing of those components. You may also disclose those results. You can find the complete terms here.

For Microsoft online services such as Live Meeting or Exchange Online, there are three kinds of licenses for these products dependant on the offering in which you choose to use and its requirements - meaning, you may or may have to license each of your programs differently should Microsoft ask for it. The first is a User or Device Subscription License which is required for each user or device that will access the online service.

The second - a services subscription license - applies to the entire company use of the service. Separate user licenses may also be required on top of the company license. The last type is called an Add-On Subscription license. These are not always required but occasionally are used to cover a measurement of some kind - storage used, consumed units, etc. These don’t apply to individual users.

Cold Backup for Disaster Recovery will expire if you let your Software Assurance expire on your servers.  This means that you’re required to purchase server licenses to replace the ones you initially received through your software assurance rights if you want to continue to use you Microsoft Server and Server CAL products.

The information can be found in Microsoft’s Product Use Rights Document within the Volume Licensing section.’

In the wonderful and confusing world of software licensing there seems to be some confusion between software assurance (SA) rights and software licensing rights, which comes to light when SA benefits expire and users aren’t sure what they are entitled to do at that time. The  difference:  the software license right is valid for as long as you own the license with or without SA; an SA benefit is only active for as long as you have coverage on your license.

A Microsoft Small Business blog came up with a great list of examples so when the question comes up about what happens when SA benefits expire, use this as a quick reference:

 License rights:

• Downgrade Rights
• Transfer Rights
• Re-imaging (network storage and use) rights

Software Assurance benefits:

• New Version Rights
• Home Use Program
• Windows Vista Enterprise
• Training Vouchers
• Microsoft E-Learning
• Employee Purchase Program
• 24×7 Problem Resolution Support
• “Cold” Backups for Disaster Recovery
• TechNet Subscription
• Desktop Deployment Planning Services
• SharePoint Deployment Planning Services

According to Microsoft, each user that you permit access to your software requires a license. Ok…you’r probably saying “duh, I knew that,” but read on, my friend.

You can install any number of copies of your software on any devices, for example and employee’s desk computer, laptop and perhaps a conference room PC, BUT, here is the clincher, only licensed users can access the software.

So let me put it this way, if a random person enters your office and decides to use the copy of Office 2007 you have in the conference room that will put you out of compliance.  Software audits don’t necessarily just following where the software is being installed, but WHO is using it.  Don’t be surprised if someone walks around “counting” the stations and taking names down as they do an audit.

Password protection isn’t a bad idea when you think about the hot water you could get yourself into.

Just like Oracle software licensing, Microsoft has its complexities as well.

When using a Microsoft application, you must license each device in which you will access the software (locally and remotely). You can install any version of the application you prefer, for example many users currently will use Office 2003 instead of the newer 2007 version, but if both are installed, 2007 must be licensed. The same goes for a server installation - if computers in your office are using 2007, the server in which may house a remote connection must also be licensed for 2007.

For Operating Systems, you will need a license for each device that accesses the software but can only install one copy on each device (versus however many copies of Microsoft applications you want you may install). When we look at Volume licensing however, these are considered by Microsoft as an upgrade license.  More information on that can be found here, along with a list of qualifying operating systems, which you must already have licensed in order to acquire an upgrade license.

Here are some quick and helpful tips for software asset management (SAM).

• Set Goals for your company’s SAM
• Take an inventory
• Match Software with Licenses
• Organize licensing documentation (create a repository)
• Plan for the Long-Term
• Develop a set of rules and procedures to promote good SAM practices
• Create a SAM plan to keep licensing in line moving forward