As mentioned in our previous blog about user rights, which has become a hot topic as many upgrade to the new Windows 7 platform, OEM licenses cannot be transferred from one PC to another. Therefore, they cannot be used to upgrade to a Windows 7 upgrade on another PC. OEM licenses are locked to the original PC it is installed on and cannot be transferred to any other PC.

There is one exception: you can add Software Assurance to qualifying OEM Office and OEM Server licenses within 90 days of the OEM software purchase to be able to receive transfer rights for those licenses. This will not cover the OEM Windows license however.

We often get questions from clients about transfer rights- when do I know if I can uninstall my software from a device and re-install it on another? For Microsoft….transfer rights are specifically laid out in your End User License Agreement (EULA) and will vary by product. For Volume licensing programs, the transfer rights will be listed in the Product Use Rights document.  Most retail software does offer transfer rights, however OEM licenses do not.  If your EULA does not specify about transfer rights - you do not have them. These documents are created to outline the rights that you do have, and will not include what you don’t have.

Depending on the product you purchased, your transfer rights may be very specific with a time frame. Many are limited to a 60 or 90-day period in between reassignment. Be sure to follow these specifications, otherwise you are considered non-compliant.

For all those out there wondering about Oracle licensing transfer rights….it’s much more complex, but I would recommend being much more circumspect and assume that you do not have the right to reharvest or re-install software or apps.

Since Windows 7 is now available and in high demand, we wanted to offer some resources for information on the product, where to get help and updates, etc. It’s a tough decision whether to switch or not, or when to switch. Hope these help you make the right decision for your business!

Microsoft has removed its grace periods on Software Assurance (SA) renewals for the following products on new contracts:

This is for new contracts, so if you have SA built into your current contract, you will still have your 30-day grace period until the end of your contract.

Even after the 2008 shutdown of TomorrowNow, we are often asked by company executives about third-party alternatives for Oracle support. While we understand that this is being driven by the need to reduce IT support costs, there are some distinct advantages and disadvantages.

Companies - such as newcomer Spinnaker - are creating opportunities for themselves with claims of cutting third-party support costs in half. And, since these alternative 3^rd party support providers are essentially cutting out the annual support and maintenance costs, it makes sense that they are saving you the cost of year-over-year annual fees. This can translate to millions of dollars. While, there are a lot of happy clients out there, enterprise IT organizations need to take into account whether or not it is prudent to completely cut out the annual support and maintenance.

Third-party support cannot always adequately fill the gaps left by the discontinuance of Oracle software updates and license support. It can, however, function in an important augmentative role to Oracle support (Though, we are told by one of the 3^rd party support firms that they have several clients that retain Oracle support in order to get access to a release). Several firms provide this support with various offerings, including long-term engagements for hosting, outsourced database administration, and performance tuning as well as one-time or short-term events such as migrations, upgrades and temporary or emergency staff augmentation. The costs associated with this additional support should be carefully assessed with regard to each organization’s unique requirements. Some firms primarily support Oracle Database, while others focus on Oracle Applications such as PeopleSoft, JD Edwards and Siebel.

Oracle offers software update and license support (SULS), which is mandatory for the first year, but clients can elect to discontinue SULS in subsequent years. However, we usually recommend against this for several reasons:

Other reading of interest:

Avoiding the Technical Risks of Third-Party Support

Is Oracle support or third-party support the better choice?

I keep getting request for information on one particular blog entry….I’m reblogging it here.

Oracle offers 3 licensing models for its installed applications to fit the unique needs of each organization: component pricing, custom applications suite pricing and enterprise pricing. Having different licensing models allow organizations to select the best combination for their operations. Not all products are available within each of the pricing models due to the Terms, Conditions and application features.

Oracle’s component pricing model is an a la carte pricing model that caters to customers with a limited number of users. This pricing model offers two basic licensing options - usage versus user-based licensing metrics.

Oracle’s customer applications suite (CAS) pricing model allows organizations to create custom bundles across all Oracle product lines including Siebel, PeopleSoft and JD Edwards to suit their users’ needs. CAS licensing is for customers standardizing on Oracle. Custom Suite User licenses are strictly defined as an individual authorized to use the application programs - whether (s)he is actually using them or not. There are a number of minimums and restrictions on CAS licensing.

Oracle’s enterprise applications pricing model assumes that Oracle is the standard enterprise software throughout the organization. The EA license model allows companies to license Oracle products for their entire organization without having to worry about keeping track of user licenses. This is, by far, the most costly option and the one with the most variants in its licensing metrics (there are 5 different pricing models with minimums requirements and restrictions on the EA licensing). The common metric is the minimum prerequisite of US$1 million in annual revenues.

The objective of these licensing models is to create a flexible enterprise software solution around an organization’s business, but licensing is rarely cut and dry.

It looks like there is a technical loophole that allows you to upgrade illegally. When Microsoft finally released Windows 7, there has been a lot of grumbling over Microsoft’s lack of direction on the upgrade process in the last few weeks from Microsoft Windows 7 testers.

Microsoft does not allow an upgrade from the pre-release version of Windows 7 - e.g. Windows 7 Beta or Windows 7 Release Candidate - to Windows 7 RTM. In fact, when you try, you’ll be blocked from the upgrade. As you’d expect, people are hacking the Windows 7 upgrade and circumventing the upgrade issue.  A number of bloggers out there have been spreading the word.

While Microsoft was unclear in its upgrading directions, it is clear that the Windows 7 Upgrade Install Hack is illegal. If you are getting around the EULA (End User License Agreement) by artificially upgrading to Windows 7 from the pre-release version, you’ve violated Microsoft’s intellectually property and have pirated the company’s software. With every MS install or download (including the test versions), you’re always asked to agree (or not) with the terms of the EULA. Lastly, if you purchase an Upgrade license for Windows 7, it very clearly states in the EULA - “To use upgrade software, you must first be licensed for the software that is eligible for the upgrade.”

Please remember that no OEM Microsoft Windows licenses can legally be transferred from one PC to another. We keep warning companies of the dangers of doing this.