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Understanding agreements – EA, ESA, SELECT

14th March 2012

There a selection of ‘channels’ that you can acquire a licence for Microsoft software products.  Depending on what sort of environment you wish to use the software, that is to say your home environment or a work/business environment, Microsoft provide a choice.

For home consumers, the popular choices are either purchasing software with a new machine or in a box.  The Original Equipment Manufacturer (OEM) licence supplied by the system builder provides adequate software and usage rights that suit most households.  The cost is attractive as well and some businesses have seen this as a way to license their computers.  However, be aware that the use rights place certain restrictions on how the software can be used, and provide a nasty surprise for organisations looking to use OEM supplied applications in a terminal services environment. 

Retail/boxed product licences provide easy-to-obtain software and licences, however this generally means for each licence there is a box – and those boxes will need to be stored.  The use rights again vary in that there is no downgrade right for applications, so generally speaking, businesses only purchase limited use products through this channel.

Businesses are provided with a selection of agreements through which to acquire their licences.  These are referred to as volume licence agreements and the most appropriate agreement for your organisation will be dependent on how you use your software; the size of your organisation; whether you wish to retain the right to upgrade to any new releases as and when they become available; whether you wish to ‘own’ the licences at the end of the agreement or just have the rights to use it for a specific timeframe; whether ‘standardisation’ across your estate is important to you; and whether you seek to enter into long term, or shorter term ‘contracts’.  Nowadays there is also a requirement to decide whether you wish the software to be ‘on’ or ‘off’ premise, as Microsoft now offer ‘cloud’ services whereby they can, and will, host the software for you. 

“Pay-as-you-go” agreements are Open License and Select Plus.  As and when you need licences you can purchase through these agreements and have the option to cover the licences with software assurance.  Open License is for organisations with 5 or more PCs, whereas Select Plus would be more suitable for larger (>250) organisations.

Open Value, and Open Value Subscription agreements are for organisations that wish to standardise their infrastructure and come with software assurance as ‘standard’.  The subscription agreement only provides the rights to use the software during the term of the agreement, so the rules that apply when the agreement expires need to be clearly understood.  

Larger organisations that wish to standardise their infrastructure have the option of entering into an Enterprise Agreement, or an Enterprise Subscription Agreement.   These allow an organisation to license all devices within its infrastructure with a standard set of licences. An annual ‘true up’ process ensures all devices are licensed at each anniversary.  Again the subscription type agreement means that when the agreement expires the rights to use the software are lost, so full understanding of the consequences should be understood.

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