Understanding Microsoft Volume Licensing 6.0

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UnderstandingMicrosoft Volume Licensing 6.0

• Presented By SHI
• Bob Mathus
• SHI Licensing Executive

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Agenda

• Recent Licensing Changes
• Program Options
• Licensing Services
• Promotions
• Questions

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MVL Terms to Remember

• License provides right to the current version,
  no pre-requisite to purchase
• Software Assurance provides upgrades through
  the enrollment term
• License Software Assurance (LSA) Package
  that includes the right to the current version,
  as well as upgrade protection until the end of
  the term
• Upgrade Advantage gets you current and keeps
  you current can be purchase on non-current
  licenses until 7/31

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Announcement Timeline

• May 10th Microsoft announced Licensing 6.0, and
  the Software Assurance model
• October 1st Some changes took effect, launch of
  Licensing 6.0 (Open, Select, Enterprise)
• October 8th Microsoft extended the Transition
  Period extended till 7/31/02
• July 31st, 2002 End of transition period, last
  days to purchase Upgrade Advantage, protect
  current licenses, sign Select 5.0 contracts
• August 1st, 2002 - Steady state of new licensing
  model begins License Software Assurance

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Transition Period thru 7/31/02

• All Open License customers can purchase Upgrade
  Advantage receive 2 full years of coverage
• Select 4.X 5.X customers can purchase Upgrade
  Advantage coverage term will end at the end of
  the Enrollment term
• Can sign a new Select 5 Agreement allows UA to
  be purchased
• All customers can purchase SA on current
  licenses until 7/31/02 current includes Office
  2000 Windows 2000

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What is Current?
Current the most recent commercially available
product as of Oct 1, 2001 Commercially available
on Oct 1 licensing price list
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Timeline of Licensing Changes
August 1 Forward
October 1, 2001 July 31st, 2002
Steady State
Launch Grace Period/Transition Period
Consider available options

• Open Select 5 Customers can purchase UA on
  non-current licenses
• All volume license customers can buy SA on
  current licenses
• License Software Assurance available for all
  volume license customers
• UA is grandfathered into SA
• Select 6.0 is available
• Enterprise Agreement 6.0 (250)
• Enterprise Subscription 6.0

Match license needs with purchase
options License Only LSA UA/SA
Renewals Enterprise Options
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What are my Licensing Options today?

• New License
• License Software Assurance Package
• Software Assurance Only
• Upgrade Advantage (Open, Select 5)
• Upgrade Licenses continue to be available for
  Windows Professional Only
• Enterprise Agreement (Perpetual Licenses)
• Enterprise Subscription (Non-perpetual)

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Details on Software Assurance

• Provides Upgrades Updates throughout Enrollment
  Term
• Must be purchased with License (LSA Package),
  unless
• Renewal of previous UA or SA expiration
• Within 90 days of an FPP/OEM OS or Server License
  purchase Only No Applications
• Licenses are current available until 7/31
• Est Annual Software Assurance Pricing
• Server Products 25 of Full License cost
• Application Products 29 of Full License cost
• Windows OS 29 of Full Upgrade cost

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Benefits of Upgrade Advantage

• Gets you current and Keeps you current
• Multiple Upgrades
• Deploy at any time, even after UA coverage term
  ends
• Any previous product version is eligible
• Full 2 years of coverage is available
• Grand-fathered into Software Assurance
• Ability to renew through SA
• UA has same point value as underlying license
• No differentiation by purchasing channel

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Licensing Programs

• Open License no contract
• Government Open License Program (GOLP)
• Select License contractual
• Select 5.0
• Select 6.0
• Enterprise License- contractual
• Enterprise License
• Enterprise Subscription

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Program Comparison
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Open License 6.0 OptionsFor Small to Medium
sized companies

• Government Open License Program
• Term 2 Years
• Initial Order
• 5 Licenses
• Re-Order Minimum
• 1 License
• Payment Upfront
• Offerings
• License
• LSA
• Upgrade Advantage

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Select License 5.0 versus 6.0Both available for
new customers through 7/31/02

• Select 6.0
• Term 3 years
• License Offerings
• L, SA, L SA Package
• Upgrades OS Only
• Price Levels
• Level A 1,500 pts
• Level B 12,000 pts
• Level C 30,000 pts
• Level D 75,000 pts
• Payments
• Upfront or Amortize
• SA can be pro-rated

• Select 5.0
• Term 2 years
• License Offerings
• L, SA, LSA Package
• Upgrade Advantage
• Upgrades OS Only
• Price Levels
• Level A 1,000 pts
• Level B 8,000 pts
• Level C 20,000 pts
• Level D 50,000 pts
• Payments
• Upfront or Amortize
• SA can be pro-rated

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Enterprise Agreement 6.0

• Single price per qualified desktop every year for
  3 years
• Includes the right to get current and stay
  current across the Enterprise
• Ability to run the latest version of Office Pro,
  Win Pro Upgrade Core CAL at any time
• Ability to cover all Microsoft products with a
  single Annual Payment
• True up additional desktops licenses at the
  end of each year
• Renewal pricing reflects previous investment in
  the Enterprise Agreement

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Business Value of an EA

• Lower Total Cost of Ownership
• Access to the most recent versions of the all
  Microsoft Products
• Simplified License Tracking
• Reduced Risks of License Non-compliance
• Simplified Budgetary Planning
• Streamlined Ordering Process
• Renewal Pricing

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Enterprise Agreement Details

• Platform Products
• Office Professional
• Win Pro Upgrade
• Core Client Access License
• Price Levels
• A 250-2399
• B 2400-5999
• C 6000-14,999
• D 15,000
• Additional Products
• Added at EA price level
• True Up
• All licenses added annually
• EA Renewals
• Discounted pricing

• Changes with EA 6.0
• 250 Desktop Minimum
• Reduced Renewal Price
• SA Membership
• EA Level Select Level
• EA Level Addtl Product Level
• Coterminous with Select 6.0
• Ability to integrate with Services
• Price is set by Microsoft
• Payment is billed by Microsoft
• Licensing Web Services
• Introduction of Enterprise Software Advisor

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EA 6.0 Subscription Features
Same benefits as for EA plus

• 15 discount over new EA minimize cash flow
• Rental model possible tax advantages of business
  expense versus asset
• True up/down annual license price reflects
  current PCs desktop fluctuation
• Non-perpetual usage rights product usage rights
  terminate at the end of the enrollment term
• Buy out clause option to convert to perpetual at
  end of term
• 1 ½ times the 3rd year Payment

Subscription
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Core CAL replaces B/O CALOpen, Select
Enterprise

• Client Access License that provides the rights
  for desktops (ie, devices) to access the
  following servers
• Windows
• Exchange
• SMS
• Share Point Portal
• Servers must be licensed separately
• Replaces Backoffice Option
• Major Difference Share Point replaces SQL
• Core CAL - a convenient way to license desktops
  for intranet, networking, and collaboration

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Enterprise Software Advisor (ESA)

• Every EA must have an ESA named
• Microsoft sets customer price
• ESA assists in price comparison, cost analysis,
  contract completion, media management,
  establishing charge back initiatives, product
  licensing questions
• SHI is an ESA, also still a LAR (Select)
• agreement submission to Microsoft, annual True
  Up reports, Enrollment renewal
• tracking and reporting of license purchase
  history, reporting and order handling for
  additional products
• phone support for licensing program questions
  and issues, global licensing consulting

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What else is new with MVL?

• TechNet can be purchased through MVL
• Processor Based Licensing
• SQL, Biztalk, HIS, ISA, Commerce Server
• MSDN Subscriptions are the best value for
  developer tools
• Visual Studio .NET is here
• Through July 31st, 2002, customers licensed for
  the any Visual 6.0 Product are eligible for MSDN
  Software Assurance pricing
• Windows Advanced Server SA UA Promotion
• Cost Effective way to get to Win Advanced Server
• Win NT 4.0 - Win 2000 Adv Server Win Adv Svr
  UA

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Licensing Services thru SHI

• Electronic Software Fulfillment
• Customer Specific Downloads
• Compliance Consultation Service
• Establish License Mgmt Procedures
• License Re-Deployment Services
• Protect your investment in out of use Licenses
• Report Factory 2.0
• Updated Reporting services on www.shi.com

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Current Promotions

• Windows Advanced Server SA/UA
• Applies to existing NT 4.0 and W2K standard
  server licenses
• Valid from 09/01/2001 to 07/31/02
• MSDN Subscriptions
• Visual Studio.NET is available
• Valid through 07/31/02
• Office SBE UA
• Office SBE can be enrolled in Office Standard UA
• Valid from 01/01/02 to 07/31/02
• Project EA/SA/UA
• Project 2002 will be available on June 2002
  pricelist
• Migration/pricing consideration prior to 07/31/02

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Specific Government Promotions

• Microsoft Office
• Users of competitive Office Products
  (Corel/Novell)
• Eligible to purchase 2 years of Office XP UA
• Available to Federal/State/Local Govt.Customers
• Offer Valid through 07/31/02 via GOLP only

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Government Promotions Contd.

• Windows 2000 Client Access License
• Users of competitive Server products
  (Corel/Novell/Banyan)
• Eligible to purchase Windows CAL UA
• Available to Federal/State/Local Govt.Customers
• Offer Valid through 07/31/02 via GOLP only
• Server license not included

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Government Promotions Contd.

• Exchange 2000 Client Access License
• Users of competitive messaging/collaboration
  products
• Eligible to purchase Exchange CAL UA
• Available to Federal/State/Local Govt.Customers
• Offer Valid through 07/31/02 via GOLP only
• Server License not included

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Resources For You

• Volume Licensing Information
• http//www.microsoft.com/licensing
• Individual Program Information
• Product List
• Product Use Rights
• Link to eOpen Site (Open License Customers)
• Link to MVLS Site (Select EA Customers)
• Contact your local SHI and Microsoft
• representative!

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Questions?SHI MicrosoftThank You for your
time