Microsoft Licensing Strategy
Microsoft Licensing Basics
How You're Licensed
Think of a software license as a permission slip. It's the official agreement that allows you to use a piece of software, like Microsoft Office or Windows Server. But not all permission slips are the same. Microsoft offers a few different ways to license its products, and the most common models are based on who or what is using the software.
First, there's the per-user license. This is the most straightforward approach for many modern workplaces. You buy a license for a specific person, and that person can install and use the software on multiple devices. This is perfect for employees who switch between a desktop computer at the office, a laptop on the go, and a tablet at home. The license follows the person, not the hardware.
On the other hand, you have the per-device license. This model attaches the license to a specific machine. Anyone who uses that computer is covered to use the software on it. This is a great fit for shared workstations, like computers in a factory, a library, or a call center where multiple people use the same machine throughout the day.
The key difference is simple: a user license follows the person, while a device license stays with the machine.
Accessing the Server
Now let's talk about servers. When your organization uses a server product like Windows Server or Exchange Server, licensing gets a bit more complex. You don't just need a license for the server software itself; you also need a license for every user or device that accesses it. This is where Client Access Licenses, or CALs, come in.
CAL
noun
A Client Access License is a required license that gives a user or device the legal right to access a Microsoft server.
A CAL isn’t software. It's just a legal document that grants access rights. Just like the main software licenses, CALs come in two flavors: User CALs and Device CALs.
| CAL Type | Best For | Example Scenario |
|---|---|---|
| User CAL | Employees with multiple devices | A marketing manager who accesses the company server from their desktop, laptop, and phone. |
| Device CAL | Shared devices with multiple users | A single computer on a warehouse floor used by three different shift workers to log inventory. |
Choosing Your Agreement
Finally, how you buy these licenses depends on your organization's size and needs. Microsoft packages licenses into different purchasing agreements. These agreements define the terms, pricing, and benefits of your software usage. Let's look at three common ones.
Choosing the right license isn’t just about the cost; it’s about access, scalability, compliance, and support.
The Enterprise Agreement (EA) is designed for large organizations, typically with 500 or more users or devices. It’s a three-year commitment that offers the best pricing for those buying in bulk. EAs often include Software Assurance, a benefit that provides access to new software versions and other support, helping a company stay current with technology.
The Open Value program is aimed at smaller to mid-sized organizations. It also offers a three-year term but with more flexibility. You can pay annually, and it provides a clear path to owning the software licenses permanently (called perpetual licenses) at the end of the term. It's a good middle ground for companies that are growing.
Lastly, the Services Provider License Agreement (SPLA) is for a completely different type of business. This is for companies that provide software services to other customers, like web hosting providers or managed IT services. Instead of buying licenses upfront, they pay a monthly fee to Microsoft based on how much software they used to service their customers. It’s a pay-as-you-go model tailored for service providers.