Life Cycle for Software license Acquisition

Software license Acquisition Life Cycle

In this post following portion of the information will be the considered as result of my research and its outcome which would be treated as proposed Frame work of software licensing and its acquisition process for Small and Medium Enterprises.

Software License Acquisition Process

It is the process which enables the SMB industry to acquire appropriate cost effective/ compliant software licensing solution, help in designing and providing software licensing solutions, and its procurement process with asset management. I would like to discuss here the process of acquisition of licensed software and Asset Management using following lifecycle.
·         Analysis
·         Solution Design
·         Proposal
·         Procurement
·         Asset Management

Analysis Phase

Conduct comprehensive study of the SMB industry vertical by gathering following requirement.

Corporate Information

·         Existing hardware and software infrastructure
·         Existing licensing solution
·         Business Requirements
·         Problem Statement
·         Planned Changes in infrastructure
·         Business Goals
·         Stakeholders, IT Department, Procurement Department
Following parameters play major role to identify actual requirement.

Proposed Questionnaire Format for Industry

·         Corporate Information?
·         Company info?
·         Subsidiary info? if any
·         Number of employees?
·         Work environment? (Fixed/Flexible)
·         Employees allowed work at home?
·         Existing hardware and software infrastructure?
·         Centralized purchasing?
·         De-centralized purchasing?
·         Existing licensing Solution?
·         OEM /Volume license
·         Standardized platform
·         Non standardized platform
·         Business requirements?
·         Problem statement?
·         Planned changes if any?
·         Business plan?
·         Business goals?

Solution Design

After getting the report extracted during analysis phase Process of solution design starts with

·         Product identification

·         Study of different features of software version and product portfolio
·         Apply available licensing techniques
·         Solution designing
·         Comparison of proposed compliant solution

In Order to propose licensing solution, following actions are required by licensing specialist.

·         Conduct the complete analysis of the infrastructure
·         Ask them about procurement system adapted? Spread payment/Upfront
·         How they manage their software inventory?
·         What software and version is currently using?  Which will help to identify variations
·         Ask them about platform standardization in using software on all machines?
·         Ask Questions about databases, internet usage, security, reliability, scalability?
·         What are additional requirements and needs of the company?

Proposal Phase

After conducting above survey a comprehensive study of their system is required to identify their requirements.

Once we get their analysis report and during this Phase prepare complete proposal.

·         Product
·         Quantities required
·         Pricing info
·         Spread payment Plan if require.
·         Include software assurance benefits as per requirement.

Procurement Process

Following are the stake holders:

·         End User

·         Reseller

·         Distributor

·         Principal

Here is the procedure adapted in almost every business environment for procurement of IT assets including acquisition of licenses for software usage rights.

·         End user issue purchase order to reseller.

·         Reseller then issue their purchase order to distributor
·         Distributor issues purchase order or log the order electronically to software vendor/principal
·         Software vendor /principal issue licenses to end user by copying all above stakeholders

Note: For acquisition of software licenses, and to avoid delay in process, every stake holder involved in this phase make sure to have correct end user details, reseller’s details.

In order to go ahead with the process number 1, End user PO must include following End user Details that are considered as mandatory required by every software vendor or principal to process licenses, along with correct details and identification of the products and quantities proposed to end user.

·         End User Company Name
·         Complete Address
·         Contact Person
·         E-mail address
·         Telephone Number
·         Fax Number

Reseller issues the purchase order to distributor, using proposed solution, end user purchase order and appending reseller’s Information.

·         Reseller Name

·         Complete Address
·         Contact Person
·         E-mail address
·         Telephone Number
·         Fax Number

After receiving the purchase order from reseller with required Information, distributor will place software licensing order to Principal.

As soon as Principal receive the order for licensing for end user it starts their process their licenses, normally, principal directly send licenses info to end user by copying every stakeholder i.e. reseller and distributor to access their licenses.

As Principals do not sell their software licenses directly to end user, so their payments modalities will be in between:

·         End user to reseller
·         Reseller to distributor
·         Distributor with principal

Asset Management

After acquisition of the licenses Management of the these intangible assets are very important
An asset management system is an important, foundational piece of the overall systems necessary to manage IT infrastructure. Without a good asset management system the organization will waste time and resources managing inventory, buying unnecessary equipment and software, and maintaining license compliance for software. With a functioning asset management system the organization can expect to reduce the total cost of ownership for IT infrastructure and provide a solid foundation for the operational system necessary to keep the infrastructure operating efficiently.

In next post I will shed some light in benefits of SAM, Software Asset Management shortly.

Hope this post will be informative for you if you need further assistance i will be here to help you out in ractification of your business problems.

So please keep me in your prayers and take care.

Software Assurance, and its Benefits, Software Licensing

Software Assurance, and its Benefits

Microsoft Software Assurance (SA) helps Microsoft Volume Licensing users manage their business at each stage of the software management lifecycle. SA is a comprehensive maintenance program which aims to maximize end user’s investment by helping them.

·         Gain control of their technology strategy·         Improve the skills of their IT staff·         Decrease their support spending·         Effectively plan for new software deployments·         24x 7 business-critical supports·         Improved deployment and manageability·         Greater cost savings·         More technology protection

Software Assurance benefits are designed to help users realize the full value of their software investment throughout each stage of the software lifecycle, whenever they need it.

Benefits of Software Assurance and Services Offered

Cold Back-Up Disaster Recovery

Enables users with SA as well as related Client Access Licenses (CALs), to leverage complimentary ”cold” back-up server licenses for disaster recovery.

Corporate Error Reporting (CER)

Enables applications and operating systems to collect and report on crashes in the system. Gives the IT staff the ability to monitor and review error information and control the types of reports sent to Microsoft.

eLearning

Uses simulations, demonstrations, animations, hands-on exercises, and assessments to provide an engaging, effective learning experience for employees who need to upgrade their skills

Enterprise Source Licensing Program

Enables eligible users with 1,500 or more licensed desktops to access windows source code for internal development and support

Home Use Program

Enables employees to get a licensed copy of select Microsoft Office desktop programs for their home computer

Microsoft Employee Purchase Program

Gives users’ employees significant discounts off retail pricing on the popular Microsoft productivity and consumer products, Employees can order directly through a secure, Microsoft hosted e-commerce site

New Version Rights

Provide new software version releases to deploy at your users’ own pace.

Spread Payments

Enables users the flexibility to spread payments annually (available across all programs except Open License Business and Volume) instead of making one up-front payment, reducing their initial costs and improving their ability to forecast annual software budgeting.

Information Work Solution Services

Provides workshops for Open Value users with Software Assurance, These workshops enable users to fully take advantage of their IT infrastructure capabilities and productivity applications. Workshop options consist of the following:

·         One-Day Work Value Discovery: Helps business decision-makers prioritize projects that will have the greatest impact and lowest risk on their business.

·         Two-Day Information Work Architecture Design: Gives IT staff and technical decision makers a clear understanding of the required architecture for deploying the highest-value information work projects into their IT environment.

Desktop Deployment Planning

Help users the latest tools, technologies, and best practices for deployment (such as zero-touch deployment). Users eligible to receive on-site services have access to consultants who provide hands-on training and experience within the user’s environment.

Windows 7 Enterprise

The client operating system for enterprises, available exclusively as a Software Assurance benefit, Windows Vista Enterprise offers security and management features that help large organizations significantly lower costs and improve the efficiency of their IT resources.

Virtual PC Express

Offers advanced application compatibility, allowing users to run legacy applications on a virtual machine. Unlike Virtual PC 2004 which enables the user to run multiple virtual machines side by side, Virtual PC Express is limited to a single virtual machine.

24 x 7 Problem Resolution Support

Provides 24 hours a day, 7 days a week online and business-hour telephone support resources for business-critical outages on all Microsoft-supported products. Partners can call on behalf of users. Software Assurance users receive unlimited Web support (available during business hours) for Microsoft servers covered under their agreement.

Extended Lifecycle Hot-Fix Support user

Enables users to request hot-fixes in the Extended Lifecycle Support without signing up or paying an initial fee. User can only pay for extended support when a hot fix is required. Previously available, this support benefit has been enhanced to make it easier for users with a Premier or Essential Support contract to get the support they need as software transitions from Mainstream to Extended Support.

TechNet Plus and TechNet Managed Newsgroup

Provide low cost resources for IT staffs to quickly address their technical issues. These support options are only available to users with Software Assurance for server licenses and associated CALs. Benefits include:

·         Unlimited technical support from over 100 TechNet Managed Newsgroups

·         TechNet Plus subscription media, featuring resources like the Microsoft Knowledge Base, software updates, utilities, technical training, and how-to articles

·         Pre-release versions of Microsoft products, two complimentary technical support incidents, full-version evaluation software without time limits, and access to TechNet Plus Subscriber Online Services

·         Quick answers (without marketing content) directly from the people who made the product

Training Vouchers

Training vouchers are vouchers for training on any Microsoft official instructor-led and online courses, self-paced courses, and consultative learning services, which are available to IT professionals and developers from more than 1,600 Microsoft Certified Partners for Learning Solutions worldwide. Training vouchers may be exchanged for Information Work Solution Services days at a rate of 2 vouchers for each day of services.

Windows Fundamentals for Legacy PCs

Windows Fundamentals for Legacy PCs for software Assurance is a Windows-based operating system designed for users with legacy PCs who are running legacy operating systems and are not in a position to purchase new hardware. Windows Fundamentals provides the same security and manageability as Microsoft Windows XP SP2 while providing a smooth migration path to the latest hardware and operating system.

How to Choose Right Software Licensing Program?, Software licensing.

How to Choose Right Software Licensing Program?, Software licensing.

In this post we will discuss How to choose right software licensing solution on the basis of some questions and answers in flow.

Do you want to purchase 5 to 250 licenses or you are willing to buy software licenses for more than five computers?

If your answer is No then you need to consider Full Pack Product (FPP) for more than 250 you should consider Enterprise agreement or Select Agreement.

If your answer is yes then the question raised is:

Do you want to stay current with the latest Microsoft software licenses and spread payments over three years?

If your answer is No then Microsoft Open License Program is recommended for you because it offers savings on Retail Packs and it provides flexibility to acquire software licenses as needed.

Now if your answer is yes then the question raised is:

Have you or Do you want to standardize on Microsoft Windows, Microsoft Office or Microsoft Server Products?

If your answer is No then Open Value Non Company-wide is recommended for you as it includes Software assurance benefits such as right to use new version of licensed software and flexibility to spread payments over three years.

Now if your answer is yes then again another question appeared that:

Do you need the lowest up front cost, and/or do you want to subscribe to Microsoft software?

If your answer is no then go for Open Value Company wide Option as it provide additional savings to customers that acquire at least one platform software component like Microsoft Windows, Microsoft office or Microsoft Core CALs.

Well if your answer is yes then Open Value Subscription is suitable for you as it is an organization wide program that delivers flexibility and short term cost reduction of non-perpetual software licenses.

Hope this post will give you an idea to choose right licensing program for your software license acquisition process.

Open License Value Program, Software Licensing

Open License Value Program

Open License Value Program is the small and Midmarket user-led Software licensing offer for Microsoft. Open License Value Program provides additional payment options and Software Assurance benefits that can help improve the total value of Microsoft software solutions for your users and can strengthen your position as the IT resource with your user Options:

Open License Program

Open Value license program , Company Wide Option

Open Value Company Wide Option includes, SA benefits, the ability to spread payments annually, Support with tools and training, additionally, the Open Value Company Wide Option offers.

Open Value 

Additional saving opportunities include, a single price per desktop to organizations that standardize all their desktops (five desktop minimum) on one or more of the Microsoft enterprise software.

Enterprise software includes:

Microsoft Office Professional

Microsoft Windows Professional Desktop Operating System Upgrade

Microsoft Core Client Access License

This product is referred as Professional Desktop in Volume licensing terminology.

Open Value license program, Non-Company wide Option

Open Value 

Open Value license Program, Non-Companywide Option makes  software licenses easier to afford and manage than Open License Program through:

 Spread annual payments (optional upfront payment):

• One centralized agreement for an entire organization
• Monthly ordering
• Annual pro-rated Software Assurance costs for 2^nd and 3^rd year reorders
• Can be used for any set of 5 or more licenses
• L and SA, SA-only
• Easy pricing model
• Single price level
• Reorders at current pricing

Microsoft Open License Program Overview, Software licensing

Microsoft Open License Program Overview

To understand Microsoft Open license program, we need to focus on below key point.

User profile: Organizations that need five or more licenses for Open Business or at least 500 points for Open license Volume.

Software license options:  License Only, License with Software Assurance, Software Assurance Only.

Agreement Term:  The Two Year agreement term begin with each new initial order.

Payment Options:  full two year payment due upon ordering.

Minimum Order: Initial order of five software licenses or one server processor license.

Renewal Options: Open license business and volume agreements are non- renewal. Users new open license Program,  business or volume, agreements any time.

Renewal period: To Renew Software assurance coverage, users must place orders for SA within 90 days of their open license terms expiry.

Re order minimum limit: Minimum one license or Software Assurance can be ordered at the same pricing level throughout the two year agreement term using same authorization number under Open License Program.

Software Media: You can order Software media separately for licenses and may be ordered with initial order or later.


Open License Program is the best software licensing solution for SMB customers who are comfortable to start with as low as five licenses on upfront payment basis.

Software Licensing Solutions and Programs offered by Microsoft

Software Licensing Solutions and  Programs

In this post we will discuss variety of Microsoft's Software licensing solutions and programs in detail,
There are several factors involved while suggesting right software licensing solutions to the customer, or User.


Following factors need to be considered, the size of the organization, whether they want perpetual or non-perpetual software licensing, Software Assurance is required or not, and they want to standardize the software on all PCs in their organization or not.

There are several types of licensing solutions and programs options available for the customer.

Open License Business, 
Open License Volume, 
Open Value, Open Value with company-wide option and 
Open Value Subscription (where available).
and so on.

Open License Program

Under Open License Program are designed for the needs of SMB, includes corporate, academic, charity, NGOs and Govt. starting from only 5 software licenses

There are two techniques of software licensing under this program.

·         Open License Business
·         Open License Value

Open License Business

Under Open License programs map to the needs of corporate, small, and medium businesses. The Open License programs share many of the same features, but provide organizations with additional options.

This solution offer savings on estimated retail prices of full packaged products that can be opened with any five software licenses or one server processor license; additional orders may be for as few as one software license.

Open License Volume

This licensing solution offers additional savings to organizations that can meet the initial software license order quantities in one or more product pools (applications, systems, servers) it uses product pools and points to establish the entry minimum for price levels, Software Assurance is available for software licenses at the time of order. All Software Assurance begins at the time of order and ends when the Open License agreement term ends. Minimum points required under each pool is 500 points to be eligible to acquire this licensing solution.

Client Access Licenses, CALs, Software Licensing

Client Access Licenses, CALs 

Client Access licenses are used for accessing the services of the servers in infrastructure, user can purchase a CAL, Client Access Licenses (CALs) for either users or devices.

A Device CAL is assigned to the device and allows multiple users to use that device.

A User CAL is assigned to the user and allows that user to use multiple devices.

 Standard and Enterprise CALs

Some server products offer different levels of functionality that can be exposed to users or devices, and there are CALs that correspond to this functionality. The core functionality offered by the server is linked to a Standard CAL.

If the extended functionality is utilized, and then the purchase of an Enterprise CAL is required in addition to the Standard CAL.

CAL Suites

It can be advantageous for users to buy their CALs in suites. The two CAL suites are Core CAL Suite and Enterprise CAL Suite, and contain the following Cals.

Windows Server Cal
Exchange Server Cal
Sharepoint Cal
Lync Server Cal
System Center Conf. Cal
Forefront Endpoint Protection

Per Processor Licensing

License for each processor used by the product in the physical servers. These licenses entitle ALL internal and external devices and users to connect to the server and so there is no requirement for CALs.

License for each processor used by the product in the physical servers. These licenses entitle ALL internal and external devices and users to connect to the server and so there is no requirement for CALs.

Management Licensing

End User can purchase a server license for the Management Server. Managed client devices require Client Management Licenses, and managed servers require either a Standard Server Management License (ML) if running basic workloads or an Enterprise Server Management License if running application workloads.