A Microsoft software licence is defined as:

• Microsoft's software is protected as their intellectual property
• Microsoft does not sell software, they sell licenses to use the software
• Software must be used in accordance with the terms of both the End User Licence Agreement, any OEM licenses and the Product Use Rights for all volume licence purchases

This means that you never own Microsoft software, only the right to use it forever (perpetual licence) or until the end of their agreement (non-perpetual licence)

There is a variety of buying options available to you from Tek Response.

The three main ways are:

• Fully packaged retail product
• OEM Version (pre-installed on new hardware, the software lives and dies on that machine)
• Volume Licensing of which there are different types to suit all kinds of organisations.

Each licence type has its own set of conditions and transfer rights, Tek Response can guide you to the best option for you.

Here is a summary of the different licencing programmes available

Fully Packaged Product (FPP)

• Easy to purchase - bought in a box, off the shelf
• Perpetual licence (i.e. you own the right to use the software forever)
• Optional Software Assurance (which can be purchased within 90 days)
• Licence certificate is attached to the product
• Easy to install

Original Equipment Manufacturer (OEM)

Key features of OEM Licenses

• Pre-installed onto a machine by a System Builder
• Perpetual licence
• Cheaper than Fully Packaged Product
• Optional Software Assurance (which can be purchased within 90 days)
• Certificate of Authentication (licence "sticker") physically attached to PC
• Cannot be transferred to a different PC

Volume Licencing Programmes

Open Licence Programme

• Five licenses to start agreement
• Perpetual licence
• Cheaper than fully packaged product
• Optional Software Assurance
• Two year agreement
• Two discount levels - further purchases allowed for two years
• Easy to install and administer

Open Value (non Company Wide) Agreement

• Five licenses to start agreement
• Three year term
• Perpetual licence
• Software Assurance included
• Split payments over three years
• After final payment customer owns the licence
• Software Assurance can be renewed for further three years

Open Value Company Wide

• Five PC's to begin agreement
• Split payments over three years
• Perpetual licence
• Choose between desktop and small business platforms
• Standardising across environment
• Software Assurance as standard
• After final payment customer owns the licence
• Software Assurance can be renewed for three years

Open Value Subscription

• Five PC's to begin agreement
• Non-perpetual licence
• Three year agreement with annual payment
• Desktop standardisation required
• Choose between desktop and small business platforms
• Flexibility to decrease as well as increase the number of licenses
• Because not owned as an asset there is a potential tax benefit

Select Agreement

• Three year agreement
• Perpetual licence
• Software Assurance optional
• Minimum 250 PC's
• Pricing based on forecast of licenses needed over the agreement period
• Purchase licenses from Large Account Reseller (LAR)
• Monthly invoicing and payment
• Complimentary licenses for evaluation and training
• No desktop standardisation required

Enterprise Agreement (EA)

• Three Year agreement
• Two types of agreements
  • Perpetual
  • Non-Perpetual
• Software Assurance included
• 250 PC's minimum
• Desktop standardisation required
• Price based on number of PC's
• Spread payments over three years
• Software Assurance renewable on perpetual licenses
• Number of PCs can go up or down with non-perpetual agreement

Enterprise Agreement Subscription

Same as Enterprise Agreement with the following differences:

• One annual price per desktop
• Price level reflects number of desktops
• Renewal pricing based on licenses with Software Assurance
• Optional buy-out (licenses then become perpetual)

Software Assurance (SA) helps you at each stage of software management by providing access to valuable benefits such as training, deployment planning, software upgrades and product support to realise ROI faster and increase productivity at your organisation.

Plan	Access the latest version of software as you need it to keep your IT environment current. To help with budget planning, SA gives you the option to spread the licence payment over the term of your agreement.
Use	SA provides access to training classes and online learning courses to improve employee productivity. In addition you can access the software you use at work on your home PCs through the Home Use Programme available in SA As an SA exclusive benefit, you have access to additional tools such as Windows Vista Enterprise to help manage the desktop environment, which includes Virtual PC Express to assist with migration and application compatibility.
Transition	Customers that need to continue to run older technologies receive additional support through the extended hotfix support benefit. SA customers can access this support without the registration requirements and without having to pay the hotfix support registration fee.

You can also access security and management resources for migrating to the latest operating system while continuing to use legacy hardware, enabling you to more effectively plan your migration strategies.

Plan

Version rights. Receive new software version releases to deploy at your pace as they become available. This protects your company's investment while providing access to the most advanced software available. Reduce the costs associated with acquiring new version releases and immediately utiliise the latest technology.

Spread Payments. Take advantage of greater flexibility in managing technology expenditures with the option to make annual payments instead of one up front payment. Reduce your initial costs and forecast annual software budget requirements up to three years in advance.

Microsoft Windows Pre-Installation Environment. Build custom solutions that speed up deployment through automation. Windows Pre-Installation is a version of Microsoft Windows XP Professional that replaces DOS and can run Windows setup, scripts and imaging applications. IT staff will spend less time and effort keeping desktops updated.

Use

Windows Vista Enterprise. Windows Vista Enterprise is designed to help upper mid-market and large organisations lower IT costs and improve IT efficiency. Windows Vista Enterprise includes Windows BitLocker Drive Encryption, which enhances the protection of sensitive data. It also supports advanced application compatibility scenarios with Virtual PC Express and the Subsystem for Unix based applications (SUA). Windows Vista Enterprise takes that capability one step further by including all Windows user interface languages for integration into a single worldwide system image, for no additional cost. Windows Vista Enterprise is available exclusively to Software Assurance customers.

Microsoft Training Vouchers. Receive vouchers for training on Official Microsoft Learning Courses delivered by Microsoft Certified partners for Learning Solutions, the premier authorised training channel for learning products and services on Microsoft technology. More than 1600 learning partners worldwide offer official Microsoft instructor-led, online and self paced course and consultative learning services.

Microsoft e-learning. Provide your employees with access to individual, on demand Microsoft software courses, eLearning can be delivered online or offline and includes simulations, hands on excercises and learning assessments.

Home Use Programme. Increase employee productivity and maximise the value of your Microsoft Office desktop investments by enabling employees to work from home.The Home Use Programme allows employees to get a licensed copy of Microsoft Office desktop programs for use on their home computer. Eligible software includes the most widely-used Microsoft Office desktop programs.

Microsoft Employee Purchase Programme. Give your employees significant discounts on the retail pricing of Microsoft's most popular productivity and consumer products. Using the same software at home and at work provides employees flexibility, while great consumer products offer fun and excitement.

Enterprise Source Licencing Programme. Access Windows source code for internal development and support. Eligible customers with 1500 or more licenced desktops can make adjustments and improvements to systems and related applications and implement improved debugging to help maintain security and protect against viruses and other computer hazards. Eligibility and availability are subject to Microsoft terms and conditions.

Maintain

"Cold" backups for disaster recovery. Be prepared with complimentary cold backup server licenses for the purpose of disaster recovery. To qualify for this SA benefit you will need a Microsoft server licence as well as all corresponding CALs enrolled in active Software Assurance.

Technet Plus. managed newsgroups and subscription media - Tap into TechNet Online concierge Chat and post messages in Managed Newsgroups. IT professionals can access TechNet Plus Subscription content. The TechNet Subscription also includes access to beta release candidate software and evaluation copies of the latest applications.

Transition

Extended Hotfix Support. Enter into Extended hotfix Support Agreements as hotfix issues arise. Annual fees and required sign-up periods associated with EHSA are included in the Software Assurance agreement increasing peace of mind and reducing support cost. A premier of Essential support agreement is a prerequisite for eligibility.

Windows Fundamentals for Legacy PCs. Get the same security and manageability as Windows XP SP2 and benefit from a smooth migration path to the latest hardware and OS. Windows Fundamentals for Legacy PCs is a Windows based operating system solution designed for customers with legacy PCs, running legacy operating systems who are not in a position to purchase new hardware.