PARTICIPANTS
Chris Leach
Vice President of Operations
Uptime IT
Meghan Lockwood
Uptime IT
PODCAST TRANSCRIPT
Meghan Lockwood
Hello, everyone.
The wrong software licensing can spell disaster for your IT systems.
Joining us to explain how to ensure you have the right software licensing for
your business needs is Uptime IT Vice President of Operations Chris Leach.
Welcome, Chris.
My first question for you today is: Why is making sure that I have the right
licensing for my software important?
Chris Leach
There are a couple of reasons why.
When you acquire software for your company, you’re actually acquiring
a license for use, and not acquiring ownership of the software itself.
Different types of licenses provide different use rights.
For example, OEM licenses that come with a new computer – they live and die
with the original hardware, and may not be transferred to other hardware. Once
that computer goes, the license has got to be thrown out with it.
Some licenses are only valid for specific types of organizations. Academic
licensing, for example, those types of licenses are only appropriate in academic
institutions (and) should not be used in a corporate environment.
Making the right licensing decision is important to ensure that your organization
gets software, or access to the software it needs, for the most effective means
possible.
Meghan Lockwood
Microsoft is the largest software vendor. What types of licensing does Microsoft
offer and what are the benefits of each product?
Chris Leach
Microsoft offers several different licensing for events that fit the needs
of its customers.
One of which is the Retail Products or the Fully Packaged Product, FPP for
short. FPP refers to boxed licensed software sold through distributors to resellers.
Customers generally acquire these licenses through local retail stores and software
retailers. Typically, each retail license includes just one license, along with
media and documentation.
This is designed to meet low volume needs. These types of licenses are generally
the most expensive. Additionally, you have the administrative burden of keeping
track and storing each individual paper license to remain compliant.
Another type of license is OEM Licensing or Original Equipment Manufacturer
License. The OEM licenses are obtained when you buy a computer from a system
builder such as Dell or HP, and you get Windows 7 and Office 2010.
While these licenses are the least expensive, they’re the most restrictive
in their use. That license is forever tied to that piece of hardware to which
it’s shipped on. When the computer is old and slow and you’re ready
to throw it out, legally you have to throw out that license as well. Despite
the cost, it’s not really a good investment for most businesses because
of the fact that they live and die with the hardware that they’re shipped
with. And it’s typically not a good option for large offices trying to
keep a consistent environment.
Another type of licensing is: Open Licensing from Microsoft. It’s part
of their Volume Licensing Program. Microsoft Open licenses can be obtained from
a Microsoft reseller, and are for organizations that need five or more licenses.
These licenses are a little bit more expensive than the OEM license, but the
product-use rights are much more flexible. Unlike the OEM license, this type
of license can be transferred from one computer to another. It’s a perpetual
license, so you own that software forever.
Another benefit of the Open licensing program is downgrade rights. That is
the right to use previous versions of the operating system or application for
which the license covers. For example, let’s say you’ve got a particular
application on your network that’s only compatible with Office 2007, and
the current version of Microsoft Office is Office 2010. With Open Licensing,
you can purchase Office 2010 today, and yet install Office 2007. Then, at the
appropriate time, and at your convenience, you can upgrade to 2010 at no additional
charge.
Another benefit of the Open Licensing is the electronic license tracking feature
which Microsoft offers. They track these licenses through a licensing portal,
so you no longer have to worry about tracking paper license or boxes.
Microsoft also offers Open Value with Software Assurance. The Open Value Licensing
Program offers the same benefits as Open Licensing, as well as the ability to
spread payments over a three-year term, Software Assurance comes with this type
of licensing program.
Software Assurance basically entitles you to the latest version of the Microsoft
operating system, or applications for which the license covers, during the licensing
term, which is normally three years.
With the Open Value Program, there’s also a home use program. So, your
employees can get a copy of Microsoft Office, for example, to run at home -
and we all know that employees are working more from home these days. It’s
great to be able to have that feature to have them using the same version of
software that they’re using at the office.
Open Value also offers a e-training programs. Basically, Microsoft gives you
a voucher for each one of the licenses that you purchase. You get a voucher
so that you can get electronically trained via the website. So, not only do
your users get the latest and greatest software from Microsoft, but they also
get training so that they can learn how to use those new features and be more
efficient.
Meghan Lockwood
How can I be sure I have legitimate Microsoft licenses?
Chris Leach
It depends on what kind of license you purchased. If you purchased retail licenses,
then you should have received a box with the license certificate in the box.
In order to be legit, you’ll have to track that box with that license
through the life of the software use.
For OEM licenses, look for the Certificate of Authenticity, or COA for short.
The COA is a label that helps you identify genuine Microsoft software. It’s
not a software license itself, but it’s a visual identifier that assists
you in determining whether or not the Microsoft software you’re running
is genuine. Without that COA, you do not have a legal license to run that Microsoft
application or operating system.
One thing that’s important to note: the COA should never be purchased
by itself without the software it authenticates.
The Open and Open Value Licenses can be verified by logging into Microsoft’s
licensing portal. If your organization has recently purchased these types of
licenses, ask your reseller for the account ID and password that was used when
the licensing agreement was established so that you can verify your purchases.
You can also get more information from Microsoft at www.microsoft.com/howtotell.
Meghan Lockwood
I’ve heard Microsoft offers online applications such as hosted Exchange
and SharePoint. Are these options that I should consider?
Chris Leach
Sure. Microsoft and its partners offer applications such as Exchange, Office
and SharePoint services online. These services are usually provided as a pay
as you go monthly subscription and are typically utilized by small businesses
who lack the resources to purchase and maintain on-premise hardware and software.
Meghan Lockwood
My computer systems are running just fine at the moment. Why should I be concerned
about the legitimacy of my licenses?
Chris Leach
There are a couple of reasons you should be concerned about the legitimacy
of your licenses.
Number one: Things are working great today, but what about tomorrow when an
application, maybe Office, is no longer working and you need to reinstall it.
If you can’t locate the actual CD or the license, and you can’t
reinstall it, then you’re looking at an extended period of downtime.
Also, there’s the BSA, or the Business Software Alliance. They work with
Microsoft and other software manufacturers to battle software piracy. All it
takes is one disgruntled employee leaving your organization, and knowing that
software piracy is existent inside, and they can make an anonymous tip or a
phone call to the BSA Hotline. Then, you can receive a letter from the BSA’s
attorneys suggesting that it’s time for a software audit. BSA fines can
be quite extensive. In fact, they use a 3X or a 3 times multiplier for their
fines.
They come in and decide that they need to do an audit of your organization.
Say you’re using ten copies of Microsoft Office Professional, but you’re
only licensed for 5. Well, at $500 a pop, the BSA would charge you a $1,500
fine for each illegitimate copy. The fines can quickly add up!
So, it pays to always stay on top of your licensing and make sure that it’s
legit.
Meghan Lockwood
Thank you, Chris, for that insight.
For more information on small business IT issues and resources, please visit
our website at www.uptimeit.net.
Thank you for listening and we wish your computers and networks continued uptime.

