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.

1. Disk wiping utilities work wonders for completely erasing the contents of disk drives. Be sure to use one such as DBAN (www.dban.org) before donating or recycling your drives.

2. Hire a hard-drive shredding service to wipe your data. There are now firms whose job it is to shred your old hard drives on-site to eliminate the possibility that your data will end up in the wrong hands. They exist in most metropolitan areas, and can usually be located with a quick Internet search.

3. Don’t forget about your copy machines! Many of the newer, multifunction copiers have hard drives that store temporary data files. Remove these drives and make sure they are destroyed before tossing out your old business machines.

A lot of companies claim to sell IT services. In fact, it seems that anyone with a laptop and  a business card qualifies as an IT provider.

With so much ambiguity surrounding what makes an IT service provider, how do you know if you are getting what you should from your relationship with one?

By focusing on certain contract details you can find indications of whether you are dealing with professionals or a company that merely looks good from the outside. Here is a list of items every business should expect from their IT service provider.

#1: All Inclusive

Many IT service providers that offer Unlimited Fixed Fee Agreements have a very narrow definition of “unlimited”. They then charge additional fees every time an “out-of-scope project” arises. When you already pay for technology support, spending extra every time you pick up the phone can feel like paying $5 every time you want peanuts on a plane.

Make sure all inclusive really is all inclusive. Does your provider bill you extra for sending an expert onsite to replace an outdated computer? It shouldn’t if its agreement is all inclusive.

You can tell you’ve probably found a quality IT provider if they offer a true all-inclusive contract. These contracts are value based—they are designed to make the provider and the client share the same goals. Instead of focusing on spending time and materials, both parties want to identify and implement the best, most efficient technological solutions.

#2: Routine Maintenance

A quality IT service provider will manage the upkeep of your technology on a day-to-day basis. That includes handling your software installations and updates, tending to your server, and ensuring an uninterrupted Internet connection.

Maintenance needs will vary from business to business. For example, the Carnegie Library has a public-facing website that can only have its maintenance at odd hours. Their IT service provider makes its staff available at those hours for that specific reason.

Whatever your particular needs are, your provider should have the willingness and flexibility to meet them and should advocate that anyone else doing IT-related work do the same.

#3: Help Desk

Your help desk is your on-call resource for when something goes wrong, from a minor software glitch to more significant problems. The best providers make sure that only one or two contacts manage an account at the help desk. If one of five, ten, or twenty people answers every time you call, you’re not getting the service you should.

#4: Remote Monitoring and Management (RMM)

Have all of your business’ vital technology remotely attended to around the clock. This might include routinely testing key IT systems and monitoring how your server and memory is used from month to month.

Often remote monitoring and management can identify and correct an IT issue before there’s a problem. For example, a RMM automation tool may recognize that your printers have stopped working and it would promptly administer a four-step triage of “fixes”. It can then brief the “human” help desk and request any necessary help.

Good monitoring and management also leads to smart IT decisions. For example, one client  discovered that Facebook accounted for 28 percent of its Internet usage and soon  blocked the website.

Finally, in the age when many employees work from home, quality remote monitoring and maintenance offers a vital lifeline. For instance, it can ensure that Internet troubles don’t stop your top salesperson from delivering a key online presentation.

#5: Data Backup

A reputable IT service provider will have a regular process for securely downloading data from your company’s computers to an offsite server. Such a backup protects your vital information from being destroyed by fire, hackers, vandalism, human error, (a hungry  ferret,) or anything else.

In addition, your provider should regularly test the usability of the backed-up data. Many providers miss this step, only for their client to discover that their backed-up data is corrupted or inaccessible when they need it.

For some firms, particularly those in the health care industry dealing with the new HIPAA regulations, improperly stored patient data can mean lawsuits or jail time.

Moving Forward

Use the examples and guidelines above to determine whether your current IT service contract fits your needs and doesn’t overcharge. Having a true all-inclusive contract can save your business tens of thousands of dollars and improve your company’s operations by keeping it technologically efficient and up to date.

These occurrences are within the realm of possibility, just like a BP oil well blowout or Katrinaforce
hurricane.  Small and medium-sized business can benefit by taking proactive steps against this current
and growing threat. The goal of this white paper is to support you by:

• Explaining why small- and medium-sized businesses (SMBs) such as yours must
beware of computer disruptions

• Outlining best practices for keeping your business running without network interruptions;

• Helping you to determine what the best in-house or outside IT resources will serve your
company best.

At the end of this white paper, you will clearly understand the costs of downtime and what it
takes to make sure your business runs with minimal computer system problems.

Click here to download.

The Situation

The Pittsburgh Institute of Aeronautics (PIA) trains its students to care for the engines, structure, and onboard systems of all types of aircraft—helping to ensure the safety of the 1.5 million people who fly in the U.S. each day.

To provide its roughly 200 students with the necessary online tools to learn hydraulics, propulsion, and other subjects, PIA’s three campus facilities house several computer labs with a total of 50 plus computers.

The Challenge

PIA spent a good deal of time and resources trying to maintain its labs, many of which were decades old. These slow, outdated processing systems were a stark contrast to the cutting-edge subject matter taught at the two-year technical school.

In addition to being old, the labs’ computers had a short shelf life. PIA was continually updating, repairing, and replacing the hardware, software, desktop configurations, and security patches as computers were frequently malfunctioning or breaking.

PIA experienced a number of other problems with its computer labs:

Initially, PIA experimented with “band-aid” solutions such as changing the security settings and locking the desktops. These measures did not stop the problems.

The Solution

To minimize the risk to the computers, Uptime IT proposed a Virtualized Terminal Server Farm (also called thin-client terminals or dumb terminals).

In the new lab, the student has a “dumb” terminal – a terminal without a hard drive (brain), and with no slots to damage. All essential computer functions are hosted on an offsite server.

To test the model, PIA piloted the program with ten terminals in the spring 2007 semester and waited to see how things might break. Prepared for the worst, PIA remarkably experienced a nearly complication-free rollout.

PIA completely replaced the lab during that summer’s break.

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News:

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