Microsoft Open License 6.0 is now available. This table outlines the differences between the previous Open License 5.0 program and Open License 6.0.

With a minimum purchase of five Microsoft licenses your customers can qualify for Open License. For example, if they have two personal computers, they can qualify for Open License by purchasing two licenses of Microsoft Office XP, two licenses of Project 2002, and a single Windows Professional Upgrade. You may also reorder software licenses in any quantity. Just place an order through a participating reseller or a Microsoft Certified Partner.

Under the Open License program, a License (L) part number will be the only part number needed to acquire the most current version of all Microsoft products. Software Assurance is an additional purchase that runs for the remaining balance of the term of the Open authorization number and enables your customer to always be entitled to the most current version of the Microsoft products that they currently own.

Open Business

Under Open Business, product pools and points are eliminated and replaced by a single price level per customer type (corporate, academic, government, and charity). No longer will the customer need a separate license authorization number for each product pool category because all software licenses can now be acquired on one order using one authorization number.

• Minimum order for Open Business
  In order to initiate an Open Business account, there is a minimum acquisition requirement of five licenses. This requirement may be met by licenses in any combination of products and product types.
• Reorders for Open Business
  The customer may reorder under the Open License authorization number with a minimum of one license.

• Under Open Volume 6.0, product pools and points are used to establish the entry minimum for discount price levels.
• Points are allocated for each product and added together to reach a volume price level in each pool.
• Minimum Order for Open Volume 6.0
  In order to initiate an Open Volume account, the minimum order is 500 points (except in Europe, Middle East, and Africa [EMEA], where it is 150 points). Products are licensed within product pools (Applications, Systems, and Servers), and customers must meet the minimum order requirement for each pool from which they wish to license products. Each initial order is associated with a separate Open License 6.0 agreement and will be assigned a separate authorization number.
• Reorders for Open Volume 6.0
  Reorders are a minimum of one point for each product pool.

• Simplicity. 
  Easy to understand and administer. Open License features simple, clear terms for acquiring software licenses. 
  
• Choice and flexibility. 
  Open License is flexible enough to meet the needs of a broad range of organizations. You can choose from a wide range of available products and from any product category to qualify for the program. And you can reorder as few as one license, so you reorder only what you need. 
  
• Broadly available.
  You can buy Microsoft products through Open License from a large reseller channel. 
  
• Compliancy. 
  Open License eases the administrative burden of tracking your license purchases. 
  
• Simplified part numbers.
  Under the Open License program, the License (L) part number will be the only part number needed to acquire the most current version of all Microsoft products, while Software Assurance (SA) enables you to always remain current. 
  
• Pay only for the license.
  Microsoft Open License saves you money by not including disks and documentation. You only pay for the licenses and Software Assurance, not the expense of additional packaging.

Order License and Software Assurance (L&SA) for any Microsoft software product offered through the Open License and Select License programs and receive the right to run the current version of the product as well as any new versions released during the term of your coverage.

Note: Software Assurance benefits are automatically included in Enterprise Agreement 6.0 and Enterprise Subscription Agreement 6.0.

If you already license a current version of a Microsoft product, you can order Software Assurance before July 31, 2002 to get rights to use any new versions of the product that are released during the term of your coverage.

You can continue to obtain the rights to use future versions of the product by renewing Software Assurance (SA) and your volume licensing agreement once your original agreement has expired.

Select License customers in the United States who acquire Software Assurance for every new license ordered within a specific product pool (applications, systems, or servers) and all Enterprise Agreement 6.0 and Enterprise Subscription Agreement customers qualify for Software Assurance Membership and expanded support offerings.

Software Assurance Membership (SAM) is an integrated set of support services and benefits provided to volume-licensing customers designed to reduce your costs across the entire product life cycle and to help you make the most of Microsoft solutions. As Microsoft's relationship with your organization grows, SAM will provide you with customized service tailored to your environment, and help you use Microsoft software to your maximum advantage.

SAM Eligibility Requirements

SAM requires that all of your new license orders are purchased with Software Assurance (SA) for any product pool—Applications, Systems, or Servers under your enrollment within the Select License. Qualified license holders include:

• All new and current Enterprise Agreement (EA) customers.
• Select License customers who have selected the Software Assurance Membership (SAM) box for one or more product pools on their Select License enrollment.

Q: What has Microsoft done to make the new licensing program simpler to administer and understand?

A: Microsoft has responded to customer requests to make it simpler and easier to administer by:

Q: What are the benefits of the new licensing model?

A: Simplicity & Ease of Administration, Predictability & Controllability, and Fair Price to Value.

SA eases the administrative burden on customers by making it easier for customers to determine the number of licenses that are eligible for the latest version releases; this is simply the number of licenses that the customer has enrolled in SA.

The new eLicense changes we are announcing will make it easier for customers to track their purchase history and administer their licenses.

Q: How can a customer determine if Software Assurance is a good idea for them?

A: Software Assurance (SA) provides more than just upgrade rights. SA provides customers with the assurance of always having the right to the latest product enhancements.

From a pure breakeven analysis standpoint:If a customer is upgrading between 2.5 to 3 years, SA is a great deal relative to purchasing the license every time they wish to upgrade. The annual price of SA is 25% of the license for server products and 29% for desktop and systems products; so if a customer’s upgrade frequency is 4 years or less for servers and 3.4 years or less for desktop or systems products, it would be more economical to attach SA to their licenses than purchase a full license on an ad hoc basis when upgrading.

Q: Will customers still have Version Upgrades (VUPs) available after October 1, 2001?

A: No. License & Software Assurance simplifies how customers upgrade by replacing VUP, PUP, LUP, and CUP SKUs with the Software Assurance offering. The VUP, PUP, LUP, and CUP SKUs will be eliminated on October 1. (Windows Professional Upgrade is an exception, and will continue to be available through Volume Licensing.)

Q: Why did Microsoft replace its upgrade options with this new licensing model?

A: In simplifying our licensing by introducing Software Assurance, we are providing customers with a new way of upgrading software, through 3 different choices:

One-time upgrades were designed for the retail channel, where the software user is also generally the software purchaser--when they purchase their product, it is easy for them to know what they already have on their desktop, and therefore whether or not they qualify for the upgrade. In the corporate setting, the purchaser is very rarely the user. Therefore, it is extremely difficult for the purchaser to know precisely what is on each desktop, and what upgrades they are qualified to purchase. In addition, the upgrade model with version upgrades, competitive upgrades, product upgrades, language upgrades and upgrade advantage is unnecessarily complex. Software Assurance reduces this complexity and provides additional budgeting and planning benefits for the customer. In addition, Software Assurance will help provide a smooth transition for those customers interested in migrating to more of a software-as-a-service model.

Q: Does Software Assurance provide downgrade rights?

A: Yes. Customers will have the same downgrade rights as today.

Q: How much time will customers have to buy Software Assurance for their licenses?

A: There are several time periods customers can take advantage of to transition to Software Assurance.

Current versions: Customers with current product versions can buy Software Assurance on their licenses between October 1 and February 28, 2002.

New licenses: For all purchases after October 1, 2001, customers will have to buy Software Assurance when they purchase their product license.

Retail & OEM: Customers who buy a Systems or Servers pool license through Retail or OEM will have 90 days to buy a corresponding Software Assurance license through a volume licensing program (Select or Open License).

Q: If a customer chooses to enroll in Software Assurance, do they have to purchase SA for all of their licenses?

A: All purchases within an Enterprise Agreement will automatically include SA for all purchases. In Select and Open, a customer can select Software Assurance on an individual license basis--in other words, a customer could enroll any new product licenses, in any quantity, in Software Assurance. To get Software Assurance Membership, a customer would need to enroll all new purchases within a product pool in Software Assurance.

Q: How will Software Assurance be priced?

A: Software Assurance is calculated on an annual basis, as a percentage of the License price. The annual Software Assurance price for Applications and Systems is 29% of the License. For Servers, the annual Software Assurance price is 25% of the License.

Open License Minimum Requirements

Q: Who can initiate an Open authorization number?

A: Any entity (company or person) who can meet the minimum entry for the Open Business or Open Volume may receive an Open authorization number. This authorization may not be shared unless the entity signs an affiliate agreement. The affiliate agreement requires that entity to certify that they are only sharing the authorization number with qualified affiliates. This is no change from Open License 5.0.

Q: What is the minimum purchase requirement to initiate an Open Business authorization number?

A: The minimum purchase requirement to initiate an Open Business authorization number is 5 licenses. This is unchanged from Open License 5.0. A License & Software Assurance Package is counted as 2 licenses. Server processor licenses each count as 5 licenses, so they already satisfy the minimum requirements. The minimum requirement for renewal orders remains at one license.

Q: What is the minimum purchase requirement to initiate an Open Volume authorization number?

A: The minimum purchase requirement to initiate an Open Volume authorization number is 500 points. The customer must place an upfront order that achieves the minimum point requirement, in order to receive Open Volume pricing. This is no change from Open License 5.0.

Open License Term

Q: What is the term of the Open authorization number?

A: The term of the Open authorization number, which establishes the price discount level, is two years. This is no change from Open License 5.0.

Open License Products, Points, License Count, and Pools

Q: What products pools are available in Open Volume License?

A: Open Volume continues to have Applications, Servers, and Systems pools. Customers may aggregate their License, License & Software Assurance Package, and any Software Assurance purchases they have within a single pool to achieve the upfront purchase minimums, to get volume discounts. Open Business offers the same products, but does not distinguish between pools. An initial purchase of any five licenses (across any pools) will qualify the customer for the Open Business discount. This is no change from Open License 5.0.

Q: How will points be attributed to Software Assurance in Open Volume?

A: Software Assurance points will be half of the license points per year. For example, if the License is 2 points, software assurance will be 1 point for each year software assurance is covered in the term of the authorization number (2 years), for a total of 4 points. Points are earned when ordered.

Q: For the purpose of the license count in Open Business, how many licenses will the L&SA package be?

A: Even though it is sold as a single unit, the L & SA Package will count as two (2) licenses toward the Open Business entry minimum of five (5) licenses.

Open License Price and Payments

Q: Can a customer purchase L&SA after the initiation of their Open authorization number?

A: The customer may purchase the License & Software Assurance Package at any time during the 2 year term of your Open authorization number. However, they will pay the full 2-year price regardless of when the purchase is made. The benefit of signing a new authorization number is that they will obtain 24 months of coverage for SA.

Q: How will Software Assurance be priced?

A: Software Assurance is calculated on an annual basis, as a percentage of the License price. The annual Software Assurance price for Applications and Systems is 29% of the License. For Servers, the annual Software Assurance price is 25% of the License. In Open License, Software Assurance is only available as at a 2-year price.

Open License Renewal

Q: When the term of the Open Authorization number is coming to an end, how do they extend the benefits of Software Assurance?

A: Any licenses previously enrolled in Software Assurance may be enrolled in Software Assurance without paying again for the price of the License. Enrolling these licenses in Software Assurance must happen within 90 days of the end of the customer’s original authorization number where the licenses the customer is renewing in Software Assurance were originally enrolled in Software Assurance), or they will need to repurchase the License & Software Assurance Package to receive these same benefits. The customer must provide their reseller with their original authorization number at the time they renew their Software assurance.

Q: How do academic customers get Software Assurance?

A: Software Assurance is available through their volume licensing channel, just like any other academic purchase.

Systems

Q: What qualifies for a Windows Professional Upgrade?

A: The Windows upgrade still requires the customer to have a qualifying license before purchasing the upgrade. Qualifying systems include: DOS, Windows 3.x, Windows for Workgroups 3.x, Windows 95, Windows 98, Windows Me, Windows 2000 Professional, Windows NTW 3.51 or 4.0 Whistler Personal, OS/2, Macintosh, UNIX systems: SCO (Xenix, UnixWare), Sun (Solaris/X86, Solaris/SPARC,SunOS), HP (HP-UX), IBM (AIX), Digital (Ultrix, OSF/1, Digital UNIX), SGI (IRIX), or IBM 4680/90.

NOTE: Linux is not a qualifying system.

NOTE: Terminal Services Client Access License will no longer be a qualifying OS.

This is because the customer will already have a prior OS so they already qualify for the Windows Professional Upgrade. Additionally, there is no longer a price benefit for VUP/CUP, we only have one Windows Professional Upgrade license.

Applications

Q: Are the Office XP product offerings the same in retail and Volume Licensing programs?

A: No. The Office XP products offered in all volume licensing programs contains enterprise deployment tools to make deployment easier, which will not be offered in retail. The retail version of Office will not be available in any Volume Licensing programs.

Q: What are the differences between the Office product offered through retail, and the one offered through Volume Licensing?

A: There are three key differences between Office XP on retail and volume licensing media:

The retail version is most suitable for SOHOs and consumers. Office licenses obtained through retail are not eligible for Software Assurance.

Servers

Q: What is the Core CAL?

A: In the Server/CAL licensing model, Core CAL is the “client access license” that provides the rights for “desktops” (ie, devices) to access the following servers throughout their organization: Exchange 2000, Windows 2000, SharePoint Portal Server 2001, SMS 2.0. Please note that the “server” is licensed separately. The Core CAL replaces the BackOffice CAL in the Enterprise Agreement.

Q: What are the benefits of the Core CAL?

A: Primarily, the Core CAL offers convenience. It is the easiest way to license basic server components across all desktops within the firewall. In addition, it reduces the burden among IT to count the number of client licenses to access the individual server software.

Q: What is the difference between the Core CAL and the BackOffice CAL?

A: Effective October 1, the Core CAL replaces the BackOffice CAL in the Enterprise Agreement. This change is a reflection of how customers want to license the products and which products most customers license throughout their enterprise on a desktop basis (CAL model). SQL Server is still available in Server/CAL model as “Additional Products” in the EA. However, most SQL Server customers are now choosing to license SQL Server via Per Processor model since it also covers rights for internet, extranet, and intranet. HIS and ISA are now licensed via Per Processor model and no longer require CALs.

OEM/RETAIL

Q: Can a customer add Software Assurance to any OEM or Retail license?

A: Any product offered through OEM or Retail channels that is also offered in a volume licensing program will generally have a Software Assurance purchase option. Office products obtained through the retail or OEM channels are not eligible for Software Assurance, because the Office retail and OEM products are not the same as those offered through our volume licensing programs.

Customers who want to obtain Software Assurance for their Office licenses should acquire their Office licenses through one of Microsoft’s Volume Licensing Programs.

Q: How long does a customer have to add Software Assurance to an OEM or Retail license?

A: Because the customer can only purchase Software Assurance through a volume licensing program, customers are given 90 days from the date they purchase their OEM or Retail license to enroll that license in Software Assurance through Select or Open License.

Transition - Select and Open License

Q: What is the best way to prepare for enrolling in Software Assurance?

A: In steady state of the program, a customer can only enroll in Software Assurance at the time of purchasing the License. To help customers ease into the new offerings, Microsoft is providing a Transition Period for customers to ‘get current’ on the latest Microsoft software, and then enroll those current licenses in Software Assurance during the Launch Period. For customers who purchase Upgrade Advantage (UA) during the Transition Period, they will automatically be grandfathered in SA after Oct 1 for the remainder of their enrollment term. Purchasing UA during the Transition Period will generally be the most cost-effective way to enroll in SA.

Launch Period

Q: Will the same grace period apply to licenses purchased through OEM and FPP? Ie: if a customer has current product, can they enroll them in SA from Oct 1 – Jan 31 regardless of when they were purchased?

A: Yes. If the product is current the same grace period applies for OEM/FPP purchases during the Oct 1-Jan 31, 2002 Launch Period.

Affiliate
An associated entity that owns and controls, is owned and controlled by, or is under common ownership with the Enterprise Agreement, Select, or Open License customer.

 Authorized Education Reseller (AER)
A software reseller authorized by Microsoft to sell Academic Edition software to eligible education customers. 

Client Access License (CAL)
A license required for each workstation accessing a Microsoft server product.

 Competitive Upgrade (CUP)
An upgrade to the current version of a Microsoft product from certain qualifying products made by third parties.

Education Customer
A school, college, university, state department of education, or other eligible education customer. Definitions vary by country.

 Effective Date
For Select and Enterprise Agreements, the date that the Microsoft Business Agreement, Select Agreement, or Enterprise Agreement, as applicable, is accepted by Microsoft. For Open License, the date that the initial order is processed by Microsoft.

 Enrollment
A Microsoft agreement used to enroll a customer under an Enterprise Agreement or Select License for software acquisitions.

 Enrollment Number
The number assigned by Microsoft to a particular enrollment.

 Enterprise Agreement
Microsoft's licensing solution for medium to large, centralized organizations able to make a three-year commitment to a core set of Microsoft products.

Large Account Reseller (LAR)
Any distributor or reseller (as applicable by region) that Microsoft permits to distribute Enterprise Agreement or Select Licenses to end users.

License
A right to use or access a software product as specified in the license agreement.

 License Confirmation
The document ordered by an Enterprise Agreement, Select, or Open License customer and produced by Microsoft or its authorized agent confirming the number and type of licenses acquired by a customer for a specified period.

Microsoft Business Agreement Number
The number assigned by Microsoft to a Microsoft Business Agreement.

 Microsoft License Pack (MLP)
For some products, a single license to install and use one additional copy of the software. MLPs are not part of any Microsoft Volume Licensing program, and may be acquired separately through your Solution Provider or reseller.

Microsoft Platform
The standard platform of enterprise products includes all of the following:

1. Microsoft Windows Desktop Operating System Upgrade;

2. Microsoft Office Professional
(The current version of which consists of the following components: Microsoft Word, Microsoft Excel, Microsoft PowerPoint presentation graphics program, the Microsoft Outlook messaging and collaboration client, Microsoft Publisher, and Microsoft Access)

3. Microsoft BackOffice Client Access License
(The current version of which consists of Client Access Licenses for the following components: Microsoft Windows NT Server, Microsoft Site Server, Microsoft SQL Server, Microsoft Exchange Server, Microsoft Systems Management Server, and Microsoft SNA Server).

Open License
Microsoft's volume licensing program for virtually any size business.

Point
Formerly, the value assigned by Microsoft for each License and used to calculate the volume pricing level applicable to a Select or Open License and any related enrollment.

 Price Level
The license price structure based on number of units within a particular product pool.

 Product Pool
An array of similar products (for example, desktop applications, operating systems, or server and Client Access Licenses) grouped together to allow Select and Open License customers to aggregate points to more easily reached volume levels.

Qualified Desktop
Qualified desktop means the personal desktop computers, portable computers, workstations, and similar devices, which are used by the enterprise (affiliates included) and which meet the minimum requirements for running any of the enterprise products. Qualified desktops do not include computers designated as a server and not used as a personal computer or any system dedicated to run ONLY line-of-business software.

Secondary Use Rights
Where granted for certain applications, the right to install a second copy of the software on a portable computer, for use exclusively by the primary licensee for work-related purposes.

 Select License
Microsoft's licensing program for medium to large, decentralized organizations.

 Select Outsourcer
An outside vendor engaged by the customer to lease-finance, or to manage on behalf of all or some portion of the customer and the customer affiliates, information and data systems assets that include Select software product list. The Select outsourcer must sign and submit an Outsourcing Enrollment Agreement and be accepted by Microsoft.

 Select Software Product(s)
The Microsoft software—as designated from time to time by Microsoft—which may be reproduced pursuant to an enrollment.

 Server
A computer specifically designated to perform centralized data processing, file and print services, etc. A server license is the license to install and run a specific Microsoft product on a particular server.

 Solution Provider
Microsoft Certified Solution Providers (MCSPs) are value-added providers that not only offer software and licenses but also services and support. In addition, MSPs have at least one Microsoft Certified Professional (MCP) on staff to help guarantee knowledgeable service on Microsoft products. Contact your MCSP to discover the specialized service offerings available.

True Up
For the Enterprise Agreement program, a required annual count of the number of qualified desktops added to the enterprise during the year, allowing customers to license new and incremental desktops or employees above the initial commitment to adjust for growth of the organization.

Upgrade Advantage
An option available through the Select or Open License program, allowing both an immediate upgrade to the most current version of a product and the right to any future upgrades that are released during the term of the agreement.

Version Upgrade (VUP)
A new release of an existing product. A version upgrade license (VUP) gives users the right to install the latest version upgrade of a product.