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Software Licensing

Planning for Microsoft licensing today, tomorrow and the future

Deciding on what to do in terms of investing in technology for your business is never easy. It's a balancing act between what you need to address today whilst predicting your needs for tomorrow, and all within a justifiable budget.

Common Misconceptions

While things such as PCs, laptops and servers can be seen as assets to the business with a clear role to play, from the legal perspective, software running within these systems is not seen like this. A common misconception many businesses have is once they purchase software they can do anything they want with it. However, the reality with software from Microsoft and other vendors is that the business only ever purchases the right to use that software under certain conditions and if these conditions are broken, there are the possible legal consequences to face.

Licensing Options

When choosing to purchase software there are several options available to your business which are based on your needs and make the purchasing of Microsoft software as cost effective as possible. The form of license you purchase also affects what level of training and support you are entitled to receive and when you are spending money on your business to try and improve the way it operates, the last thing you want to hear is that you are not entitled to something.

Obviously this makes the overall topic of software licensing confusing to most businesses, so to help you, view the summary below of the basic Microsoft licensing products available.

Product Type Potential Advantage Potential Disadvantages
Original Equipment Manufacturer (OEM) is software that is pre-installed onto equipment by a particular manufacturer such as Dell or HP. OEM is usually the cheapest method to purchase Microsoft software. You can only use the software on the machine you purchased with it.

Once the machine is no longer in use by the business, the software cannot be reused.

Software support is limited usually to the manufacturer.
Fully Packaged Product (FPP) is software that is purchased off the shelf at a store such as PC World You can transfer the software on to a new PC once the old one is no longer in use.

You get disks and manuals.

Software support is included.
This is usually the most expensive way to purchase software compared to other methods available.
Microsoft Volume Licensing (VL) is software that is purchased under an agreement with Microsoft via a reseller and offers various advantages based on the customer's needs and budget. There are a variety of different payment methods available.

Discounts are available.

It can offer automatic upgrading or downgrading to a particular version of software as needed.

It can offer free training vouchers to help your staff get the most from the software.

Easier management of software licensing taking less time and offering greater flexibility in terms of use over the agreement term.

Software support is included.
The customer's unnecessarily fear of entering into 2-3 year agreement.

For further information contact the Ethos sales team on +44(0)28 9044 5110 or email solutions@ethos-is.com

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