oem licensing overview

Microsoft OEM Licensing: An Overview

OEM Licensing

The purpose of this presentation is to provide an overview of the role that OEM plays in the Microsoft licensing model. In this module, we look at:

•who is eligible•what they deliver•what the customer can expect•the differences between volume licensing and OEM •how this applies to each different type of customer

OEM Licensing

• Positioning• OEM Software Licensing • Software Assurance (SA)• Support• End-User Deliverables• OEM Licences and Volume Licensing• Product road map• Summary

Positioning

• OEM Licences provide customers with a complete solution as the software is pre-installed

• Offers substantial savings over FPP• Must be sold with new hardware (‘bundling’) and never separated

from that hardware (no ‘unbundling’)• Most convenient and attractive way for acquiring your desktop

operating system

BUT...• Limited product portfolio• Non-transferable• Restricted use rights (e.g. downgrade)• Mandatory pre-installation

Who Can Buy an OEM Licence?

Customers buying new PCs

• Office (Small Business, Basic and Professional)

• Windows XP Pro and Home

• Windows Server 2003

• Small Business Server 2003

OEM Software Portfolio

• Windows desktop operating systems, Microsoft Office Small Business Edition, Office Professional, Works, Works Suite, Windows must be pre-installed on a fully assembled PC

• Small Business Server & CALs, Windows Server & CALs must be distributed with a fully assembled system only

* List is non-exhaustive

End User Licensing Agreement

• The OEM EULA is between the OEM/System Builder and the customer

• Stipulates the terms of use by which the user can use the software

• Customer is buying the right to use the software – they are not buying the software!

OEM Use Rights

• OEM licences are tied to the PC they are installed on and cannot be transferred to another PC

• Buy a new licence if the motherboard is replaced– A new licence is not required if the motherboard is

replaced under warranty

OEM EULA Downgrade Rights

• Only Windows XP Professional, Windows Server 2003 (Standard & Enterprise Editions) and SBS 2003 Premium Edition have downgrade rights

• Conditions apply:• Cannot transfer ‘spare’ copy onto another machine

• Customer must provide the media for downgrade

• No support for downgrade (Microsoft or OEM!)

• Cannot downgrade across languages

• When customer goes back to initial licensed product they must delete other OS

Optional Software Assurance

• Available for OEM versions of:• Windows XP Professional• Server systems• Office Professional 2003 and Office Small

Business Edition 2003• Must be acquired within 30 or 90 days of the

OEM licensing purchase (depending on agreement being enrolled into)

• Purchase of SA does not give Volume Licensing usage rights to the OEM Licences (except for Office)

Software Support

• Support for all OEM licensed products is provided by the hardware assembler, not Microsoft

• This is stipulated in the system builder licence (attached to the side of the system builder pack)

• Value of OEM providing end-user support justifies lower pricing for OEM software

End-User Deliverables

• Documentation – must include:

1. A printed manual

2. A Certificate of Authenticity (COA)

• Recovery Media

• Direct OEMs: OEM-branded CD, hard drive recovery solution or no media

• System builders: Hologram CD and hard drive recovery solution

• Refer to http://www.microsoft.com/piracyfor further details

Recovery Media

Direct OEMs have 3 options– BIOS locked recovery CD

– Hard disk based solution (partition on hard drive)

– No media provided, OEM obliged to handle customer issues on a case by case basis

Recovery Media

• System Builders have 2 options– Edge 2 Edge hologram CD

Plus

– Hard drive recovery solution (not mandatory)

• A security feature meant to help customersto recognise a PC supplied with genuine software

• Note though: Counterfeiters have been known tosupply counterfeit software, covered by a loose,but stolen, genuine COA

• For Operating Systems and Servers the COA attaches to the PC chassis

Introduced at Windows 2000 launch (Feb 2000)• Customer in doubt – direct to :

www.howtotell.com

Certificate of Authenticity (COA)

OEM & Volume Licence Agreements

Key to solution – Information• Is it a new agreement?• If existing, what agreement does the customer

have?• What version of that agreement?

Education CustomersEducational Licensing

New Agreements – Existing Hardware – Eligible OS

Schools Agreement Campus Agreement

Version Number (and retirement date) Version Number (and retirement date)

2.0 (Sept 30th 2002 but customer can order from agreement for further 12 months)

3.1 2.0 (Sept 30th 2002 but customer can order from agreement for further 12 months)

3.1

Windows 2000 Professional

Windows NT Workstation 4.0 or 3.51

Windows 98, Windows 95, Windows Millennium Edition, and Windows XP Home Edition

Windows 3.x, Windows for Workgroups 3.x

OS/2

Macintosh

UNIX: SCO (Xenix, UnixWare), Sun (Solaris/SPARC, SunOS), Hewlett-Packard (HP-UX), IBM (AIX), Digital (Ultrix, OSF/1, Digital UNIX), SGI (IRIX), or IBM 4680/90

Any version of Windows


Windows NT Workstation 4.0 or 3.51


Windows 3.x, Windows for Workgroups 3.x

OS/2

Macintosh

UNIX: SCO (Xenix, UnixWare), Sun (Solaris/SPARC, SunOS), Hewlett-Packard (HP-UX), IBM (AIX), Digital (Ultrix, OSF/1, Digital UNIX), SGI (IRIX), or IBM 4680/90

Any version of Windows

Education Customers (cont.)

Existing Agreements – New or replacement hardware – Eligible OS

Schools Agreement 2.0

Schools Agreement 3.1

Campus Agreement 2.0

Campus Agreement 3.1

Eligible OEM Operating Systems

available under Direct OEM licence







Windows XP Home, Windows 2000 or Windows XP Professional




Commercial Customers

Commercial Licensing

Open Licensing (e.g. Open Value, OV Subscription)

Select Enterprise Agreement

New Agreements – Existing Hardware – Eligible OS


Windows NT Workstation 4.0/3.51

Windows 98, Windows 95,Windows Millennium Edition, and Windows XP Home Edition

Windows 3.x,Windows for Workgroups 3.x

OS/2

Macintosh

UNIX: SCO (Xenix, UnixWare),Sun (Solaris/SPARC, SunOS),Hewlett-Packard (HP-UX), IBM (AIX), Digital (Ultrix, OSF/1, Digital UNIX), SGI (IRIX), or IBM 4680/90





OS/2

Macintosh

UNIX: SCO (Xenix, UnixWare),Sun (Solaris/SPARC, SunOS), Hewlett-Packard (HP-UX), IBM (AIX), Digital (Ultrix, OSF/1, Digital UNIX), SGI (IRIX), or IBM 4680/90





OS/2

Macintosh

UNIX: SCO (Xenix, UnixWare),Sun (Solaris/SPARC, SunOS), Hewlett-Packard (HP-UX), IBM (AIX), Digital (Ultrix, OSF/1, Digital UNIX), SGI (IRIX), or IBM 4680/90

Commercial Licensing (cont.)

Existing Agreements – New or replacement hardware – Eligible OS

Open Licensing (OV, MYO, OSL, etc.)

Select Enterprise Agreement

Version Numbers (Date on which customer can last sign agreement and

duration)

Version Numbers (Date on which customer can last sign agreement

and duration)

Version Numbers (Date on which customer can last sign agreement

and duration)

5.0 (30th September 2001 – 24 months)6.0 (Current program)

5.1 (31st July 2002 – 24 months)6.0 (Current program)

5.1 (31st Oct 2001 – 36 months)5.2 (31st Oct 2001 – 36 months)6.0 (Current program)

Eligible OEM Operating Systems available under

Direct OEM licence


Direct OEM licence


Direct OEM licence



5.1 – Windows XP Home, Windows 2000 Professional or Windows XP Professional

5.2 – Windows 2000 Professional or Windows XP Professional

6.0 – Windows 2000 Pro or Windows XP Professional

OEM & Volume Licence Agreements

Common Beliefs

• “I’ve got a Select/ Enterprise/ Schools/ Campus/ Open Agreement with Microsoft – I don’t need to buy my machines with an OEM OS pre-installed”

Windows Product Lifecycle

• Provides Microsoft, partners and customers with clarity

• Relates to availability of licences and support

• http://www.microsoft.com/windows/lifecycle/default.mspx

• 2nd iteration of Lifecycle document


• The Basics - 3 Phases:• Mainstream

• Extended Phase

• Non Supported

• After ‘Non Supported’ OS will go end of life!

Operating SystemEntering Extended

phase Entering Non-

Supported phaseEnd of Life

MS DOS x.xx N/A December 31, 2001 December 31, 2002

Windows 3.xx N/A December 31, 2001 December 31, 2002

Windows 95 December 31, 2000 December 31, 2001 December 31, 2002

Windows NT 3.5x N/A December 31, 2001 December 31, 2002

Windows 98 / 98 SE June 30, 2002 June 30, 2003 June 30, 2004

Windows NT 4.xx June 30, 2002 June 30, 2003 June 30, 2004

Windows Millennium Edition

December 31, 2003 December 31, 2004 December 31, 2005


March 31, 2005 March 31, 2007 March 31, 2008

Windows XP Professional


Windows XP Home Edition



http://www.microsoft.com/windows/lifecycle/default.mspx


OEM Licensing Summary

Feature Benefit

Low price Low TCO

Pre-installed Easier to deploy than other licences

Bundled with hardware Single transaction for hardware and software

Supported by hardware vendor

Single point of contact for hardware and software-related issues

oem licensing overview

Documents

version of windows windows

home windows server

windows millennium edition

oem versions

oem use rights oem licences

windows server cals

oem licensing purchase

software customer