Microsoft Open Value
- Flexible Licensing: Offers perpetual licenses with payment spread over 3 years.
- Subscription Option: Access to the latest Microsoft products with lower upfront costs.
- Software Assurance: Includes training, updates, and support.
- SMB Focused: Ideal for small to mid-sized businesses needing a cost-effective solution.
- Renewal Flexibility: Option to renew or convert to perpetual licenses after the agreement.
What is Microsoft Open Value?
Microsoft Open Value is a licensing solution tailored to small and medium-sized businesses (SMBs). Unlike enterprise-level licensing, which can be complex and cost-prohibitive, Open Value is designed to be straightforward, flexible, and affordable.
This licensing program allows businesses to acquire licenses for Microsoft software and solutions with a predictable cost model over three years.
Open Value licensing is particularly beneficial for companies looking to invest in technology gradually without needing to make a large upfront payment. It offers flexible payment options that can be customized to suit a business’s needs and cash flow.
Types of Microsoft Open Value Agreements
Microsoft offers two main types of Open Value agreements to cater to different business needs:
- Open Value Company-wide: This option allows businesses to license Microsoft products across all their devices on a company-wide basis. It provides a consistent and simple approach, enabling businesses to standardize software throughout the organization.
- Example: A small marketing firm with 50 employees can standardize Microsoft 365 applications for all users, ensuring everyone can access the same productivity tools and features.
- Open Value Non-Company-wide: This version of Open Value allows businesses to license products for only certain users or departments without covering the entire organization.
- Example: A legal consultancy with 25 employees may license only ten users with Microsoft Office based on specific job requirements, while others use different tools.
- Open Value Subscription: This option offers businesses the flexibility of a subscription-based model, allowing them to adjust the number of licenses each year based on changing requirements. This pay-as-you-go approach is often more affordable and adaptable to growth.
- Example: A growing retail company can increase or decrease the number of licenses annually based on seasonal employment needs.
Key Benefits of Microsoft Open Value
The Microsoft Open Value program offers a range of benefits that are particularly useful for small and medium-sized businesses.
Here are the key advantages:
- Flexible Payment Options: You can spread the licensing cost over three years, making budgeting easier and avoiding large upfront costs.
- Software Assurance Included: Gain access to training, deployment assistance, and new software versions as soon as they’re released.
- License Affordability: Open Value’s payment model makes acquiring Microsoft products more manageable for smaller businesses.
- Scalable Licenses: Add or remove licenses yearly to adapt to your business’s growth or changes.
- Simplified Licensing: An easy-to-manage license structure reduces administrative burden and helps businesses focus on their core activities.
How Open Value Works
Open Value agreements are three-year contracts that provide businesses with access to Microsoft software. Payments are broken into annual installments, making the program financially accessible for small—to mid-sized companies.
Here’s how it works in practice:
- Initial Agreement: Companies enter into an Open Value agreement with Microsoft, choosing either a company-wide or non-company-wide license type. The contract duration is three years.
- Annual Payments: Businesses can make equal annual payments for three years rather than paying the entire licensing cost upfront. This payment model ensures better financial predictability.
- Software Assurance Benefits: Throughout the agreement, companies receive Software Assurance, which provides access to training, new software updates, deployment planning, and technical support.
- Example: A healthcare startup can take advantage of the training benefits included in Software Assurance to get their staff up to speed on new Microsoft 365 features, helping them boost productivity without additional training costs.
Open Value Subscription vs. Open Value Company-wide
Businesses often need to decide between Open Value Subscription and Open Value Company-wide.
Here’s a breakdown of the differences and what might suit your business:
- Open Value Subscription: Provides a subscription-based model that allows businesses to adjust the number of licenses each year. It’s great for businesses experiencing rapid growth or seasonality.
- Example: An event management company can use an Open Value Subscription to add licenses during the busy event season and reduce them during slower periods.
- Open Value Company-wide: Offers consistent pricing and a standardized approach to licensing by licensing every device or user within the organization. It ensures all users have the same software and versions, simplifying IT management.
- Example: A small accounting firm licenses Microsoft 365 Business for all employees, allowing everyone to use the same version of Excel and other office tools, streamlining collaboration.
Software Assurance Benefits
One of the most significant advantages of Microsoft Open Value is the inclusion of Software Assurance.
This feature ensures that businesses receive added value, including:
- Training Services: With Microsoft software, staff can access training programs to enhance productivity.
- Example: A team of HR professionals might use Software Assurance training to get certified in Microsoft Teams to manage internal communication more effectively.
- Deployment Assistance: Companies receive support for deploying Microsoft products, making it easier to transition to new software versions or set up new devices.
- Example: A local manufacturing company can use deployment planning services to transition from legacy systems to Microsoft 365 Business Premium without experiencing downtime.
- New Version Rights: Businesses automatically receive the latest versions of their licensed products, ensuring they’re always working with up-to-date technology.
- Example: An online tutoring company benefits from automatic updates to Microsoft 365, ensuring educators always use the latest remote learning tools.
Cost-Effectiveness of Microsoft Open Value
Microsoft Open Value licensing offers small and medium-sized businesses a cost-effective way to invest in productivity software without a large upfront capital expense.
Here’s why it’s considered affordable:
- Annual Payments: Spending over three years prevents budget strains, making high-quality software more accessible to smaller enterprises.
- Example: A boutique advertising agency spreads the cost of Microsoft Office licenses over three years, making it more manageable and allowing it to benefit from the latest productivity tools.
- Subscription Model: The Open Value Subscription option is even more cost-efficient for businesses that need flexibility. It allows for license adjustments each year based on current needs.
- Example: A seasonal tourist company in a beach town pays for extra licenses during peak tourist months and reduces them afterward, optimizing costs.
- No Surprise Fees: By locking in pricing over three years, businesses can avoid unexpected cost increases, which is essential for financial planning.
Open Value for Different Business Scenarios
Understanding which type of Microsoft Open Value license best suits your business depends on factors such as company size, workforce mobility, and future growth plans.
Here are some scenarios:
- Standardizing Software: If your organization wants employees to use the same productivity tools, such as Microsoft 365, Open Value Company-wide is ideal. It helps ensure consistency across your entire company.
- Example: A legal firm licenses Microsoft Office and Microsoft Teams company-wide, ensuring all employees use the same tools to maintain consistent workflows.
- Seasonal Workforce: If your business model has a lot of seasonal variation, such as in hospitality or event management, the Open Value Subscription is beneficial as you can increase or decrease the number of licenses year over year.
- Example: A wedding planning company adds more licenses during the wedding season to support temporary staff, using the subscription model for cost efficiency.
- Managing Cash Flow: For small businesses concerned about cash flow, the three-year installment plan allows you to gain access to crucial software without the need for large upfront payments.
- Example: A small software development startup uses Open Value for Microsoft Visual Studio licenses, spreading the costs over three years as it builds its business.
Simplified License Management
Microsoft Open Value provides a streamlined way to manage licenses across an organization.
With simple, centralized license management, companies can easily:
- Track Licenses: Track all software licenses, making compliance easier and reducing risks of under- or over-licensing.
- Example: A nonprofit organization can easily track its Microsoft 365 and Windows licenses, ensuring compliance with Microsoft’s licensing policies.
- Access Software Assurance: With everything included under one umbrella agreement, companies do not need to manage multiple contracts or add-ons for Software Assurance—it’s automatically included.
- Ease of Renewals and Adjustments: The agreement is due to renew after three years, so it is easy to either extend the existing licensing terms or adjust them as the business grows or changes.
Is Microsoft Open Value Right for You?
Microsoft Open Value licensing is designed to be an easy and flexible licensing solution for small and medium-sized businesses. It provides software and services to help grow and streamline operations.
Businesses that benefit most from Open Value are those that need predictable costs, training and deployment support, and flexibility in license allocation.
For any organization considering expanding its Microsoft software footprint, Open Value provides a logical approach to licensing, allowing it to take advantage of essential Microsoft productivity tools and services in a scalable, cost-effective manner.
Whether you’re a startup, a medium-sized business looking to standardize software across teams, or a growing company that needs flexibility in licensing, Microsoft Open Value is an excellent choice.
Microsoft Open Value’s simplicity and predictability can help your business stay agile and competitive if you need to update, expand, or adjust your licensing.
FAQ on Understanding Microsoft Open Value
What is Microsoft Open Value?
Microsoft Open Value is a volume licensing program that offers flexible payment options, allowing businesses to spread software costs over time.
- Offers flexible payment terms
- Suitable for small to medium businesses
- Includes Software Assurance benefits
Who can benefit from Open Value?
Small to medium-sized businesses looking for cost-effective volume licensing options with Software Assurance benefits included.
What are the payment options for Open Value?
You can opt for upfront or spread payments over three years, providing financial flexibility.
Does Open Value include Software Assurance?
Yes, Open Value agreements come with Software Assurance, offering access to product updates and support.
Is Open Value available globally?
Microsoft Open Value is available in most countries worldwide, making it accessible to businesses globally.
Can I add more licenses during the agreement?
You can add licenses anytime during your Open Value agreement, ensuring scalability as your business grows.
What products are available under Open Value?
Most Microsoft software products, including Windows, Office, and server solutions, are available under Open Value.
Does Open Value cover cloud services?
Yes, Open Value includes options for both on-premises software and cloud services, allowing businesses to choose what suits them best.
How long does an Open Value agreement last?
Open Value agreements last three years, with the option to renew or adjust the agreement at the end of the term.
Can I transfer licenses under Open Value?
Yes, licenses purchased through Open Value can be transferred within your organization, offering flexibility in managing software.
What happens if I want to cancel my Open Value agreement?
Canceling an Open Value agreement may result in penalties, so reviewing the terms carefully before committing is essential.
Does Open Value support multi-year agreements?
Open Value offers three-year agreements, allowing for predictable software costs and planning over time.
Can non-profit organizations use Open Value?
Yes, Microsoft offers discounted Open Value agreements specifically tailored for non-profit organizations.
What support is included with Open Value?
With Software Assurance, your Open Value plan includes technical support, product updates, and training resources.
Is training included in open-value agreements?
Yes, Software Assurance benefits include access to training resources and helping your staff stay updated on Microsoft products.
How do I renew my Open Value agreement?
Your agreement can be renewed before it expires, allowing you to continue using Microsoft products with uninterrupted licensing coverage.
