Volume Licensing for Small to Mid-Sized Businesses:
- Cost Savings: Provides discounted rates for purchasing multiple licenses.
- Scalable Solutions: Allows easy addition of licenses as the business grows.
- Simplified Management: Centralized license management for easier tracking and compliance.
- Software Assurance: Includes upgrade rights and support for business needs.
- Flexible Options: Choose from Open License or Open Value based on requirements.
Navigating the software world can be challenging for small—to medium-sized businesses (SMBs). Balancing the need for high-quality software with cost efficiency is crucial.
Microsoft Volume Licensing offers a practical solution to help these businesses access enterprise-level software at affordable rates.
But what is volume licensing, and why is it particularly beneficial for SMBs? In this guide, we’ll dive deep into how volume licensing works, its benefits, and why it could be a game-changer for your business.
What is Microsoft Volume Licensing?
Microsoft Volume Licensing is a tailored solution that provides software licenses across multiple devices and users within an organization without requiring individual purchases for each user or device.
Rather than buying software piecemeal, you can purchase software in bulk, significantly reducing costs and making management easier.
This approach can provide substantial cost savings, streamline operations, and help ensure compliance with licensing requirements for small—to mid-sized businesses.
Key Benefits of Volume Licensing for SMBs
1. Cost-Effectiveness
Cost is often one of the biggest concerns for SMBs when choosing software solutions. Volume Licensing allows businesses to get substantial discounts compared to purchasing individual software licenses.
- Example: Suppose a business with 50 employees needs Microsoft Office. Buying individual licenses for each employee can be costly. However, with volume licensing, you purchase a package that allows all employees to use the software at a fraction of the price.
- Savings Through Bundling: Microsoft Volume Licensing often allows product bundles, meaning SMBs can get Office Suite, security products, and other software for a single discounted rate.
2. Simplified License Management
Managing dozens of software licenses can become cumbersome, especially as a business scales. Microsoft Volume Licensing centralizes license management, making it easy to track your business’s licenses, how they are being used, and whether you are compliant.
- Central Administration: You can manage all software licenses from one portal, simplifying the auditing process.
- Tracking Usage: This is particularly beneficial for businesses that want to ensure they’re not underutilizing or over-licensing software.
3. Scalability
Scalability is key for any growing business. Volume Licensing provides the flexibility to add more licenses as your business expands.
- Example: If your workforce increases from 20 to 40 employees, adding licenses through a volume licensing agreement is much simpler and more cost-effective than buying individual retail licenses.
- Flexible Terms: Licensing agreements like the Open License and Open Value cater specifically to SMBs, allowing for incremental growth.
Types of Microsoft Volume Licensing Programs for SMBs
Microsoft offers different licensing options depending on the size and needs of your business.
Here are the most common volume licensing programs suited for small to mid-sized businesses:
1. Open License
The Open License program is a flexible and affordable option for SMBs. It is perfect for businesses that need a minimum of five software licenses and allows you to add additional licenses as you grow.
- Two-Year Term: Open License agreements last for two years, providing flexibility without a long-term commitment.
- Example: An SMB might start with five Office licenses under the Open License and add more as the business grows.
2. Open Value
The Open Value licensing program offers more benefits than the Open License, particularly if you opt for Software Assurance. Software Assurance provides value-added services like product upgrades, training, and support.
- Annual Payments: Open Value allows you to spread out the cost through annual payments, which is beneficial for small businesses managing cash flow.
- All-in-One Solution: This is ideal for companies that want a package that includes everything—licenses, upgrades, and support.
The Role of Software Assurance in Volume Licensing
Software Assurance (SA) is a benefit available in most Microsoft Volume Licensing programs. It includes several features that are especially useful for SMBs looking to maximize value.
Key Benefits of Software Assurance
- Upgrade Rights: Businesses can access new software versions as soon as they are released, eliminating the need to repurchase upgraded software.
- 24/7 Support: Access to round-the-clock support can be crucial for SMBs that can’t afford prolonged downtimes.
- Training and Development: Provide training resources to help your employees become familiar with new software and maximize productivity.
- Example: A small company using Windows Server might benefit from an upgrade through SA without paying extra fees for the latest version.
Why Volume Licensing is Ideal for Small to Mid-Sized Businesses
Small to mid-sized businesses are dynamic, often requiring software solutions that can grow alongside them.
Microsoft Volume Licensing is cost-effective and tailored to accommodate growth without imposing extra financial burdens or technical complexities.
- Pay for What You Need: With volume licensing, you don’t have to overpay for licenses you won’t use. You can start small and scale gradually.
- Example: A business can opt for the Open Value Subscription program, which lets them reduce the number of licenses if staff decreases—a feature especially useful for seasonal businesses.
FAQ on Volume Licensing for Small to Mid-Sized Businesses
What is volume licensing for small to mid-sized businesses?
Volume licensing allows small to mid-sized businesses to purchase software licenses in bulk, reducing costs and simplifying license management.
How can small to mid-sized businesses benefit from volume licensing?
It simplifies management, lowers software costs, and ensures compliance with licensing agreements.
What is the minimum requirement for volume licensing?
Most volume licensing agreements require a minimum purchase of five licenses.
Can small businesses customize their volume licensing?
Yes, small—and mid-sized businesses can select specific licenses based on their needs, including software types and features.
Is volume licensing cost-effective for small companies?
Yes, volume licensing often provides better pricing per unit than individual licenses, making it more affordable for smaller businesses.
What happens if a business needs more licenses later?
As their needs grow, businesses can add more licenses, keeping the initial licensing terms.
Can volume licensing help with software updates?
Yes, volume licensing typically includes access to regular software updates and maintenance.
Are volume licenses transferable?
In many cases, volume licenses can be reassigned to different users or devices within the business.
Do small businesses need an IT team to manage volume licenses?
While helpful, an IT team isn’t always necessary; many volume licensing solutions offer simplified management tools.
Is technical support included in volume licensing agreements?
Technical support is usually included, and assistance is offered when needed.
Can businesses use volume licenses across multiple locations?
Yes, volume licenses can often be used across various locations, providing flexibility for businesses with multiple offices.
What types of software are available through volume licensing?
Businesses can typically access a wide range of software, including productivity suites, operating systems, and security tools.
Can small businesses benefit from volume licensing in the cloud?
Yes, volume licensing can apply to cloud-based solutions, offering flexibility in deployment and use.
How does volume licensing differ from individual licensing?
Volume licensing reduces the cost per license and simplifies management compared to purchasing individual licenses for each user or device.
How can businesses ensure compliance with volume licensing agreements?
Businesses can easily track and ensure compliance with their licensing agreements using the management tools provided.
