Key points Microsoft Volume Licensing
- Volume Licensing allows businesses to buy multiple licenses at a lower cost.
- It simplifies license management for larger organizations.
- Options include Open License, Open Value, and Enterprise Agreement.
- Different programs serve different business sizes, from small companies to multinational enterprises.
- Subscription and perpetual options are available based on long-term or short-term needs.
Microsoft Volume Licensing
Microsoft Volume Licensing is a cost-effective solution for organizations that need multiple licenses for Microsoft software. Instead of purchasing individual boxed copies, which can become cumbersome and expensive, Volume Licensing allows businesses to acquire software more efficiently.
This model reduces costs and provides better flexibility, ensuring that software licenses can grow along with your organization’s needs.
In this article, we’ll dive deep into what Microsoft Volume Licensing is, how it works, and why it could be an essential solution for your organization. We’ll also discuss different licensing agreements and their advantages so you can make an informed decision for your business.
Why Choose Microsoft Volume Licensing?
Microsoft Volume Licensing is particularly useful for organizations with more than five computers. Rather than managing multiple individual licenses, Volume Licensing allows for centralized control, making it easier to keep software updated and compliant. Here are a few benefits:
- Cost Savings: Volume Licensing is much cheaper than buying individual licenses.
- Centralized Management: All licenses can be managed from one platform, making compliance easier.
- Flexibility: Volume Licensing provides flexibility to increase or decrease the number of licenses based on your organization’s needs.
For example, a healthcare company with 200 employees would find it both cumbersome and costly to manage individual licenses for each employee.
By choosing Volume Licensing, they get reduced costs per license, centralized control, and easier scalability as the business grows.
Types of Microsoft Volume Licensing Programs
Microsoft offers several volume licensing programs tailored to different types of organizations and their needs.
Below, we’ll cover the most common options.
Open License
Open License is ideal for small to medium-sized organizations looking for a simple, cost-effective way to purchase software licenses.
- Minimum Purchase Requirement: This option requires a minimum of five licenses, making it suitable for smaller businesses.
- Two-Year Agreement: The Open License agreement lasts two years, after which organizations can renew or adjust their licenses based on changing needs.
- Benefits: This program offers a straightforward, pay-as-you-go model. It’s well-suited for companies that expect to grow and might need more licenses shortly.
Example: A small legal firm with ten employees might choose the Open License option to install Microsoft Office on all their computers, saving money compared to buying ten separate copies.
Open Value
Open Value is designed for organizations seeking more flexibility, with the option to spread payments over multiple years.
- Payment Flexibility: Companies can spread payments over three years, making it easier to budget for software purchases.
- Software Assurance Included: This plan includes Software Assurance, which provides additional benefits such as free upgrades to the latest versions and training resources.
- Benefits: Software Assurance ensures that your team always has access to the latest tools, keeping productivity high.
Example: An advertising agency with 50 staff might choose Open Value to gain the latest versions of Microsoft 365 and training resources to help new hires quickly become proficient.
Enterprise Agreement (EA)
The Enterprise Agreement is best suited for large enterprises with 500 or more users or devices. It offers deep discounts and comprehensive support, making it ideal for multinational corporations.
- Standardization: With EA, you standardize Microsoft products across the entire company, which can improve efficiency and compatibility.
- Subscription Option: Companies can choose a subscription model, where licenses are valid only during the agreement period, or opt for a perpetual model.
- Benefits: EAs include Software Assurance, technical support, and the ability to adjust licenses as the company grows or shrinks.
Example: A multinational manufacturing company with 1,000 employees might choose an Enterprise Agreement to provide access to Azure, Microsoft 365, and Windows licenses for its global operations, allowing easy license management and compliance.
Benefits of Volume Licensing
Microsoft Volume Licensing has several key benefits that set it apart from purchasing individual licenses.
Let’s look at some of these in detail:
Cost Efficiency
Volume Licensing provides discounts based on the number of licenses purchased, which results in considerable savings, especially for larger organizations.
- Per-Unit Savings: The cost per unit drops significantly when buying 200 licenses compared to buying individually.
- Lower Administrative Costs: Centralized management greatly reduces the time and cost of managing individual licenses.
Example: Imagine a university needing to provide 500 computers with Microsoft Office. By purchasing through Volume Licensing, they reduce their overall cost compared to buying 500 separate boxed software versions.
Flexibility and Scalability
Volume Licensing agreements are designed to grow your business.
- Add or Remove Licenses: As businesses grow, the need for additional software licenses increases. Volume Licensing makes it easy to add new licenses without starting from scratch.
- Adjust Based on Business Needs: With options like Open Value Subscription, you can add or remove licenses each year based on your organization’s needs, which is particularly helpful for seasonal businesses.
Example: A retail chain that hires additional staff during the holiday season can use Volume Licensing to add more Office licenses during peak months and reduce them afterward.
Software Assurance Benefits
Many Volume Licensing programs include Software Assurance. This provides significant advantages, such as:
- Free Upgrades: Get access to the latest software versions without additional costs.
- Training Resources: Provide online and classroom training for IT staff and end-users.
- Support: Access to 24/7 support can be crucial for minimizing downtime.
Example: A financial services company using Software Assurance would benefit from free upgrades to the latest Microsoft SQL Server version, ensuring they always use the most secure and optimized software.
How to Choose the Right Volume Licensing Program
Choosing the right licensing program depends on various factors, such as the size of your business, budget constraints, and growth forecasts.
Here’s a simple guide to help:
- Small Businesses (5-50 employees): Consider Open License or Open Value. These programs provide the flexibility and cost savings that small businesses need.
- Medium-Sized Organizations (50-500 employees): Open Value or Open Value Subscription works best if you need to spread costs over time or want Software Assurance benefits.
- Large Enterprises (500+ employees): The Enterprise Agreement provides the best discounts, comprehensive support, and scalability for large operations.
Example: If you manage a medium-sized IT firm with 300 employees, Open Value would be a good choice. It allows you to spread payments over three years while ensuring your staff always has access to the latest versions.
Best Practices for Managing Microsoft Volume Licensing
Managing Volume Licensing effectively can help you maximize the value you get from Microsoft products.
Here are some best practices:
- Centralized License Management: Use Microsoft’s Volume Licensing Service Center (VLSC) to keep track of all licenses and ensure compliance.
- Regular Audits: Conduct internal audits to ensure that the number of licenses matches the number of software installations, minimizing the risk of non-compliance.
- Take Advantage of Software Assurance: Take full advantage of Software Assurance’s benefits, such as upgrade rights and training.
Example: A large university with hundreds of licenses can use VLSC to easily manage their licenses, track usage, and ensure compliance across all departments.
FAQ on Microsoft Volume Licensing
What defines Microsoft Volume Licensing?
It refers to a service that allows organizations to buy multiple licenses of Microsoft products at once, typically at a discounted rate.
Who can benefit from Volume Licensing?
It is ideal for medium to large businesses, educational institutions, and government agencies needing numerous software licenses.
What products are available under Volume Licensing?
Includes Windows operating systems, Microsoft Office Suite, and server technologies like SQL Server and Exchange.
How does Volume Licensing save costs?
Offers lower per-unit costs than purchasing individual retail licenses, allowing organizations to economize while deploying Microsoft technologies.
Are there different types of Volume Licensing agreements?
Yes, including Enterprise Agreement, Select Plus, and Open License, each tailored to different organization sizes and needs.
What is Software Assurance in Volume Licensing?
A program offering product upgrades, training, and support for a service period, enhancing the value of the initial license purchase.
Can charities use Volume Licensing?
Specific programs within Volume Licensing are tailored for non-profit organizations at discounted rates.
How is compliance managed in Volume Licensing?
Microsoft provides tools and audits to help organizations track and manage their software licenses effectively.
What is the minimum purchase for Volume Licensing?
Typically, the minimum is five licenses, but this can vary based on the specific agreement and program.
How long does a Volume Licensing agreement last?
Agreement lengths can vary, depending on the agreement type. Some common terms are one, two, or three years.
Can I transfer Volume Licenses between computers?
License transferability depends on the specific terms of the agreement and the product in question.
What support is available for Volume Licensing clients?
Support options include direct Microsoft support, authorized reseller support, and additional training resources.
How does Volume Licensing impact software upgrades?
Clients may receive software upgrades at no additional cost during the agreement term under Software Assurance.
Is there a Volume Licensing option for small businesses?
Yes, the Open License program is designed for small—to mid-sized organizations that require flexibility and minimal initial investment.
How do I get started with Volume Licensing?
To find the best program and agreement for your needs, contact a Microsoft-certified partner or visit the Microsoft Volume Licensing website.
