Microsoft License Terms

Microsoft Open License Information and Glossary of Terms

.NET Passport / LIVE ID
A .NET Passport is a security feature built into Microsoft based websites.  This feature attaches a unique password to an e-mail account.  Individuals must set up a .NET Passport in order to access the Microsoft eOpen website,  the Microsoft MSDN Subscription Site, MSN Instant Messenger and many others.

Academic Software (Microsoft)
Microsoft's Academic Software program allows qualifying students, faculty and related departments to purchase Microsoft Software Licenses at substantial discounts.  Microsoft requires Authorized Microsoft Resellers to prove each customer's current employment or enrollment with accredited academic institution.

Annuity Payments (Microsoft Open Value)
The Microsoft Open Value License Program allows for Annuity payments on License & Software Assurance purchases.  Annuity payments are spread out over a 3 year period of equal payments with no interest.  Customers interested in the Microsoft Open Value Program should call 1-800-774-9187 for additional information.

Authorization Number (MOLP)
Microsoft's Authorization number is the main umbrella number that identifies a Microsoft Open License Customer.  Each Authorization number may have multiple Microsoft Software License Agreements with various products on each.  Customers may also have multiple Microsoft Authorization numbers.

Business Software Alliance (BSA)
The Business Software Alliance (also known as the BSA) is an organization of attorneys contracted to enforce illegal software use within companies.  They perform software license audits for multiple manufacturers, such as Microsoft, Symantec and Adobe.  Fines, penalties and legal actions are enforceable for violations.  Visit the www.bsa.org for more information on the Business Software Alliance.

CAL
CAL is an acronym for Client Access License.  In an environment where a Microsoft Server is in use, companies must determine the number of clients which connect to the server.  The number of appropriate CALs is determined by counting either the users or devices that connect to the server.

Campus Agreement (Microsoft)

Certificate of Authenticity (COA)
A COA generally comes with Microsoft OEM software and should be affixed to the machine that the software was originally loaded on.  A genuine COA demonstrates a legal license for OEM software, however, COA's are commonly pirated.  COAs may be genuine, but if sold outside of the OEM Agreement may be breaking the law (HR 3632).  OEM COAs should not be purchased in aftermarket situations.  OEM COAs are non-transferable between machines.

Charity Software Licensing (Microsoft)
Microsoft Open Charity Software Licensing is available to qualifying entities that have attained non-profit status from the IRS.  These organizations will need to present a 501C3 form that is issued by the IRS.  Substantial discounts over retail prices are available.  Organizations interested in purchasing Microsoft Open Charity licensing should fax a copy of their IRS 501c3 form to 303-682-1506 for review.  Microsoft will review the documentation for approval or denial - this usually takes 2-3 business days.

Client
A client is simply a computer that generally has an operating system which can either be connected to a LAN or stand alone.

Client Access License
see CAL

Critical Updates
Microsoft's critical updates are generally attained via internet download.  These are usually free to any legally licensed user of Microsoft Software.  Critical Updates should always be up to date as Microsoft is continually looking to improve their software to address security and stability issues.

Disk Kit / Media Kit
Disk Kits or Media Kits are used to install Microsoft Software. They are generally CDs and DVDs containing the software code needed to operate the software.  Having Disk Kits/Media Kits does not mean that a company is legally licensed even if the disks are genuine.  Only a software license proves compliance.

Documentation Kit (Doc Kit)
A Documentation kit is essentially a manual for install and best practices.  Doc kits may vary in content.

Downgrade Rights
Microsoft Open License software is downgrade able.  This means that if you have a legal software license, for example of Microsoft Windows Server 2003, it can be downgraded to Microsoft Windows 2000 Server.  Media Kits for downgrades may or may not be in current production.  Downgrades may only be done on like versions, i.e., Standard Edition to Standard Edition.  You may not downgrade across versions.

Enterprise Agreement (Microsoft)

EULA

EULA stands for End User License Agreement.  The EULA is the agreement between the user of the software the manufacturer.

External Connector
Microsoft's External Connector License allows for unlimited connections to specified Microsoft Server.  External Connector licenses are not available on all Microsoft Server types.

Government Software Licensing (Microsoft)
US Government agencies may qualify for special pricing if they purchase Microsoft Software Licensing through the Microsoft Open License Program.

Hotfixes

L&SA (License & Software Assurance)
L&SA is an abbreviation for Microsoft License and Software Assurance.

LAN
LAN stands for Local Area Network.  LAN is a common term to describe a network that consists of a client and server network.

License (L)
A software license is an intellectual property agreement between the user and the manufacturer that grants the right to run and operate the software.  A license does not imply ownership of the software.

License Number / Agreement Number (MOLP)
A Microsoft License number, also know and Agreement number is a unique number that references a Microsoft Software Purchase which may have multiple products listed.

Master Agreement Number

MCSA

MCSE
Microsoft Certified Systems Engineer.

Microsoft Active Directory
Microsoft's Active Directory is a main component of Windows Server.  Active Directory is a system that allows the administrator to make usernames and passwords for each person logging into the Microsoft Windows Server.  In addition Microsoft Active Directory allows administrators to control each users abilities within the server environment.

Microsoft Authorized Academic Reseller
In order to sell Microsoft Academic Software a reseller must be authorized.  Authorization includes signed agreement with Microsoft and core exams that must be passed.

Microsoft Certified Partner
Agreement between Microsoft and reseller to adhere to legal boundaries.  This helps customers feel safe that they are purchasing from a reputable source.

Microsoft Certified Professional (MCP)
An individual or set of individuals that have taken and passed core Microsoft exams of Microsoft software and related technologies.

Microsoft eOpen Website
Microsoft's eOpen website helps to inventory Microsoft Open License Agreements.  A user must login with their Microsoft .NET Passport and then must enter their Microsoft Authorization and Agreement numbers.  Volume License Keys are available on the eOpen website if needed.

Microsoft MSDN Subscription
A Microsoft MSDN Subscription (Microsoft Developer Network Subscription) grants developers access to a wide variety of Microsoft Development tools, primarily Microsoft Visual Studio and associated tools, such as Microsoft SQL Server.  These licenses are for development only and are not to be used in a production environment.  Microsoft MSDN Subscriptions are generally licensed for a 1, 2 or 3 year period.

Microsoft MVLS Website
Microsoft's Volume License Site assists in management and registration of Volume License agreements.

Microsoft OEM Software
Microsoft OEM Software is the type of software pre-bundled with full systems in the case of Microsoft Office or Microsoft Server software.  Microsoft Windows OS OEM may be sold with integral hardware, such as a motherboard or hard drive.  Any breach of this may be breaking the law.  HR 3632 is now being enforced to prevent misuse of OEM software.  OEM Software is full version software and will not act as an upgrade.  Microsoft OEM software comes with installation manual, CD/DVD kit and Certificate of Authenticity (COA).

Microsoft Open License (MOLP)
Microsoft Open License is a software licensing program that offers a wide range of Microsoft Software products.  Companies qualify with 5 or more desktops.  Initial purchases must be a minimum of 5 licenses, which can be a set of different products.  In other words, you don't have to buy 5 of the same licenses.  Companies will receive an Authorization and Agreement number.  The numbers will be registered on the Microsoft eOpen website.  Software media kits will be shipped directly and Microsoft Authorization and Agreement numbers will be e-mailed.  The Microsoft Open License program builds software compliance, asset tracking, streamlined software purchasing and easy installations.  Microsoft Open Licensing also provides benefits, such as License Transfer Rights, software downgrade rights

Microsoft Open Value Licensing
Microsoft Open Value Software Licensing Program is part of the Microsoft Open License family of software licensing.  License & Software Assurance (L&SA) are included in the purchase automatically.  The Software Assurance is for a 3 year term with Microsoft Open Value, whereas standard Microsoft Open License Software Assurance is a 2 year upgrade coverage program.  Microsoft allows customers to cut payments on the License & Software Assurance over three years.  This is called Annuity payments.  No interest is charged on the Annuity payments.  Media kits are included in the purchase of License & Software Assurance through Microsoft Open Value.  Microsoft makes the vast majority of their products available through Microsoft Open Value.  Microsoft Open Value is only valid for corporate entities at the moment.  Microsoft qualified Charity, Academic and Government agencies do not qualify.

Microsoft Open Volume
Microsoft Open Volume Software Licensing is part of the Microsoft Open License Program (MOLP), however, a company must purchase a minimum of 500 points in one of the 3 distinct "pools" of software.  Point values are associated with each product.  The "pools" are Servers, Desktops and Applications.

Microsoft Retail Box Software
Microsoft Retail Boxed Software is generally meant for the home user.  Microsoft retail box software should contain a box, disk kit, manuals and software license.  The boxed product should be shrink wrapped in Microsoft's own proprietary shrink wrap, which is unique.  Please note that not all Microsoft Retail boxed software is shrink wrapped.  Pirated Microsoft retail box software is widely distributed in the market and consumers should proceed carefully if the price looks too good to be true.

Microsoft Software Advisor
A Microsoft Software Advisor is a qualified, registered Microsoft Partner authorized to sell Microsoft Open Value Software Licensing.

Microsoft Terminal Services / Terminal Server
Microsoft Terminal Services allows for remote access of a server from a licensed desktop.  Microsoft Terminal Services grants access to a remote server from any location and allows the remote user to get access to server resources and programs.

Operating System
A Microsoft Operating system is called Windows.  Windows OS can either be for a desktop or for a server.

per Device CAL
Microsoft's CALs may be licensed on a per Device basis.  When CALs are licensed on a per device basis each license in associated with an actual device.  A CAL is utilized and dedicated to a device upon login.

per User CAL
Microsoft CALs may be licensed on a per User basis.  When CALs are licensed on a per user basis each license is associated with an Active Directory user account.  This means that an individual could login from multiple machines without using up multiple CALs.  This is beneficial for organizations with users who have multiple devices to login to the server.

Processor License
A Microsoft Processor License is meant to license a server on a per processor basis.  For example, if a server has 4 processors then one must purchase a license for each active processor.  This means that the software in use does not need to be purchased with CALs.  A Microsoft Processor license is good for unlimited CALs.  Not all server products are available on a per Processor basis.  Microsoft SQL Server and Microsoft Windows Server are examples of servers that may be purchased on a per processor basis.  Per Processor licensing is synonymous with External Connector License.

School Agreement (Microsoft)
Microsoft School Agreement is part of the Microsoft Open License Program (MOLP), but Academic institutions are licensed by counting the number of computers on the campus.  The School Agreement is a subscription based purchasing program.  For more information on the Microsoft Academic Licensing program please call 1-800-774-9187 or visit our Microsoft Academic Licensing Homepage.

Select Agreement (Microsoft)
Microsoft Select License is a software volume licensing program designed for corporate, government, and academic customers with 250 or more desktops and mixed product and purchasing requirements. Select License customers receive a volume price level for each pool of products selected (applications, systems, or servers) based on a three-year software forecast.

Server
A Microsoft Server is a centralized computer that is running server software.  The hardware and the software together are both called a server.  Microsoft Server software has advanced functionality, which may support many users so the hardware needed to support a server is often more robust than the average computer.  Advanced functionality of Microsoft Servers may included FTP, web site hosting, file sharing, advanced security, e-mail hosting and database hosting.

Software Asset Management (SAM)
Software Asset Management is the practice of keeping track of an entities software assets.  This practice is highly recommended and can help organizations streamline purchasing, avoid costly legal issues and can directly effect their ROI.  For more information on our SAM Services please call 1-800-774-9187 or visit our Services site.

Software Assurance (SA)
Microsoft Software Assurance is an upgrade coverage program, which has mostly replaced retail upgrade boxed products.  Software Assurance (SA) gives upgrade assurance for either 2 or 3 years depending on the Microsoft Licensing program that you participate in.  Microsoft Software Assurance also provides additional Services such as additional support from Microsoft, training and more.  If you would like to know more about Software Assurance (SA) please feel free to call 1-800-774-9187 or visit Microsoft's Software Assurance site.

Software License
A software license is an intellectual property agreement between the user and the manufacturer that grants the right to run and operate the software.  A license does not imply ownership of the software.

Software Piracy
Software Piracy is a broad term that includes any tampering with, or illegally reproducing of software licenses or associated materials with the intent to sell, resell or distribute.  If you have specific questions about software licenses or software products that you have purchased please give us a call at 1-800-774-9187.  SWI can help to verify the authenticity and compliance of the software.

Transfer Rights
Microsoft grants software transfer rights to those organizations who have Microsoft Open Licensing.  Microsoft OEM and Microsoft Retail Boxed products are non-transferable.  This means that if a machine goes down or needs to be replaced Microsoft is not legally obligated to allow for transfer of the software license in question.  Microsoft Open Licenses explicitly allow for the transfer of Microsoft Open Licenses.

Upgrade Coverage
Upgrade coverage is synonymous with Software Assurance in the case of Microsoft Licensing.

Volume License Agreement
A Microsoft Volume License agreement is meant to license organizations with 5 or more desktop computers.  Volume License agreements are simpler way to purchase Microsoft Software Licenses.  A wide range of Microsoft Software is available at discounts over suggested retail pricing.  Volume License Agreement can be any number of Microsoft Licensing programs.

Volume License Keys (VLK)
Microsoft's Volume License Keys (VLK) are unique in that they are good for multiple installations of the same disk kit.  This allows legally licensed users the ability to simplify installations of software over many machines.

WAN
Stands for Wide Area Network.

Work At Home Rights (Microsoft)
Microsoft's Work at Home Rights are part of the benefits of Software Assurance.  Not all Software Assurance includes the Work at Home Rights.  Please call us at 1-800-774-9187 for complete information.

Do you have More questions about Microsoft Open License Software?  If so, please feel free to call our Microsoft Certified Professionals with additional inquiries on the Microsoft Open License Program at 1-800-774-9187.