1. Optimizing your software investments Patrick Viaene – Volume License Program Manager

2. Topics Strategic overview of Microsoft’s licensing models Software Assurance benefits Server Licensing Terminal Server licensing Virtualisation & Licensing

3. Microsoft Licensing in 10 minutes

4. License types OEM: sold with PC (or server)OEM: sold with PC (or server) –Limited rights: no downgrade, no imaging, no hardware transfer, no language-switch, no MS support, not usable on Terminal Server. –Cheaper (?) RetailRetail –Limited rights: no downgrade, no imaging, no language- switch, not usable on Terminal Server. But transferrable –Expensive (?) Volume license:Volume license: –Many rights: downgrade, imaging, language-switch, transfer. –Extra: spread payment possible, simple management, maintenance (Software Assurance)

5. License types OEM: sold with PC (or server) –Limited rights: no downgrade, no imaging, no hardware transfer, no language-switch, no MS support, not usable on Terminal Server. –Cheaper (?) Retail –Limited rights: no downgrade, no imaging, no language- switch, not usable on Terminal Server. But transferrable –Expensive (?) Volume license: –Many rights: downgrade, imaging, language-switch, transfer. –Extra: spread payment possible, simple management, maintenance (Software Assurance) ‘…You may not rent, lease or host the software…’

6. Volume Licensing basic options 1. Buy Licenses2. Buy Licenses over 3y3. Rent Licenses over 3y SMB (<250 PC’s) Open LicenseOpen Value Subscription Enterprise (>250 PC’s) Select AgreementEnterprise AgreementEnterprise Agreement Subscription CharacteristicsSA optional ‘A la carte’ choice Upfront payment of total cost Cost = investment, CAPEX SA included Customer chooses standard desktop Spread payment of License + SA Cost = investment, CAPEX SA included Customer chooses standard desktop Annual payment of rental fee (buy-out optional) Cost = cost, OPEX

7. 1. Open License (Select) “Buy software when you need it” 2 year contract One-time payment of total cost Software Assurance optional As of 5 licenses Per legal entity

8. 2. Open Value (EA) Buy “Buy software per standard PC” Practically –Choose standard PC: 1.Windows upgrade 2.Office Small Business, Pro Plus or Enterprise 3.SBS CAL, EBS CAL, Core CAL or Entreprise CAL Suite –If company-wide: extra discount 3 year contract Spread payment of total cost Software Assurance incl As of 5 PC’s Additional products available Possible for ‘group of’ companies Discount if all 3

9. 3. Open Value Subscription (EA Subscription) Rent “Rent software per standard PC” Practically –Always company-wide –Choose standard PC: 1.Windows upgrade 2.Office Small Business, Pro Plus or Enterprise 3.SBS CAL, EBS CAL, Core CAL or Entreprise CAL Suite 3 year contract Spread payment of rental cost Software Assurance incl As of 5 PC’s, yearly count can go up or down Additional products available Possible for ‘group of’ companies Discount if all 3

10. Core CAL Suite Enterprise CAL Suite “Base” CAL “Enterprise” CAL (addititive) Exchange Server Std CAL Office SharePoint Server Std CAL System Center Config Mgr Client ML Office Communications Server Std CAL SharePoint Server Enterprise CAL Exchange Enterprise CAL Windows Rights Mgmt Services CAL System Center Operations Mgr Client ML Office Communications Server Ent CAL Forefront Security Suite Windows Server CAL

11. Summary Open/Select: –SA optional –Simplicity: buy NOW, buy what/when you use –Difficult management Open Value/EA: –SA included –Spread over 3 year –Discount for standardization –Simple management Open Value Subscription/EAS –SA included –Spread over 3 year –Discount for standardization –Simplest management, evolves with company size –Cheapest solution first 5.x years

12. Software Assurance Upgrade rights to new version As of Nov 2008: Office Multilingual Predictable cost, easy budgetting Office Home Use Program Forefront Client Security Home Use Program e-Learning Training Vouchers Employee Purchase program (EPP) Windows Pre-installation Environment (WinPE) Problem resolution support TechNet Plus subscription Cold back-up server Access to Step-Up SKU’s Access to Desktop Optimization Pack (incl Softgrid) Simple management Exclusive version: Vista Enterprise

13. The story on CAL’s ‘Server + CAL’ model ‘Per CPU’ model External connector option Device CAL’s versus User CAL’s

14. Terminal Server Licensing Terminal Server is a ‘free’ service of Windows Server But requires TS CALs, on top of WS CALs For external users: external connector(s) But: application license requirements? –No OEM/Retail –Same version –No concurrent use –Mix of Pro+, Std?

15. Product Licensing “Microsoft Licensing is difficult to understand” –Licensing – “How can a professional organisation acquire its software licenses” – is relatively simple –Product Licensing – ‘What can I do with the software for which I have a license?’ or ‘What licenses do I need to put together this infrastructure’ is more difficult and evolves quickly. Sources of information: –Volume License Briefs At www.microsoft.com/licensing/resources/volbrief.mspx –‘How to Buy’ pages

16. www.microsoft.com/exchange/howtobuy/default.mspx

18. Server Virtualisation?

19. WebStandardEnterpriseDatacenterFor Itanium Based Systems  Server Core  Web +  Standard +  Enterprise + IIS7 Print SharePoint Services Basic Media Services Virtualization Bitlocker.Net Framework 4 cpu RAM x64: 32 GB x86: 4GB File TS: 250 Con. Powershell AD, RODC DNS, DHCP WSRM RMS NAP SUA NLB WDS 8 cpu RAM x64: 2 TB x86: 4GB Hot add Fault tolerant mem synch 16 node cluster Cross-file replication TS: 65k Con. Adv. Identity Mngmnt Full media x64: 64 cpu x86: 32 cpu Hot add cpu Hot replace cpu RAM x86: 128GB Hot replace 64 cpu Hot add cpu Hot replace cpu IIS7 Server core 8-node cluster Fault tolerant mem synch Cross-file replication.Net Framework WSRM SUA, NLB WINDOWS SERVER 2008 FEATURES BY EDITION

20. Hyper-V & Windows Licenses Hyper-V Server 2008 –Each guest OS requires a license Windows Server 2008 Standard Edition –1 License for Virtual Machine included Windows Server 2008 Enterprise Edition –4 Licenses for Virtual Machines included Windows Server 2008 DataCenter Edition –∞ Licenses for Virtual Machines included

21. Included Virtual Licenses CPU based Licensing (1 multicore = 1 CPU) More interesting when able to have 3 or more VM per CPU CPU based Licensing (1 multicore = 1 CPU) More interesting when able to have 3 or more VM per CPU

22. Physical  Virtual Basic Differences in licensing Physical License required when software installed –OS –Applications Exception: –COLD –COLD stand-by in Software Assurance Virtual License required –Per “running instance” –OS –Applications

23. Virtualization User Rights Each “Assigned” Enterprise License on Host Each “Assigned” Enterprise License on Host 4 Server Licenses for Virtualisation Independent of virtualization technology

24. 1/4/Unlimited Virtual Licenses Virtual license bound to “physical” license –No split possible Need # Virtual licenses as MAXIMUM # instances that might run –Per box Licenses can be transferred to other hardware –Dismissal of host –After 90 days for OS, instantly for Server Apps –Not with OEM Licenses

25. Virtualization User Rights Each “Assigned” Datacenter License on Host Each “Assigned” Datacenter License on Host Unlimited Server Licenses for Virtualisation Independent of virtualization technology

26. CPU based licensing Applications with CPU based licensing

27. Server Virtualisation rules of thumb Windows Server Host OS often gives right to some free Guest OS’es For Application Servers licensed ‘per CPU’, you only need to count virtual CPU’s in the VM Microsoft only requires license for running instances of an OS or application All our licensing rules with regards to virtualisation are independent of Virtualisation Technology Also OEM licenses give virtualisation rights, but remain linked to hardware

28. Server Application re-assignment Sept 1, 2008 announcement: ‘Microsoft waives the 90 day rule on license re-assignment’ Details: –For application server software only –Only for Volume Licensing –Within a limited time zone –Allows easier VM swapping to other hardware –Independent of virtualization technology used Rule of thumb: if a customer moves a running instance of a virtualized server application to other hardware, he can do so freely, but needs to check on the server OS licenses. Read the Licensing Brief ‘Application Server License Mobility’ on www.microsoft.com/licensing/resources/volbrief.mspx

29. What we’ve seen General overview on acquiring licenses –Buy –Buy over 3y –Rent over 3y –Value of Software Assurance CAL – Core CAL – Enterprise CAL Suite Product Licensing Terminal Server Licensing Server Virtualisation & Licensing