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In this article What are add-on licenses? Add-on licenses are licenses for specific Microsoft Teams features. Some businesses want the flexibility of purchasing only specific features at a competitive price. To add a feature, buy one add-on license for each user who will use it. Microsoft Teams licensing is designed to give you the maximum amount of flexibility.
Start by asking the following questions. Before choosing and entering into a volume licensing program you should always ask yourself the following questions in order to determine which program is best suited for your needs.
How many licenses does my company need to purchase? Do I need perpetual or subscription based licenses? Do I need Software Assurance services included or as an option to be added at a later stage? Open License is meant for organizations of different dimensions from 5 to PCs for which the pay-off is made integral at the moment of the license acquisition.
Licenses purchased are perpetual, but clients can also acquire subscription based licenses. The program has two levels of applicable discounts: Every new license, software assurance purchase and software assurance renewal made in a Volume Licensing Program carries a point value.
Software assurance for a software license is worth half the total point value of its linked license. The point value for each transaction is available in the price list of the specific Volume Licensing Program. The software assurance for this program is optional.
The most important benefits provided by it are: Licenses purchased are perpetual, but the client can also acquire subscription based licenses. The program can be terminated at any time. The software assurance for this program is included in the license price and contains all software assurance benefits except for Enterprise Source Licensing Program.
For all of these programs, at the moment of the license acquisition you will receive an Authorization Number that will enable you to make transactions, with various Microsoft resellers based on the same contract number. The activation of the licenses will be based on the installation keys which are available through the Volume Licensing Service Center site.
Also, license administration, the download of the installation kits and all new purchases can be made from the VLSC site.
The contractual period is not defined, which means that the agreement remains in effect even upon termination.
Termination will only terminate your right to renew subscriptions under an existing order or place new orders for additional products.
The termination of the subscription can be done at any time during the contractual term, however, you must pay all amounts due and owing before the termination is effective.
Software assurance is included in this program and the products acquired through this program can only be Online Services. The first purchase must be for a minimum of points per pool and then all annual purchases must also have a minimum of points per that certain pool.
The contractual term was perpetual and licensing was done based on the number of pools. This means that your initial order qualified you for a discount level eg. Registered affiliates that submitted orders also help the organization to acquire points that are piled into pool minimums in order to achieve a higher discount level for a specific pool. The agreement had three components: This can be considered as a framework agreement because it covers the most important clauses: The Affiliate Enrollment form usually includes the specific term and effective dates, software assurance election form, contact information, media order form etc.
For new clients the Select Plus agreement has been retired starting with the 1st July and replaced with the Microsoft Product and Service Agreement. Starting with 1st July , existing clients with ongoing Select Plus Programs will not be able to make new software purchases but only software assurance transactions for existing licenses, all license purchases are being moved to the new MPSA and managed through the Microsoft Volume Licensing Center. The software assurance with this program is optional and there is no possibility of acquiring Online Services with it.
Microsoft Products and Services Agreement This is a relatively new program designed for large organizations, with over users or devices that is to replace the Select Plus agreement. Payment for transactions can be done Upfront or Annually.
The products acquired through this program can be Online Services or On—Premise. The management of online services, software and software assurance purchases, the download of installation kits and new software orders can be done through the Microsoft Volume Licensing Center platform. Open Value Company — Wide: This program is designed for small companies for wich the payment is made at the moment the license transaction is done.
The company that chooses this program must enter it with all of its PCs. The procedure is that the company must declare all of them. If the company has previously purchased OEM licenses, but these are no older than 90 days at the program start, then for these licenses they only need to buy the Software Assurance. The term of the agreement is 3 years and it can be renewed at the end of this period for another 3 years.
The discount applied in the beginning is going to be applied throughout the entire program term. Software assurance is included in this program and the client can purchase both Online Services as well as On-Premise licenses. The discount levels granted vary based on the numbers of licensed devices, better said on organization-wide deployment, e. Applications, Windows Desktop and Servers. For every license acquired within the program, the organization can hold a number of unlimited installation kits.
One free kit will be delivered on the initial acquisition. Open Value Subscription This program is also designed for small organizations that want to enter a program with all of their devices.
This means that the licenses acquired under this program can be converted into FPP products and become perpetual. These apply when the customer enters the program with OEMs preinstalled on a computer system that include the latest version of the OS.
It is the only program that comes with a pricelist that the customer can use during the entire contractual period. The program can be stopped at any time. After the initial expiration date it can be renewed or opted out of. Software assurance is included and the products acquired through this program can be Online Services or On —Premises. Programs for Large Organizations 1. Enterprise Agreement Companies eligible for entering this program are large accounts, with over devices or users either one or the other, never both.
The contractual period is of 3 years but it can be extented with 1 year or 3 years after the expiration date. Subsidiaries can also buy licenses. The payment can be done monthly, quarterly, semi- annualy with spread payments, deffered payments 6 months from the program start or up-front, with the possibility of increasing the initial declared devices. The customer has the possibility to build a direct relationship with Microsoft and with its advisers.
The structure of the program is similar to the structure of Select Plus program. The agreement has three components: The customer can choose an enrollment under which he can license the Microsoft solution best suited for his needs. There are 3 enterprise agreement enrollments: Enterprise Enrollments: Enterprise products may be ordered as separate products and in groups also known as Enterprise Platform.
Enterprise Cloud Suite is the per user option to license with the Enterprise Agreement. Server and Cloud Enrollment: Subscription Enrollment: The most important benefit of this type of program is that the customer can levarage the subscription counts on an annual basis during the entire 3 year program contractual period. Software assurance is included in the Enterprise Agreement and customers can enjoy the whole range of software assurance benefits.
The discount model is similar to the Select Plus program discount level e. Next to all of the agreements that were mentioned you will also find additional terms and conditions for the software products purchased -with the exception of the Microsoft Online Subscription and Cloud Solution Provider programs- in the Product Terms that can be found on the Microsoft website.
Conclusion Microsoft offers different volume licensing programs. Whilst the choice might seem difficult at first, you will find that there is only a limited set of criteria that you need to take into consideration. With these criteria in mind, choosing the right program will become a lot easier because the main focus is to simplify application deployment and help you decrease software acquisition related cost.