EULA stands for End User License Agreement. Every time you install software you are asked to accept the EULA. The EULA is full of restrictions on how, where, and on what machines you can use the software. It may also give the software vendor permission to inspect the use of their software on your network and also allows them to pursue any legal action against anyone who breaks the EULA, but I am no lawyer. I have yet to read an EULA from beginning to end. I have heard stories of some spyware software companies where their EULA gives them permission to install whatever they want on your computer.

The unfortunate thing is that you get a different EULA for each piece of software you install from every company. It is unreasonable to believe that you could provide the time (or experience) to read each one and then understand what they actually say. So to be on the safe side, use your software legitimately and only from legit software companies.

Software Assurance is a Microsoft 'Subscription' that allows you to get free upgrades to the next software version without having to buy another license. As of July 2002, Microsoft has stopped selling upgrade versions of software in their volume licensing plans. If you purchased bulk copies of Office 2003 and then Office 2007 became available, without Software Assurance you must buy another license to be able to use the new version, upgrades do not exist anymore.

Read more about Software Assurance from Microsoft.

Microsoft Select Agreement is the most versatile licensing option available: A three-year agreement that makes it easy to buy in volume and over time.

Select Licence clients receive a price level - based on software forecast - for each pool or group of products selected over the three-year period. Each product is given a point value. A minimum number 1,500 points of eligible products within one product pool must be reached, within the three-year agreement term is required to qualify.

The benefits are:

• Discounts over full retail prices
• Automatic discount level adjustments
• Optional one year or three year term extension
• Automatic discount level amendments
• Terms and conditions are set in the Microsoft Business Agreement

You are also required to Sign of a Microsoft Business Agreement to qualify.

Software Advisors are people or businesses that are Microsoft Partners participating in the Open Value Licensing Plan. They are trained in Microsoft Licensing Basics and are also professionals with maintaining the software they sell. A software advisor does not necessarily work for Microsoft, and they are probably your best tool to help with licensing.

Digital Foundation is a Microsoft Software Advisor. If you are interested in purchasing Open Value Licenses or need consultation for Microsoft Licensing, click here to contact us.

Open Value licenses require Software Assurance, which is a special 'subscription' plan that includes free upgrade versions and is packaged with other benefits such as training vouchers, support programs, and even special employee take-home licenses. The initial investment for an licenses with Software Assurance (SA) is more expensive because it include the license AND the 'subscription' of 3 years. Open Value also provides the option to pay annually over 3 years and the lower cost of renewing your Software Assurance. After the end of your 2 year Open Business Agreement or 3-year Open Value agreement, you only have to pay renewal fees which is typically 60% of the original cost.

In the case of some Volume Licensing programs, you may also purchase Software Assurance. This comprehensive maintenance offering can help you get the most out of your software investment. It combines the latest software with phone support, partner services, training, and IT tools. You can choose Software Assurance at the time of purchase and begin using your benefits immediately for the term of your license agreement.

This depends on the License and the Licensing Plan that your business has with Microsoft. Open Value includes a benefit for 'Home Use' rights where employees can obtain a special 'Home Copy' of the software they use at the office. This is only for software purchased within the Company Wide Option. Read more about Open Value Licensing in the Open License Article.

A CAL is a Client Access License. This type of license grants one network user or device permission to access a network service (such as a SQL or Exchange Server). There are also different types of CALs for each service.

The Per seat licensing model refers to the total number of computers allowed to connect to the service on that machine. Each connection is called a Client Access License. In per seat mode a single CAL for each workstation can be used to access multiple servers in per Seat mode. This is usually the most economical option.

In Per Server licensing, each CAL is dedicated to that specific server (think of this as concurrent connections).

In per Processor mode, no CALs are needed to connect to the server. The right to access the server is covered by the (more expensive) Software License itself.

Click here for more information.

A Device CAL is specific to a workstation whereas a User CAL is specific to a user. For example, if you have one user connecting to a SQL server from 2 different machines, you would need 2 SQL Server Device CALs or 1 SQL Server User CAL.

An OEM license allows you to use the software that came with your computer but the software can never be transferred to any other machine. Retail Licenses can be transferred provided that the software is only installed on one machine at a time. OEM licenses are typically cheaper than Retail licenses.

In the Open Value program, licenses for Microsoft Office and Windows can be purchased on an incremental basis or all at once using the Company Wide option. Company Wide gives you great discount (up to 23%!) but you are making the commitment to pay for one license for every Windows based workstation you have. Company Wide also qualifies you for Employee Home Use Rights and Employee Software License Purchasing Discounts.

Microsoft calls this a 'cold server' license. It means that you might have built a spare server that you keep turned off and only to be used in the event of disaster recovery. This 'cold server' license is provided to you for free provided that you maintain your software assurance.

If you are a service provider or ISV offering hosted services that you are looking to license to end customers, please take a look at the guides available here. If you wish to sign an agreement, obtain more information or talk through your specific requirements you should contact a SPLA Reseller.

eOpen is currently the best place for to manage your Open Licence agreement. eOpen allows you to:

• Access product keys
• Download Microsoft software
• View your Open Licence agreement
• Review the licences you have and their product use rights
• View your agreement history

Terminal Services functionality in Windows Server 2003 R2 lets you remotely execute applications on a Windows-based server from a wide range of devices over virtually any type of network connection. A server running Terminal Services can be referred to as a Terminal Server (TS). You need a Windows Server 2003 R2 server licence for each server running TS plus a Windows Server CAL and Window Server Terminal Services CAL for each user or device accessing the server.

There are two different ways of licensing Microsoft server software:

• Server/CAL model – each server running instance* needs a server licence assigned and all users/devices must be licensed with Client Access Licences (CALs).
• Per processor model – each processor in any server running the software must have a processor licence assigned, then an unlimited number of client devices or users can access that server software.

*You create a “running instance” of software by executing the software’s setup or install procedure. You also create an instance of software by duplicating an existing instance. References to software include “instances” of the software.

As Microsoft Small Business Server 2008 is the current version, you can buy extra CALs of the current version from any sales channel you prefer and downgrade them to SBS 2003 – retail, through a Microsoft Volume Licensing agreement, or from your hardware manufacturer or provider.

Microsoft licenses its desktop applications on a per-device basis. Per-device licensing means you need to have a Volume Licensing copy of Office for each desktop on or from which the product is used or accessed (pre-installed and boxed copies do not qualify).

Yes. Microsoft grants the rights to use any prior version of Windows Small Business Server (SBS) 2008, regardless of which channel the licence was bought through.

Windows 7 will be released on the 22nd October 2009. For more information on how to order please click here.