How to get information on Microsoft VLKs (volume license keys)?

[1LUV1T]

Hey all, I've inherited a position in which I am overseeing an entire network of about 100+ people that used to be watched over by an oversized IT dept in a big Fortune 100 company (it's a long story). Anyway, we have a volume license key for Microsoft Office 2003 and Windows XP (OEM) that was installed on every machine that needed it (even if it wasnt a 'Dell').

I'm wondering who's flipping the bill for these Volume licenses (office + XP). I freely install/reinstall the software when needed on machines but that company is no longer here and though we are entitled to all their software and hardware licenses, how can I check on how many machines are these licenses in use?

 

[kmcferrin]

First, let's tackle Windows XP. It comes pre-installed on pretty much every PC. Even the OEM versions come with re-image rights, though you have to use the volume license version. So in order to legally be allowed to re-installed a volume license version of Windows XP Pro on a system that shipped with an OEM Windows XP Pro license you can just buy one copy of the volume media and one volume license.

Office is a little different. You basically need one license per machine that has it installed.

Now normally if your company buys volume licenses, and then your company is bought out, then those licenses become the property of the new company. If you work for a company that has volume licenses and the company splits (i.e., you are spun off), you can usually transfer the licenses there as well. The key is that the documents governing the split of the company should also dictate how many of which licenses you would get. Most likely, it was overlooked. But in the case of OEM licenses they are tied to the PCs, so if your documentation covers the PCs then you've at least got the OS covered.

At this point, if your current management/accounting staff cannot provide an accounting to you of how many of each license you have, then you will probably have to purchase new licenses.

In the event of a Microsoft audit, they look for two things:

1. They check how many licenses are listed under your company's name in their volume license system. So when you license software via one of the volume programs, it's important to register with the licensing web site (eOpen or whatever you use).

2. If they can't find enough licenses to account for all installations listed in their licensing system, then they'll want to see receipts or paid purchase orders that specifically list which software was purchased.

3. If there's a gap after steps 1 and 2, you have to buy licenses for the rest.

Now here's the part that most people don't know: Microsoft rarely fines people for software violations. To do that they would have to take you to court, and taking your customers to court is bad business. Usually when someone gets fined it's for commercial piracy (large scale duplication and sale of pirated software). If you go to Microsoft then all they'll want from you is to settle up for what you're actually using.

My recommendation:

1. Do an audit yourself of all of your Microsoft software in use. Find anything that shouldn't be installed and uninstall it. If Microsoft runs an audit, you will be responsible for anything they find on the PCs, even if you didn't know it was there/it was an accident.

2. Track down all of the documentation that you can get about what software licenses you have.

3. See if there is a gap. Find out how much it's going to cost to cover the gap.

4. Buy the software to cover the gap.

You might still want to engage Microsoft licensing on this. We had them come out and audit our company, and even though it cost us about $130,000 in licenses that we were lacking (got dinged on some SQL Enterprise CPU licenses that were provided through a software vendor but we couldn't document - $27,000 each on a 4 CPU server!), the entire experience was educational. They don't just show up and collect money, they walk you through the intricacies of Microsoft licensing, and help you implement best practices. If there's one thing that I've learned, it's to go over contracts from third-party vendors, especially those that include software, with a fine-toothed comb.