Windows Licensing System

[ShabanaHafiz]

I have to prepare proposal for a company for licensed operating system. The company is buying 3 new desktop computers. I have gathered quotations from a Reseller. Quotations include price for the following:

1. MS Windows XP Professional OEM.
Quotation says that OEM can be purchased only with new machines

2. Windows Vista Business English UPG OLP NL AE.
Quotation says OLP can be purchased minimum 5 in quantity

OEM = Original Equipment Manufacturer
UPG = Upgrade Version
OLP = Open License
NL = New License
AE = Academic Edition

The company is eligible to acquire Microsoft Academic Edition (AE) products. This is the first time for the company to acquire licensed operating system. On OEM license, company will not get the discounted price. In OLP license, company can get Academic Edition and hence discounted price. So even for 5 Widows XP OLP licenses, total cost is less than 3 OEM licenses.

What I am being told is:

1. As per Microsoft Policy, you cannot acquire OLP licenses in the beginning. First you should have OEM license for a machine and for future versions, you can opt for OLP license

2. You will not have a downgrade option, if you buy Windows Vista OEM license, i.e., you cannot buy Windows Vista OEM and order Media Kit of both Windows Vista and Windows XP

3. Windows Vista Business OLP license has a downgrade option for Windows XP Professional. But again, according to the reseller, OLP license cannot be acquired in the beginning. You must have OEM license already installed.

I need suggestions/recommendations as what would be the best option in the following scenario:

1. A company currently needs to use Windows XP Professional Edition but has plans to switch to Windows Vista in future
2. It is buying 3 new desktop computers
3. It is eligible to acquire Microsoft Academic Edition Products
4. It can buy 5 licenses of Windows XP Professional Edition, if its total price is less than 3 OEM licenses (due to discount on Academic Edition)

 

[mrdenny]

There is no requirement to purchase an OEM license first.

Think of it this way, you could go to Fry's (or another eectronics store) and buy the parts for a computer. You wouldn't be able to get an OEM copy as you didn't buy the machine. You could still buy a Open License for the machines (provided you purchase enough licenses).

I would speak with another VAR. You can also call Microsoft's pre-sales line and expain your situation and they will give you the true final answer from the horses mouth (so to speak).

Denny
MCSA (2003) / MCDBA (SQL 2000)
MCTS (SQL 2005 / Microsoft Windows SharePoint Services 3.0: Configuration / Microsoft Office SharePoint Server 2007: Configuration)
MCITP Database Administrator (SQL 2005) / Database Developer (SQL 2005)

--Anything is possible. All it takes is a little research. (Me)

http://www.mrdenny.com

 

[linney]

Windows Vista Volume Activation 2.0 Step-By-Step Guide

http://technet.microsoft.com/en-us/windowsvista/bb335288.aspx

 

[ShabanaHafiz]

Thank you.

I read Windows Vista Volume Activation 2.0 Step-By-Step Guide. According to this guide:

Volume License Product Use Rights require that you have a previous qualifying operating system license for each copy of Windows Vista you deploy. The default 32-bit Volume License media are upgrade-only and are not bootable (64-bit Volume License media are not restricted in this way, since there is no supported upgrade path). You must first boot a previous version of Windows and then run the setup to install Windows Vista. Bootable media is also available on request through your Volume License portal.

...

For KMS activation to work, computers obtained through the Original Equipment Manufacturer (OEM) channels which have an ACPI_SLIC table in the system BIOS are required to have a valid Windows marker in the same ACPI_SLIC table. The appearance of the Windows marker is important for Volume License customers who are planning to use Windows Vista Volume License media to re-image or upgrade OEM through the re-imaging rights provided in their Volume License agreement. Computers that have an ACPI_SLIC table without a valid Windows marker will result in the following error(s) on these systems and they will be unable to activate using a KMS:

Error Code: Invalid Volume License Key

In order to activate, you need to change your product key to a valid Multiple Activation Key (MAK) or Retail key.

You must have a qualifying operating system license AND a Volume License Windows Vista upgrade license, or a full license for Windows Vista through an OEM or from a retail source.

In my scenario, the company will be using licensed operating system for the first time. The company needs to use Windows XP Professional Edition. Windows Vista Business Edition OLP (I was told by Reseller) has a downgrade option for Windows XP Professional Edition OLP.

Does it mean that the company cannot purchase OLP Open License for Windows Vista Business Edition? Because the guide says:

You must have a qualifying operating system license AND a Volume License Windows Vista upgrade license, or a full license for Windows Vista through an OEM or from a retail source.

 

[linney]

Perhaps this is something you should take up with Microsoft, or hang on here and hope you come across someone who has been down your intended path?

I don't know whether there is anything relevant in the paragraph "Licensing" in this article.

http://72.14.253.104/search?q=cache...ows+Vista+Business+Edition&hl=en&ct=clnk&cd=2

 

[Zamuk]

tdk.m

 

[RichardMoran]

What the Reseller has told you is correct. Open Licences are only available for Operating Systems as upgrades. I have been through similar discussions with Microsoft recently with regard to our business requirements. Additionally, I also have a PDF explaining Academic Volume Licensing which clearly states in the middle of the first page:-

"Academic Volume License Agreement = Windows Upgrade Only"

It states there are only two ways to buy a full version of Windows, one is to buy it pre-installed (OEM), and the other as the full retail package. A lot of people make the mistake of assuming that if you have an Open Licence you can put the full version of Windows on it, but it is only a licence to upgrade. It surprised me the first time I was told!

I think that you have no choice but to buy the OEM version of XP, and then upgrade when budgets allow it.

Rik

 

[ShabanaHafiz]

Thank you RichardMoran.

Can you please explain the difference between pre-installed (OEM) and full retail package?

I read definitions on the following website but am still not clear on the difference:

http://www.viosoftware.com/packaging.html

Can the company purchase full retail package?

Microsoft has defined many categories of Qualified Educational Users who are eligible to acquire Microsoft Academic Edition (AE) products. One of the categories is Charitable Organization and eligibility is defined as:

A charitable organization which operates on a not-for-profit basis and whose aim is i) the relief of poverty, ii) the advancement of education, iii) the advancement of social and community welfare, iv) the advancement of culture, or v) the advancement of the natural environment.

The company for which I am preparing proposal falls under condition i), the relief of poverty.

For charitable organizations, there are three eligible programs:
1. Academic Edition Full Packaged Product
2. Academic Open
3. Academic Select

So can the company purchase Academic Edition Full Packaged Product, in which case, it will be getting discount on Academic Edition. Or the only choice is to buy the OEM version of Windows XP Professional Edition? (The company will have to buy OEM version on commercial rates as discount is not available on OEM version)

 

[linney]

The Product Use Rights (PUR) document is produced quarterly and provides information about the use rights for products currently offered under Microsoft Volume Licensing programs.

http://www.microsoftvolumelicensing.com/userights/PUR.aspx

Download Current Product Use Rights

http://www.microsoftvolumelicensing.com/userights/DocumentSearch.aspx?Mode=3&DocumentTypeId=1

Should you purchase an OEM license version of XP?
faq779-4004

 

[ShabanaHafiz]

I found a nice FAQ word document about Windows Licensing System at the following link:

http://download.microsoft.com/download/4/e/3/4e3eace0-4c6d-4123-9d0c-c80436181742/OSLicQA.doc