Microsoft OEM Licensing: An Overview

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Microsoft OEM Licensing An Overview
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OEM Licensing

• The purpose of this presentation is to provide an
  overview of the role that OEM plays in the
  Microsoft licensing model. In this module, we
  look at

• who is eligible
• what they deliver
• what the customer can expect
• the differences between volume licensing and OEM
• how this applies to each different type of
  customer

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OEM Licensing

• Positioning
• OEM Software Licensing
• Software Assurance (SA)
• Support
• End-User Deliverables
• OEM Licences and Volume Licensing
• Product road map
• Summary

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Positioning

• OEM Licences provide customers with a complete
  solution as the software is pre-installed
• Offers substantial savings over FPP
• Must be sold with new hardware (bundling) and
  never separated from that hardware (no
  unbundling)
• Most convenient and attractive way for acquiring
  your desktop operating system
• BUT...
• Limited product portfolio
• Non-transferable
• Restricted use rights (e.g. downgrade)
• Mandatory pre-installation

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Who Can Buy an OEM Licence?

• Customers buying new PCs
• Office (Small Business, Basic and Professional)
• Windows XP Pro and Home
• Windows Server 2003
• Small Business Server 2003

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OEM Software Portfolio

• Windows desktop operating systems, Microsoft
  Office Small Business Edition, Office
  Professional, Works, Works Suite, Windows must be
  pre-installed on a fully assembled PC
• Small Business Server CALs, Windows Server
  CALs must be distributed with a fully assembled
  system only
• List is non-exhaustive

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End User Licensing Agreement

• The OEM EULA is between the OEM/System Builder
  and the customer
• Stipulates the terms of use by which the user can
  use the software
• Customer is buying the right to use the software
  they are not buying the software!

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OEM Use Rights

• OEM licences are tied to the PC they are
  installed on and cannot be transferred to another
  PC
• Buy a new licence if the motherboard is replaced
• A new licence is not required if the motherboard
  is replaced under warranty

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OEM EULA Downgrade Rights

• Only Windows XP Professional, Windows Server 2003
  (Standard Enterprise Editions) and SBS 2003
  Premium Edition have downgrade rights
• Conditions apply
• Cannot transfer spare copy onto another machine
• Customer must provide the media for downgrade
• No support for downgrade (Microsoft or OEM!)
• Cannot downgrade across languages
• When customer goes back to initial licensed
  product they must delete other OS

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Optional Software Assurance

• Available for OEM versions of
• Windows XP Professional
• Server systems
• Office Professional 2003 and Office Small
  Business Edition 2003
• Must be acquired within 30 or 90 days of the OEM
  licensing purchase (depending on agreement being
  enrolled into)
• Purchase of SA does not give Volume Licensing
  usage rights to the OEM Licences (except for
  Office)

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Software Support

• Support for all OEM licensed products is provided
  by the hardware assembler, not Microsoft
• This is stipulated in the system builder licence
  (attached to the side of the system builder
  pack)
• Value of OEM providing end-user support justifies
  lower pricing for OEM software

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End-User Deliverables

• Documentation must include
• A printed manual
• A Certificate of Authenticity (COA)
• Recovery Media
• Direct OEMs OEM-branded CD, hard drive recovery
  solution or no media
• System builders Hologram CD and hard drive
  recovery solution
• Refer to http//www.microsoft.com/piracyfor
  further details

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Recovery Media

• Direct OEMs have 3 options
• BIOS locked recovery CD
• Hard disk based solution (partition on hard
  drive)
• No media provided, OEM obliged to handle customer
  issues on a case by case basis

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Recovery Media

• System Builders have 2 options
• Edge 2 Edge hologram CD
• Plus
• Hard drive recovery solution (not mandatory)

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Certificate of Authenticity (COA)

• A security feature meant to help customersto
  recognise a PC supplied with genuine software
• Note though Counterfeiters have been known
  tosupply counterfeit software, covered by a
  loose,but stolen, genuine COA
• For Operating Systems and Servers the COA
  attaches to the PC chassis
• Introduced at Windows 2000 launch (Feb 2000)
• Customer in doubt direct to
• www.howtotell.com

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OEM Volume Licence Agreements

• Key to solution Information
• Is it a new agreement?
• If existing, what agreement does the customer
  have?
• What version of that agreement?

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Education Customers
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Education Customers (cont.)
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Commercial Customers
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Commercial Licensing (cont.)
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OEM Volume Licence Agreements

• Common Beliefs
• Ive got a Select/ Enterprise/ Schools/ Campus/
  Open Agreement with Microsoft I dont need to
  buy my machines with an OEM OS pre-installed

Wrong! No Exceptions!
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Windows Product Lifecycle

• Provides Microsoft, partners and customers with
  clarity
• Relates to availability of licences and support
• http//www.microsoft.com/windows/lifecycle/defaul
  t.mspx
• 2nd iteration of Lifecycle document

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Windows Product Lifecycle

• The Basics - 3 Phases
• Mainstream
• Extended Phase
• Non Supported
• After Non Supported OS will go end of life!

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Windows Product Lifecycle
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Windows Product Lifecycle
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Windows Product Lifecycle

• http//www.microsoft.com/windows/lifecycle/default
  .mspx

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OEM Licensing Summary