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 intricacies 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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What is The Role of The Microsoft OEM Team?

• Responsible for Microsoft's relationships with PC
  and Device manufacturers around the world
• Organised into 2 teams
• Multinational (e.g. Dell, HP, IBM etc)
• Local/national (e.g. In UK they include Time,
  Research Machines, Compusys etc)
• Main Focus
• Windows
• Applications
• Design Wins Server and Devices

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Who Can Buy OEM Licence?

• Direct OEM via direct agreement
• Multinational Account
• Named Account
• Via OEM Authorised Distribution Partners
• System Builders

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What does a System Builder need to Purchase?

• When buying an OEM desktop operating system
  licence, must purchase with the following
• Fully assembled PC
• OR
• Non-peripheral hardware device

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OEM Software Portfolio

• Windows desktop operating systems
• Distributed with a fully assembled PC or
  non-peripheral hardware component
• Microsoft Office? Small Business Edition, Office
  Professional, Works, Works Suite, Small Business
  Server CALs, Windows Server CALs
• Distributed with a fully assembled system only
• List is non-exhaustive

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End User Licensing Agreement

• 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 EULA Downgrade Rights

• Only Windows XP Professional and Windows 2003
  Server have downgrade rights
• Conditions Apply
• Cannot transfer spare copy onto another machine
• Customer must provide the media for downgrade
• No support for downgrade (MS or OEM!)
• Cannot downgrade across languages
• When customer goes back to Windows XP Pro they
  must delete other OS

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Optional Software Assurance

• Available for OEM versions of
• Windows XP Professional
• Server programs
• Office Professional 2003 and Office Small
  Business Edition 2003
• Must be acquired within 90 days of the OEM
  Licensing purchase
• 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 licenced 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/piracy/http
  for 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 sort issue on

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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
  looseCOA genuine (stolen) COA label
• 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
Educational Licensing Educational Licensing Educational Licensing Educational Licensing
New Agreements Existing Hardware Eligible OS New Agreements Existing Hardware Eligible OS New Agreements Existing Hardware Eligible OS New Agreements Existing Hardware Eligible OS
Schools Agreement Schools Agreement Campus Agreement Campus Agreement
Version Number (and retirement date) Version Number (and retirement date) Version Number (and retirement date) Version Number (and retirement date)
2.0 (Sept 30th 2002 but customer can order from agreement for further 12 months) 3.1 2.0 (Sept 30th 2002 but customer can order from agreement for further 12 months) 3.1
Windows 2000 Professional Windows NT Workstation 4.0 or 3.51 Windows 98, Windows 95, Windows Millennium Edition, and Windows XP Home Edition Windows 3.x, Windows for Workgroups 3.x MS-DOS OS/2 Macintosh UNIX SCO (Xenix, UnixWare), Sun (Solaris/SPARC, SunOS), Hewlett-Packard (HP-UX), IBM (AIX), Digital (Ultrix, OSF/1, Digital UNIX), SGI (IRIX), or IBM 4680/90 Any version of Windows Windows 2000 Professional Windows NT Workstation 4.0 or 3.51 Windows 98, Windows 95, Windows Millennium Edition, and Windows XP Home Edition Windows 3.x, Windows for Workgroups 3.x MS-DOS OS/2 Macintosh UNIX SCO (Xenix, UnixWare), Sun (Solaris/SPARC, SunOS), Hewlett-Packard (HP-UX), IBM (AIX), Digital (Ultrix, OSF/1, Digital UNIX), SGI (IRIX), or IBM 4680/90 Any version of Windows
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Education Customers (cont.)
Existing Agreements New or replacement hardware Eligible OS Existing Agreements New or replacement hardware Eligible OS Existing Agreements New or replacement hardware Eligible OS Existing Agreements New or replacement hardware Eligible OS
Schools Agreement 2.0 Schools Agreement 3.1 Campus Agreement 2.0 Campus Agreement 3.1
Eligible OEM Operating Systems available under Direct OEM licence Eligible OEM Operating Systems available under Direct OEM licence Eligible OEM Operating Systems available under Direct OEM licence Eligible OEM Operating Systems available under Direct OEM licence
Windows XP Home, Windows 2000 or Windows XP Professional Windows XP Home, Windows 2000 or Windows XP Professional Windows XP Home, Windows 2000 or Windows XP Professional Windows XP Home, Windows 2000 or Windows XP Professional
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Commercial Customers
Commercial Licensing Commercial Licensing Commercial Licensing Commercial Licensing
Open Licensing (MYO, OSL, etc.) Open Licensing (MYO, OSL, etc.) Select Enterprise Agreement
New Agreements Existing Hardware Eligible OS New Agreements Existing Hardware Eligible OS New Agreements Existing Hardware Eligible OS New Agreements Existing Hardware Eligible OS
Windows 2000 Professional Windows NT Workstation 4.0 or 3.51 Windows 98, Windows 95, Windows Millennium Edition, and Windows XP Home Edition Windows 3.x, Windows for Workgroups 3.x MS-DOS OS/2 Macintosh UNIX SCO (Xenix, UnixWare), Sun (Solaris/SPARC, SunOS), Hewlett-Packard (HP-UX), IBM (AIX), Digital (Ultrix, OSF/1, Digital UNIX), SGI (IRIX), or IBM 4680/90 Windows 2000 Professional Windows NT Workstation 4.0 or 3.51 Windows 98, Windows 95, Windows Millennium Edition, and Windows XP Home Edition Windows 3.x, Windows for Workgroups 3.x MS-DOS OS/2 Macintosh UNIX SCO (Xenix, UnixWare), Sun (Solaris/SPARC, SunOS), Hewlett-Packard (HP-UX), IBM (AIX), Digital (Ultrix, OSF/1, Digital UNIX), SGI (IRIX), or IBM 4680/90 Windows 2000 Professional Windows NT Workstation 4.0 or 3.51 Windows 98, Windows 95, Windows Millennium Edition, and Windows XP Home Edition Windows 3.x, Windows for Workgroups 3.x MS-DOS OS/2 Macintosh UNIX SCO (Xenix, UnixWare), Sun (Solaris/SPARC, SunOS), Hewlett-Packard (HP-UX), IBM (AIX), Digital (Ultrix, OSF/1, Digital UNIX), SGI (IRIX), or IBM 4680/90 Windows 2000 Professional Windows NT Workstation 4.0 or 3.51 Windows 98, Windows 95, Windows Millennium Edition, and Windows XP Home Edition Windows 3.x, Windows for Workgroups 3.x MS-DOS OS/2 Macintosh UNIX SCO (Xenix, UnixWare), Sun (Solaris/SPARC, SunOS), Hewlett-Packard (HP-UX), IBM (AIX), Digital (Ultrix, OSF/1, Digital UNIX), SGI (IRIX), or IBM 4680/90
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Commercial Licensing (cont.)
Existing Agreements New or replacement hardware Eligible OS Existing Agreements New or replacement hardware Eligible OS Existing Agreements New or replacement hardware Eligible OS
Open Licensing (MYO, OSL, etc.) Select Enterprise Agreement
Version Numbers (Date on which customer can last sign agreement and duration) Version Numbers (Date on which customer can last sign agreement and duration) Version Numbers (Date on which customer can last sign agreement and duration)
5.0 (30th September 2001 24 months) 6.0 (Current program) 5.1 (31st July 2002 24 months) 6.0 (Current program) 5.1 (31st Oct 2001 36 months) 5.2 (31st Oct 2001 36 months) 6.0 (Current program)
Eligible OEM Operating Systems available under Direct OEM licence Eligible OEM Operating Systems available under Direct OEM licence Eligible OEM Operating Systems available under Direct OEM licence
Windows XP Home, Windows 2000 or Windows XP Professional Windows XP Home, Windows 2000 or Windows XP Professional 5.1 Windows XP Home, Windows 2000 Professional or Windows XP Professional 5.2 Windows 2000 Professional or Windows XP Professional 6.0 Windows 2000 Pro or Windows XP Professional
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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.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
Operating System Entering Extended phase Entering Non-Supported phase End of Life
MS DOS x.xx N/A December 31, 2001 December 31, 2002
Windows 3.xx N/A December 31, 2001 December 31, 2002
Windows 95 December 31, 2000 December 31, 2001 December 31, 2002
Windows NT 3.5x N/A December 31, 2001 December 31, 2002
Windows 98 / 98 SE June 30, 2002 June 30, 2003 June 30, 2004
Windows NT 4.xx June 30, 2002 June 30, 2003 June 30, 2004
Windows Millennium Edition December 31, 2003 December 31, 2004 December 31, 2005
Windows 2000 Professional March 31, 2005 March 31, 2007 March 31, 2008
Windows XP Professional December 31, 2006 December 31, 2008 December 31, 2009
Windows XP Home Edition December 31, 2006 December 31, 2006 December 31, 2007
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Windows Product Lifecycle

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

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OEM Licensing Summary
Feature Benefit
Low price Low TCO
Pre-installed Easier to deploy than other licences
Bundled with hardware Single transaction for hardware and software
Supported by hardware vendor Single point of contact for hardware and software-related issues