Microsoft Product Licensing Basics

MICROSOFT PRODUCT LICENSING
AN INTRODUCTION TO THE LICENSING OF MICROSOFT SOFTWARE

MICROSOFT NEGOTIATIONS
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7

AGENDA:
WHAT WILL WE DISCUSS TODAY?
INTRODUCTION
PRODUCT LICENSING
INTRODUCTION
IMPORTANT PRINCIPLES
DESKTOP OPERATING SYSTEMS – DEVICE LICENSING
DESKTOP APPLICATIONS – DEVICE LICENSING
CORE&CAL LICENSING – WINDOWS SERVER / SYSTEM CENTER
SERVER & CAL LICENSING
CORE LICENSING – SQL SERVER
OTHER – MGMT SERVERS, DEV TOOLS & SPECIALTY SERVERS

INTRODUCTION
Product Licensing has been around forever, by why is it so COMPLEX!
PRODUCT LICENSING
How do you license your estate
correctly? Are you sure?
Old-timer, but still relevant. Device
licensing & server licensing are still subject
to many compliance issues!
While Microsoft states the models are
clear, there are often many grey areas
that are not well defined…
Product Licensing is difficult in large
organizations. Many IT design principles
should have a focus on Product Licensing
basics handled in this training
Microsoft products are the status quo,
Windows and Office are still the standard in
many industries where cloud is a big no-go.
WS and SQL are often the basis for many
datacenters and server environments
This training will discuss
device-based licensing
and server-based
licensing, with focus on
highly virtualized
environments, as this is
where issues arise!

WHY THIS PRESENTATION?
• The basics of Product Licensing seem easy enough. It becomes
difficult when you need to license for large and heavily virtualized
environments;
• Software Assurance is often required, and certain software have
specific SA rights that you need to be aware of;
• This presentation does not handle cloud services licensing. This is
covered in another session;
• Embed these Licensing basics in your architecture design decision;
• We inventory large environments daily. Do reach out to us or
subject matter experts to see if you are doing things the right way!
Please note that this training is focused on VOLUME LICENSING!
CLOUD LICENSING
What are your rights in
heavily virtualized
environments?
If I have acquired
Windows OS,
what can I do
with it?
What is important to understand:

SETTING THE SCENE

COVERING ALL ASPECTS OF PRODUCT LICENSING
The next slides will go through some important basics of Product Licensing
This is important across the board – no exceptions for Microsoft software unless
specifically stated
It is important to always be mindful of these principles when dealing with
Microsoft Product Licensing
The basis for this is the Product Terms Document – Universal Licensing Terms
Additional clauses can be taken from other parts of the Product Terms
UNIVERSAL
LICENSING TERMS
” ”

UNIVERSAL LICENSING TERMS
VERSIONS AND EDITIONS
One of the important concepts to understand are
Versions and Editions – these are not the same
thing!
Microsoft defines a Prior Version as Earlier versions
of Product and their Date Available
Microsoft defines Lower Editions as: Permitted lower
editions corresponding to specified higher editions.
Customer may use the permitted lower edition in place
of a licensed higher-level edition, as permitted in the
Universal License Terms
IN A FEW WORDS:
• a Version is the same product, but an earlier release –
e.i. Windows Server 2012 is an earlier version of Windows
Server 2012 R2;
• An Edition is a different type of the same product family
– f.i. SQL Server Standard is an edition of the SQL Server
family
The basic rule: you are allowed to use prior
versions, though lower editions are only
possible on a case-by-case basis!

RESTRICTIONS
Restrictions apply across the software products of Microsoft. These include:
Commercial hosting:
in case you want to host
commercially, you cannot
license these products
under a Volume Licensing
agreement
The product specific
EULA applies –
you can’t work around
the technical limitations
and restrictions
Dividing software
across multiple operating
system environments
(though there are
exceptions)

SOFTWARE ASSURANCE
To understand Software Assurance better, please follow our Volume Licensing session
Software Assurance is an optional addition
to your licensing purchases, though in
some Volume Licensing agreements this is
mandatory
It is important to know the product specifics, as
they will tie into your architecture design!
SA often brings Product Specific entitlements with it (i.e. SQL Server
Enterprise Unlimited Virtualization rights)
These specifics will be covered under their relevant sections to come
In case we missed any of importance, we apologize and we will be
sure to update this after the fact

OUTSOURCING
When you work with an outsourcer, you can use your licenses on their premises in case this is a dedicated
environment
This is possible by just procuring the license – in case of a license with Software Assurance, you will have
additional options on Shared Server environments with outsourcers
YOU REMAIN RESPONSIBLE for the compliancy of the environment – not the outsourcer!

ASSIGNMENT AND REASSIGNMENT
9. License Assignment and Reassignment
Before Customer uses software under a License, it must assign that License to a device or user, as appropriate. Customer may reassign a
License to another device or user, but not less than 90 days since the last reassignment of that same License, unless the reassignment is due to
(i) permanent hardware failure or loss, (ii) termination of the user’s employment or contract or (iii) temporary reallocation of CALs, Client
Management Licenses and user or device SLs to cover a user’s absence or the unavailability of a device that is out of service. Customer must
remove the software or block access from the former device or to the former user. SA coverage and any Licenses that are granted or acquired
in connection with SA coverage may be reassigned only with the underlying qualifying License. Additional terms apply to the reassignment of
Windows desktop operating system per device licenses, as detailed in the Windows Product Entry.
License assignment and reassignment – otherwise known as the 90-day rule!
After you have (re-)assigned a license to a device or a user you cannot do this within a 90-day timeframe
The only time when you are allowed to do this:
- Device license: in case of hardware failure or loss of device or temporary out of service;
- User license: in case of termination of employment or temporary absence;
When acquiring SA: License mobility Across Server farms
- This means you have the option to assign licenses designated with License Mobility in the Product Terms across your
server farm as often as needed
- Moving to other server farms is allowed, but only with the 90-day rule in mind
There are (as
always) exceptions
to the rule – we will
describe these as
they appear in the
licensing

Be aware that the 90 rule does apply as this is considered between Server Farms!
SIDE-STEP – LICENSE MOBILITY
There are 2 License Mobility benefits when acquiring Software Assurance, we should not confuse them!
License Mobility Across Server Farms
Allows you to move licenses
between servers as often as you
want.
License Mobility through Software Assurance
Allows you to move licensed software to shared server environments. You can
only do this:
• Through Authorized License Mobility Partners
• On Microsoft Azure
• By filling out a License Mobility Verification form (though this is not done very often….)
In both cases, be sure to check
the Product Terms for your
products and if they are designated
with License Mobility. To do this:
• Navigate to product entry in the
Product Terms
• Find the Software Assurance
Section (usually section 4 of that
product entry)
• See the table for specifics:

INCLUDED TECHNOLOGIES
13. Included Technologies
Products may include other Microsoft technology components subject to their own license terms, as indicated in the Use Rights section of
each Product Entry. If separate terms for these components are not addressed in the Product-Specific License Terms, they may be found in a
separate folder in the Product’s installation directory or through the Product’s unified installer.
Some products have other Microsoft Technology included and allow usage of these Products
This is important information for all SAM specialists, as this might come up in your reporting
For instance, look at the entry below of the Use Rights of System Center Service Manager:
As you can see, it includes
rights to use SQL Server
Technology and Windows
Server Components
You are free to use this
without additional license
needs – but these
installations will/might show
up in your SAM report!
Don’t license these
additionally with SQL!

MULTIPLEXING
15. Multiplexing
Hardware or software that a Customer uses to:
 pool connections or reduce the number of OSE’s, devices, or users a Product directly manages;
 reduce the number of devices or users that directly or indirectly access or use a Product;
 or access data a Product itself processes or generates;
does not reduce the number of Licenses of any type that a customer needs.
Multiplexing is one of the most important clauses that spans Microsoft Products (and Cloud
services) – but is most common in Server/Core and Client Access Licensing
Microsoft states: “Multiplexing” is when customers use
hardware or software to pool connections, reroute
information, or reduce the number of devices or users that
directly access or use a product. This means that anyone or anything
accessing a server environment
either directly or indirectly needs a
correct license!

MULTIPLEXING
Let’s look at the below example, taken from the Multiplexing Licensing Brief:
SQL Server
Windows Server
Pooling
hardware or
software
Input,
query, or
view data
Input,
query,
or view
data
CAL
required
CAL
required
CAL
required
CAL
required
Without multiplexing With multiplexing
The right-hand side has
a pooling device to limit
the total number of
devices and users
accessing this device –
this does not limit the
need for licenses for
those users/devices
connecting to just that
pooling device

OTHER ITEMS OF INTEREST
ROAMING RIGHTS
Let’s look at a definition of Roaming Rights, which is a benefit that applies to certain Microsoft Products:
Roaming Rights: An SA benefit that permits the Primary User of a Licensed Device certain access and use rights. The Primary User may use a
Qualifying Third Party Device to (i) remotely access and use permitted Instances or copies of the software running on Servers dedicated to
Customer’s use, (ii) locally use a permitted Instance or copy in a Virtual OSE, or (iii) locally access a permitted Instance or copy of the software
on a USB drive via Windows to Go, in each case solely for work-related purposes while the user is not on Customer’s premises. No other user
may use the software under the same License at the same time. Despite anything to the contrary in Customer’s volume licensing agreement,
Qualified Desktops and Devices do not include any Qualifying Third Party Devices from which Customer’s users access and use the software
and any (other) enterprise product solely under Roaming Rights.
What does this mean?
When you acquire Software
Assurance for certain licenses,
you have the right to remotely
access a Server environment
that is dedicated to your
organizations use.
Available for Primary
Users. These are users
who use a Licensed
device (device to which a
license is assigned) for
>50% of the time
This is available when
you are off your
companies' premises
and need to use the
environment for work
related purposes
As an example:
this is something you
require in case you
are using an RDS
environment to offer
Office your users

OTHER ITEMS OF INTEREST
ROAMING RIGHTS
Finally, External Users and External User Access:
External Users means users that are not employees, onsite contractors or onsite agents of Customer or its Affiliates.
External User Access Requirement: Indicates specific license requirements or options for access by External Users.
External Connector License means a License assigned to a Server dedicated to Customer’s use that permits access to the corresponding
version of the server software or earlier versions of the server software by External Users.
“QUALIFIED USER” means a person
(e.g., employee, consultant, contingent staff)
who: (1) is a user of a Qualified Device, or
(2) accesses any server software requiring
an Enterprise Product Client Access License
or any Enterprise Online Service. It does not
include a person who accesses server
software or an Online Service solely under a
License identified in the Qualified User
exemptions in the Product Terms.
External Users generally are not licensed in similar fashion as your
organizations’ Qualified Users (see below definition).
If you have a need for external access to your servers for users that don’t fall
into the QU definition, you can license with External Connectors
Microsoft has limited the requirement for External Connector licenses
over the years – we handle this in the upcoming sections where this is relevant

PRODUCT LICENSING
SPECIFICS
WHAT’S TO COME
In the coming slides, the discussions will center on the
DIFFERENT TYPES OF PRODUCT LICENSING:
The buildup per section is as follows:
What products are licensed?
How do you license these products?
What does the Product Terms specify?
Are there any Product Specific Terms?
Are there any Program specific terms?
How to buy?
What are LicenseQ’s recommendations (if any)?
Remaining
models
(Dev Tools /
Client
Management
Licenses)
Core and
Client
Access
Licensing
(CAL)
Desktop OS
Licensing
Desktop
Applications
Licensing
Server and
Client
Access
Licensing
(CAL)
Core
Licensing

DESKTOP OS LICENSING
WINDOWS DEVICE & VDI

WHAT TO LICENSE?
In Volume Licensing, the following Desktop Operating System products are available:
Product EA/EAS Select Plus/
MPSA
CSP
Windows 10 Pro
Windows 10 Enterprise Long Term Servicing Branch (LTSC)
Windows 10 Enterprise E3 per Device
Windows 10 Enterprise E3/E5 per User
Windows Virtual Desktop Access (VDA) E3 per Device
Windows Virtual Desktop Access (VDA) E3/E5 per User

HOW TO LICENSE?
Licenses for Windows OS are available per Device or per User (can be mixed) – the differences are:
Windows per Device Windows per User
License a single Device License an individual User
Licensed Device can be used by multiple users Licensed User can use multiple devices (up to 5)
Can/must include Software Assurance User Subscription license
2.1.1 Per User License Assignment Eligibility (Excluding Virtual Desktop Access)
The Licensed User must be the Primary User of at least one device licensed with a Qualifying OS. This one device must also be the Primary
User’s primary work device.
2.1.2 Per Device License Assignment Eligibility (Excluding Virtual Desktop Access)
The Licensed Device must be licensed with a Qualifying OS, and the Qualifying OS must be installed on the Licensed Device. Per Device
license assignment is permanent unless Customer has Software Assurance for that device.
In order to understand this better, you
need to look at the assignment rights: A Primary User
is a user who uses a
Licensed Device
more then 50% of the
time over 90 day
period

HOW TO LICENSE?
DESKTOP OS
LICENSING
Licenses for these products are called Upgrade
Licenses – they need an underlying qualifying
Operating System on the device
Qualifying Operating systems DIFFER
per User and per Device

THE BASICS FROM THE PT

VIRTUAL DESKTOP ACCESS
Virtual Desktop Access: The Windows VDA subscription license provides the right to
access virtual Windows desktop environments from devices that aren’t covered by a
Commercial Licensing offer that includes VDA rights, such as thin clients. Windows
VDA is available on a per device or per user basis.
The VDA license is available per User or per Device and are
required when you don’t have a Qualifying Operating System on
your devices (for instance when using Thin Clients)
VDA per User is used in environments where the following applies:
• The user isn’t the primary User of at least one device licensed with Windows OS – i.e.
when you have users that share a device (call centers or point of sale devices); OR
• The user uses a device licensed with Windows OS, but that device is not the user’s
primary work device
Note: When adding
Software Assurance
to your Windows OS
licenses, you are
granted VDA rights

SOFTWARE ASSURANCE
Please note: User subscription licenses count as
having Software Assurance!
Adding Software Assurance grants
you:
• Virtual Desktop Access Rights
• Windows To Go – right to run Windows
from a USB drive
• MDOP – Microsoft Desktop Optimization
pack tools like App-V, BitLocker
Administration and Monitoring (MBAM),
Diagnostics and Recovery Toolset (DaRT)
• Ongoing access to new Long-Term
Servicing Channel builds
• User licenses only: the option to install
Windows OS on as many devices with a
screen 10.1” diagonally or less
You can add
Software
Assurance to
Windows 10
Enterprise
licenses
Windows 10
Pro and
Windows 10
LTSC do not
have the
option to add
SA

ADDITIONAL ITEMS
You have down-edition rights from Enterprise to Pro version
Procuring in CSP: Windows E3/E5 Activation Use Rights:
3.6 Microsoft Cloud Agreement and Microsoft Customer Agreement Activation Use Rights
For Customers licensed under a Microsoft Cloud Agreement or Microsoft Customer Agreement,
 Notwithstanding sections 3.2 and 3.7, each user may activate no more than five concurrent instances of the software across physical
and virtual OSEs.
 Notwithstanding the Universal License Terms or volume licensing agreement, upgrade Licenses do not include rights to run or install
a prior version, different language version, different platform version, or a lower edition of Windows, including Windows 10
Enterprise LTSC.
 Section 4 (Software Assurance) does not apply.

RECOMMENDATIONS
It is imperative to know all the rights you have in licensing the OS, as it is
subject to a lot of interpretation
Familiarize yourself with these basics in order to understand your options
It is very important to be aware of your options during the architecture phase –
making certain choices may lead to incompliancy on this front
It all starts with understanding the need when you procure the devices for your
organization
As you can see,
Desktop OS licensing
focuses mainly on
Windows and/or VDA
For instance: When you don’t have qualifying operating systems,
your only option is to License Windows VDA or Windows Enterprise
with SA (for VDA rights)

DESKTOP APPS LICENSING
OFFICE, PROJECT, VISIO

WHAT TO LICENSE?
DESKTOP APPLICATION LICENSING
In Volume Licensing, the following Desktop Application products are available:
Product EA/EAS Select Plus /
MPSA
CSP
Office Professional Plus *
Office Standard * (concession)
Office Standard for Mac
Individual Office Components
Project Standard
Project Professional
Visio Professional
Visio Standard
* Enterprise product: requires standardization

OFFICE EDITIONS
Office Standard 2019 Office Professional Plus 2019 Office Standard 2019 for Mac
for businesses that need desktop Office
applications for PC
businesses that need desktop Office applications for PC
plus instant messaging and HD video conferencing
for businesses that need desktop Office
applications for Mac
• Classic versions, Web versions
• One Note
• Administrators can control computers and user accounts with
group policy
• Administrators can deploy software to many users at once
with volume activation
• Take control of a remote computer or virtual machine
• Make decisions with app telemetry, an automated remote
measurement and collection of data that you can turn into
useful analytics
• [View only] Safeguard digital information from unauthorized
use
• One Note
• Communicate and collaborate with Skype for Business
• Administrators can centrally control computers and user
accounts with group policy
• Take control of a remote computer or virtual machine over a
network connection with terminal services
• Make decisions with app telemetry, an automated remote
measurement and collection of data that you can turn into
useful analytics
• Archive email right from Outlook… more, more, more*
• One Note
* For full list of Office Professional Plus 2019 please visit https://www.microsoft.com/en-us/microsoft-365/business/microsoft-office-volume-licensing-suites-comparison

VISIO EDITIONS
Visio Plan 1 Visio Plan 2
Best for users who need to create and share
simple diagrams in a favorite browser. Includes
the web app and 2 GB of OneDrive storage.
Best for users who need to create professional
business and IT diagrams that meet industry
standards and can be connected to data. Includes the
web app, desktop app, and 2 GB of OneDrive storage.
Start diagramming quickly with templates, modern UI, and the familiar Office
experience in your favorite browser.
Create block diagrams, flowcharts, timelines, and Specification and
Description Language (SDL) diagrams.
Share your work easily as a secure web-based link, attachment, image, or
PDF, and reply to comments online.
Store and share your creations securely with the included 2 GB of free
OneDrive storage— always up to date and web based.
Always up-to-date desktop apps.
Create professional diagrams with ready-made templates and 250,000
shapes in the Visio content ecosystem that meet industry standards like
BPMN 2.0, UML 2.5, and IEEE.
Get started easily, customize and complete diagrams faster, and draw or
annotate using pen, finger, or ink.
Bring diagrams to life with data overlay, icons, colors, and graphics to make
the data easier to digest, including one-step Excel data visualization.
Integrate data-linked diagrams into Power BI dashboard to gain more
business insights.
Streamline teamwork on advanced design with enhanced support for
AutoCAD drawings.
Communicate one version of the truth and access diagrams from nearly
anywhere in a browser or iPad® app.
Get the Microsoft 365 experience and benefits, including installation on
multiple PCs per user, roaming app support, and automatically installed
updates.

PROJECT EDITIONS
Fully installed, up-to-date Project desktop app.
One license covers one PC per person. Manage project
schedules and costs.
Manage tasks, reports, and business intelligence.
Manage resources.
Sync with Project Online and Project Server.
Submit timesheets to capture project and nonproject time
spent for payroll, invoicing, and other business purposes.
Manage demand by capturing and evaluating project ideas
from anywhere in the organization through a standardized
process.
Use advanced analytics to choose project proposals that
best align with strategic goals and honor constraints.
Project Standard 2019 Project Professional 2019
Start quickly and manage projects easily via the
web browser.
Execute projects with ease with familiar scheduling tools
through your choice of the web browser or desktop
client.
ON-PREMISES
SOLUTIONS

HOW TO LICENSE?
Desktop applications are
perpetual licenses
Different applications of a
product cannot be separated
over multiple devices
These perpetual licenses are
licensed per device
Desktop Applications do not have down edition rights (i.e. you
can’t buy Office Pro Plus and install Office Standard)
One (1) install per device
only – software cannot be
distributed over more than 1
device

THE BASICS FROM THE PRODUCT TERMS

SPECIAL CLAUSES
DESKTOP APPLICATIONS LICENSING
There are
usage rights
for Office
2019 that are
worth
mentioning:
License reassignment
rights are available
Downgrade rights (Prior
Version) is possible
Down-edition rights not
available
Roaming Use rights are
available when procuring
Software Assurance
Portable use rights:
Allows the primary user
of a device licensed with
Office 2019 to install and
use Office on secondary,
portable device
Rights to install with
Windows to Go: Allows
Office to be installed in a
Windows To Go
environment
Rights to install on a Server: Allows Office to be installed on a server for delivery
through an RDS or VDI infrastructure

PROGRAM DIFFERENCES
DESKTOP APPLICATIONS LICENSING
If you look at
Volume Licensing Programs,
there are specific clauses of interest.
Application licenses are platform
independent!
Work at Home (WAH) Licenses:
Available in EA, Select Plus and MPSA:
grants a Primary User of a device the
right to install a copy of the WAH
software at home (off premises);

CORE & CAL LICENSING
LICENSING WINDOWS SERVER AND SYSTEM CENTER

WHAT TO LICENSE?
Core & CAL LICENSING
In Volume Licensing, the following products are Licensed with
Core licensing:
These are products to license and manage your Windows
Server estate. Both Windows Server and System Center have
Prior Version Rights
* Will not be covered further than the basics
You need to add Client Access Licenses for all users
and/ or Devices:
External use must be licensed with an External Connector!
If allowing external Users for the optional components above,
an additional external connector license is needed
Core CAL
Windows Server
Datacenter
Windows Server Standard
System Center
Datacenter
System Center Standard
Core Infrastructure Suite Datacenter
(combination of Windows Server Datacenter and System Center Datacenter)
Core Infrastructure Suite Standard
(combination of Windows Server Standard and System Center Standard)
Windows Server CAL
you must always acquire the correct version CAL for your
environment (or have SA)
Windows Remote Desktop Services CAL
(optional – for session virtualization)
Windows Rights Management Services CAL
(optional – for security purposes)

HOW DOES IT WORK?
Core and Client Access Licensing needs some additional
introduction:
- Core licenses are needed to license the Cores of a
Server – the coming slides will detail how to do this
- Access to these Server environments require a Client
Access License
- Client Access License is a right to for a client to access an
environment
- CALs are available for Users and Devices – it depends on
your needs what is more cost efficient
Licensing Core & CAL
basics:
Purchase Core licenses for
each Server running a
Windows Server
environment;
Purchase User andor
Device CALs for any
Devices and/or Users
accessing these Server
environments;
User CALs are of interest
when you have users that
need to access servers
via multiple devices
Device CALs are of
interest when you have
many users that use a
single device
User and Device
CALs can be
mixed

HOW DOES LICENSING CORES WORK?
As a basic rule, any Server needs at least 16 cores assigned to it, with a minimum of 8
cores per Processor
Below are some examples visualized showing the amount of core licenses needed
Important to note:
licenses are sold in packs of 2
or 16 cores.
Advise is to always procure
the 2 core licenses, as this
provides greater flexibility
(sidenote: Microsoft currently sells
Server Subscriptions for Azure,
which you can run on premises –
the Windows Server Standard
version of this is licensed per 8
cores)
16 Core
licenses
needed
16 Core
licenses
needed
48 Core licenses
needed

This is how
Microsoft
describes this in
the Product
Terms:

WINDOWS SERVER EDITIONS
Windows Server, as its name suggests, is an OS for
your Servers – as such it has a link to the hardware
you assign it to. For this reason, there is no License
Mobility rights associated to Windows Server With Datacenter, you are allowed to run the Server
software on the physical Operating System Environment
(OSE) and an unlimited amount of Virtual Machines
With Standard, you are able to run the software in two
Operating System Environments on the Server and an
additional two (2) VMs (or Virtual OSEs)
Standard licenses are stackable and will grant
additional VM entitlements – meaning adding more
licenses will allow you to run more VMs on a single
server
Licensing Windows Server 2019
Windows
Server 2019
Standard
Windows
Server 2019
Datacenter
SAME LICENSING
MODEL
Different virtualization
rights
Advanced feature set
The main difference is the virtualization possibilities,
which are of interest to many organizations:

WINDOWS SERVER AND SYSTEM CENTER EDITIONS
System Center is Microsoft’s management tool. These
licenses contain all products components:
• Configuration Manager, Data Protection Manager, Endpoint
Manager, Operations Manager, Service Manager and Virtual
Machine Manager
System Centers is licensed similarly to Windows Server, with
a few differences:
• System Center is only licensed with Cores and don’t require Client
Access Licenses
• License the Servers that are being managed, not the management
Servers itself!
• System Center has a Software Assurance requirement
System Center requires SQL Server Technology and allows
this use free of additional charges
• Keep in mind: these SQL installations might come up in a SAM
report – don’t count them!
3.4 SQL Server Technology
Customer may run any number of Instances of any SQL Server database software included in the Product in one OSE on a Server dedicated to
Customer’s use for the limited purpose of supporting that Product and any other Product that includes SQL Server database software.
Dedicated Servers that are under the management or control of an entity other than Customer or one of its Affiliates are subject to the
Outsourcing Software Management clause.
System Center 2019 Server MLs
Microsoft
System Center 2019
Standard
Microsoft
System Center 2019
Datacenter
• Include all the System Center 2019 components
• Can manage any workloads
• Include right to the Management Server
software
• Give rights to SQL technology
• Available only with Software Assurance

WINDOWS SERVER DOWN EDITION RIGHTS
Windows Server
2019 Datacenter
Windows Server
2019 Standard
Windows
Server
Datacenter
(any version)
Windows
Server
Enterprise
(any version)
Windows
Server
Standard
(any version)
Windows Server has Down Edition
Rights – you can install any lower
edition (and version)
• Prior to moving to the Core & CAL licensing model –
there used to be three editions: Datacenter,
Enterprise and Standard
• With Windows Server Datacenter Core licenses, you
can move to any lower version and edition
• With Windows Server Standard Core licenses, you
can move to Enterprise or Standard edition

WINDOWS SERVER SPECIAL CLAUSES
As stated
earlier:
no License
Mobility!
If you are using an
outsourcer, you are
required to license
Windows Server
through them (SPLA)
WITH WINDOWS SERVER SOFTWARE ASSURANCE,
there are additional benefits:
+
Azure Hybrid
Benefit for
Windows Server
use your Licenses
with Software
Assurance (or
Server Subscription
Licenses) in Azure to
reduce cost.
Semi-annual
channel
Releases
for companies who
innovate quickly. Will
release new features
twice a year. Also
available for Server
Subscription
licenses
Right to buy
Extended
Security
Updates (ESU)
when you are using
a product which is
out of Extended
Support, ESUs will
be available to
receive security fixes
for these out of date
products
Specifically for RDS
licenses with SA (or
subscriptions)
additional right
to use your
licenses with
Azure
(dedicated to your
organization – with a
90-day
reassignment
restrictions)

SERVER-SIDE AND CLIENT-SIDE LICENSING

WHAT IS IT?
Like the previous section, Server and Client Access
Licensing needs an additional introduction. It is like Core &
CAL licensing, with some differences:
- License Servers with the correct amount of Server
licenses
- License users/devices with a Client Access License
- A Client Access License is just that: a right to for a client
to access a Server environment
LICENSING SERVER & CAL BASICS:
- Purchase a Server license for each Server running the Server
Application;
- Purchase either User or Device CALs for any Devices and/or
Users accessing these Server environments;
- For some products, there are Standard CALs and Enterprise
CALs
- Standard CALs contain basic functionality for a Server
access
- Enterprise CALs contain extended functionality for Server
access
- Enterprise CALs are additive – meaning if you require
Enterprise functionality you need to buy both a Standard
and an Enterprise CAL
External use generally does not require licenses as of 2019 version.
If different, it will be covered in the next slides
CALs are available for Users and Devices – it
depends on your needs what is more cost efficient
User CALs
are of interest when
you have users that
need to access
servers via multiple
devices
Device CALs
are of interest when
you have many
users that use a
single device
User and
Device CALs
can be mixed

WHAT TO LICENSE?
In Volume Licensing, the following products are Licensed through Server & CAL licensing:
Product EA/EAS Select Plus /
MPSA
CSP
Exchange Server
SharePoint Server
Skype for Business Server
Project Server
Dynamics 365 for Operations
Dynamics 365 On-premises (CRM)
SQL Server Standard *

CAL Equivalency is the option to license Cloud services and use them to access your on-premises
servers
For more on CAL equivalency – please do follow our Cloud Licensing session!

EXCHANGE SERVER
For more info on differences, go here: https://www.microsoft.com/en/microsoft-365/exchange/microsoft-exchange-server-licensing-licensing-overview
Exchange has a Standard and Enterprise server
edition – generally the difference is in the scalability
of this (Enterprise is often needed for larger
organizations)
Exchange has Standard and Enterprise CALs –
as explained previously, the difference here is the
functionality
• Choose the best option to license: per User and/or per Device
• Main difference is Archiving functionality and information
protection capabilities
External users do not require licenses
User CALs Device CALs
External user
Server licenses
Standard or Enterprise

SHAREPOINT SERVER
The SharePoint Server licensing model has only one Server
edition, and is licensed with Standard and Enterprise CALs
- Enterprise CALs mainly add Business solutions and
Business Intelligence capabilities*
*For more info on differences, go here: https://www.microsoft.com/en/microsoft-365/sharepoint/sharepoint-licensing-overview
External user
Server licenses
There are generally three different scenario’s that you
can set up, which have different licensing types:
Intranet:
only internal use of
SharePoint.
Requires you to
license all internal
users with the
correct CALs (Std
and/or Ent; Device
and/or User)
Extranet:
SharePoint
environment is
open for External
Users as well.
License all Internal
Users with
SharePoint CALs.
External Users
don’t need licenses
Internet:
open SharePoint
Server
Environment –
requires no CALs
at all External
users!

The differences here are in the CAL functionality:
SKYPE FOR BUSINESS SERVER
The Skype for Business Server licensing model has only
one Server edition, and is licensed with Standard, Enterprise
CALs and Plus CALs
*For more info on differences, go here: https://www.microsoft.com/en-us/microsoft-365/skype-for-business/it-pros
External user
Server licenses
Again: keep in mind that CALs are Additive!
You can have Standard CALs with a Plus CAL added, without
the Enterprise CAL
External users do not require licenses!
Standard CAL:
grants options for
Presence, IM, peer-
to-peer VoIP and
Skype connectivity
Enterprise CAL: enable
meetings with audio and video
calling, desktop and application
sharing, dial-in conferencing on
mobile, tablet, PC and Mac.
Plus CAL: enable
PSTN in/out, emergency
calling and additional
enterprise grade phone
features

PROJECT SERVER
The Project Server licensing model has one Server edition,
and is licensed with one type of Client Access License (per
User or per Device available)
Project Professional on-premises Licenses have a Device CAL
for Project Server included
Project Standard cannot share in a Project Server environment
External users do need licenses – license them with
Device of User CALs
External user
Server licenses
Project Server is a niche product, as such the CAL are not represented in
a CAL suite (more on this in the following slide)

SIDESTEP TO CAL SUITES
CAL SUITE
When you license in an Enterprise Agreement,
you have standardization requirements.
Standard CALs are not available standalone in an
EA. You are required to license the Core CAL or
Enterprise CAL suite.
As this is in an EA, SA is mandatory!
If you need one CAL (Windows Server, for instance)
you would be required to license the Core CAL suite
in an EA
Enterprise CALs are available standalone as
additions to the Core CAL suite
Alternative is to not license CALs in an EA but
separately in a transactional model (MPSA/Select
Plus)
Productivity
Servers
Core
infrastructure
Microsoft
Enterprise CAL Suite
Advanced Threat Analytics CML
Windows Server AD RMS CAL
Skype for Business Enterprise CAL
Exchange Enterprise CAL (with Services)
SharePoint Enterprise CAL
Microsoft
Core CAL Suite
SC Configuration Manager CML
SC Endpoint Protection SL
Skype for Business Standard CAL
Exchange Standard CAL
SharePoint Standard CAL
Windows Server CAL

SIDESTEP TO CAL SUITES – PRODUCT TERM SPECIFICS
CAL SUITE – PRODUCT TERMS
CAL Suites are Version less – when SA
coverage ends and is not renewed, you have
the right to use the latest version of the
individual components available
If moving to the cloud – CAL suite bridges
are available. A Bridge contains the remaining
components that are not covered by the cloud
suite
Enterprise CAL Suite with active SA
coverage also includes the rights to
Exchange Online Archiving for Exchange
Server, Data Loss Prevention, and Exchange
Online Protection.
Productivity
Servers
Core
infrastructure
Microsoft
Enterprise CAL Suite
Advanced Threat Analytics CML
Windows Server AD RMS CAL
Skype for Business Enterprise CAL
Exchange Enterprise CAL (with Services)
SharePoint Enterprise CAL
Microsoft
Core CAL Suite
SC Configuration Manager CML
SC Endpoint Protection SL
Skype for Business Standard CAL
Exchange Standard CAL
SharePoint Standard CAL
Windows Server CAL

ADDITIONAL FOR APPLICATION
SERVERS
IMPORTANT TO NOTE!
INFRASTRUCTURE REQUIREMENTS: you need underlying software to run these Application Servers.
Licensing Virtualized
Environments with load
balancing?
This requires you to either purchase
licenses for all Servers that the
application can land on, or you need
Software Assurance to use License
Mobility Across Server Farms
Exchange
Server 2019
Skype for
Business
Server 2019
SharePoint
Server 2019
Project
Server 2019
Windows Server
SQL Server
SharePoint Server

DYNAMICS 365 ON PREMISES SERVER LICENSING
Dynamics 365 Server Licensing (CRM) does not require Server
licenses, you only need to License the Client Access Licenses
- After Licensing CALs, use as many Server installations as needed
- Install earlier versions of the CRM Server
- User and Device CALs available
- External Users do not require CALs
*For more info on differences, go here:
https://download.microsoft.com/documents/en-us/dynamics365/pricing/Dynamics_365_On-Premises_Enterprise_edition_licensing_Guide_December_2016.pdf
3 different
license
types:
Sales CAL:
access to core
Sales
capabilities.
Includes Team
Member rights
Customer
Services CAL:
access to core
CS capabilities.
Includes Team
Member rights
Team Members CAL:
basic functionality for
users not tied to
specific function.
Offers broad access to
Dynamics platform
with limited
functionality
Dynamics 365 Server Licensing
Team Members CAL
Sales CAL
Customer Service CAL
Per User Per Device

DYNAMICS 365 FOR OPERATIONS SERVER LICENSING
Dynamics 365 for Operations is the on-premises ERP product
from Microsoft
This has the following requirements:
- License the Servers needed
- License the CALs needed – Device and User CALs
available
- Software Assurance is mandatory
- External Users do not require licenses
*For more info on differences, go here https://mbs.microsoft.com/Files/public/365/DynamicsOperationsOnPremEnterprise.pdf
Dynamics 365 for Operations Server Licensing
D365 for Operations CAL
D365 for Operations Device CAL
D365 for Operations Activity CAL
D365 Team Members CAL
Per User Per Device
What are the CAL differences?
Operations
CAL:
full service
CAL – grants
access to
Operations Device
CAL: same as
above, but to
license devices (i.g.
point of sale)
Team Members
CAL:
for access to the
Operations
environment
Operation Activity
CAL: limited in
functionality, but for
somewhat heavy
use

CONCLUSIONS
When looking at the product specifics, nothing worth noting is present in the Product Terms for these
Server & CAL licenses
Standard Software Assurance benefits apply
Our prediction is that Server & CAL licensing will change rapidly towards the
future. Some things that might happen (or are already happening):
Move to subscription
licensing
no perpetual licenses for
these products
Move away from CAL
licensing
requirement for Cloud
subscription licensing with
benefits to install server
products
Removal of all Software
Assurance benefits
included in software. This evens out
purchasing in CSP vs EA (and
creates standardization for MCA)

CORE LICENSING
SQL SERVER & MORE

WHAT TO LICENSE?
Core LICENSING
In Volume Licensing, the
following products are
Licensed with Core
licensing:
For this training, we will focus
primarily on SQL Server,
as that is the most used product. Most
of what is covered counts towards
BizTalk as well.
SQL Server is also available in
Server/CAL model, though this is hardly
used anymore. Any important aspects
will be discussed
SQL Server
Enterprise
Biztalk
Server
Enterprise
SQL Server
Standard
Biztalk
Server
Standard
System Center
Datacenter
(handled in
combination with
Windows Server
licensing in Core &
CAL section)
System Center
Standard
(handled in
combination with
Windows Server
licensing in Core &
CAL section)

CORE LICENSING
The Product Terms
states the following for
Core licensing. In the
following slides, we will
cover SQL Server as
the base product for
this licensing section

SQL CORE LICENSING
As a basic rule, count the number of cores in a Server. Procure that number of cores
per Server, with a minimum requirement of 4 cores per Processor
SQL Core licenses do not require Client Access Licenses
Core licenses are acquired in 2-core packs
Standard edition can be licensed per core or per Server/CAL
Enterprise edition can be licenses only per core model
8 Core
licenses
needed
4 Core
licenses
needed
24 Core licenses
needed

SQL CORE LICENSING
When buying
Standard licenses,
you can Standard,
Workgroup (2008
R2 or earlier) or
Small Business
(2008 R2 or earlier)
For each SQL Server license with active Software Assurance,
you have the right to use a failover Server (passive until
failover event).
The number of cores of the failover server need to be equal or
less than the active server SQL Server licenses consist of
components: e.g., Reporting Server and Analysis Server.
You can separate and install components on different Servers,
but all Servers need to License all Servers with the correct
number of licenses!
SQL Server licenses with Software Assurance has License
Mobility across Server Farms, allowing you to move the
licenses in the Server Farm
SQL Server licenses have down
edition rights.
When buying Enterprise
licenses, you can use
Enterprise, Standard,
Business Intelligence (2014
or earlier), Workgroup (2008
R2 or earlier), Small
Business (2008 R2 or
earlier) or Datacenter (2008
R2 or earlier)

SQL Server Std
(or Enterprise)
Core licenses:
License the virtual
cores (minimum of
4 cores per VM)
SQL Enterprise
Core licenses:
licensing all
physical cores will
grant the right to
run SQL Server in
one VM per core
SQL Enterprise Core
licenses with Software
Assurance:
license all physical cores with
SA will grant you unlimited
Virtualization rights. Use
License Mobility to be able to
do load balancing across
your Server Farm
LICENSING FOR VIRTUALIZED ENVIRONMENTS
SQL CORE LICENSING
Licensing for Virtualized environments can be quite complex! As SQL is a platform application, there is
no direct link to Hardware as with Windows Server
There are a couple of typical scenarios which are quite common:
The left shows three
examples from least to
most flexibility.
Most large organizations
choose option 3, but will
license applications that
don’t need High availability
or High Virtualization with
option 1
1 2 3

SQL SERVER SPECIAL CLAUSES
SQL CORE LICENSING
SQL Server has some special clauses to
SQL Server Enterprise & CAL
model:
if you are still using this, you may
continue to renew SA on your SQL
Enterprise Server licenses. The
suggestion here is to always
discuss with Microsoft how to move!
If you are using container
technology:
a container is considered a Virtual
Operating System Environment and
Physical or Virtual cores are
considered hardware threads. As
such, license according to earlier
stated rules!
When acquiring Software Assurance, the
following rights are granted:
a) Enterprise Core Unlimited Virtualization (as discussed)
b) Fail-over rights (as discussed)
c) Azure Hybrid Benefit
d) License Mobility through SA
e) Use of Machine Learning Server for Windows, Linux
and Hadoop (Enterprise Core only)
f) Use of PowerBI Report Server (Enterprise Core only)
g) Extended Security Updates – similar to ESU for
Windows Server

CORE LICENSING
CONCLUSIONS
SQL Server is being used widely, and incompliancy is just around the corner
Depending on your architecture, SQL Server can run out of control in cost
Most environments can be optimized with 10-30% as licensing is not always taken into
account within the architecture requirements
Microsoft focuses heavily on this revenue, and is always a key point to address in
Audits and SAM Engagements
Always keep a copy of the Licensing Guide near you when dealing with SQL:
https://download.microsoft.com/download/6/6/0/66078040-86d8-4f6e-b0c5-
e9919bbcb537/SQL%20Server%202019%20Licensing%20guide.pdf
We assess environments daily. Let us help you optimize!

REMAINING LICENSING
DEVTOOLS & MORE

WHAT TO LICENSE?
DEV TOOLS LICENSING
In Volume Licensing, the following products are Developer Tools licenses:
The Visual Studio family is licensed per User:
MSDN
Platform
Server + CAL
licensed on Server+CAL
basis, not covered further
Purchase appropriate levels of Visual Studio subscriptions for Users who will be participating in Software development projects
Purchased in three different ways:
• License only – receive the client installation option
• License with Software Assurance – receive an MSDN subscription
• Subscription License – only for Test Pro and Ent in an SCE. Same as L/SA, though no perpetual rights after the term
For differences in options, visit: https://visualstudio.microsoft.com/vs/compare/

WHAT TO LICENSE?
DEV TOOLS LICENSING
With Visual Studio users may install and use the software on any number of devices
to design, develop, test, and demonstrate their programs. Visual Studio subscriptions
also allow the licensed user to evaluate the software and to simulate customer
environments in order to diagnose issues related to your programs. Each additional
person who uses the software in this way must also have a license.
A User of VS can install the software on any number of devices that it deems necessary, but only for to accommodate that User’s dev and test needs
Additional Benefits:
- Office Pro Plus 2019 or Microsoft 365 Apps for enterprise production use for Visual Studio Enterprise licenses
- Azure DevOps use - both on prem and cloud version (1 server and 1 CAL license per VS User and 1 Basic and/or Test cloud license)
- Monthly Azure Credit - $130 for VS Ent, $85 for MSDN Platforms and $45 for VS Test Pro and VS Pro
- Cloud Use Rights – use of the software in the Microsoft Azure cloud (base VM charges apply). This benefit does not apply to other Cloud Services
vendors like AWS, Alibaba and Google!
- Free use of System Center VMM for creating and managing lab environments (=a virtual OSE used for the purpose of dev/test of programs)
- Load testing – execute load tests with any number of virtual users

DEV TOOLS
THE BASICS
ADDITIONAL:
- With Visual Studio
subscriptions, you
can renew your
Software Assurance
or subscription
license to a lower
edition
- Azure Services
Credits cannot be
pooled

MANAGEMENT
SERVERS
WHAT TO LICENSE
In Volume Licensing, the following products are
Management Server licenses:
• System Center Server Management licenses –
discussed in the Core & CAL license due to its
combination with Windows Server
• System Center Client Management Licenses (MLs)
The products that cover System Center Client MLs:
• Microsoft Endpoint Configuration Manager (part of CoreCAL)
• System Center Endpoint Protection (part of CoreCAL)
• System Center Data Protection Manager
• System Center Operations Manager
• System Center Orchestrator
• System Center Service Manager

MANAGEMENT SERVER LICENSING
WHAT TO LICENSE
System Center Client Management Licenses are
license per OSE (device) or per User
As with System Center Server Management Licenses –
Software Assurance is mandatory
System Center Client MLs include the rights for the
Management Server and include SQL Server Technology
SPECIFICS:
- For all MLs: you have the
right to switch to a Current
Branch option – as such
receiving updates on a
semi-annual basis
- Configuration Manager
with active SA provides
limited access to Microsoft
Intune for co-management
of Users’ PCs

CONCLUSIONS
THE MAIN TAKE AWAYS

CONCLUSIONS AND
RECOMMENDATIONS
THE FINAL SLIDES
1. Unlike other mega-vendors, Microsoft focuses
on a large set of products. This makes it
complex to understand
2. Try and learn the basics of product licensing
for the products that you have in your
organization
3. Always check for updates to the terms on a
regular basis! Microsoft makes changes to the
Product Terms on a monthly basis, as such you
should check in regularly to see if anything is
changing
4. With new major releases you will often see
major changes – understand your rights to use
earlier versions
5. Software Asset management is a key
principle to your organization’s IT strategy,
invest time and effort into doing things the
right way!
6. A basic understanding of what benefits are
granted to certain products through Software
Assurance is key to not make any mistakes in
your environment
7. Most companies are switching to cloud
subscriptions even though you might not use
them yet. This can be favorable to your
options! Check into our Cloud licensing
sessions in two weeks time to understand
more!

Microsoft Product Licensing Basics

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