jillian goodman smb licensing marketing manager (independent contractor) microsoft new zealand

Open Programs

Jillian GoodmanSMB Licensing Marketing Manager(Independent Contractor)

Microsoft New Zealand

Agenda

Open Programs OverviewPricing and Program Comparison:

Open Value SubscriptionOpen ValueOpen Business

Partner and Customer Value

Summary

Resources

The “Open” Program line-up

Microsoft Open ValueMicrosoft Open Value SubscriptionMicrosoft Open Business

All programs have in commonVolume Licensing – no need to manage boxes and disksRequires a level of commitment

In some cases a minimum of 5 licensesSometimes licensing every desktop in the company

Discounts depend on commitment and vary by programPrograms offer many benefits

Programs meeting unique needs

Open Value Open Value Subscription For Organisations requiring: • perpetual (everlasting) licenses • payment of licensing costs

annually or upfront • the benefits of having Software

Assurance • additional discounts for

CompanyWide commitment • simplified software management

For Organisations requiring: • non-perpetual (temporary) licenses • minimum financial outlay • to reduce software licenses annually • payment of licensing costs annually • the benefits of having Software



Open Business For Organisations requiring: • ability to purchase ad-hoc • perpetual (everlasting) licenses • option of License only (no Software Assurance)

Evolution of licensing

SMB Licensing over the last decade

FPP and OEM

Open Business (here now)

Open Value

Open Value

Three Open Programs available:

Open Value Open Value Subscription

Open Business

CompanyWide Platform

(Three Platform products)

Yes New: 23% Renew: 9%

Yes 23%

No

CompanyWide Non Platform

(1-2 Platform Products) Yes

New: 10% Renew: 5%

Yes 10%

No

Non CompanyWide

(ad-hoc purchasing)

Yes No Yes

Non CompanyWide/Ad-hoc purchasingOpen Value:

5 L&SA or 5 x SA Annual purchasing (over 3 year agreement)

Open Business: 5 x mixture of L, L&SA, SA,L&SA/SA should be via Open ValueUpfront only (2 years)

Same Price - two different ways to procure.


Open Business

Non CompanyWide

(ad-hoc purchasing)

Yes No Yes

CompanyWide

How CompanyWide Licensing works:Programs: Open Value, Open Value Subscription

Requires licensing across every desktop in Company of at least one Platform ProductCustomer chooses from a list of “Platform” productsPlatform products are grouped into three families:

1. Microsoft Office2. Client Access Licenses3. Windows OS Upgrade

Discount depends on commitment All products other than Platform Products can be licensed in any quantity within the same agreement

Platform Products

Platform Products* Product Family Platform Product Options*

Microsoft Office choose one or mix and match

Office Enterprise

Office Professional Plus 2007 Office Small Business

Client Access Licenses (CALs) choose one

Enterprise Client Access License

Core Client Access License

Small Business Server CAL Std/Premium (may mix and match CAL editions)

Essential Business Server CAL Standard/ Premium (may mix and match CAL editions)

Operating System choose one or mix and match

Windows Vista Business Upgrade

Windows Vista Business Upgrade (with Microsoft Desktop Optimisation Pack)

*Please refer to Product List on www.microsoft.com/licensing for latest Platform Product options available

Licensing products other than those listed above? Products such as Servers etc may be licensed in any quantity within the same Open Value or Open Value Subscription agreement, and are referred to as ‘additional products’. Additional products

are simply ordered as needed, an paid for by the end of the month of deployment.

CompanyWide Platform: Up to 23% discount

Professional Desktop (bundled)Microsoft Office Professional Plus 2007Core Client Access LicenseWindows Vista Business Upgrade

Small Business Desktop (bundled)Microsoft Office Small BusinessMicrosoft Small Business Server CALWindows Vista Business Upgrade

Custom Platform (mix and match) Choose three Platform ProductsMicrosoft Office Suites (3 options, can mix and match) andClient Access Licenses (4 options, choose one product) andWindows Operating System (2 options, choose one product)


Open Business




Yes 23%

No

CompanyWide NonPlatform – up to 10% discount

Commitment:One or two Platform Products CompanyWide


CompanyWide Non Platform (1-2 Platform Products)


Yes 10%

Platform Products* Product Family Platform Product Options*

Microsoft Office choose one or mix and match

Office Enterprise

Office Professional Plus 2007 Office Small Business

Client Access Licenses (CALs) choose one

Enterprise Client Access License

Core Client Access License

Small Business Server CAL Std/Premium (may mix and match CAL editions)

Essential Business Server CAL Standard/ Premium (may mix and match CAL editions)

Operating System choose one or mix and match

Windows Vista Business Upgrade

Windows Vista Business Upgrade (with Microsoft Desktop Optimisation Pack)

*Please refer to Product List on www.microsoft.com/licensing for latest Platform Product options available

Summarising Open Value/SubscriptionOpen Value

CompanyWide Platform; Three Platform Products CompanyWide Non-Platform; One or two Platform Products Non CompanyWide; No Companywide commitment required. Minimum of five Licenses with Software Assurance (SA)

Open Value Subscription CompanyWide Platform; Three Platform Products CompanyWide Non-Platform; One or two Platform Products

Programmatically: Open Value Subscription works the same way as Open Value

Except for:Software purchased via Open Value Subscription are non-perpetual (temporary)

There is no ad-hoc purchasing option available in Open Value Subscription

Open ProgramsComparison

Reminder: Three Open Programs available:


Open Business




Yes 23%

No



New: 10% Renew: 5%

Yes 10%

No

Non CompanyWide

(ad-hoc purchasing)

Yes No Yes

Pricing Comparison

Pricing Comparison

Platform Families/Products CompanyWide

Subscription Open Value

Microsoft Office* Platform Non

Platform Platform Non

Platform Non

CompanyWide Office Small Business $272 $286 $366 $431 $479 Office Professional Plus $317 $334 $428 $503 $560 Office Enterprise $388 $408 $523 $615 $683

Client Access Licenses* Platform Non


Platform Non

CompanyWide Core CAL $113 $119 $165 $194 $216 Enterprise CAL $282 $297 $360 $418 $462

Windows OS Upgrade* Platform Non


Platform Non

CompanyWide Windows Professional $123 $130 $131 $154 $217 Windows Pro (with MDOP) $141 $148 $145 $170 $236

IMPORTANT NOTES: Pricing is based on Recommended Retail pricing only. Prices stated here are annual (based on starting a 3 year agreement). Based on License & Software Assurance

For latest pricing/quotes, please contact your Microsoft Reseller or Distributor

Programs meeting unique needs









Program Comparison: Agreement TermOpen Value Subscription Open Value Open Business

• Three-year agreement • Non-perpetual

agreement term • Option to renew for an

additional three years • Customer may “buy

out” perpetual licenses when agreement ends

• Three-year agreement • Renewable for an

additional three years • After the initial term,

the customer owns perpetual licenses and has the option to extend SA coverage

• Two-year agreement • No renewal option • All licenses purchased are

perpetual • Renewal of SA may be in

a new Open Business or Open Value agreement.

Program Comparison: Purchasing OptionsOpen Value Subscription Open Value Open Business

Two purchasing options Both options require all qualifying desktops in the company be licensed with at least one platform product, and have a minimum of five PCs to start an agreement. 1. CompanyWide Platform;

Three Platform Products 2. CompanyWide Non-

Platform; one or two Platform Products

Three purchasing options Options 1 and 2 require all qualifying desktops in the company be licensed with at least one platform product, and have a minimum of five PCs to start an agreement. 1. CompanyWide Platform;

Three Platform Products 2. CompanyWide Non-

Platform; One or two Platform Products

3. Non CompanyWide; Minimum 5 Licenses with Software Assurance or for eligible products SA only - no Companywide commitment required

Customers must have a minimum of five licenses to start an Open Business agreement. Open Business allows customers to purchase on an ad-hoc basis, for the licenses they require. License options available: 1. License only (L) 2. License and Software

Assurance (L&SA) 3. Software Assurance

(SA), when eligible

Program Comparison: BenefitsOpen Value Subscription Open Value Open Business

Annual licensing payments. Low Upfront Costs. Reduce licensing costs if PC count

declines “Up-to-Date” discount: up to 50% off

in year one Add additional desktops during the

year and pay nothing until the next agreement anniversary (for Platform Products)

Software Assurance included means hassle free upgrades, training, support, home use & much more!

Standardisation keeps your IT infrastructure current, more secure, and easier to support

Easier software management Be confident you’re correctly licensed View purchase history and download

products online

Spread licensing payments over three years

Discounts of up to 23% (CompanyWide Platform)

Price protection for initial purchases Simplified purchasing. License per

desktop and pay annually (for CompanyWide products)

Software Assurance included means hassle free upgrades, training, support, home use & much more!

Standardisation keeps your IT infrastructure current, more secure, and easier to support

Easier software management Be confident you’re correctly licensed View purchase history and download

products online

Offers savings off retail prices

Ability to purchase License only

One time transaction Minimal paperwork No boxes/disks to manage

Open Value Subscription Open Value Open Business Single agreement for multiple entities?

Yes (must be in same region) and more than 50% owned

Yes (must be in same region) and more than 50% owned No

Install before ordering

Yes - Annual orders for Platform Products Monthly orders for Additional Products

Yes, monthly ordering (all products)

No

Payment Three annual payments Three annual payments or up-front at time of order

Upfront only

Price protection Yes (for products purchased at start of agreement)

Yes (for products purchased at start of agreement) No

Software Assurance Included Included Optional Media included Yes Yes No. Available for purchase

License management Web based via Microsoft Volume License Services (MVLS) site https://licensing.microsoft.com

Web based via Microsoft Volume License Services (MVLS) site https://licensing.microsoft.com

Web based via eOPEN site https://eopen.microsoft.com

Program Comparison - details:

Open Value Subscription

Today's marketEconomic Cli

mate

Organisations

need to remain

competitive.

Ability to

access technology solution

s critical

Busines

s Uncertainty

Solution: Open Value Subscription

Subscribe to licenses

Lower upfront cost

Either increase or reduce licensing

commitment annually

Open Value Subscription in action

20

3530

40

0

10

20

30

40

50

Agreement start (with 20 desktops)

1st anniversary (pay 35 desktops)

2nd anniversary (pay 30 desktops)

Agmt end. If renew, renew 40 desktops

Open Value Subscription

true down5 PCs

true up10 PCs

if renewing/ buying out

Added 15PCsduringthis year

Reduced 5PCs during this year

Added 10 PCs during this year

true up 15 PCs

Ability to reduce licensing costs should PC count decline

Up to date (UTD) Discount of up to 50%

For Platform Products onlyProgrammatic benefit for Open Value SubscriptionGives customers credit for past purchases of Microsoft productsUp to 50% “UP TO DATE” Discount (UTD) in year 1 of 3 year Open Value Subscription agreement

Criteria:Customer must have a qualifying version of the product listed through

OEM (preinstalled on hardware)FPP (boxed product via a retailer)Volume Licensing (Open Business, Open Value etc)

Proof of purchase may be required when UTD skus are purchasedUpdated eligible products in Microsoft Product List: http://www.microsoftvolumelicensing.com/userights/PL.aspx

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

“Up to date” qualifying products

Up to date License Qualifying Previous Version

Core CAL (Device or User) Any Core CAL Office Professional Plus Edition 2007 Office Enterprise Edition 2007

Office Professional Plus Edition 2007 Office Ultimate Edition 2007 Office 2007 Professional Edition Office 2003 Professional Edition

Office Small Business Edition 2007 Office 2007 Small Business Edition (or Prof edition)

Office 2003 Small Business Edition (or Prof edition)

Small Business Server 2003 CAL (Device or User)

Windows Small Business Server 2003 Small Business Server 2000

Windows Vista Business Upgrade Windows Vista Business Windows XP Professional

Three options at end of agreement:

1. Renew for another three years under Open Subscription

2. Let Open Value Subscription Agreement expire. Would no longer have licensing rights to any software received through Open Value Subscription and would need to uninstall and cease using the software.

3. Elect to ‘buyout’ the licenses Buy-out fee is 1.75 X annual fee. Customer can then enroll perpetual licenses into Software Assurance within 30 days of the expiration of the Open Value Subscription Agreement.

Buyout Order Intricacies

The buyout SKUs are on the price listHave “Each” in the Purchase Unit column or product description e.g. Office Pro 2003 All Lng OLV NL Each Ent.

Customer can choose to buy out:Platform products: All qualified desktops covered by the orders placed during the final year of the agreement term. Additional products: Any quantity of additional products ordered during the final year of the agreement.

Buyout License will be for the most current versionIf a customer is licensed for the professional version of a product, then they cannot buy-out the Standard version of the product

Buyout order must be at least 30 days before agreement expiration date

Partner & Customer Value:Open Value and Open Value Subscription

The evolving customer conversation...

Encourage customers to move from reactive to proactive licensing

Reactive = immediate need. Often stress/time constrained, budget constrained. Proactive = looking at things long term Understand the business benefits of the technology. Choose a licensing STRATEGY. Understand options. Compare licensing options over a 6 year period. Consider tax effects on purchasing. Use of money etc Need SA? Always Open Value. Open Business = License only Buying individual CALs? Consider the suite. Look long term.There is a minimum way to buy and a best way to buy

Partner Benefits:Establish your company as THE partner for 3 yearsSecure additional revenue streamsEnsure future revenue streamsGet predictability in your sales businessHelp your customers maximize the value of their technology investmentsStretching your customers costs out over the three-year agreement term, frees up cash for software deployment and additional services.Drive your revenue and service opportunities.Less hassle than with Open License because Microsoft sends media kits directly to the customer.Ability to include affiliates in the agreement increases volume and strengthens the relationship with the customer.Lower overhead costs than with Open License because customers are allowed to order licenses at the end of the month or in some cases on each anniversary of their agreement

Value for PartnersA number of case studies available including:

VL SystemsOpen Value helped increase Microsoft business by 25% Learn how this partner leveraged the up-front savings to customers into demand for additional IT services

Northwest Computer Support Open Value helped grow services revenues by 20%-30%. See how this partner sees revenues1. when it implements the solutions and2. when upgrades become available.

Partner quotes...

“Knowing that we’ll be collecting payments on an Open Value agreement in years two and three makes it easier to forecast our budgets and develop plans to keep growing our business.” Les Green, Director of Marketing, VLSystems

“We’re seeing a 20–30 percent growth in service revenue that we can trace back directly to the software included in Open Value.”Tom Rash, President, Northwest Computer Support

“Almost 80 percent of our sales generate a support contract. This recurring revenue is the name of the game for our business.” Tom Barnes, Sales and Marketing Manager, NSPI

“Open Value helps us get new clients and gives us a three-prongedopportunity to build our business: recurring license revenues, largerimmediate sales, and incremental service contracts.” Matt Scherocman, Director, IT Advisor Group

Summary

Reminder: Discounts/Programs


Open Business




Yes 23%

No



New: 10% Renew: 5%

Yes 10%

No

Non CompanyWide

(ad-hoc purchasing)

Yes No Yes

Reminder: Customer Profiles









Deeper into profiles...Need to simplify license trackingLook for customers who have retail, original equipment manufacturer (OEM), and/or multiple volume licensing agreements across departments or affiliates as they often find value in consolidating to a single Open Value agreement to ease their license tracking. Want to run the latest software versionsLook for customers who want or need to keep their software current. These customers understand the value of running the latest software versions but often find it a challenge to justify the cost of technology upgrades. Open Value removes one barrier to upgrade projects by including rights to new versions of licensed software. Up-front software costs are a significant concernLook for customers who are running outdated versions of Microsoft licensed products. They may be struggling with the potential cost of upgrading their server infrastructure to the latest server operating system and application server versions. The ability to spread payments annually and move to a licensing model that automatically keeps licensed products up to date can be a compelling proposal.

Step-Ups – another great revenue driver

Must have active Software Assurance (for the underlying qualifying product), so for all Open Value customers this is a huge benefit!Approximately 40 step up paths in volume licensing range of products, mostly servers, desktop applicationsAfter a customer has purchased a step up, they can renew the higher level product in their next agreement SA only.Important note: If you are stepping up platform products, the platform pricing discounts apply too!

A step-up license allows a customer to move from a lower level edition of a product to a higher level edition of a product

i.e. Office Professional » Office EnterpriseWindows Server Standard » Windows Server Enterprise

Resources

Resources

1 page Quick References

New Zealand licensing web site: www.microsoft.com/nz/licensing

Partner Licensing Web:https://partner.microsoft.com/nz

Your account Manager

Jillian Goodman, SMB Licensing Marketing Manageremail: [email protected]

http://www.microsoft.com/nz/licensing



https://partner.microsoft.com/nz

Licensing helpdesk

FREE service funded by Microsoft New Zealand:Volume license purchase historiesLicense information (product or program)Average response time (94% in less than 4 hours)

If you can’t find the information use the services of the Microsoft NZ internal Licensing helpdesk.

email: [email protected]

Questions?

jillian goodman smb licensing marketing manager (independent contractor) microsoft new zealand

Documents