Volume Licensing

A Guide to Microsoft Volume Licensing for Organizations

• Cost Savings: Bulk purchase discounts.
• Simplified Management: Centralized control and administration.
• Flexibility: Easy to add or adjust licenses as needed.
• Regular Updates: Access to the latest software versions.

Introduction Volume Licensing

Brief Overview of the Importance of Software Licensing

Software licensing is a crucial aspect of managing technology in any organization.

Proper licensing ensures legal compliance, optimizes software usage, and helps control costs.

By adhering to licensing agreements, businesses can avoid legal penalties and ensure that they have access to the latest updates and support from software providers.

Explanation of Volume Licensing and Its Relevance to Organizations

Volume licensing is a specialized program designed for organizations that need multiple copies of software.

It offers significant cost savings through bulk purchasing and provides simplified management of software licenses.

This model is particularly relevant for businesses, educational institutions, and nonprofits that require extensive software deployments across multiple users or devices.

Volume licensing helps these organizations efficiently manage their software assets, ensuring that all users have access to the necessary tools while maintaining compliance with licensing agreements.

Objectives of the Article

This article aims to provide a detailed understanding of volume licensing, including its benefits, different types of volume licensing programs, and how to choose the right program for your organization.

We will explore:

• The definition and key features of volume licensing.
• The cost savings and management benefits it offers.
• The various types of volume licensing programs available.
• How volume licensing caters to specific needs of educational institutions and nonprofit organizations.
• Factors to consider when selecting a volume licensing program.
• Tools and resources for managing volume licenses effectively.
• The importance of compliance and how to handle audits.
• Real-life examples of organizations successfully using volume licensing.

What is Volume Licensing?

Definition of Volume Licensing

Volume licensing is a method of software licensing designed for organizations that need to purchase multiple copies of software.

Instead of buying individual licenses for each user or device, organizations can acquire licenses in bulk.

This approach offers significant cost savings and streamlined management, making it ideal for businesses, educational institutions, and nonprofit organizations that require extensive software deployments.

Key Characteristics and Features

Bulk Purchasing

• Cost Savings: By purchasing licenses in bulk, organizations benefit from substantial discounts compared to buying individual licenses.
• Economies of Scale: Larger orders typically receive better pricing, making it more economical for organizations with many users or devices.

Centralized Management

• Simplified Administration: Volume licensing provides a centralized platform for managing all software licenses, making it easier to track and control usage.
• Single Agreement: Organizations can manage their software licenses under a single agreement, simplifying renewals and updates.

Flexible Licensing Options

• Scalability: Volume licensing allows organizations to add or adjust licenses as their needs change, providing flexibility to scale up or down.
• Tailored Solutions: Different types of volume licensing programs are available to meet the specific needs of various organizational sizes and structures.

Access to Latest Software

• Regular Updates: Volume licensing often includes access to the latest software versions and updates, ensuring that organizations can take advantage of new features and improvements.
• Support Services: Organizations benefit from ongoing support and services from the software provider, helping to resolve issues and optimize software use.

Compliance and Legal Protection

• Ensures Compliance: Volume licensing helps organizations maintain compliance with software licensing agreements, avoiding legal issues and penalties.
• Audit Support: Provides tools and resources to assist with software audits, ensuring that all software use is properly licensed and documented.

Benefits of Volume Licensing

Cost Savings

Bulk Purchasing Discounts

Volume licensing offers significant discounts for purchasing software in bulk.

This approach reduces the overall cost per license, making it a cost-effective solution for organizations that need multiple software copies.

By leveraging economies of scale, organizations can achieve substantial savings compared to buying individual licenses.

Budget Efficiency and Predictability

With volume licensing, organizations can better manage their budgets.

The ability to purchase licenses in bulk and under a single agreement simplifies financial planning.

Predictable costs associated with volume licensing help organizations allocate resources more effectively and avoid unexpected expenses.

Simplified Management

Centralized Control and Administration

Volume licensing provides a centralized platform for managing all software licenses.

This centralization simplifies the administration of licenses, making it easier to track and control software usage across the organization.

Centralized control helps ensure that all users are compliant with licensing agreements.

Streamlined Deployment and Updates

Managing software deployment and updates is more efficient with volume licensing.

Organizations can deploy software across multiple devices simultaneously, reducing the time and effort required for individual installations.

Regular updates and patches can be managed centrally, ensuring that all users have access to the latest features and security improvements.

Flexibility and Scalability

Easy to Add or Adjust Licenses as Needed

Volume licensing offers flexibility to accommodate the changing needs of an organization.

As the organization grows or its software requirements change, additional licenses can be easily added.

This scalability ensures that the organization always has the right number of licenses to meet its needs without over-purchasing.

Tailored Solutions for Different Organizational Sizes

Volume licensing programs are designed to cater to various organizational sizes and structures.

Whether a small business, a large enterprise, an educational institution, or a nonprofit organization, tailored solutions are available to meet specific needs.

This customization ensures that each organization can find a licensing program that aligns with its unique requirements and budget.

Types of Volume Licensing Programs

Open License

Overview and Key Features

The Open License program is designed for small to mid-sized businesses. It provides a simple and cost-effective way to purchase Microsoft software. Organizations can start with a minimum number of licenses and add more as their needs grow.

• Minimum Purchase: Requires a minimum initial purchase of five licenses.
• Flexible Purchasing: Additional licenses can be purchased as needed.
• Two-Year Agreement: Licenses are managed under a two-year agreement, with options to renew.

Target Audience: Small to Mid-Sized Businesses

Open License is ideal for small to mid-sized businesses that need flexibility in their software purchasing. It suits organizations that may have varying software needs and limited budgets.

Benefits: Flexibility and Affordability

• Flexibility: Businesses can start small and expand their licenses as needed, avoiding large upfront costs.
• Affordability: Offers an affordable entry point for essential Microsoft software, making it accessible for smaller organizations.

Enterprise Agreement (EA)

Overview and Key Features

The Enterprise Agreement (EA) is designed for large enterprises with over 500 users or devices. It offers comprehensive benefits and services, providing a robust solution for managing software across a large organization.

• Three-Year Agreement: A standard three-year agreement with the option to extend.
• Enterprise-Wide Licensing: Covers all users and devices, simplifying management.
• Access to Latest Software: Includes access to the latest software versions and updates.

Target Audience: Large Enterprises

Enterprise Agreement is best suited for large enterprises that require extensive software deployments and comprehensive support. It is ideal for organizations with complex IT needs and large-scale operations.

Benefits: Comprehensive Benefits and Services

• Cost Savings: Significant discounts on bulk purchases.
• Comprehensive Coverage: Access to the latest Microsoft technologies and updates.
• Support Services: Extensive support and training services included.

Select Plus

Overview and Key Features

Select Plus is designed for larger organizations with complex needs. It offers flexible purchasing options and is tailored to meet the diverse requirements of different departments within an organization.

• Flexible Purchasing: Allows for purchases on an as-needed basis, without large upfront commitments.
• Perpetual Licensing: Licenses are perpetual, providing indefinite use.
• Multi-Entity Licensing: Can be used across multiple business entities within an organization.

Target Audience: Larger Organizations with Complex Needs

Select Plus is suitable for larger organizations that require flexibility in their software licensing. It is ideal for businesses with multiple departments or entities that have varying software needs.

Benefits: Flexible Purchasing Options

• Tailored Solutions: Provides customized licensing solutions to meet the specific needs of different departments or entities.
• Cost Management: Helps manage costs by allowing purchases as needed, avoiding large upfront expenditures.
• Ease of Management: Simplifies license management across a large and complex organization.

Volume Licensing for Specific Needs

Educational Institutions

Microsoft offers specialized volume licensing options tailored to the needs of educational institutions. These programs are designed to provide schools, colleges, and universities with the tools they need to support teaching, learning, and administration at reduced costs.

Academic Licensing Options

• Microsoft Education Solutions: Comprehensive suite of tools tailored for educational environments, including applications like Microsoft Teams for Education, OneNote, and more.
• Office 365 Education: Free access to Office applications such as Word, Excel, PowerPoint, and OneNote for students and educators.
• Azure for Education: Provides cloud services that support a wide range of educational scenarios, from virtual labs to collaborative projects.

Benefits for Schools and Universities

• Cost Savings: Significant discounts on software make advanced technology more accessible to educational institutions.
• Enhanced Learning: Access to a range of educational tools and software that support collaborative learning and improve student engagement.
• Broad Accessibility: Ensures that students and educators can use professional-grade software, preparing students for future careers.
• Simplified Management: Centralized license management makes it easier for IT departments to deploy and manage software across multiple devices and campuses.

Nonprofit Organizations

Microsoft’s volume licensing programs for nonprofit organizations provide discounted licenses to eligible nonprofits. These programs help nonprofits access essential technology and tools at a fraction of the cost, enabling them to focus more resources on their missions.

Nonprofit Licensing Options

• Microsoft 365 Nonprofit: Provides access to Office applications, email, file storage, and collaboration tools at reduced prices.
• Azure Nonprofit: Offers cloud services that help nonprofits build, deploy, and manage applications efficiently.
• Dynamics 365 Nonprofit: Tailored CRM solutions to manage relationships and operations effectively.

Benefits for Eligible Nonprofits

• Cost Savings: Substantial discounts on Microsoft products allow nonprofits to allocate more funds to their mission-critical activities.
• Access to Tools: Nonprofits gain access to powerful tools and software that support their operations, fundraising, and outreach efforts.
• Support for Mission: Technology enables nonprofits to enhance their operations, improve efficiency, and better serve their communities.
• Training and Resources: Free and discounted training resources help staff and volunteers make the most of the software, increasing overall impact and productivity.

How to Choose the Right Volume Licensing Program

Factors to Consider

Organizational Size and Structure

• Small to Mid-Sized Businesses: These organizations typically require flexible and cost-effective licensing options that can grow with them.
• Large Enterprises: Larger organizations need comprehensive solutions that provide extensive benefits and services, including advanced support and bulk purchasing discounts.
• Educational Institutions: Schools and universities need access to educational tools and software at discounted rates to support teaching and learning.
• Nonprofit Organizations: Nonprofits need affordable licensing options that allow them to access essential software and tools while maximizing their budget for mission-critical activities.

Specific Software Needs and Usage Patterns

• Type of Software Required: Determine which Microsoft products are essential for your organization’s operations, such as Office applications, cloud services, or server solutions.
• Number of Users or Devices: Consider how many users or devices will need access to the software. Volume licensing programs offer scalable options to meet varying demands.
• Deployment and Management: Assess how the software will be deployed and managed across the organization. Centralized management and deployment tools can streamline these processes.

Budget Constraints and Financial Planning

• Initial Costs vs. Ongoing Costs: Decide whether a one-time purchase or a subscription model better fits your budget. Consider the long-term financial implications of each option.
• Cost Savings Opportunities: Look for volume discounts, educational discounts, or nonprofit pricing to optimize your spending.
• Budget Predictability: Choose a licensing model that provides predictable costs, helping with financial planning and avoiding unexpected expenses.

Guidelines for Selection

Small to Mid-Sized Businesses

• Open License: Offers flexibility and affordability, allowing businesses to start with a minimum number of licenses and add more as needed. It’s a cost-effective entry point for essential Microsoft software.
• Microsoft 365: Provides a comprehensive suite of tools, including Office apps, cloud services, and security features, on a subscription basis. Suitable for businesses that prefer spreading out costs over time.

Large Enterprises

• Enterprise Agreement (EA): Ideal for large organizations with over 500 users or devices. It offers significant discounts, comprehensive coverage, and the flexibility to adjust licenses as needs change. Provides access to the latest software versions and support services.
• Select Plus: Suitable for larger organizations with complex needs, offering flexible purchasing options and tailored solutions to manage multiple licenses across various departments or entities.

Educational Institutions

• Academic Licensing: Microsoft Education Solutions and Office 365 Education provide discounted and free access to essential tools, enhancing the educational experience for students and staff. Ideal for schools and universities seeking to integrate technology into their teaching and learning environments.
• Microsoft 365 for Education: Offers access to the latest Office applications, collaboration tools, and cloud services tailored for the educational sector. Supports remote learning and enhances student engagement.

Nonprofit Organizations

• Nonprofit Licensing: Eligible nonprofits can access discounted licenses through Microsoft’s nonprofit program. This includes products like Microsoft 365 Nonprofit and Azure Nonprofit, which provide essential tools at reduced prices.
• Eligibility Considerations: Ensure the organization meets the specific criteria set by Microsoft for nonprofit licensing to take full advantage of the discounts and benefits.

Managing Volume Licensing

Tools and Resources

Microsoft Volume Licensing Service Center (VLSC)

The Microsoft Volume Licensing Service Center (VLSC) is an essential tool for organizations that use volume licensing. It provides a centralized platform for managing licenses, downloading software, and renewing agreements.

License Management

• Centralized Control: Manage all your volume licenses in one place, making it easy to track and control usage.
• Detailed Reports: Generate reports to understand license usage and compliance.

Software Downloads

• Access to Downloads: Authorized users can download software directly from VLSC, ensuring they have access to the latest versions.
• Product Keys: Retrieve product keys for installation and activation of software.

Agreement Renewals

• Renewal Management: Easily manage and renew licensing agreements through the VLSC, avoiding lapses in compliance.
• Notifications: Receive notifications about upcoming renewals and changes to agreements.

Microsoft License Advisor

The Microsoft License Advisor helps organizations determine the best licensing options by providing tools for cost estimation, option comparison, and quote generation.

Cost Estimation

• Budget Planning: Provides cost estimates for different licensing scenarios, helping organizations plan their budgets effectively.
• Detailed Breakdown: Offers a detailed breakdown of costs, making it easier to understand the financial implications of various licensing options.

Option Comparison

• Side-by-Side Comparison: Compare features and costs of different licensing programs to choose the best fit.
• Informed Decision-Making: Facilitates informed decision-making by highlighting the benefits and limitations of each option.

Quote Generation

• Custom Quotes: Generate detailed quotes tailored to the organization’s specific requirements.
• Proposal Support: Helps in creating proposals for budgeting and approval processes.

Compliance and Audits

Importance of Compliance

Maintaining compliance with Microsoft licensing agreements is crucial for avoiding legal issues and financial penalties.

Legal Use of Software

• Adherence to Agreements: Ensures all software is used according to Microsoft’s licensing terms and conditions.
• Legal Protection: Protects the organization from legal issues arising from using unlicensed or pirated software.

Avoiding Penalties and Fines

• Financial Consequences: Non-compliance can lead to substantial fines and penalties.
• Reputational Risk: Organizations found using unlicensed software may suffer reputational damage, affecting trust and credibility.

Software Asset Management (SAM)

Software Asset Management (SAM) involves tracking and managing software licenses to ensure compliance and optimize usage.

Tracking and Managing Licenses

• Inventory Management: SAM helps keep an accurate inventory of all software licenses, ensuring the organization knows exactly what it owns and uses.
• Usage Monitoring: Tracks software usage across the organization, helping identify any instances of overuse or underuse.

Benefits of Implementing SAM

• Cost Optimization: Identifies unused or underutilized licenses, allowing organizations to reallocate or discontinue them, thereby saving costs.
• Compliance Assurance: Regular audits and checks ensure the organization remains compliant with all licensing agreements.
• Improved Planning: Provides insights into software needs, helping with future planning and budgeting.

Preparing for Microsoft Audits

Being well-prepared for Microsoft audits helps ensure a smooth audit process and compliance with licensing agreements.

Documentation and Record-Keeping

• Detailed Records: Maintain detailed records of all software licenses, purchases, and deployments.
• Accessible Information: Ensure that all documentation is easily accessible for review during an audit.

Conducting Internal Audits

• Regular Checks: Conduct regular internal audits to ensure all software usage aligns with licensing agreements.
• Corrective Actions: Address any discrepancies identified during internal audits to maintain compliance.

Consequences of Non-Compliance

• Fines and Penalties: Non-compliance can result in significant financial penalties and fines.
• Legal Action: Severe cases may lead to legal action, including lawsuits and settlements.
• Reputational Damage: Being found non-compliant can harm the organization’s reputation, affecting business relationships and customer trust.

Case Studies

Real-Life Examples

Large Multinational Corporation Using Enterprise Agreement

• Context: A multinational corporation with over 10,000 employees uses the Microsoft Enterprise Agreement (EA) to manage its software needs.
• Benefits: Significant discounts on volume purchases, flexibility to adjust licenses as needed, and comprehensive coverage with access to the latest software updates and support services.

Small Business Using Open License

• Context: A small manufacturing company with 100 employees uses the Microsoft Open License program to manage its software licenses.
• Benefits: Affordable entry point, flexibility to purchase additional licenses as the company grows, and simplified license management through a centralized platform.

Educational Institution Leveraging Academic Licensing

• Context: A university with multiple campuses adopts Microsoft Education Solutions to provide students and faculty with essential software tools.
• Benefits: Enhanced learning experience with Office 365 Education, significant cost savings on software, and access to collaboration tools like Microsoft Teams for Education.

Nonprofit Organization Utilizing Nonprofit Licensing

• Context: A global nonprofit organization focuses on humanitarian aid and uses Microsoft Nonprofit Licensing to access vital software at reduced prices.
• Benefits: Substantial discounts on Microsoft products, enhanced operations with tools like Microsoft 365 Nonprofit, and more funds allocated to direct relief efforts.

Top 10 Real-Life Examples of the Use of Volume Licensing

1. Large Multinational Corporation: Enterprise Agreement

Use Case

A multinational corporation with over 15,000 employees across various countries uses the Microsoft Enterprise Agreement (EA) to manage its software licenses.

Benefits

• Cost Savings: Significant discounts on bulk software purchases reduce overall IT expenditure.
• Flexibility: Ability to add or adjust licenses as the company expands or restructures.
• Comprehensive Support: Access to the latest software updates and extensive support services ensures smooth operations.

2. Mid-Sized Manufacturing Company: Open License

Use Case

A mid-sized manufacturing company with 300 employees adopts the Microsoft Open License program to manage its software needs.

Benefits

• Affordability: Cost-effective entry point for essential software, minimizing initial investment.
• Scalability: Flexible licensing allows the company to purchase additional licenses as it grows.
• Simplified Management: Centralized license tracking and management streamline administrative tasks.

3. University: Academic Licensing

Use Case

A large university with multiple campuses utilizes Microsoft Education Solutions to provide software tools to students and faculty.

Benefits

• Reduced Costs: Significant discounts on software for educational purposes.
• Enhanced Learning: Access to Office 365 Education and collaboration tools like Teams improves the learning experience.
• Broad Accessibility: Ensures all students and faculty have access to necessary software.

4. Nonprofit Organization: Nonprofit Licensing

Use Case

A global nonprofit organization focused on environmental conservation uses Microsoft 365 Nonprofit to coordinate efforts across different regions.

Benefits

• Cost Savings: Substantial discounts on Microsoft products allow more funds to be directed toward mission-critical activities.
• Operational Efficiency: Access to tools like Microsoft 365 enhances project management and communication.
• Support for Mission: Technology supports the organization’s goals and enhances its impact.

5. Healthcare Provider: Microsoft 365 Subscription

Use Case

A healthcare provider with several clinics subscribes to Microsoft 365 to ensure staff have access to the latest software and collaboration tools.

Benefits

• Continuous Updates: Regular software updates ensure access to the latest features and security patches.
• Improved Collaboration: Tools like Microsoft Teams facilitate communication among healthcare staff.
• Predictable Costs: Subscription model allows for manageable and predictable expenses.

6. Government Agency: Enterprise Agreement

Use Case

A national government agency responsible for public infrastructure standardizes its IT environment using the Microsoft Enterprise Agreement.

Benefits

• Standardization: Ensures consistent software versions across all departments.
• Advanced Security: Access to the latest security features protects sensitive government data.
• Comprehensive Coverage: Includes extensive support and access to the latest software updates.

7. Tech Startup: Microsoft 365 Subscription

Use Case

A rapidly growing tech startup subscribes to Microsoft 365 to provide its team with essential software and collaboration tools.

Benefits

• Scalability: Easily add or remove licenses as the team changes.
• Collaboration Tools: Microsoft Teams and OneDrive enhance teamwork and innovation.
• Cost Management: Subscription model spreads costs over time, easing financial planning.

8. Retail Chain: Open License

Use Case

A retail chain with 50 stores across the country uses the Microsoft Open License program to equip its point-of-sale systems and office computers.

Benefits

• Flexibility: Licenses can be purchased incrementally as new stores open.
• Centralized Management: Simplifies tracking and managing licenses across multiple locations.
• Affordability: Cost-effective solution for a growing business.

9. Law Firm: Microsoft 365 and EMS

Use Case

A law firm specializing in corporate law subscribes to Microsoft 365 and Enterprise Mobility + Security (EMS) to manage its IT needs securely.

Benefits

• Enhanced Security: Advanced security features protect sensitive client data.
• Productivity Tools: Access to Office applications and collaboration tools improves efficiency.
• Remote Access: EMS allows secure access to data from anywhere, supporting flexible work arrangements.

10. Educational Nonprofit: Academic and Nonprofit Licensing

Use Case

An educational nonprofit organization combines academic and nonprofit licensing to provide tools to both its staff and the schools it supports.

Benefits

• Cost Savings: Discounts available for both educational and nonprofit sectors maximize resource allocation.
• Enhanced Services: Access to Office 365 Education for schools and Microsoft 365 Nonprofit for staff improves operational capabilities.
• Resource Allocation: More funds can be directed toward educational programs and direct services.

FAQ: Volume Licensing

What is Microsoft Volume Licensing?

Microsoft Volume Licensing is a program designed for organizations needing multiple copies of software. It offers cost savings through bulk purchasing and simplifies license management.

Who benefits from Microsoft Open License?

Small to mid-sized businesses benefit from Microsoft Open License. It provides flexibility and affordability, allowing these organizations to purchase and manage software licenses as needed.

What is the Microsoft Enterprise Agreement?

The Microsoft Enterprise Agreement is a licensing program for large enterprises with over 500 users or devices. It offers significant discounts, comprehensive benefits, and extensive support services.

How does Select Plus differ from other licensing programs?

Select Plus is designed for larger organizations with complex needs. It offers flexible purchasing options, allowing businesses to buy licenses as needed without large upfront commitments.

What are the benefits of Academic Licensing for schools?

Academic Licensing provides discounted or free access to Microsoft software for educational institutions. It supports teaching and learning by offering essential tools like Office 365 Education.

How does Nonprofit Licensing work?

Nonprofit Licensing offers discounted Microsoft software to eligible nonprofit organizations. This helps nonprofits access necessary tools at reduced prices, allowing them to focus more resources on their missions.

What tools are available for managing Microsoft licenses?

The Microsoft Volume Licensing Service Center (VLSC) and Microsoft License Advisor are key tools. VLSC helps manage licenses, download software, and renew agreements, while the License Advisor assists with cost estimation and option comparison.

Why is compliance with Microsoft licensing important?

Compliance ensures legal use of software and helps avoid penalties. Using licensed software protects organizations from fines and legal actions related to unlicensed software use.

What is Software Asset Management (SAM)?

Software Asset Management (SAM) involves tracking and managing software licenses to ensure compliance and optimize usage. SAM helps maintain accurate records and supports effective software management.

How can an organization prepare for a Microsoft audit?

Maintain detailed records of all software licenses, conduct regular internal audits, and implement Software Asset Management practices. Proper preparation ensures compliance and helps avoid penalties.

What happens if an organization is non-compliant?

Non-compliance can result in significant penalties, including fines and legal action. It can also damage the organization’s reputation, affecting business relationships and customer trust.

What are the key features of Microsoft 365?

Microsoft 365 includes Office applications, cloud services like OneDrive and Teams, and advanced security features. It supports collaboration, productivity, and data protection.

What is Enterprise Mobility + Security (EMS)?

EMS is a suite of advanced security and management tools. It includes identity and access management, threat protection, and information security, designed to protect corporate data and manage user access.

How does Office 2019 differ from Microsoft 365?

Office 2019 is a one-time purchase that includes classic Office applications like Word, Excel, and PowerPoint. Microsoft 365 is a subscription service that offers the latest versions of these applications along with cloud services and regular updates.

What are the benefits of using Windows Server?

Windows Server provides robust server management capabilities, including Active Directory, DHCP, and DNS services. It offers a stable and secure environment for hosting applications, databases, and websites.

How can I determine if my organization qualifies for nonprofit licensing?

Check Microsoft’s eligibility criteria for nonprofit licensing. Typically, organizations must be recognized as charitable entities in their respective countries and have missions that benefit the broader community.