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 The Benefits of Microsoft Volume
Licensing: Discounts and more!
There
are precious few slam dunks in the world of running a small business.
But
volume licensing of software products is one of the notable, if
misunderstood, exceptions. In a universe where cost control and options
are often few and far between, volume licensing offers a hard-to-beat
combination of dollars saved and flexibility.
"Once
small-business owners really come to understand what volume licensing is,
it just makes all the sense in the world," says Eric Ligman,
business development manager for Microsoft's small-business segment. The
rub is in knowing precisely what volume licensing really means, says
Ligman, who acknowledges that the term is not clearly understood among
many.
Volume
licensing can be likened to bulk discount acquisitions, only the
"bulk" isn't necessarily required. Rather than purchasing
necessary software on an as-needed, retail basis, acquiring through
volume licensing allows you to obtain licenses in the quantities you need
— from as few as five to as many as several thousand.
This
hits on the first significant advantage of acquiring software through a
volume licensing program such as the Microsoft Open License program —
cost savings. But there are other benefits too. Here are half a dozen.
- Volume
discounts.
Saving money is obviously at the top of the list for most business
owners. While software bought piecemeal over the course of a number
of years can add up to a prohibitive expense, volume licensing is
far more cost effective. For one thing, the initial expense is less.
To illustrate: buying a single copy of Microsoft Office System 2003
via a conventional retail outlet runs $499. By contrast, acquiring
the same software through Microsoft's Open License program trims the
initial outlay to $456.The cost savings continue from there.
One-time upgrades bought through retail cost $329. The Open License
program trims that expense to $264 for upwards of two years. Add-ons
such as InfoPath 2003 and eLearning are also included in Open
License. Buying retail, on the other hand, means additional
out-of-pocket expenses for both. Even the means of payment is
advantageous with volume licensing. By locking in prices for a
period of time, you can plan your software budget well in advance
and make balanced, systematic payments. Not so with retail — when
you need it, you pay for it, no matter how steep the expense.
- License
safety.
While retail means a paper license that has to be safely stored,
volume licensing offers electronic licensing — instead of paper that
can be misplaced or destroyed, a license is stored electronically so
that it can never be lost."If you lose a physical license, you
lose your license — period," Ligman says. "That means you
no longer have a product that qualifies for upgrades. With
electronic licenses, there's no paper license that can possibly be
lost."
- Easier installation
and management. Instead of different software programs with
different identifications, volume licensing means one ID. That makes
installation and subsequent management that much simpler. Also, with
Microsoft Open License, you can manage your software license
portfolios electronically, though eOpen.
- Better
training and education. Not even the best software on
earth is worth what it costs if it's used improperly or
inefficiently. With Microsoft Software Assurance — an additional
volume licensing option — companies get superior product training,
education and support than usually comes with conventional retail
purchases.
- Greater
flexibility. Every small-business owner knows that his or
her work isn't limited to the four walls of an office. With Software
Assurance, users can obtain rights to use software at home, as well
as the office. Not so with software bought through conventional
retail.
- Greater
protection. Microsoft Open License program's strict
licensing parameters offer greater protection from piracy, no matter
if it's intentional or otherwise. (For tips on ridding your business
of unlawful software piracy, see this article.) Even with these
advantages, volume licensing is fraught with misconceptions among
small-business owners, Ligman acknowledges.
Some of them include:
·
I'm too small. Many small businesses assume that
theirs is simply too small an operation to qualify for the Microsoft Open
License program. Anything but. According to Ligman, businesses with as
few as two computers can qualify (this includes desktop as well as laptop
computers). The required initial order is five or more licenses for any
combination of Microsoft products.
·
 It's an
obligation. Mention anything other than a straight up, one-shot deal
purchase and many small-business owners run out of fear of some
strangling long-term obligation. While Microsoft Open License does,
indeed, cover a certain amount of time, every element of the program is
available exclusively at the business owner's choice. "There's no obligation
to buy anything," Ligman says. "These are just other options.
You can just own the license and not buy anything else moving forward
from there."
·
The software is somehow different. Many
small-business owners also have a hard time accepting the fact that
Microsoft Open License software is not one iota different from the
Microsoft products sold in retail outlets. They are, in fact identical.
"It may have something to do with the fact that retail was a way of
life in the '90s," Ligman says, "but these are the exact same
products that you can buy in a store."
There's
some funky purchase procedure. Acquiring the software you need through
Microsoft Open License isn't some form of alchemy, or some complicated,
mysterious process. You should expect the software resellers serving you
— from within a worldwide software-reseller channel involved in the
program — to provide you with fast, efficient service, Ligman says.
"It's just as easy to buy [software licenses] as any boxed software
program."
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