Blog_Microsoft licence lexicon

What is a volume license? What rights do I have under each type of license? In our glossary, we explain terms related to software, licenses, and licensing, and introduce you to the various licensing procedures and programs for Microsoft software products.

Glossary: Microsoft Licenses & Licensing

B

A boxed product is software that was shipped on a CD (i.e., in physical form).

Can physical software be sold? Such software products can certainly be sold without any problems. This is based on the so-called “principle of exhaustion,” which states that once something has been put into circulation, the manufacturer forfeits its rights to the product. This principle of exhaustion applies throughout Europe, meaning that nothing stands in the way of EU-wide software trade.

C

CAL stands for Client Access License and refers to a specific type of licensing primarily used by Microsoft. It means that, in addition to licenses for the server and the client—that is, the device—access licenses are also required to authorize the server, under the terms of the license, to accept client connections. On the one hand, there are per-client licenses, which are device-specific. This means that every user of the respective device is granted access to the server. On the other hand, there are per-user licenses, which allow a specific user to access the server and use its services from any device.

The Windows 10 Continuum feature optimizes your operating system across devices. This means you can take your workspace with you wherever you go, because thanks to Continuum, switching from keyboard to tablet and touch input (as with convertible laptops, for example) is no problem at all. Thanks to Continuum for Phones, you or your employees can just as easily connect a smartphone to your PC monitor at home. The content on the smartphone is easily adapted to the desktop view. No more excuses when working from home…

D

Every company has confidential and highly sensitive data that should not be disclosed to the outside world. Data Loss Prevention protects your company against the potential leakage of such data. Microsoft has its own Data Loss Prevention tool for this purpose. This tool prevents end users—that is, employees—from sending predefined data to an external email address or a public cloud storage service.

The relevant data and files are identified based on rules and guidelines.

Stricter government and global regulations regarding data protection and access control are now forcing companies to incorporate DLP into their existing security programs.

Thanks to downgrade rights, you have the option to use earlier versions of software. So if you want to use Office 2010 instead of Office 2013, you may do so. However, you cannot switch editions—for example, you cannot use Microsoft Windows Home & Student instead of Professional.

E

ESD—Electronic Software Distribution—refers to software products distributed exclusively via electronic means (email). In most cases, only the product key and a link to download the software are provided. Please exercise caution when purchasing ESD software—there are currently many vendors offering software that is either counterfeit or not authorized for the European market!

F

A “Full Package Product” is software intended for retail sale that is available in a box or similar packaging at a retail store, such as Microsoft Office Home and Business.

M

The Microsoft Enterprise Agreement is Microsoft’s licensing program for large companies with 500 or more employees. It offers the flexibility to choose whether to purchase the software as part of a traditional license package or to license it through the Microsoft Cloud Service. A single contract covering the entire company simplifies license management.

Microsoft’s license terms explain the usage rights for OEM, system builder, and FPP products. They are very important because they define, for example, reimaging rights, downgrade rights, and various other usage provisions.

The license terms were formerly known as the Microsoft EULA, which stands for End User License Agreement.

The Microsoft Open License Program is designed for small and medium-sized businesses. It offers “Open License,” “Open Value,” “Open Value Company-Wide,” and “Open Value Subscription.”

  • “Open License” and “Open Value” refer to models in which new licenses can be purchased as needed

  • In the company-wide and subscription models, deployment is standardized across all company computers. This is referred to as the standardization of the desktop platform (for Office desktop applications and the Windows desktop operating system).
  • Since the introduction of the Microsoft Cloud, licenses and software have been made available exclusively through Microsoft Online Services.

Microsoft Open License is available to companies with five or more devices or licenses.

Microsoft’s Product Terms explain the usage rights for Microsoft volume licenses. This is the English term for the Microsoft license terms. They are very important because they define, for example, reimaging rights, downgrade rights, and various other terms of use. You can download them for your product in the language of your choice.

In the past, the Microsoft Product Terms were also known as Product Use Rights.

Select Plus was Microsoft’s original licensing program for medium and large businesses. It is now offered exclusively to public institutions, government agencies, and public authorities. The successor program to Select Plus for businesses is Microsoft Enterprise.

Software that is sold not as a boxed product but as a download license. Volume licenses are typically intended for businesses, since a single product key is used for the purchased number of licenses. Volume licenses generally include significantly expanded usage rights, such as the right to virtualize, downgrade rights, home use rights, or re-imaging. Volume licenses can also be bought and sold; there is a European Court of Justice (ECJ) ruling that clarifies the legal situation regarding used software.

More information about Microsoft licensing models.

O

OEM stands for Original Equipment Manufacturer. These are software products that are sold bundled with hardware, most often Windows Home or Pro, or Office Home and Business or Professional.

R

The term “re-imaging” allows a single image and a single product key to be used to install a mix of software products. This right is available only with Microsoft volume licenses.

The requirements for re-imaging are as follows: The same product (e.g., Windows 10 Pro) must be installed in the same language (e.g., German) with the same product components (for example, different Office suites must not be mixed). Re-imaging is particularly beneficial for Microsoft operating systems, as OEM licenses typically include re-imaging rights, which can result in significant savings on licensing costs— please contact our team for more information.

S

System builder licenses are typically software products purchased by smaller OEMs from authorized OEM distributors. They are characterized by the fact that they do not bear an OEM manufacturer’s label. They are well-suited as“qualifying operating systems”for Microsoft volume licensing agreements or for use in schools or by government agencies.

V

With virtualization capabilities, you can set up virtual desktops to access the same interface and system from various devices. This allows you to save on server and operating costs, centralize your IT infrastructure, and better plan and utilize your resources. Typically, virtualization is only possible with Microsoft licenses.

The VLSC, or Volume Licensing Service Center, is a Microsoft platform where newly purchased Microsoft volume licenses can be managed and installation files can be downloaded.

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