Microsoft Senior Sales Excellence Manager - Eric Ligman

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SBS On Ramp Session 3: Understanding SBS 2003, Sales Options and Licensing - Questions and Answers

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SBS On Ramp Session 3: Understanding SBS 2003, Sales Options and Licensing - Questions and Answers

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This session was presented by Eric Ligman on April 6th.

You can view the recording of this session in its entirety HERE

 

If you are asking yourself, "Is this session worth watching, even if I read through these Q&As?" here are the average ratings given to the session by the hundreds of attendees who saw it live.  The rating scale is 1-9 with 1 being lowest and 9 being highest:

 

1) I will be able to apply the knowledge and skills learned in this event to my job: 8.09

2) The material presented was appropriate to my needs: 8.06

3) This training will improve my job performance: 7.89

4) The presenter was effective: 8.04 

5) Everything considered, I was satisfied with this seminar: 7.91

6) Of all of the attendees, 97% or them said they would recommend this event to others

 

These are the Questions and Answers from the Understanding SBS 2003, Sales Options and Licensing Live Meeting sessions I gave.


Question: I missed yesterday's meeting. When will the recorded version be available?

Answer: The sessions will be available within 48 hours


Question: When is Eric moving back to Chicago? We miss him!!!!!

Answer: Although I miss Chicago as well, there are no current plans to relocate (again) in the near future.  I will be back to visit from time to time.


Question: When might we start seeing the leads?

Answer: If there are leads in your area, you should start seeing them toward the end of April.


Question: If I make up session 2 by seeing the recording (and of course I am here today), will I qualify for leads?

Answer: Yes. Also, please make sure you use the same email alias when you register and log in to webcasts.


Question: If I make up session 2 by seeing the recording (and of course I am here today), will I qualify for leads?

Answer: Yes. Also, please make sure you use the same email alias when you register and log in to webcasts.


Question: Do printers count as devices for CALs?

Answer: No.  Printers are not client devices; therefore, they do not require CALs.


Question: Does someone coming in over the Internet to access the SharePoint site (as normal Internet user, not accessing Email, etc.) need a CAL?

Answer: If they authenticate, they need a CAL. If they access SharePoint anonymously, they don't need a CAL


Question: Does someone coming in over the Internet to access the SharePoint site (as normal Internet user, not accessing Email, etc.) need a CAL?

Answer: If they authenticate, they need a CAL. If they access SharePoint anonymously, they don't need a CAL


Question: Can you use terminal services on SBS2003?

Answer: Terminal Services is installed in Remote Admin mode. You cannot install it on the SBS server in Application mode.  You can install it on a member server; however, the SBS cal does not include a Terminal Services CAL, so you would need to also acquire a Terminal Services CAL to access the Terminal Server.


Question: When choosing between User CALs and Device CALs, should we just choose the one that requires less licenses?

Answer: Yes, make the selection that best meets the needs of your client.  Be sure you count the total number of Devices and Users though when making the calculation.  For instance, if a User has a PC, a laptop, and a Pocket PC that they use to access the Server, then that would be three separate Device CALs that would be needed.  In this scenario, a User CAL would probably be a better fit than a Device CAL.


Question: If you have users who are only using Outlook Web Access (OWA), do they need a license?

Answer: Yes. Anyone authenticating into SBS needs a CAL. OWA authenticates in.


Question: Does the Administrator count as a user for counting CALs

Answer: SBS includes two admin CALs that can be used specifically for administering the Server (not to be used in lieu of an SBS CAL for standard client access purposes) and these 2 Admin CALs are not counted toward your first 5 or others that you buy.


Question: What is the process for converting a SBS device CAL to a user CAL?

Answer: If you have Software Assurance for your Windows Small Business Server 2003 CALs, you can switch between User CALs and Device CALs, or vice versa, when you renew your Software Assurance. If you do not have Software Assurance for your Windows Small Business Server 2003 CALs, then you cannot switch.  If you have a Small Business Platform SKU Agreement for your company, then the SBS CALs you receive through that can be User CALs or Device CALs and can be switched whenever you choose throughout your Agreement.


Question: Would I need an SBS CAL for each mailbox if a user wanted to maintain separate mailboxes?

Answer: No, SBS is licensed by physical User or physical Device, not by mailboxes. So, if you had a single physical User that had 5 separate mailboxes, you would simply need 1 SBS User CAL for that physical User.  Note that we are referring to physical users, not User log-in names in AD.


Question: How would the server know that all those logins for John Smith are 1 user?  (From the John Smith Example slide showing a single physical user logging in as Johns, John_Smith, JSmith, etc.)

Answer: The server would not be able to differentiate that all of these separate login names are a single physical user; however, from a licensing perspective, you would only need 1 User CAL for Mr. John Smith (physical user), regardless of how many login names he uses.


Question: Don't Windows Servers come with standard 5 user license?

Answer: If you purchase a Windows Server through Retail Box Product, then yes, it will have 5 Windows Server CALs in the box; however, as a business, you should be acquiring your Windows Server licenses through a Volume Licensing program such as Open License.  When you purchase Windows Server through Open License, whether Open Business or Open Value, you can purchase a Windows Server separately without any CALs, which would be a perfect fit as a member server in an SBS 2003 domain.  SBS Servers always come standard with 5 SBS CALs.


Question: How are discount vendors getting aware with selling OEM software without hardware?

Answer: OEM software must be sold with a “fully-assembled computer system” per the terms of the System Builder Agreement.  If you are a system builder, you can acquire OEM software through Authorized OEM Distributors for inclusion on machines you are building.  So if an authorized OEM provider sells OEM software to a System Builder, they can do so without a fully-assembled computer system.  You can see more about this on our Blog in these two entries:

-          OEM Microsoft Office Licensing Changes You Need To Know About!

-          OEM Microsoft Windows (including XP Pro and XP Home) Licensing Changes You Need To Know About!


Question: Can we buy a license with Software Assurance (SA)?

Answer: Yes.  The Volume Licensing program you would want to utilize for any License + Software Assurance or Software Assurance purchases would be the Open Value Program.


Question: Can OEM product licenses be transferred to a non-profit organizations?

Answer: OEM licenses cannot be separated from the original machine they were acquired with.  So, if you are donating your machines to a non-profit organization, any OEM software that came on that PC would have to be transferred to them as well.  You could not just donate the OEM software though without the PC.


Question: When purchasing Open Value for a customer who wants to spread payments, who handles the collection of those payments?

Answer: Through the Open Value Program, you would purchase the first-year part # from the Volume Licensing desk at your distributor, you would add your standard mark-up to it, and you would sell it to your customer.  Your customer would pay you and you would pay your distributor, just like any other purchase and sale you would make through distribution.  For the second year, Microsoft will send a reminder to the distributor, you, and your customer that the second year payment is coming due.  At this point, you would purchase the second-year part # from the Volume Licensing desk at your distributor, you would add your standard mark-up to it, and you would sell it to your customer.  Your customer would pay you and you would pay your distributor, just like the first year.  This would be the same process for the third-year payment as well.  You can find more about this on the Open Value Order Process page on the Microsoft Partner site.


Question: Does Open Value require that every license in the company for the product covered must be purchased through Open Value?

Answer: No.  You can purchase some or all of your licenses through the Open Value license program.  The only time you would need to purchase all of a particular product licenses through Open Value would be if you were to choose a Company-Wide option.  For instance, if you chose to take advantage of the Small Business Platform SKU, this is a Company-Wide Agreement; therefore, you would need to purchase one Small Business Platform SKU for every PC in your company.  For any software not covered by the Small Business Platform SKU (Visio for instance), you could buy those one at a time through Open Value or any other Microsoft program.


Question: We buy servers from a system house. We typically get SBS pre-installed, can we still take advantage of the Open Value program?

Answer: Yes.  You would have two options available to you.

1.       You could choose to purchase your SBS licenses through Open Value first and have your System Builder install using your Open Value license instead of an OEM license.

2.       You could purchase your SBS licenses OEM as you are now and then add the SBS Software Assurance on the OEM SBS license within 90 days of the OEM SBS purchase as shown in the “Adding SA Demo” we showed.

If you chose option #1 above, your SBS license would be a Volume License SBS, so it would be an electronic license that could never be lost.  If you chose option #2 above, then you must be sure to retain all of your OEM proof of ownership components in order to qualify for your Software Assurance license you added to it.


Question: Is there a separate SKU (part #) for adding Software Assurance within the 90 days?

Answer: You would simply order the Software Assurance only part # through the Open Value licensing program from your distributor.


Question: Does the Small Business Platform SKU cover the SA on the SBS server if Server was originally OEM?

Answer: No.  The Small Business Platform SKU covers the desktop PCs in your company.  If you were to purchase an OEM SBS Server and also took advantage of the Small Business Platform SKU for the PCs in your company, then you could order the SBS Software Assurance only part # through Open Value in order to have your OEM SBS Server covered with full Software Assurance benefits as well.  The adding of the SA to the SBS Server is in the “Adding SA Demo” we showed.


Question: If a customer buys the Small Business Platform SKU and they already have an Operating System on their PCs, aren’t they double buying the Operating System?

Answer: No.  The Windows license they purchased with their PC is a full Windows desktop Operating System license.  When they buy the Small Business Platform SKU, it includes a full Microsoft Office Small Business Edition license, a full SBS Client-Access license (CAL), and a Windows XP Pro Upgrade, along with three years of Software Assurance benefits for all three of these components.  So as you can see, one is the full Windows license and one is the Upgrade + SA.  So if they have Windows XP Pro on their PC already, by adding the Small Business Platform SKU to their company, they would now receive an Office Small Business Edition license, an SBS CAL , and a Windows XP Pro Upgrade for that PC.  They would not receive much benefit from the Windows XP Pro Upgrade component of the SB Platform SKU since they already have Windows XP Pro; however, they would receive the full benefits of the Office SBE and the SBS CAL licenses along with the three years of Software Assurance benefits.  So, when Office 2007 and Windows Vista come out, all of the PCs in their company would now have rights to run Office 2007 and Windows Vista.  Here is where they would see the direct benefit of the Small Business Platform SKU on their Windows Operating System.  Plus, they also receive all of the additional SA benefits such as the Office Pro Home Use rights license, the eLearning courses, etc.  Not to mention that with the extensive price discounts included in the SB Platform SKU, they save $359 per desktop, which is more than the cost of the Windows XP Pro Upgrade + SA by itself, so it’s like receiving the Windows XP Pro Upgrade + SA component of the Small Business Platform SKU for $0 cost anyway.


Question: When selling Open Value, what happens if the customer doesn't pay the 2nd year payment, do I still have to pay?

Answer:  If you look at one of the previous questions above, you will see that you order the 2nd year SKU and sell it to your customer like any other item you sell.  So, it would be a standard collections situation just like if you sold them a printer and they chose not to pay you for it.  From a Microsoft perspective, if a customer does not make their 2nd or 3rd year payments, it works very similar to a car loan.  If you buy a car and finance it for 3 years, what happens if you stop paying for the car in the 2nd year?  They repossess the car.  Well, if a customer chooses to not make all of their payments to complete their purchase of the license, then Microsoft will terminate their license agreement since they have not paid for their purchase in full.  Once their license agreement is terminated, they no longer have the rights to run any of the software on that agreement.


Question: Are upgrades sent automatically under Open Value, or is the request made over the phone? Is there a charge?

Answer:  Since Open Value includes Software Assurance, when a new version of one of the covered programs is released, the licenses are automatically upgraded online, you do not need to make any requests for this to happen.  The only thing you would need to purchase would be the install media in order to install the newest version of the software.  Installation media generally runs around $25 per set.


Question: If a customer has an OEM box and didn't purchase SA and the hardware dies, they can't transfer that server software?

Answer:  If the hardware is replaced under warranty, then the OEM license can be moved to the replacement box.  If the hardware is replaced for any purpose except warranty replacement, then no, you cannot transfer an OEM license to another device.


Question: Is the SBS SQL license CAL based or processor?

Answer:   SBS is licensed on a CAL basis, so all components of the SBS Server are done so, including the SQL component of SBS Premium.  Any device accessing a component of the the SBS Server will require an SBS CAL.


Question: Can I have a mix of User and Device CAL's?

Answer:   Yes, you can mix the two.  You would simply purchase User CALs or Device CALs and you can have both in the same SBS domain.


Question: Do member servers themselves require an SBS CAL?

Answer:   No.  Servers do not require CALs, only physical client Devices or Users require CALs.


Question: Does 1 User CAL allow the user to authenticate from multiple devices at the same time? (desktop and laptop simultaneously)

Answer:   Yes.  A User CAL allows a single physical User to access the server from any number of devices.  That physical User could not allow another physical User to “share” their CAL though.


Question: Is Active Directory available with SBS 2003?

Answer:   Yes.  SBS 2003 includes Windows Server 2003 which contains Active Directory


Question: If a customer buys an OEM Server license, then replaces the server with a new box and OEM, can they sell the old box and transfer the original OEM license with that old box to another company?

Answer:   If they sell the original server hardware that the OEM Server license came with, they have no choice.  The OEM software must be transferred with the original hardware it was sold with.  The only way an OEM Server license could be transferred to a new server is if they had added Software Assurance within 90 days of the original purchase as in the “Adding SA Demo” we showed.


Question: Does a user that wants ONLY an email account require a CAL? Does it make a difference whether that user will use OWA?

Answer:   Yes, they would require an SBS CAL because they are using the Exchange Server services of the SBS Server and authenticating in order to identify themselves within the Exchange server to access their mailbox.


Question: Where can I find a list of distributors to purchase Open Value Agreements for my customers at?

Answer:   We have a list on the Partner Site under the Open Value section: https://partner.microsoft.com/US/licensing/programs/enterprisesubscription/40014697


Question: So for Windows desktop Operating Systems, you cannot purchase full Windows licenses under Volume Licensing?

Answer:   Correct.  The Windows Desktop Operating System is the one license you cannot purchase a full license for under any Volume Licensing program.  All Windows Desktop Operating Systems licenses through any Volume Licensing program are Upgrades or Upgrades with Software Assurance.  The only way to buy a full Windows Desktop Operating System license is OEM with a PC or via Retail Box.  You can buy full Office or Server licenses through all Volume Licensing programs though.


Question: Will there be an upgrade available to SBS 2003 R2 from SBS 2003?

Answer:   For all customers that have Software Assurance on their SBS 2003 licenses, they will receive the rights to SBS 2003 R2 automatically.  If you do not have Software Assurance for your SBS 2003 server, there will be an upgrade available that you will have to purchase if you wish to go to SBS 2003 R2.


Question: There are tons of these sites out there, selling illegal software.  Microsoft needs to go after these online stores selling this illegal software.

Answer:   Microsoft currently does and you can see just a sample of the lawsuits we have filed against these types of organizations online at: http://www.microsoft.com/piracy/partners/alerts.mspx.  In addition, one of the people from our legal division just announced this past week that these types of actions are increasing and will increase in number in the future.  In fact, programs such as Windows Genuine Advantage were designed just for this purpose.  By customers validating their Windows licenses online, we can increase the actions against illegal distributors.  For instance, if your customer validates their Windows license using the Windows Genuine Advantage site and it comes up as illegal, Microsoft will give them a FREE Windows license if they supply us with the documentation showing whom they acquired the illegitimate Windows software from.


Question: Can Open Value licensing be used with customers larger than Small Business Server customers?

Answer:   Yes.  Open Value is applicable for business customers with between 2 and 250 PCs.


Question: When using Open Business, what happens after the two years; is the software license still valid?

Answer:   Yes.  Licenses purchased through Open Business and Open Value are perpetual licenses, meaning they do not expire.  The only thing that expires at the end of your Agreement is your Software Assurance benefits (which you can renew by simply purchasing the SA only part # for that item) and your ability to add additional items to that Open Business or Open Value Agreement.  You could always start a new agreement to once again have the two year window under Open Business or three years under Open Value.  Remember that if you are buying Licenses only without Software Assurance, Open Business is the program you should use.  If you are buying License with Software Assurance or Software Assurance renewals or additions to OEM within 90 days of purchase, then you would use Open Value.


Question: Where do you download the product list that Eric mentioned?

Answer:   You can download it from: http://www.microsoft.com/licensing/resources/downloads/default.mspx


Question: How do I know if my client has User CALs or Device CALs?

Answer:   When they purchase additional CALs beyond the first 5 that come with the server, they would specifically purchase User CALs or Device CALs.  Look at the End User License Agreement for the CALs they purchased to see which they have.  If they purchased these via Retail Box (which they should probably not be doing), then they would need to produce the paper EULA for the CALs.  If they cannot show you the EULA, then they do not have a license and do not own any CALs.  If they purchased via Open License, then you could simply look at which types are listed on their Open License Agreement online.  If it was purchased via Open Business, you would look on the eOpen website.  If they purchased via Open Value, you would look on the Microsoft Volume Licensing Services (MVLS) Web site.


Question:  Where would I order the install media for my customers who receive free upgrades through their Software Assurance?

Answer:   You would order the media through your distributor just like the Open License itself.


Question: If a customer has questionable desktop software licensing, does purchasing the Small Business Platform SKU clean-up their desktop licensing?

Answer:   Yes.  Purchasing the Small Business Platform SKU will get them legitimate licenses for Office 2003 Small Business Edition, SBS CALs, and Windows XP Pro upgrade for every PC in the company.  If they are running software other than these items, they could also address those licenses under the same Open Value Agreement that they order the Small Business Platform SKU licenses on.


Question: Eric said if purchased with ERP, what is ERP?

Answer:   ERP is “Estimated Retail Price.”


Question: Will there be a rebate or promo on the new Small Business Platform SKU?

Answer:   Yes, the current Microsoft Office Rebate (worth up to $125 per Small Business Platform SKU) currently applies to the Small Business Platform SKU.  You can find out more details about this rebate at: https://www.microsoftincentives.com/OfficeOpenRebate/Content/UI/Pages/Terms.en-US.aspx


Question: Is it better to purchase SB platform and Open Value through Microsoft or a distributor?

Answer:   Microsoft does not sell direct, so you would have to purchase through a distributor.


Question: So, again, who do I contact to be listed as the reseller when I sell my customers Microsoft software licenses?

Answer:   You would simply order your Volume Licenses through a Volume License distributor then you would be listed as the selling Partner.


Question: Do I need to apply for the Office rebate (Up to $125 for every Office Pro or Small Business Platform SKU ordered before June 30, 2006) you mentioned or do I automatically qualify?  What is the URL for the promo?

Answer:   You would need to submit online to claim your rebate, it is not automatic.  You can do so HERE.


 

Thank you and have a wonderful day,

 

Eric Ligman
Microsoft US Senior Manager
Small Business Community Engagement
This posting is provided "AS IS" with no warranties, and confers no rights

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