1. Understanding Microsoft’s Server Product Licensing in a Virtualized Environment | Virtualization {data center} > {desktop} > {management} Microsoft TechNet for IT Managers

2. Microsoft Licensing in 10 minutes

3. License types OEM: sold with PC (or server) – Limited rights: no downgrade, no imaging, no hardware transfer, no language-switch, no MS support, not usable on Terminal Server. – Cheaper (?) Retail – Limited rights: no downgrade, no imaging, no language- switch, not usable on Terminal Server. But transferrable – Expensive (?) Volume license: – Many rights: downgrade, imaging, language-switch, transfer. – Extra: spread payment possible, simple management, maintenance (Software Assurance)

4. License types OEM: sold with PC (or server) – Limited rights: no downgrade, no imaging, no hardware transfer, no language-switch, no MS support, not usable on Terminal Server. – Cheaper (?) Retail – Limited rights: no downgrade, no imaging, no language- switch, not usable on Terminal Server. But transferrable – Expensive (?) Volume license: – Many rights: downgrade, imaging, language-switch, transfer. – Extra: spread payment possible, simple management, maintenance (Software Assurance) ‘…You may not rent, lease or host the software…’

5. Volume Licensing – basic options Buy LicensesBuy Licenses over 3yRent Licenses over 3y SMBOpen LicenseOpen ValueOpen Value Subscription Enterprise (>250 PC’s)Select AgreementEnterprise AgreementEnterprise Agreement Subscription CharacteristicsSA optional ‘A la carte’ choice Upfront payment of total cost Cost = investment, CAPEX SA included Customer chooses standard desktop Spread payment of License + SA Cost = investment, CAPEX SA included Customer chooses standard desktop Annual payment of rental fee (buy-out optional) Cost = cost, OPEX

6. 1. Open License (Select) “Buy software when you need it” 2 year contract One-time payment of total cost Software Assurance optional As of 5 licenses Per legal entity

7. 2. Open Value (EA) “Buy software per standard PC” Practically – Choose standard PC: 1.Windows upgrade 2.Office Small Business, Pro Plus or Enterprise 3.SBS CAL, EBS CAL, Core CAL or Entreprise CAL Suite – If company-wide: extra discount 3 year contract Spread payment of total cost Software Assurance incl As of 5 PC’s Additional products available Possible for ‘group of’ companies discount if all 3

8. Core CAL Suite Enterprise CAL Suite 8 “Base” CAL “Enterprise” CAL (addititive) Exchange Server Std CAL Office SharePoint Server Std CAL System Center Config Mgr Client ML Office Communications Server Std CAL SharePoint Server Enterprise CAL Exchange Enterprise CAL Windows Rights Mgmt Services CAL System Center Operations Mgr Client ML Office Communications Server Ent CAL Forefront Security Suite Windows Server CAL

9. 3. Open Value Subscription (EA Subscription) “Rent software per standard PC” Practically – Always company-wide – Choose standard PC: 1.Windows upgrade 2.Office Small Business, Pro Plus or Enterprise 3.SBS CAL, EBS CAL, Core CAL or Entreprise CAL Suite 3 year contract Spread payment of rental cost Software Assurance incl As of 5 PC’s, yearly count can go up or down Additional products available Possible for ‘group of’ companies discount if all 3

10. Summary Open/Select: – SA optional – Simplicity: buy NOW, buy what/when you use – Difficult management Open Value/EA: – SA included – Spread over 3 year – Discount for standardization – Simple management Open Value Subscription/EAS – SA included – Spread over 3 year – Discount for standardization – Simplest management, evolves with company size – Cheapest solution first 5.x years

11. Software Assurance Upgrade rights to new version Predictable cost, easy budgetting Office Home Use Program e-Learning Training Vouchers Employee Purchase program (EPP) Windows Pre-installation Environment (WinPE) Problem resolution support TechNet Plus subscription Cold back-up server Access to Step-Up SKU’s Access to Desktop Optimization Pack (incl Softgrid) Simple management Exclusive version: Vista Enterprise 11

12. The story on CAL’s Server + CAL model External connector option Device CAL’s versus User CAL’s

13. Product Licensing “Microsoft Licensing is difficult to understand” – Licensing – “How can a professional organisation acquire its software licenses” – is relatively simple – Product Licensing – ‘What can I do with the software for which I have a license?’ or ‘What licenses do I need to put together this infrastructure’ is more difficult and evolves quickly. Sources of information: – Volume License Briefs At www.microsoft.com/licensing/resources/volbrief.mspx – ‘How to Buy’ pages

16. Server Virtualization Application Virtualization Desktop Virtualization Presentation Virtualization Management A comprehensive set of virtualization products, from the data center to desktop assets – both virtual and physical – are managed from a single platform Microsoft Virtualization Products

17. WINDOWS SERVER 2008 FEATURES BY EDITION WebStandardEnterpriseDatacenterFor Itanium Based Systems  Server Core  Web +  Standard +  Enterprise + IIS7 Print SharePoint Services Basic Media Services Virtualization Bitlocker.Net Framework 4 cpu RAM x64: 32 GB x86: 4GB File TS: 250 Con. Powershell AD, RODC DNS, DHCP WSRM RMS NAP SUA NLB WDS 8 cpu RAM x64: 2 TB x86: 4GB Hot add Fault tolerant mem synch 16 node cluster Cross-file replication TS: 65k Con. Adv. Identity Mngmnt Full media x64: 64 cpu x86: 32 cpu Hot add cpu Hot replace cpu RAM x86: 128GB Hot replace 64 cpu Hot add cpu Hot replace cpu IIS7 Server core 8-node cluster Fault tolerant mem synch Cross-file replication.Net Framework WSRM SUA, NLB

18. Hyper-V & Windows Licenses Hyper-V Server 2008 – Each guest OS requires a license Windows Server 2008 Standard Edition – 1 License for Virtual Machine included Windows Server 2008 Enterprise Edition – 4 Licenses for Virtual Machines included Windows Server 2008 DataCenter Edition – ∞ Licenses for Virtual Machines included

19. Included Virtual Licenses CPU based Licensing (1 multicore = 1 CPU) More interesting when able to have 3 or more VM per CPU CPU based Licensing (1 multicore = 1 CPU) More interesting when able to have 3 or more VM per CPU

20. Physical  Virtual Basic Differences in licensing Physical License required when software installed – OS – Applications Exception: – COLD stand-by in Software Assurance Virtual License required – Per “running instance” – OS – Applications

21. Virtualization User Rights Each “Assigned” Enterprise License on Host Each “Assigned” Enterprise License on Host 4 Server Licenses for Virtualisation Independent of virtualization technology

22. 1/4/Unlimited Virtual Licenses Virtual license bound to “physical” license – No split possible Need # Virtual licenses as MAXIMUM # instances that might run – Per box Licenses can be transferred to other hardware – Dismissal of host – After 90 days for OS, instantly for Server Apps – Not with OEM Licenses

23. Virtualization User Rights Each “Assigned” Datacenter License on Host Each “Assigned” Datacenter License on Host Unlimited Server Licenses for Virtualisation Independent of virtualization technology

24. CPU based licensing Applications with CPU based licensing

25. Server Virtualisation – rules of thumb Windows Server Host OS often gives right to some free Guest OS’es For Application Servers licensed ‘per CPU’, you only need to count virtual CPU’s in the VM Microsoft only requires license for running instances of an OS or application All our licensing rules with regards to virtualisation are independent of Virtualisation Technology Also OEM licenses give virtualisation rights, but remain linked to hardware

26. Server Application Re-assignment Sept 1 announcement: ‘Microsoft waives the 90 day rule on license re- assignment’ Details: – For application server only – Only for Volume Licensing – Within a limited time zone – Allows easier VM swapping to other hardware – Independent of virtualization technology used Rule of thumb: if a customer moves a running instance of a virtualized server application to other hardware, he can do so freely, but needs to check on the server OS licenses. Read the Licensing Brief ‘Application Server License Mobility’ on www.microsoft.com/licensing/resources/volbrief.mspx 26

27. Server Virtualization Application Virtualization Desktop Virtualization Presentation Virtualization Management A comprehensive set of virtualization products, from the data center to desktop assets – both virtual and physical – are managed from a single platform Microsoft Virtualization Products

28. Server: Used to manage other system or devices and required as head Node for each System Center Server Product Management License (ML): Required for each instance of the Operating System that is managed System Center Licensing Server + Management License (ML) Server Server Management License Client Management License

29. 2 Editions of Server Mgmt Enterprise Edition is designed for customers who need comprehensive server application across physical and virtual server environments non- virtualized servers Standard Edition is designed for customers who only need platform management for non- virtualized servers System Center Licensing Management Server Server Management License Client Management License OpsMgr ServerConfigMgr ServerDPM Server OpsMgr OMLConfigMgr Server MLSCDPM Server ML OpsMgr Client OMLSCCM Client CML

30. Standard ML  Enterprise ML Using SCOM as example OSE Exchange SQL OSE Exchange SQL OSE Oracle OSE Exchange SQL OSE Exchange SQL OSE Oracle OSE Std OML Ent OML OSE: Operating System Environment

31. System Center Management Suites New Enterprise Server Management Suites Management Server Server Management License Client Management License ConfigMgr Server ML OpsMgr OML Virtual Machine Mgr SCDPM Server ML Complete Server Management Priced equivalent to 2 System Center products Virtualization friendly ($/physical server) Only way to purchase System Center Virtual Machine Manager Server Management Suite Enterprise

32. SC Management Licenses Suites Calculation Exercise Symbolic Prices Ent OML - €300 Ent CML - €300 Ent DPML - €300 OSE Std OML - €100 Std CML - €100 Std DPML - €100 OSE Std Mngmt Suite (O + C + DP) €200 Std Mngmt Suite (O + C + DP) €200 OSE Ent Mngmt Suite (O + C + DP) + VMM (exclusive) €600 Ent Mngmt Suite (O + C + DP) + VMM (exclusive) €600

33. OSE Ent OML Ent CML Ent DPML Ent OML Ent CML Ent DPML Ent Mngmt Suite (O + C + DP) + VMM Ent Mngmt Suite (O + C + DP) + VMM Ent Mngmt Suite (O + C + DP) + VMM Ent Mngmt Suite (O + C + DP) + VMM Ent OML SC Management Licenses Virtualization Ent OML Ent CML Ent DPML OSE Ent OML Ent CML Ent DPML Ent Mngmt Suite (O + C + DP) + VMM Ent Mngmt Suite (O + C + DP) + VMM Independent of virtualization technology Ent Mngmt Suite (O + C + DP) + VMM Ent Mngmt Suite (O + C + DP) + VMM Ent OML Ent CML Ent DPML Ent OML

34. Server Virtualization Application Virtualization Desktop Virtualization Presentation Virtualization Management A comprehensive set of virtualization products, from the data center to desktop assets – both virtual and physical – are managed from a single platform Microsoft Virtualization Products

35. Store Centrally - Run Locally Diskless PC and Remote Boot – OS & Applications run locally – Windows Vista Enterprise for Diskless PC 4 concurrent running Windows / device Part of Windows Vista Enterprise Store Local – Run Local Alternative Virtual Machines – Using Virtual PC 2007 – 4 ‘free’ licenses for desktop OS with Vista Enterprise

36. Store & Run Centrally - VECD Vista Enterprise Centralized Desktops Windows Vista runs on Server Client can be PC or Thin client

37. VECD Licensing Annual Subscription – For PC: in addition of SA – For Thin client: includes SA Install & store unlimited – Also downgrade – Only Running Instances require Licenses Use up to 4 concurrent per device Does NOT include application license – Office,... – Required per licensed device

38. Server Virtualization Application Virtualization Desktop Virtualization Presentation Virtualization Management A comprehensive set of virtualization products, from the data center to desktop assets – both virtual and physical – are managed from a single platform Microsoft Virtualization Products

39. Terminal Services Device or User CAL – Windows Server CAL required as well Application Software license required per device that CAN access the TS environment – Reflexes CALs – Application License needs to be through Volume License Agreement CITRIX: TS CALs are always required – Same Application Software Licensing rules apply as on native TS

40. Server Virtualization Application Virtualization Desktop Virtualization Presentation Virtualization Management A comprehensive set of virtualization products, from the data center to desktop assets – both virtual and physical – are managed from a single platform Microsoft Virtualization Products

41. Softgrid Desktop License exclusive in MDOP – Microsoft Desktop Optimization Pack – On top of Software Assurance Terminal Server License – Sold through licensing programs Application Software License – Required for every device that can access the Softgrid back-end – If Softgrid over TS then 1 license per device

42. What we’ve seen General overview on acquiring licenses – Buy – Buy over 3y – Rent over 3y – Value of Software Assurance CAL – Core CAL – Enterprise CAL Suite Product Licensing Licensing in a Virtual World – Server virtualisation – System Center Licensing – Terminal Server, Softgrid, Virtual PC