Microsoft / Microsoft Licensing

Microsoft Open License – What You Should Know

Microsoft Open License

  • Program: Volume licensing for small to mid-sized organizations.
  • Initial Purchase: Minimum of five licenses.
  • Licensing: Perpetual, meaning they never expire.
  • Benefits: Flexibility, cost savings, easy management.
  • Software Assurance: Optional add-on for additional benefits.
  • Management: Licenses are managed through the Volume Licensing Service Center (VLSC).

Microsoft Open License

Microsoft Open License

The Microsoft Open License program is a volume licensing plan for businesses with 5 to 499 personal computers.

The program provides a simple, flexible, affordable solution for organizations to manage their Microsoft software licenses.

Unlike traditional retail licensing, Microsoft Open License allows businesses to consolidate their product licenses into a single agreement, making tracking their software assets easier.

This program is part of Microsoft’s broader Volume Licensing offerings, including the Open Value and Enterprise Agreement programs.

Differentiating Microsoft Open License from Other Microsoft Licensing Programs

While all Microsoft Volume Licensing programs are designed to help businesses manage their software licenses more effectively, there are key differences between them:

  1. Open License: This program is ideal for small—to medium-sized organizations wanting to purchase at least five software licenses. It offers a pay-as-you-go model, allowing businesses to add additional licenses anytime during the two-year agreement term.
  2. Open Value: This program includes all the benefits of an Open License plus Software Assurance, a comprehensive maintenance offering with access to the latest software updates, training, and support.
  3. Enterprise Agreement: This program is designed for large organizations with 500 or more personal computers. It offers the best pricing, flexibility, and management control across all Microsoft technologies.

Benefits of Microsoft Open License

Benefits of Microsoft Open License

The Microsoft Open License program offers several advantages for organizations:

  1. Flexibility: The program allows businesses to buy the licenses they need when needed rather than making a large upfront purchase.
  2. Cost-Effectiveness: By consolidating licenses into a single agreement, businesses can reduce administrative overhead and potentially lower their software costs.
  3. Simplicity: The program simplifies license management through the Microsoft Volume Licensing Service Center (VLSC), an online portal where businesses can view and manage all their Microsoft licenses.
  4. Access to Latest Technologies: Businesses that opt for Software Assurance with Open Value have access to the latest Microsoft software updates, ensuring they always have the most current and secure versions of Microsoft products.

How Microsoft Open License Works

How Microsoft Open License Works

The Microsoft Open License program is a simple, flexible licensing solution for small to medium-sized organizations. It provides a cost-effective way to purchase, manage, and use Microsoft software.

Here’s a step-by-step guide on how it works:


1. Initial Purchase

The program starts with a minimum purchase of five or more licenses, establishing an Open License agreement.

  • Minimum Requirement: The purchase of five licenses qualifies the organization to participate.
  • Flexible Selection: You can choose from a wide range of Microsoft software products, such as Windows, Office, and server applications.

Example: A business purchases five Microsoft Office licenses to meet its initial requirements and establish an agreement.


2. License Management

Organizations can manage all licenses through the Microsoft Volume Licensing Service Center (VLSC), a centralized, web-based platform.

  • Centralized Tracking: View, download, and monitor all purchased licenses in one place.
  • Software Access: Download software and access product keys for installations.
  • Compliance Assurance: Maintain accurate records for audits and license reviews.

Example: An IT manager uses VLSC to track Office and Windows Server licenses, ensuring organization compliance.


3. Additional Purchases

Once the Open License agreement is set up, organizations can purchase additional licenses anytime without meeting a new minimum requirement.

  • Pay-As-You-Go: Purchase licenses as your business needs evolve.
  • Streamlined Procurement: All new licenses are added to the existing agreement for easier management.

Example: A company hires ten new employees and quickly adds 10 Office 365 licenses under its existing Open License agreement.


4. License Reassignment

Microsoft Open License allows licenses to be reassigned to other devices or users within the same organization.

  • Adapt to Changing Needs: Move licenses to new machines when upgrading or replacing devices.
  • Maximize Investment: Ensure licenses remain in use without additional purchases.

Example: During a hardware upgrade, a company reassigns Microsoft Office licenses from old desktops to new laptops.


5. End of Agreement

The Open License agreement lasts for two years. At the end of the term:

  • Renewal Option: Organizations can renew the agreement if they expect to need additional licenses.
  • Retain Perpetual Rights: Licenses purchased under the agreement remain yours permanently, even if you choose not to renew.

Example: After two years, an organization chooses not to renew but continues to use the software licenses purchased during the term.


Key Benefits of Microsoft Open License

BenefitDescription
Low Entry PointStart with as few as five licenses, making it accessible for smaller businesses.
Flexible PurchasingAdd licenses over time without restarting the agreement.
License ReassignmentMove licenses between devices or users as business needs change.
Centralized ManagementEasily manage all licenses through VLSC for tracking and compliance.
Perpetual OwnershipLicenses remain yours permanently, even after the agreement ends.

Why Choose Microsoft Open License?

The Microsoft Open License program is ideal for businesses that require:

  • Simplicity: Easy license management through VLSC.
  • Flexibility: Add licenses when needed without meeting new minimums.
  • Cost Control: Affordable entry with the ability to own licenses outright.

Example: A small business uses Open License to purchase Windows Server and Office licenses over time, expanding as the company grows while maintaining ownership of all software.

FAQ on Microsoft Open License Program

What is the Microsoft Open License Program?

The Microsoft Open License Program is a volume licensing program for small—to mid-sized organizations. It provides a simple and flexible way to purchase software licenses.

Who can benefit from the Microsoft Open License Program?

Small to mid-sized organizations looking for a cost-effective way to license Microsoft products can benefit from this program.

How does the Open License Program work?

Organizations purchase licenses through Microsoft partners. The program requires a minimum initial purchase of five licenses, and additional licenses can be added as needed.

What products are available through the Open License Program?

The program makes available a wide range of Microsoft products, including Windows, Office, and server software.

How long is the Open License valid?

Licenses acquired through the Microsoft Open License Program are perpetual, meaning they never expire.

Can software assurance be added to Open Licenses?

Yes, organizations can add Software Assurance to Open Licenses for benefits like upgrades, deployment planning, and training.

What is Software Assurance?

Software Assurance is a comprehensive program that includes benefits such as new version rights, deployment planning, training, and support.

How do organizations track their licenses?

Organizations can track their licenses through the Microsoft Volume Licensing Service Center (VLSC).

What are the benefits of the Open License Program?

Benefits include flexibility, cost savings, ease of management, and the ability to purchase as needed.

Can licenses be transferred between organizations?

Licenses obtained through the Open License Program can be transferred between affiliated organizations, subject to Microsoft’s transfer policies.

What is the initial purchase requirement for the Open License Program?

The initial purchase requirement is a minimum of five licenses.

Can educational institutions use the Open License Program?

Yes, Microsoft offers specific Open License programs tailored for educational institutions.

How do I renew my Open License?

Since the licenses are perpetual, there is no need for renewal. However, Software Assurance can be renewed.

What is the difference between Open License and Open Value?

Open License offers perpetual licenses, while Open Value offers both perpetual and subscription licenses with additional benefits.

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Author
  • Fredrik Filipsson brings two decades of Oracle license management experience, including a nine-year tenure at Oracle and 11 years in Oracle license consulting. His expertise extends across leading IT corporations like IBM, enriching his profile with a broad spectrum of software and cloud projects. Filipsson's proficiency encompasses IBM, SAP, Microsoft, and Salesforce platforms, alongside significant involvement in Microsoft Copilot and AI initiatives, improving organizational efficiency.

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