Microsoft Open Value

Microsoft Open Value

Microsoft Open Value is a volume licensing program tailored for small and midsize organizations.

It offers a simple three-year agreement with built-in Software Assurance, allowing companies to spread payments and manage licenses more predictably.

In this advisory, we break down what Microsoft Open Value is, why mid-sized enterprises use it, how it compares to other Microsoft licensing options, and how to maximize its value – especially as Microsoft transitions its licensing programs into the cloud era.

Understanding Microsoft Open Value

Microsoft Open Value is a volume licensing agreement designed for organizations with as few as 5 PCs/users up to roughly 500. It simplifies purchasing by aggregating licenses into a single 3-year contract.

Key characteristics include:

• Perpetual licenses with Software Assurance: Under Open Value, you typically own the software licenses after the 3-year term. All purchases include Software Assurance (SA), which provides rights to new versions, training resources, and support.
• Spread payments: Instead of paying upfront for all licenses, costs are divided into three annual installments. This eases cash flow and budgeting for midsize businesses.
• Two program options are available: you can choose either the standard Open Value (perpetual) or the Open Value Subscription (OVS). The standard Open Value gives perpetual rights, whereas OVS is a subscription model – you pay an annual fee to use the software during the term, with no permanent ownership (similar to leasing). OVS offers lower upfront costs and flexibility to reduce your license count if your PC/user count declines year-over-year.
• Organization-wide commitment (optional): Open Value allows licensing “organization-wide,” meaning you commit to covering all devices/users for certain products to get better pricing. There’s also a non-organization-wide option (transactional purchases) if you prefer to license specific quantities without a company-wide commitment.

Example: A company with 200 desktops can sign an Open Value agreement for Microsoft 365 or Office software. They pay for the licenses over three years (with SA included). If they choose the organization-wide option, every PC gets the same edition of Office, simplifying compliance. If the company opts for Open Value Subscription, their yearly cost is lower and if they downsize to 180 desktops next year, they can reduce the number of licenses and pay less for the following year.

Why Midsize Organizations Choose Open Value

For many midsize enterprises, Microsoft Open Value hits a sweet spot between the ad-hoc purchase of licenses and large-scale contracts.

Benefits for midsize organizations include:

• Budget predictability: The 3-year agreement with annual payments means no big one-time capital outlay. IT budgets can be planned with fixed yearly costs.
• Simplified license management: All software licenses are managed under a single agreement and tracked via Microsoft’s Volume Licensing Service Center (VLSC). This centralizes compliance tracking – a relief for lean ITAM teams at midsize firms.
• Software Assurance perks: Open Value’s mandatory SA brings valuable extras. Midsize companies gain access to the latest software versions without the need for new purchases, training vouchers, planning services, and support incidents. These help smaller IT teams stay current and get help when needed, essentially “enterprise-level” benefits without an enterprise-size contract.
• Standardization: By licensing organization-wide, a company can standardize on key Microsoft platforms (e.g., Windows 11 Enterprise, Office 365 Apps, and CAL suites) across all PCs. Standardization improves security and support, and under Open Valu,e it can even come with a discount for committing to a platform of products.
• Flexible subscription option: Organizations that prefer an operational expense model or anticipate fluctuations in staff count value an Open Value Subscription. OVS lets you true-down licenses if your user count drops, so you’re not stuck paying for unused licenses. This flexibility can be a cost-saver in uncertain growth conditions.

In short, Microsoft Open Value is attractive to mid-sized businesses that want enterprise-like licensing advantages (such as SA and volume pricing) in a package sized for smaller scales. It’s simpler and more cost-effective for 50, 100, or 300-seat deployments than trying to manage many separate retail licenses or overspend on an Enterprise Agreement designed for thousands of users.

Open Value vs. Other Microsoft Licensing Programs

Choosing the right Microsoft agreement is crucial. How does Open Value stack up against alternatives like the Enterprise Agreement (EA) for large enterprises or the newer Cloud Solution Provider (CSP) model?

Below is a comparison of Microsoft Open Value with CSP and EA:

How to choose? For a midsize organization, Open Value vs. CSP is often the key decision. Open Value makes sense if you need on-premises software or want to own licenses outright and spread payments. CSP might be a better option if you’re cloud-focused or need maximum flexibility (e.g., the ability to add or drop 20 seats next month).

Meanwhile, an Enterprise Agreement is typically only offered once you have over 500 users; it provides greater discounts but comes with heavier commitments.

Some growing companies start with Open Value and later transition to an EA when they reach sufficient scale. Others mix and match – for example, using Open Value for Windows/Office licenses they want perpetually, but using CSP for Azure or other cloud subscriptions.

Cost Structure and Software Assurance Benefits

With Microsoft Open Value, cost management and value go hand in hand:

• Three equal payments: When you sign an Open Value agreement, the total cost (including the software license plus two years of Software Assurance) is typically divided into three annual payments. This means you pay roughly one-third of the cost each year. For budgeting, this evens out expenditures and avoids large upfront capital expenses. (If preferred, you can also pay the entire amount upfront, but most midsize companies opt for annual payments.)
• Software Assurance value: Since every Open Value license includes SA, you’re paying extra for benefits – so it’s important to use them. SA grants you new version rights, allowing you to upgrade to the latest release of products (e.g., moving from Office 2019 to Office 2021 or the next version without purchasing a new license). It also provides technical support, training vouchers, home-use rights for Office, and other perks. These can save money (e.g., avoiding the need to purchase upgrade licenses or additional support contracts) and enhance your IT operations. Actionable takeaway: Assign those training days to IT staff, utilize planning services for deployments, and ensure you install the latest versions for which your licenses entitle you.
• True-ups and adjustments: In an Open Value Company-wide agreement, you’re typically allowed to add additional licenses mid-term as your organization grows. For example, if you hired 10 new employees this year, you would report those additions (often annually on agreement anniversary) and pay a pro-rated amount for the new licenses for the remainder of the term. However, you generally cannot reduce your license count until the end of the 3-year term. The exception is the Open Value Subscription, which allows for an annual adjustment downwards if your user count decreases. This unique benefit helps avoid overpaying if your company shrinks or downsizes its hardware.
• Price protection: One advantage of the volume agreement is relative price stability. When you sign the Open Value agreement, the pricing for your initial order is established. You won’t be affected by Microsoft’s list price increases for those products during the term. If Microsoft raises prices next year, your existing agreement insulates you (you continue paying the agreed installment amounts). Note that if you add new, different products later in the term, those new additions would be at the current pricing. In contrast, CSP pricing can fluctuate year to year (though often modestly), and having a locked 3-year price is more like an Enterprise Agreement feature. For midsize customers concerned about Microsoft’s rising software costs, Open Value can offer predictability.
• No organizational discounts by entity type: Unlike the retired Open License program (which had different pricing for corporate, government, education, etc.), Open Value uses a consistent pricing model across sectors. A nonprofit, a school, or a business all receive pricing from the same price list (although Microsoft does offer separate academic/government programs under Open Value with special SKUs). For ITAM, this means focusing on product pools and quantities, rather than negotiating a special industry rate.

The Future of Open Value in Microsoft’s Licensing Strategy

Microsoft’s licensing landscape is evolving, with a clear trend toward cloud subscriptions and simplified agreements. Many ITAM professionals are asking: Is Microsoft Open Value being phased out?

Here’s what we know:

• End of Open License program: Microsoft already retired the Open License program (a sister program for one-off purchases) as of January 2022. Customers can no longer purchase or renew licenses through Open License; instead, Microsoft directs them to Open Value or the Cloud Solution Provider channel. This move was part of a push toward the new “commerce experience” and cloud-centric selling. (Important: any perpetual licenses acquired under Open License remain valid – they just can’t be bought via that program anymore.)
• Open Value and OVS – still available (for now): As of 2025, Microsoft continues to offer Open Value and Open Value Subscription to commercial, government, and education customers. There has been no official announcement of retirement for these Open Value programs. Microsoft has recommended Open Value as the alternative for customers who need Software Assurance or perpetual licenses after Open License ended. So in the immediate term, midsize organizations can still rely on Open Value for their licensing needs.
• Cloud Solution Provider (CSP) momentum: Despite Open Value’s availability, Microsoft is heavily promoting the CSP model for most small and midsize transactions. Through CSP, customers can buy Azure services, Microsoft 365 subscriptions, and even perpetual software licenses via partners in a modern, online marketplace. This is the direction Microsoft wants to grow. Over time, one can envision that Open Value could be phased out of CSP – either through a formal retirement or by more attractive pricing and features drawing customers to CSP. Notably, some industry experts expected Microsoft to retire Open Value Subscription already, given CSP covers similar needs, but it hasn’t happened yet.
• Enterprise Agreement narrowing: In parallel, Microsoft is also tightening the Enterprise Agreement channel. Recently, Microsoft has been selectively declining new EA contracts for smaller enterprises (those with fewer seats) and steering them toward the Microsoft Customer Agreement or CSP. This indicates Microsoft’s strategy to simplify its licensing programs by reducing the number of licensing options. In the long run, small and mid-market customers might all be served via the CSP/New Commerce model, with only large strategic clients on bespoke Enterprise Agreements.
• What to watch: ITAM professionals should stay alert for Microsoft announcements regarding volume licensing programs. If Microsoft decides to retire Open Value, it will likely give advance notice (as they did with Open License). This would mean new purchases and renewals would shift to another program (likely CSP or a simplified volume agreement). Planning is key – know when your Open Value agreement expires and have a plan if you need to transition to a new licensing vehicle. The good news is that any perpetual licenses you acquired via Open Value are yours to keep, even if the program ends. The main impact of a phase-out would be on how you make future purchases or renew Software Assurance.

In summary, Microsoft Open Value remains a vital program for midsize organizations in 2025, but it operates within a rapidly evolving ecosystem.

Microsoft is gently guiding customers toward more cloud-subscription-centric agreements.

ITAM professionals should leverage Open Value where it makes sense today, while preparing for a future where licensing might consolidate under newer models.

Maximizing Value and Avoiding Pitfalls in Open Value

To get the most benefit from Microsoft Open Value – and to avoid common pitfalls – consider the following insights:

• Right-size your license counts: Before signing an Open Value agreement, do a thorough inventory of your users, PCs, and software needs. Open Value has a minimum of 5 licenses to start, but if you’re committing organization-wide, ensure you have an accurate count of all eligible devices/users. This avoids under-licensing (compliance risk) or over-licensing (unnecessary cost). A common pitfall is forgetting to include remote or branch office machines in the count, then having to add them later, unbudgeted.
• Organization-wide vs. transactional – choose wisely: If you have a fairly homogeneous IT environment and plan to deploy the software to everyone, the organization-wide option can yield cost benefits and simplicity. However, if you only need certain licenses for specific teams, the non-organization-wide (transactional Open Value) might be more economical. Don’t commit to covering every PC with a product that not everyone needs. For instance, you might conduct an organization-wide Open Value for Windows OS upgrades and Office, but purchase a few Visio licenses transactionally rather than for all 300 users.
• Leverage the full Software Assurance portfolio: SA is bundled into your cost – make it count. Some actionable ways: use Planning Services vouchers to get partner help with deployments or migrations (Microsoft has been shifting these to training days in recent times – check current SA benefits); let employees use Home Use Program for Office to improve adoption; use version upgrade rights to time your moves to the latest Windows/Office when it suits your business. Every SA benefit utilized is savings or value gained, which justifies the SA cost included in Open Value.
• Plan for renewals or expiration: An Open Value agreement requires decision-making at the 3-year mark. Mark your calendar well in advance. As you approach the final year, evaluate: do you renew into another 3-year Open Value (to continue receiving upgrades via SA)? Do you switch to Open Value Subscription (if moving toward more OpEx)? Or, if your company has grown substantially, do you transition to a larger agreement, such as an Enterprise Agreement, or consolidate everything into CSP subscriptions? Never let an Open Value simply lapse without a plan – if it ends and you haven’t renewed SA, your users might suddenly be on outdated software with no upgrade path, or you might miss out on renewal discounts. Engage Microsoft or your reseller at least 6–12 months before expiration to explore options.
• Watch out for software deployments outside the agreement: ITAM governance is crucial during the term. Suppose a team deploys a new Microsoft server or a copy of Visio that is not covered in the Open Value agreement. In that case, you must purchase it (either by adding it to the Open Value agreement, if possible, or via CSP). Regularly audit your environment to ensure all Microsoft software in use is accounted for in your licensing agreements. Open Value makes adding licenses easy, but it’s your responsibility to track additions. Non-compliance can result in true-up fees or audit penalties.
• Coordinate across global offices: For global enterprises, you may have multiple regional offices, each of which qualifies as “midsize.” One pitfall is that each subsidiary independently purchases under Open Value without a central view. While Open Value itself is a regional/country-based agreement (you usually sign with a specific region’s Microsoft entity), as an ITAM professional at a global company, you should maintain a central register of all volume licensing agreements. This helps identify whether moving to a single, consolidated agreement (such as a global EA or a multi-country MPSA) makes sense, or if you can at least synchronize renewal dates. It also ensures knowledge sharing – one country’s IT shouldn’t miss that the Open License was retired if another region has already undergone an Open Value migration.

By being proactive and detail-oriented, you can avoid the common pitfalls (like unused benefits or surprise licensing gaps) and make Microsoft Open Value a highly effective tool in your software asset management strategy.

Recommendations

Practical Tips for ITAM Professionals managing or considering Microsoft Open Value:

• Evaluate fit against alternatives: Don’t assume Microsoft Open Value is automatically your best choice – assess your organization’s size, IT roadmap, and buying preferences. If you plan to adopt heavy cloud usage or require month-to-month agility, a CSP approach may serve you better. Conversely, if you require perpetual licenses for on-premises software or want to lock in pricing, Open Value is a strong candidate. Choose the model that aligns with your strategic needs.
• Engage a trusted Microsoft licensing partner: Volume licensing can be complex. Work with a Microsoft reseller or licensing solution provider who understands the Open Value licensing model. They can help structure your agreement (e.g., selecting platform products for org-wide licensing, or splitting agreements by affiliate if needed) and ensure you get any applicable discounts. An experienced partner can also keep you informed about program changes or promotions.
• Leverage Software Assurance fully: Create a plan to utilize the SA benefits that come with Open Value. Schedule trainings using your training vouchers, plan upgrades to coincide with new version releases, and utilize support incidents for any Microsoft product issues instead of incurring additional costs. This transforms what some view as “maintenance overhead” into tangible value for your company.
• Monitor license usage and changes: Implement a process to track your license count annually. If you’ve committed to covering all devices (organization-wide), ensure that any new hires or machines are added to your agreement at the next anniversary. For the Open Value Subscription, track your user count to see if it decreases, so you can adjust and save money. Staying on top of these changes helps avoid compliance issues and optimizes spending.
• Plan the end-game early: Don’t wait until month 35 of a 36-month term to decide what’s next. 12+ months before your Open Value expires, start reviewing options. If renewing Open Value, budget for the renewal (especially if it includes a round of SA payments to continue coverage). If transitioning to a new model (e.g., migrating workloads to CSP or pursuing an Enterprise Agreement due to growth), initiate discussions with stakeholders and Microsoft well in advance. Early planning gives you negotiating leverage and a smoother transition.
• Stay informed about Microsoft licensing updates: Subscribe to licensing news from Microsoft or industry analysts to stay aware of changes to programs like Open Value. Microsoft announcements can impact your plans (for example, price increases on certain products or policy shifts, such as the retirement of a program). An ITAM professional should anticipate changes rather than react at the last minute. By staying informed, you can adjust your strategy (for instance, accelerating a purchase before a price hike or knowing when to shift purchasing to a new channel).
• Consider a mixed licensing strategy: You don’t have to choose just one program for everything. Many midsize and large organizations use a hybrid approach – e.g., Open Value for core on-prem licenses and long-term needs, CSP subscriptions for experimental projects or fluctuating users, and maybe a cloud marketplace for ad-hoc needs. This can optimize cost and flexibility. Be sure to keep track of all license entitlements across programs in your IT asset management system.
• Consult peer experiences: If possible, network with other ITAM professionals or user groups to gain insights into Microsoft Open Value. They may offer insights on negotiation gotchas, how they maximized SA benefits, or how they handled the transition to CSP/EA. Real-world experiences can reveal considerations that aren’t immediately apparent in Microsoft’s documentation.

By following these recommendations, you can ensure that your organization effectively uses Microsoft Open Value to its advantage while staying agile for the future.

Checklist: 5 Actions to Take

If you’re an IT asset manager looking to optimize Microsoft licensing for a midsize enterprise, use this step-by-step checklist:

1. Assess your current needs and environment: Gather an inventory of all Microsoft software usage and devices/users in your organization. Identify which products you need to license (e.g. Windows OS upgrades, Office suites, server products, etc.), and count how many licenses are required. Confirm that you meet the minimum requirement (5+ licenses) for Open Value and note your approximate user/device count (to consider program fit).
2. Compare licensing program options: Based on your inventory and plans, evaluate whether Microsoft Open Value is the best fit. Consider alternatives: Would a Cloud Solution Provider subscription model be more cost-effective or flexible? Do you qualify for a larger Enterprise Agreement, and if so, does it offer benefits you need? Weigh the pros/cons, such as upfront vs. annual costs, perpetual ownership vs. subscription, and the importance of Software Assurance for your organization. Decide which program (or mix of programs) aligns with both your budget strategy (CapEx vs OpEx) and technology roadmap (on-premises vs cloud).
3. Select the Open Value structure (if chosen): If you decide on Microsoft Open Value, determine the right agreement structure: Open Value Company-wide or Open Value non-company-wide, and perpetual vs. subscription. For company-wide, choose the product set you will standardize on (e.g. desktop platform products like Office + Windows + CALs for all PCs). For the Open Value Subscription, plan how you will true up or true down annually. Engage a Microsoft reseller to get quotes and initiate the agreement paperwork. Ensure all internal stakeholders (IT, procurement, finance) understand the 3-year commitment and payment schedule.
4. Implement and document the agreement: Once signed, record all details in your ITAM system, including the agreement number, term dates, covered products, and quantities. Deploy software keys and licenses from the VLSC portal to ensure all installations are licensed under the Open Value entitlements. Communicate to IT staff that new deployments of covered products should reference this agreement. Set up reminders for key milestones, including the anniversary (for adding any new licenses or adjusting counts) and the agreement end date. Establish a process with HR/IT to notify the licensing team of changes in user count or device count so that you can update licensing appropriately each year.
5. Review and adapt annually: Conduct an annual review of your Microsoft licensing. A few months before each anniversary, review how many licenses you’re using versus those you’ve purchased. True-up any additional licenses needed for new employees or systems. If you’re in OVS and your count dropped, be sure to inform your provider to reduce your license count (and cost) for the next year. Also, review Software Assurance usage – for instance, have you taken advantage of available training days or upgrades this year? Finally, as you approach the third year, begin planning for the renewal and transition (as noted in the recommendations above) so that there are no surprises after the agreement ends.

By following this checklist, you’ll maintain control over your Microsoft licensing, ensure compliance, and position your organization to get the best value from Microsoft Open Value or whichever program you choose.

FAQ

Q: What is Microsoft Open Value, and who is it designed for?
A: Microsoft Open Value is a volume licensing program for organizations with as few as 5 PCs/users (typically in the small-to-midsize range). It’s designed to simplify software purchasing for companies that aren’t large enough for an Enterprise Agreement but still need cost-effective volume licensing. Open Value is ideal for businesses with 5 to 500 seats that want to spread payments over three years and include Software Assurance (upgrade and support benefits) with their licenses.

Q: How is Open Value different from a Microsoft Enterprise Agreement or buying through a Cloud Solution Provider (CSP)?
A: Open Value is generally for smaller organizations than an Enterprise Agreement. An EA is designed for enterprises (500+ users) and offers deeper discounts, but it requires a commitment to cover all users enterprise-wide and a large upfront investment. Open Value has a lower entry point (5 users) and is more flexible for midsize needs; you still get volume pricing and a 3-year term, but the scale is smaller. Compared to CSP, Open Value provides perpetual licenses (you own the software after paying it off) and includes Software Assurance. CSP, on the other hand, is a pure subscription model – you pay month-to-month or annually per user, and you don’t own the licenses (except for any perpetual offerings via CSP for certain products). CSP is very flexible (you can increase or decrease user counts easily), whereas Open Value locks you in for 3 years (especially for perpetual licenses). In short, EA is about large volume commitments and discount levels. Open Value is about manageable commitments for the midmarket, with ownership and support, and CSP is about cloud-age flexibility and no long-term commitments.

Q: Is Microsoft phasing out the Open Value program?
A: Not at this time – Microsoft Open Value and Open Value Subscription are still available in 2025. Microsoft did phase out the older Open License program (ending it in 2021), which led some to wonder if Open Value would be next. So far, Microsoft has indicated that Open Value will continue, and it remains a key option, especially for customers who need perpetual licenses with Software Assurance. However, Microsoft’s overall strategy is shifting toward the CSP (Cloud Solution Provider) model and the Microsoft Customer Agreement, with a focus on cloud subscriptions. It’s possible that eventually Microsoft could retire Open Value or merge its functionality into newer programs, but any such change would likely be announced in advance. ITAM professionals should keep an eye on Microsoft’s licensing news, but for now, you can still renew and sign Open Value agreements. If a phase-out is announced in the future, Microsoft would provide guidance on migrating to alternative programs (such as CSP or other volume agreements).

Q: What happens at the end of an Open Value agreement’s 3-year term?
A: You have a few options at the end of the term. If you have a standard Open Value (perpetual) agreement, once you’ve made all three payments, those software licenses are yours to keep forever. At the end of the term, you can renew Software Assurance (typically by signing a new agreement or extension) if you wish to continue receiving upgrades and support. If you choose not to renew SA, you can still use the last version of software you obtained, but you won’t receive further updates. In the case of Open Value Subscription (OVS), because these licenses are not perpetual, at the end of three years, you must either renew the subscription for another term, exercise a buy-out option to purchase perpetual licenses (usually at a discounted rate), or cease using the software. Practically, most organizations either renew their Open Value term or transition to a different licensing program. It’s essential to plan this to prevent disruptions to software usage.

Q: What if our organization grows beyond the “midsize” range – can we switch from Open Value to another licensing program?
A: Yes. As your organization evolves, your Microsoft licensing strategy should also evolve. If you initially used Open Value when you had 100 employees but now you have, say, 600 or 1000, you may qualify for an Enterprise Agreement, which could offer better pricing and terms for your larger scale. You can typically complete your Open Value term, then migrate to an EA at renewal (or even early-terminate/cancel Open Value in some cases if switching to an EA, with Microsoft’s and your partner’s assistance). Alternatively, suppose you decide to go full cloud. In that case, you might transition from Open Value to CSP subscriptions over time – for example, not renewing Open Value and instead moving users to Microsoft 365 via CSP. Microsoft and its partners can assist with these transitions. The key is to review your licensing options whenever you undergo significant growth or IT change. Open Value doesn’t lock you in beyond the 3-year term – after that, you’re free to choose a different path that suits your new size and needs. Many enterprises have done exactly this: start with Open Value for the flexibility, then graduate to an Enterprise Agreement once they reach the threshold, or shift to cloud agreements as their strategy changed.

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