Understanding Microsoft Open Value
Microsoft Open Value is a volume licensing agreement designed for organisations with as few as 5 PCs/users up to roughly 500. It simplifies purchasing by aggregating licences into a single three-year contract with built-in Software Assurance, allowing companies to spread payments and manage licences more predictably.
Perpetual Licences with SA
Under Open Value, you typically own the software licences after the three-year term. All purchases include Software Assurance (SA), providing rights to new versions, training resources, and support.
Spread Payments
Instead of paying upfront, costs are divided into three annual instalments. This eases cash flow and budgeting for midsize businesses — no large one-time capital outlay required.
Two Programme Options
Open Value (Perpetual): You own the licences permanently. Open Value Subscription (OVS): Pay an annual fee with lower upfront costs and flexibility to reduce licence counts if your PC/user count declines year-over-year.
Organisation-Wide Commitment
Open Value allows licensing "organisation-wide" — commit to covering all devices/users for certain products to get better pricing. There is also a non-organisation-wide (transactional) option for specific quantities without a company-wide commitment.
A company with 200 desktops can sign an Open Value agreement for Microsoft 365 or Office software, paying over three years with SA included. If they choose the organisation-wide option, every PC gets the same edition of Office, simplifying compliance. If they opt for Open Value Subscription and downsize to 180 desktops next year, they can reduce licence count and pay less for the following year.
Why Midsize Organisations Choose Open Value
For many midsize enterprises, Microsoft Open Value hits a sweet spot between ad-hoc licence purchases and large-scale enterprise contracts. The programme delivers enterprise-level benefits — Software Assurance, volume pricing, centralised compliance tracking — in a package sized for smaller organisations.
| Benefit | How It Works |
|---|---|
| Budget predictability | Three-year agreement with annual payments — no big one-time capital outlay. IT budgets can be planned with fixed yearly costs. |
| Simplified licence management | All software licences managed under a single agreement and tracked via Microsoft's Volume Licensing Service Centre (VLSC). Centralises compliance tracking for lean ITAM teams. |
| Software Assurance perks | Mandatory SA includes access to latest software versions, training vouchers, planning services, and support incidents — essentially enterprise-level benefits without an enterprise-size contract. |
| Standardisation | Organisation-wide licensing standardises key Microsoft platforms (Windows 11 Enterprise, Office 365 Apps, CAL suites) across all PCs — improving security, support, and potentially earning platform discounts. |
| Flexible subscription option | OVS lets you true-down licences if your user count drops. You are not stuck paying for unused licences — a cost-saver in uncertain growth conditions. |
Want to understand whether Open Value or an Enterprise Agreement is right for your organisation?
Open Value vs EA Study →Open Value vs. Other Microsoft Licensing Programmes
Choosing the right Microsoft agreement is crucial. How does Open Value compare to the Enterprise Agreement (EA) for large enterprises or the newer Cloud Solution Provider (CSP) model?
| Aspect | Open Value (Perpetual) | Cloud Solution Provider (CSP) | Enterprise Agreement (EA) |
|---|---|---|---|
| Suitable for | Small to midsize (5–500 users) needing volume licences (on-premises or hybrid) | All sizes (especially SMB) preferring cloud subscriptions and flexibility | Large enterprises (500+ users) with broad Microsoft needs and centralised IT |
| Licence type | Perpetual (owned) with SA included; or optional OVS subscription variant | Subscription ("rent" software) — mostly cloud services; some perpetual options | Mix of perpetual and subscription; SA included on perpetual components |
| Agreement term | 3-year with annual payments; organisation-wide or selective | No fixed term; pay-as-you-go monthly/annual per user | 3-year contract; enterprise-wide commitment for agreed products |
| Cost & discounts | Volume pricing locked for term; payable in 3 instalments; discounts for company-wide platform | Partner-driven pricing; monthly rates can change; limited volume discounts | Deepest discounts (price levels A–D); pricing fixed at signing for term |
| Flexibility | Medium: Can add mid-term (prorated). Cannot reduce unless using OVS. | High: Increase or decrease month to month; only pay for what you need | Low: Must maintain minimum for 3 years; can increase via true-up but cannot reduce |
| End-of-term | Own licences perpetually (standard). OVS: must renew, buy out, or stop using. | No rights to use if you stop paying (subscription only) | Retain perpetual licences; lose SA benefits and subscription services if not renewed |
For midsize organisations, Open Value vs. CSP is often the key decision. Open Value makes sense if you need on-premises software or want to own licences outright and spread payments. CSP may be better if you are cloud-focused or need maximum flexibility (e.g., the ability to add or drop 20 seats next month). An Enterprise Agreement is typically only available once you exceed 500 users — it provides greater discounts but heavier commitments. Some growing companies start with Open Value and later transition to an EA when they reach sufficient scale.
Cost Structure and Software Assurance Benefits
With Microsoft Open Value, cost management and value go hand in hand. Understanding the financial mechanics helps ITAM professionals maximise return on investment.
Three Equal Payments
The total cost (licence plus two years of Software Assurance) is divided into three annual payments — roughly one-third each year. This evens out expenditures and avoids large upfront capital expenses. Most midsize companies opt for annual payments, though upfront payment is also available.
Software Assurance Benefits
Every Open Value licence includes SA — make it count. SA grants new version rights (upgrade to latest releases without additional purchase), training vouchers, home-use rights for Office, planning services, and support incidents. Assign training days to IT staff, utilise planning services for deployments, and install the latest versions your licences entitle you to.
True-Ups and Adjustments
In an Open Value Company-wide agreement, you can add licences mid-term (prorated). However, you cannot reduce your licence count until the end of the 3-year term — the exception is Open Value Subscription, which allows annual adjustment downward if your user count decreases.
Price Protection
When you sign the agreement, pricing for your initial order is established. You won't be affected by Microsoft's list price increases during the term. New products added later are at current pricing. For midsize customers concerned about Microsoft's rising software costs, Open Value offers meaningful predictability — similar to Enterprise Agreement price locks.
The Future of Open Value in Microsoft's Licensing Strategy
Microsoft's licensing landscape is evolving rapidly, with a clear trend toward cloud subscriptions and simplified agreements. Many ITAM professionals are asking: is Microsoft Open Value being phased out?
What we know: Microsoft retired the Open Licence programme in January 2022 and now directs those customers to Open Value or CSP. As of 2025, Open Value and OVS remain available with no official retirement announcement. However, Microsoft is heavily promoting CSP and the Microsoft Customer Agreement (MCA) — and has begun selectively declining new EA contracts for smaller enterprises, steering them toward MCA/CSP. The direction is clear: Microsoft is consolidating licensing programmes and pushing cloud-first models.
What to watch: If Microsoft decides to retire Open Value, it will likely give advance notice. Any perpetual licences you acquired via Open Value are yours to keep. The main impact of a phase-out would be on how you make future purchases or renew Software Assurance. ITAM professionals should know when their Open Value agreement expires and have a plan for transitioning to a new licensing vehicle if required.
Microsoft Open Value remains a vital programme for midsize organisations in 2025, but it operates within a rapidly evolving ecosystem. Microsoft is gently guiding customers toward cloud-subscription-centric agreements. Leverage Open Value where it makes sense today, while preparing for a future where licensing may consolidate under newer models. The worst outcome is being caught without a plan when your agreement expires.
Maximising Value and Avoiding Pitfalls
- Right-size your licence counts. Before signing, do a thorough inventory of users, PCs, and software needs. A common pitfall is forgetting branch office machines — then having to add them later, unbudgeted. Over-licensing wastes money; under-licensing creates compliance risk.
- Choose organisation-wide vs. transactional wisely. If you have a homogeneous IT environment, the organisation-wide option yields cost benefits and simplicity. But do not commit to covering every PC with a product that not everyone needs — for example, licence Office organisation-wide but purchase Visio only for the users who need it.
- Leverage the full Software Assurance portfolio. Use Planning Services vouchers, let employees use Home Use Programme for Office, and install the latest versions your licences entitle you to. Every SA benefit utilised justifies the cost included in Open Value.
- Plan for renewals 12+ months early. Never let an Open Value simply lapse without a plan. Evaluate: renew into another 3-year Open Value? Switch to OVS? Transition to an Enterprise Agreement if you have grown? Consolidate everything into CSP subscriptions? Early planning gives you negotiating leverage.
- Audit deployments during the term. Suppose a team deploys Microsoft server software or Visio not covered in the agreement — you must purchase it. Regularly audit your environment to ensure all Microsoft software is accounted for in your licensing agreements. Non-compliance can result in audit penalties.
- Coordinate across global offices. If each subsidiary independently purchases under Open Value without a central view, you may miss opportunities to consolidate into a single agreement. Maintain a central register of all volume licensing agreements and synchronise renewal dates where possible.
5-Step Action Checklist for ITAM Professionals
Assess Current Needs and Environment
Gather an inventory of all Microsoft software usage, devices, and users. Identify which products you need to licence (Windows OS, Office, server products), count how many licences are required, and confirm you meet the minimum 5-licence requirement for Open Value.
Compare Licensing Programme Options
Evaluate whether Open Value is the best fit. Would CSP be more cost-effective or flexible? Do you qualify for an Enterprise Agreement? Weigh perpetual ownership vs. subscription, upfront vs. annual costs, and the importance of Software Assurance for your organisation.
Select the Open Value Structure
Choose between Open Value Company-wide or non-company-wide, and perpetual vs. subscription. For company-wide, select the product set you will standardise on. For OVS, plan how you will true up or true down annually. Engage a Microsoft reseller to get quotes and initiate paperwork.
Implement and Document
Record all details in your ITAM system — agreement number, term dates, covered products, quantities. Deploy licences from the VLSC portal and set up reminders for key milestones: the anniversary date (for adjustments) and the agreement end date. Establish a process with HR/IT to notify the licensing team of changes in user or device count.
Review and Adapt Annually
Conduct an annual review: compare licences in use vs. purchased; true-up any additions for new employees; if on OVS and count dropped, reduce and save. Review SA utilisation — training days used, upgrades installed. As you approach year three, begin planning for renewal or transition to ensure no surprises.
Frequently Asked Questions
What is Microsoft Open Value and who is it designed for?
Microsoft Open Value is a volume licensing programme for organisations with 5–500 PCs/users. It simplifies software purchasing for companies that are not large enough for an Enterprise Agreement but still need cost-effective volume licensing. It offers spread payments over three years with Software Assurance included on all licences.
How is Open Value different from an Enterprise Agreement or CSP?
An EA is designed for 500+ users with deeper discounts but requires enterprise-wide commitment. Open Value has a lower entry point (5 users), provides perpetual licences with SA, and suits midsize needs. CSP is a subscription model with month-to-month flexibility and no long-term commitment — but you do not own the licences. For a detailed comparison, read our Microsoft EA vs Open Value study.
Is Microsoft phasing out Open Value?
Not at this time. Open Value and OVS remain available in 2025. Microsoft retired the older Open Licence programme in 2022, but Open Value continues. However, Microsoft is promoting CSP and MCA heavily, so ITAM professionals should stay alert for announcements and plan for potential programme changes.
What happens at the end of the 3-year term?
With standard Open Value (perpetual), those software licences are yours to keep forever once you have made all three payments. You can renew SA to continue receiving upgrades, or let it lapse and use the last version obtained. With OVS, you must renew, exercise a buy-out option, or stop using the software.
What if our organisation grows beyond 500 users?
You can complete your Open Value term and migrate to an Enterprise Agreement at renewal. Alternatively, transition from Open Value to CSP subscriptions over time. Many enterprises start with Open Value for flexibility and graduate to an EA once they reach the threshold.
Need Help Optimising Your Microsoft Licensing?
Whether you are evaluating Open Value, negotiating an Enterprise Agreement, or comparing CSP alternatives — our independent Microsoft advisory team can help you right-size licences, reduce costs, and secure the best terms. We work exclusively in your interest, never Microsoft's.
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