Tip #3 – Microsoft Office Pricing

The Office Suites

Below you will find the software applications that are included in each suite. This information is referencing Office 2003 suites and may not be valid for older or newer packages.

How the different Licenses Work.

OEM Licenses

OEM Licenses are supposed to be purchased at the time of a computer purchase from a system builder such as Dell, Gateway or IBM. These licenses are not transferrable and are only valid on a single machine. When you put a machine to rest (retire it), the license is not valid to be loaded on another machine. It is valid on the same machine even if it is upgraded. OEM products will usually include a CD.

Retail Licenses

Retail licenses are boxed licenses that you purchase from a retail outlet such as CompUSA, OfficeMax or Best Buy. These licenses include a CD and a license code. These licenses are "one user" licenses and are tranferrable from one computer to another. You may load the software on one computer and one portable computer provided it is for the same user. (Here is the Microsoft EULA wording regarding multiple computers).

(a) install and use a copy of the Software on one personal computer or other
device; and
(b) install an additional copy of the Software on a second, portable device for the
exclusive use of the primary user of the first copy of the Software.

For details, here is the entire license agreement.

Microsoft Open License

First, the nomenclature. Microsoft Open Licensing is the term used for several corporate licensing programs: Open Volume, Open Business and Open Value. These are each explained seperately, but they have some common attributes such as the licenses are transferrable from machine to machine so long as the total number is not exceeded. You must purchase an initial minimum of 5 licenses to qualify for Open License. With Open License you must purchase the media (CD) separately and typically a small company will purchase one copy for the company (the cost of media is about $30 per version such as Office 2003).

Software Assurance

The Open License program is the only way you can purchase Software Assurance (SA). Software Assurance is a subscription for the product that you purchase that enables you to receive any new releases for products that you have under software assurance at no additional charge during the term of your subscription.

Microsoft Open Volume

Microsoft Open Volume is a license purchase program that allows a business to buy licenses at a volume discount. Again, the minimum initial purchase is 5 licenses. If you already own 5 licenses, you can add licenses in increments of one.

The Open Volume program offers Software Assurance for two years. You purchase the 2-year software assurance separately for each product.

The benefit of software assurance comes after you have paid for the Open Volume license and you come up for software assurance renewal (after two years). At this point, you only have to purchase the software assurance, because you already own the license. Just remember that if your software assurance expires and you do not renew, you have to repay for the license again.

See the chart below for pricing and the scenarios for when it may make sense to purchase software assurance. The cost of an Open Volume and Software Assurance must be paid up front.

Microsoft Open Value

Open Value is similar to the Open Volume license plus the software assurance combined together. However, the Open Value software assurance is a three-year program. There are two payment options for this program (whereas the Open Volume must all be paid up front). Open Value can be paid up front in a lump sum or can be paid in three annual payments to reduce your up front cost.

Pricing Matrix (estimates)

Call Just Biz for additional advise on what makes sense for your business.