Microsoft Software Licensing Glossary from Microsoft Small Business

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Affiliate

Any legal entity that owns, is owned by, or is under common ownership with the customer.

Authorization number

The number assigned to the customer by Microsoft after initiating an Open License account. This number allows for reorders at the same discount level for two years.

Certificate of Authenticity (COA)

This is an integral part of all legally licensed Microsoft software. With retail/boxed products, there will be a COA on the box. With pre-installed software the COA sticker is attached to the PC chassis.

Client Access License (CAL)

A license required for devices accessing certain Microsoft server products.

Distributor

An organization authorized by Microsoft to distribute Microsoft product licenses to resellers.

Downgrade Rights

The right to use the latest version of software and be licensed to run a previous version of the software in place of the current version. This is available for software acquired through volume licensing programs.

Education customer

A school, college, university, state department of education, or other eligible education customer. Definitions vary by country.

Effective date

The date on which the term of an agreement commences.

End User License Agreement (EULA)

This accompanies software bought either pre-installed or as a boxed product from a reseller. A genuine EULA is proof that the software is legal and also provides the terms and conditions of use of the software.

Full Packaged Product (FPP)

A retail/boxed software product brought through a reseller or retailer.

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License

Any one of those offerings identified in the Product List (including standard licenses and upgrades for desktop operating systems) that provides the right to use a version of a particular product.

License Number

When used in reference to Open Licenses, the number given to a license purchased under the Authorization number. A customer can have multiple license numbers under one Authorization number. This is not a part number.

Media

The CDs used to install software.

MSIA (Microsoft Software Inventory Advisor)

A free downloadable tool to help list the software loaded either on a single PC or across a business network.

Multi-Year Open (MYO)

A volume license program for customers with five PCs or more. This program allows customers to split the payment of the perpetual license over three years. All licenses acquired through MYO have Software Assurance.

Non-Perpetual License

A license that is limited to the term of the agreement.

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Original Equipment Manufacturer (OEM)

Large organizations that manufacture PCs and install software onto the PCs before selling through channel partners or resellers. The software installed by OEMs often differs slightly from software sold through boxed products or volume licensing programs.

Open Subscription License

A non-perpetual volume license program that includes a two-year term, with annual payments. Software Assurance is included.1

Per-Processor License

A software license available for certain server products. Each processor within a server must be licensed, and this removes the requirement for Client Access Licenses (CAL).

Perpetual License

A right to use the software in perpetuity.

Pre-Installed Software

Software that is already installed when a new PC is purchased.

Product Activation

An anti-piracy technology designed to verify that the software has been legally licensed. Product activation is only required for pre-installed or boxed products.

Product List

A document listing all Microsoft products available under the volume licensing programs.

Reseller

An entity selling Microsoft product licenses to a customer, like a small-business owner.

Secondary-Use Rights

The right to install a second copy of certain software products on a home or portable computer, for the exclusive use of the primary user of the first copy.

Server

A computer specifically designated to perform centralized data processing, file and print services, and more. A server license is the license to install and run a specific Microsoft product on a particular server.

SKU

Stock Keeping Unit, the term used by Microsoft in reference to a product part number.

Software Assurance (SA)

An upgrade option that includes the right to install the latest version of any licensed product during the term of a customer's volume license agreement.

System Builder

PC manufacturers and assemblers who build, sell and support customer-branded PC systems.

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Volume License Keys (VL Keys)

A code required when installing software using volume license CDs. The VL Key can be found in a license confirmation sent to the customer.


In This Section

Purchasing Options Chart

Legal Software Ownership

Professional Assistance

Frequently Asked Questions

Technology Consultant Directory

Licensing Contacts

1OSL program is only available to Europe/Middle East/Africa customers.

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