Microsoft Licensing Frequently Asked Questions
This list is updated regularly so that it covers the topical questions our customers most want answers to. You’ll find FAQs from businesses and IT professionals that are updated every month, plus general questions split into three sections: Product, Licensing Agreement and Software Assurance/Other.
Did you know you can get answers to most licensing questions by reading your Software Licence Terms or Product Use Rights?
These are available electronically whenever you buy or download software.
If you have bought boxed software or software pre-installed on a PC, you should look for the Software Licence Terms. Otherwise, refer to the Product Use Rights. Both explain the terms and conditions that apply to your software. Click on the relevant link below to find details:
How do I find my Software Licence Terms or PUR?
To find the Software Licence Terms for pre-installed (OEM) software, run a search for “licence terms” or “EULA” on your machine, or contact your retailer.
Further help
If you can’t find an answer to your licensing query here, please call our helpline on 0844 800 2400 and select the business option, then option 3 for licensing. Alternatively, email licensing@microsoft-contact.co.uk - we'll respond to your email within 48 hours.
Hot FAQs 
A:
As long as you are complying with the XP Pro Software Licence Terms you can use XP Pro with VMware. As VMware is not a Microsoft product you would need to contact VMware for any further details.
The XP Pro Software Licence Terms can be found here.
A:
Yes. If you have volume licences for Windows Vista Business you can downgrade to any prior version (including Windows XP, 2000 etc) as long as you have the media to perform the downgrade. If your software is pre-installed (OEM) you can only downgrade to Windows XP versions. Please click here for details.
A:
Terminal Server installations are supported only on Enterprise versions of Office XP. However, in Office 2003, both the retail (FPP) and Enterprise editions can be installed to a server that has Terminal Services enabled if a licence exists for each user who will run any of the Office 2003 programs. See the Software Licence Terms for Office for more information.
However you must make sure that your PC is configured correctly. For more information on this please click here.
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Yes. Microsoft grants the rights to use any prior version of Windows Small Business Server (SBS) 2008, regardless of which channel the licence was bought through.
For more information click here.
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Terminal Services functionality in Windows Server 2003 R2 lets you remotely execute applications on a Windows-based server from a wide range of devices over virtually any type of network connection. A server running Terminal Services can be referred to as a Terminal Server (TS). You need a Windows Server 2003 R2 server licence for each server running TS plus a Windows Server CAL and Window Server Terminal Services CAL for each user or device accessing the server.
For further details on this please click here.
A:
These 5 CALs need to be allocated to either Device or User and can’t be split. This also is the case for any future CALs that you may buy. For example if you purchase a pack of 20 CALs they can’t be split 10 for user and 10 for device.
This answer to this, and similar questions, can be found in the Windows Small Business FAQs here.
A:
There are two different ways of licensing Microsoft server software:
- Server/CAL model - each server running instance* needs a server licence assigned and all users/devices must be licensed with Client Access Licences (CALs).
- Per processor model - each processor in any server running the software must have a processor licence assigned, then an unlimited number of client devices or users can access that server software.
* You create a “running instance” of software by executing the software’s setup or install procedure. You also create an instance of software by duplicating an existing instance. References to software include “instances” of the software.
For more information on these two models please click here.
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Windows Web Server is designed to be used specifically as a single-purpose Internet-facing web server. Integrated with the newly re-architected IIS 7.0, ASP.NET, and the Microsoft .NET Framework, Windows Web Server 2008 R2 enables you to deploy web pages, web sites, web applications and web services.
For full details of Windows Web Server 2008 R2 please click here.
A:
Yes, if you have SBS Standard then you can only run one instance of the server software on either a virtual PC or a physical PC, but not on both.
If you have SBS Premium 2008 you can then choose to run the Premium Server on a second server.
You can run an instance of Windows Server 2008 Standard technologies on a physical or virtual machine (VM), and if you run on VM, you are allowed to run an additional instance on a physical machine in order to: run hardware virtualisation software; provide hardware virtualisation services; or run software to manage and service operating system environments on the licensed server.
You can run any number of instances of SQL Server 2008 Standard Edition for Small Business in one physical or virtual machine, and it must be joined to the SBS domain.
A:
If you are a service provider or ISV offering hosted services that you are looking to license to end customers, please take a look at the guides available here. If you wish to sign an agreement, obtain more information or talk through your specific requirements you should contact a SPLA Reseller.
For more information, please click here.
FAQs
A:
As long as you are complying with the XP Pro Software Licence Terms you can use XP Pro with VMware. As VMware is not a Microsoft product you would need to contact VMware for any further details.
The XP Pro Software Licence Terms can be found here.
A:
Yes. If you have volume licences for Windows Vista Business you can downgrade to any prior version (including Windows XP, 2000 etc) as long as you have the media to perform the downgrade. If your software is pre-installed (OEM) you can only downgrade to Windows XP versions. Please click here for details.
A:
This would depend on how you buy your copy of Windows 7.
For Volume Licensing purchases, a list of the qualifying products for the upgrade can be found here.
For fully packaged product (boxed) upgrades, the qualifying products can be found here.
You can find out more about upgrading from boxed software (retail) versions of Windows here.
A:
No. You will need to keep your old version in order to establish your eligibility for the upgrade licence.
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Yes. You will need to keep the earlier version (including all media, manuals and the Certificate of Authenticity) in order to establish your eligibility for the upgrade licence.
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No, pre-installed software is tied to the PC that is installed on. Transfer can only take place if the PC is transferred as well.
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No, Windows 7 is licensed per device - this means you need one for each device that it is installed on and it must be purchased pre-installed on a fully assembled PC.
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No, pre-installed (OEM) desktop software must be pre-installed on a fully assembled PC.
A:
Terminal Server installations are supported only on Enterprise versions of Office XP. However, in Office 2003, both the retail (FPP) and Enterprise editions can be installed to a server that has Terminal Services enabled if a licence exists for each user who will run any of the Office 2003 programs. See the Software Licence Terms for Office for more information.
However you must make sure that your PC is configured correctly. For more information on this please click here.
A:
Microsoft has produced a document that discusses the options available to customers who would like to configure access to Office in this way.
A:
For Volume Licensing Purchases
Customers who have licensed Microsoft Office Professional Plus 2007 are eligible to downgrade to Office Professional Enterprise 2003 and all previous versions as described above. Customers who have licensed Microsoft Office Standard 2007 are eligible to downgrade to Office Standard Edition 2003 and all previous versions of Office Standard Edition.
Customers who are licensed for Office Enterprise 2007 can downgrade to Office Professional Plus 2003 plus the Microsoft Office OneNote® 2003 note-taking program. Additionally, Office Enterprise 2007 licencees who had licensed Microsoft Office Groove® 3.1 and held Office Groove maintenance that was active on July 1, 2006 may also use Office Groove 3.1 as a downgraded component. Customers choosing to downgrade and use these components must use them on the same device in the same manner they would use the components in the version of the suite for which they acquired a licence.
For Pre-Installed (OEM) Purchases
Downgrade rights are not granted under OEM system licences.
For FPP/Retail Purchases
Downgrade rights are not granted under FPP system licences.
A:
Depending on how you acquire Microsoft Office, you will be entitled to what we refer to as Portable Use Rights. Customers who purchase the boxed version of the product or via a volume licence agreement may install a second copy of the product on a mobile device for their exclusive use.
For FPP customers, the specific rules around this are contained within the Software Licence Terms, whereas volume licence customer can find this information within the Product Use Rights.
Customers who acquire Microsoft Office pre-installed as an OEM product are not able to exercise these portable use rights.
A:
No, pre-installed Office software is tied to the original PC and does not have portable use rights. These are only available for boxed software (retail) or for software bought through a Volume Licensing agreement.
A:
Terminal Server installations are supported only on Enterprise versions of Office XP. However, in Office 2003, both the retail (FPP) and Enterprise editions can be installed to a server that has Terminal Services enabled if a licence exists for each user who will run any of the Office 2003 programs. See the Software Licence Terms for Office for more information.
However you must make sure that your PC is configured correctly. For more information on this please click here.
A:
Yes. Microsoft grants the rights to use any prior version of Windows Small Business Server (SBS) 2008, regardless of which channel the licence was bought through.
For more information click here.
A:
Terminal Services functionality in Windows Server 2003 R2 lets you remotely execute applications on a Windows-based server from a wide range of devices over virtually any type of network connection. A server running Terminal Services can be referred to as a Terminal Server (TS). You need a Windows Server 2003 R2 server licence for each server running TS plus a Windows Server CAL and Window Server Terminal Services CAL for each user or device accessing the server.
For further details on this please click here.
A:
These 5 CALs need to be allocated to either Device or User and can’t be split. This also is the case for any future CALs that you may buy. For example if you purchase a pack of 20 CALs they can’t be split 10 for user and 10 for device.
This answer to this, and similar questions, can be found in the Windows Small Business FAQs here.
A:
There are two different ways of licensing Microsoft server software:
- Server/CAL model - each server running instance* needs a server licence assigned and all users/devices must be licensed with Client Access Licences (CALs).
- Per processor model - each processor in any server running the software must have a processor licence assigned, then an unlimited number of client devices or users can access that server software.
* You create a “running instance” of software by executing the software’s setup or install procedure. You also create an instance of software by duplicating an existing instance. References to software include “instances” of the software.
For more information on these two models please click here.
A:
Windows Web Server is designed to be used specifically as a single-purpose Internet-facing web server. Integrated with the newly re-architected IIS 7.0, ASP.NET, and the Microsoft .NET Framework, Windows Web Server 2008 R2 enables you to deploy web pages, web sites, web applications and web services.
For full details of Windows Web Server 2008 R2 please click here.
A:
Yes, if you have SBS Standard then you can only run one instance of the server software on either a virtual PC or a physical PC, but not on both.
If you have SBS Premium 2008 you can then choose to run the Premium Server on a second server.
You can run an instance of Windows Server 2008 Standard technologies on a physical or virtual machine (VM), and if you run on VM, you are allowed to run an additional instance on a physical machine in order to: run hardware virtualisation software; provide hardware virtualisation services; or run software to manage and service operating system environments on the licensed server.
You can run any number of instances of SQL Server 2008 Standard Edition for Small Business in one physical or virtual machine, and it must be joined to the SBS domain.
A:
Please click here for detailed information on System Center licensing.
A:
With the release of the 2007 version of Microsoft SharePoint, we have increased the number of options available to customers who are looking to license the product. In the first instance customers should review this website to determine which components they need to purchase.
If after reading the above website, further information is needed, visit a list of frequently asked questions around licensing SharePoint Server.
A:
The External Connector licence is designed to help you license Windows Server in certain scenarios that require external users to access your Windows Server network.
An EC licence is not mandatory. It is a licensing option available to address a specific customer scenario. When you need to allow your business partners or customers to access your network, you have two choices:
- You can acquire Windows CALs for each of your external users, or
- You can acquire External Connector licences for each Windows Server that those external users will access.
External Connector licences should be acquired for each Windows server that the external user is accessing (not just for the server to which they are authenticating).
An external user is a person who is not an employee, or similar personnel of the company or its affiliates, and is not someone to whom you provide hosted services using the server software.
The following web pages have additional information that you may find useful:
http://www.microsoft.com/windowsserver2003/howtobuy/licensing/extconnector.mspx
http://www.microsoft.com/windowsserver2003/howtobuy/licensing/priclicfaq.mspx#E5BAC
A:
In an effort to simplify licensing for customers, Microsoft is aligning products in a way that maps to the most common customers purchase process. By separating client and server purchases we are helping to streamline the purchasing process for our customers. As a result Outlook, which is a client product, will not be included as part of Exchange Server 2007. An exception will be made for active SA customers.
http://www.microsoft.com/uk/howtobuy/exchange2007-faq.mspx
A:
For the Standard edition of Windows Server 2003 R2, you would need to purchase a licence for each of the virtual instances of the server software you run, in addition to a licence for the physical instance.
However, for the Enterprise edition of this product, each software licence allows you to run, at any one time, one instance of the server software in a physical operating system environment and up to four instances of the server software in virtual operating system environments.
In order to run additional instances of Windows Server 2003 R2 in a virtual operating system environment, you must also license the server virtualisation software, such as Microsoft Virtual Server 2005.
The use rights apply regardless of the virtualisation product being used. However, only Windows Server 2003 R2 Enterprise Edition virtual instances hosted on Microsoft Virtual Server 2005 installed on Windows Server 2003 R2 Enterprise Edition are fully supported by Microsoft.
This right only applies to the R2 edition of Windows Server 2003 Enterprise server and not to previous versions. Customers who have an Enterprise Edition licence covered under Software Assurance will receive Windows Server 2003 R2 Enterprise Edition as part of their upgrade rights. If the server licence is not covered by Software Assurance, you will need to buy a licence for Windows Server 2003 R2 Enterprise Edition in order to receive the new use rights.
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Click here for a wealth of information on licensing SQL server
A:
If you are in this position, you may want to consider the Small Business Server Transition Pack.
The Windows Small Business Server 2003 R2 Transition Pack helps your business grow as your technology needs change by:
- Converting your Windows Small Business Server 2003 R2 licence into standard licences for each of the individual server components, such as Windows Server 2003 Standard Edition and Exchange Server 2003 SP2.
- Removing the design constraints of Windows Small Business Server 2003 R2, which include a 75 user or device limit, support for branch offices, and a requirement to keep Windows Small Business Server 2003 R2 as the main logon server.
- Protecting your software investment. Pricing has been designed so that you won't pay any more than if you had bought the individual product components initially.
More information on this option can be found here.
A:
No. All the server products need Windows Server running on the server itself. Some of the servers are per-processor only, so you might have different modes of server licences on the same machine.
A:
If you have purchased a Microsoft Volume Licence agreement, you can access the details of which licences are contained within those agreements via our online licensing tools, such as eOpen or MVLS. Links to these tools as well as guidance on which one you should use, is available from here.
A:
This is a complicated area, and varies according to your licensing agreement. Download the brief called “Product Licence Transfer” from this page (US) to find out more.
A:
Microsoft has published a document that outlines our policy around “downgrade” rights for our products; this information is readily available on our website here.
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This website contains a list of the Microsoft products that require a Volume Licence Key when purchased via one of our volume license agreements.
A:
A guide to “Cold” Server Back-Up for Disaster Recovery can be found here.
A:
Microsoft can't give you a price, as we don't sell software direct to customers. We sell through partners who sell at the price they choose. Legally, we can't influence them. To check you're getting a competitive quote, compare prices from different sources and get as much information as you can. Bear in mind that if a price sounds too good to be true, it probably is.
A:
You can activate your licence as often as you like, as long as you have a genuine reason for doing so.
A:
It depends on the components changed and the time over which the changes are made. Product activation is able to tolerate some change in a hardware configuration - so you can change hardware without the PC needing reactivation or being classed as a different PC. Common changes to hardware, such as upgrading a video card, adding a second hard disk drive, adding RAM or upgrading a CD-ROM device, will not require the system to be reactivated. However, if you completely overhaul the hardware by making substantial changes (even over long periods of time), reactivation may be needed. If so, you may need to call a Microsoft customer service representative to reactivate the system. The UK free-phone number is 0800 018 8354.
A:
No, OEM software is tied to the PC that is installed on. Transfer can only take place if the PC is transferred as well.
A:
No, OEM Office does not have downgrade rights.
A:
No, OEM Office is tied to the original PC and does not have portable use rights. These are only available in Full Packaged Product or Volume licensing.
A:
No, Windows Vista is licensed per device - this means one licence is required for each device that it is installed on and must be purchased pre-installed on a fully assembled PC.
A:
No, OEM desktop software must be pre-installed on a fully assembled PC.
A:
When you start an Open Agreement, you receive an Authorisation and Licence via email from Microsoft. You can log on to the eOpen website with a .net passport and click on the “Add Agreement” button, enter your Open Agreement Authorisation and Licence number and accept the terms and conditions to view your Open Agreement. When viewing your agreement you will be able to see what licences you have bought as well as the relevant Volume Licence Keys you will need to install your software.
A:
New release software will be available for you to download off the eOpen website. You can only download software that you have a licence for.
A:
Some licences purchased through an Open Agreement don’t need a key for installation. The keys are either hard coded into the volume licence media (CD), or are stuck on the back of the volume licence media (CD) sleeve. All the Volume Licence Keys are included and can be viewed on the eOpen website. If you can’t see a Volume Licence Key for a particular licence on the eOpen website, then that licence doesn’t need a Volume Licence Key.
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Microsoft Open Licence customers can find information about their volume licence purchases as well as the corresponding Volume Licence keys within our eOpen website. Provided you have an Authorisation and Licence numbers for your agreement, you can sign into this site using a Windows Live ID to access this information.
A:
If you are a service provider or ISV offering hosted services that you are looking to license to end customers, please take a look at the guides available here. If you wish to sign an agreement, obtain more information or talk through your specific requirements you should contact a SPLA Reseller.
For more information, please click here.
A:
This is a complicated area, and varies according to your licensing agreement. Download the brief called “Product Licence Transfer” from this page (US) to find out more.
A:
Microsoft sells volume licence agreements via our partners and resellers. Customers interested in starting a Microsoft volume licence agreement should contact one of these partners. Some useful links for finding a partner are given below:
A:
First, you can ask for a report on the volume licence agreements you've bought by contacting your reseller or by using online tools to manage your licensing agreements.
We only keep records of your volume licences, so to list all your licences you'll need to add any licences you've bought pre-installed on new PCs or as Full Packaged Products (FPPs).
A:
Microsoft can't give you a price, as we don't sell software direct to customers. We sell through partners who sell at the price they choose. Legally, we can't influence them. To check you're getting a competitive quote, compare prices from different sources and get as much information as you can. Bear in mind that if a price sounds too good to be true, it probably is.
A: A benefits administrator is a person in your organisation who can access your Software Assurance benefits through the MVLS website. They maintain benefits profiles, activate each benefit and register the employees who'll use or manage a benefit. Benefits administrators are nominated by your primary notices contact. A: Your notices contact is a person nominated by your organisation at the start of your licensing agreement. They agree to receive communications from Microsoft regarding the agreement and are invited to register for the MVLS website. When your organisation takes up a licence agreement with Software Assurance, Microsoft sends your notices contact an email telling them how to register for Software Assurance benefits. A: Microsoft products are divided into three pools - applications, systems and servers. At the start of a Select Licence agreement, you can choose to take out Software Assurance on all the products in a pool or pools. This gives you Software Assurance membership which brings with it extra benefits to help you get the maximum return from your software investments. A: If you buy Premier Support as well as Software Assurance, you will enjoy faster response times for your support requests, and extra telephone support for Enterprise Edition server software. Premier Support also gives you access to proactive services such as support assistance and workshops. Your dedicated Technical Account Manager will administer all your support needs and will act as your internal advocate within Microsoft. A: Please speak to your reseller or get your benefits administrator to call our Software Assurance hotline on 0800 917 9016.
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