IT decision makers should optimize software licenses to minimize cost, simplify management, and achieve licensing compliance. Most companies, even small shops with as few as five PCs, will qualify for at least some type of volume licensing discount. Since software licenses are a large expense item in a typical IT budget, significant legal and cost exposure can result from improper management.

For most IT decision makers, Microsoft licensing is unclear and sub-optimized. Many companies do not realize maximum value from Microsoft licensing programs. The first step is to understand the basics of how Microsoft licensing works. This research note aims to:

• Help IT managers become familiar with Microsoft licensing programs and terminology.
• Introduce managers to Software Assurance (SA) and Microsoft software maintenance and upgrade programs.
• Provide a high-level comparison of agreement types and some sample pricing information.

While the majority of information is universally applicable, this report has been compiled primarily for corporate entities in North America.