Thursday 28 March 2019

A simple guide to understanding Microsoft software licensing - The difference between OEM / FPP / Open Licensing


Original Equipment Manufacturers (OEM)
What is it?
With OEM, you buy the hardware (such as a laptop) with the software already installed. The software license is attached to the computer. That means the software cannot be transferred to another computer. This option is suited to home users and organizations with minimal IT requirements within their organization.


PROs:
- When you buy the computer it comes with the software
pre-installed and ready to use.


CONs:
- OEM Licenses are not transferable.


Who is it for? Usually major computer brands such as HP and DELL will bundle the operating system together with their products. This bundled license is called OEM.

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Full Packaged Product (FPP)
What is it?

Full Packaged Product (FPP) is software that you buy off the shelf from a retailer, e.g. Microsoft Windows® software. Each box contains a copy of the software that you manually install on your computer and one license. This type of license is perpetual. This option is ideal for home use and for small businesses that need less than five software licenses and minimal user rights associated to the software. FPP is the most expensive way to purchase Microsoft products.

PROs:
- Software can be purchased from a retail outlet or online, and can be installed quickly and easily.

CONs:
- You’re limited to installing your software on a single computer only.

Who is it for? FPP is ideal for customers that have between 1 – 5 computers or that need less than 5 software licenses.

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Open License / Value License / Volume License
What is it?

Available only with a minimum purchase of 5 units on first purchase. This license is a perpetual (no expiry) and belongs to the company, not the computer or notebook.

PROs:
- License can be transferred from old PCs to new PCs (with no version upgrade).

CONs:
- Users are stuck with the same version 'forever' even after new versions and updates are released. This can be avoided by purchasing 'Software Assurance' which is renewed annually.

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