How Microsoft Licenses Its Products

Microsoft does not sell its products to customers. Rather, the company sells the rights, in the form of licenses, to use its products in specific ways. This chapter helps customers answer the question: “What types and quantities of licenses do I need to buy to be in full compliance?”

Answering this question is complicated by several factors, including the following:

Different products use different licensing models. For example, some Microsoft server applications use a licensing model that counts the number of processors on which the server software is running; others use a model that involves a fixed charge for each server machine plus a separate set of client-side fees.

Some products offer multiple licensing model options. Windows Server is a prime case, as it offers four or five different models (depending on how they are counted). However, only a subset of these options may apply in certain circumstances. For example, Windows Server’s concurrent-use model isn’t allowed if the machine is being used as a Terminal Server.