All About Microsoft Licensing

The retirement of perpetual licenses from January 1, 2022, makes it pivotal for the business and customers to switch to the cloud. Many of you might wonder what happens to the earlier OLP program and the perpetual licenses? This open program comes under Microsoft’s Volume Licensing program and consists of Open Value, Open Value Subscription, and Open License. They come with or without software assurance as per user needs of getting security updates and support. It allows academic, corporate, charitable, or government organizations to obtain volume licenses at discounted rates. Let us learn all about these Microsoft licensing in the comparison chart below.

CSP Plans Comparison

Basis of comparisonPerpetual Software in CSPMicrosoft Subscription in CSP
Customer agreementMicrosoft customer agreementMicrosoft customer agreement
Term of agreementLicense only without SA12-months minimum
License availabilityCommercial, Education, Non-profitCommercial, Education, Non-profit
Licensing methodSubscription in Microsoft Admin CentreSubscription in Customer Tenant
Software AssuranceNoNo
Products includeMost products excluding Dynamics 365, operations server, system centre products etcAll Microsoft Subscription Services
Cancellation policyWithin 30 days for creditSubscription can be cancelled anytime
IMC Partner SupportPurchase only supportYes

Microsoft Licensing Agreement

General comparisonCSPOpenOpen ValueOpen Value Subscription
Governing customer agreementMicrosoft Customer AgreementOpen License AgreementOpen Value AgreementOpen Value Subscription Agreement
Term of agreementEvergreen, tied to customer2 years, tied to customer purchase3 years, tied to customer purchase3 years, tied to customer purchase
Programmatic volume discountsNoneNoneNoneNone
Eligible customer typesCommercial. Government,Education, NonprofitCommercial. Government, Education, NonprofitCommercial. Government, Education, NonprofitCommercial. Government, Education, Nonprofit
Requirements to start agreementNone – just acceptance of termsPurchase of 5 qualifying software licensesPurchase of 5 qualifying software licenses (non-organization-wide option), or Purchase an Enterprise Product for all Qualified Devices with a minimum of 5 devices (organization-wide option)Subscribe to an Enterprise Product for all Qualified Devices with a minimum of 5 devices
ChannelSold by CSP Indirect Resellers purchasing from qualified CSP Indirect ProvidersSold by Resellers purchasing from DistributorsSold by Resellers purchasing from DistributorsSold by Resellers purchasing from Distributors
Special pricing for eligible customersCommercial (Education and
nonprofit pricing is available for
some Online Services offerings)		Commercial. Government, Education, NonprofitCommercial. Government, Education, NonprofitCommercial. Government, Education, Nonprofit
Access to keys to install softwareMicrosoft 365 Admin CenterVolume Licensing Service Center (VLSC)VLSCVLSC