Microsoft Open Value (OVL) Information

Microsoft Open Value (OVL)

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Overview

Open Value (OVL) suits any form of business, from small through to Enterprise. The OVL program is split into three ways of purchasing and companies can choose the scheme that suits their requirements best. These are outlined below:

Open Value

The Open Value scheme replaces the former Multi-Year Open Volume, but with a few fundamental changes. Entrance starts from just 5 PC's and under Open Value clients are no longer required to standardise across the PC's being covered, they are free to pick individual programs to suit their needs. Open Value still provides the split payment across 3 years equivalent to the cost of the Open Business Licensing products with Software Assurance (only 1 price level). The only extra payments needed are if any additional products are added throughout the term, these additional purchases are not price protected and are added to the agreement as soon as they are needed. For example:

Microsoft have recognised the fact that a lot of customers who add PC's to their enterprise will have pre-installed OEM licenses on the hardware. These licenses do not need to be purchased again, but they must buy Software Assurance for these licenses under the Open Value agreement. This enrolls the licenses into the agreement. These must be added within 30 days.

Once the three year term has passed the customer owns the software outright. Clients have 2 options at this point:

Not to renew the agreement and carry on using the version of the software that was current under the original agreement
Renew the Software Assurance for three years more, and continue qualifying for upgrades to the software for the extended period (at the end of the agreement the customer has 30 days to renew by just purchasing SA).

Open Value Company Wide

Open Value Company Wide is a similar scheme to the former Multi-Year Open Enterprise, but with a variety of alterations to ease administration and understanding. Under this scheme there is only 1 pricing level, but volume discount is given for clients licensing 250 PC's or more. Additionally, the pricing is already 10% cheaper than Open Value owing to the company wide discount given. Entrance starts at just 5 PC's, however, with this scheme clients are required to standardise on products included under the Platform umbrella. There are 2 Platforms clients can choose:

Desktop Professional Platform - this includes Windows Professional Upgrade, Office Professional and Core CAL (Windows, Exchange, SMS & Sharepoint)
Small Business Platform - this includes Windows Professional Upgrade, Office Small Business and Small Business Server CALs

Clients who choose to take out the Platform receive an additional 15% discount, but they can choose to select products individually to license, for example Office Professional, but these have to be licenses on all qualifying desktops. A qualifying desktop is defined as:

Personal desktops or portable computers, workstations and similar devices used by or for the benefit of your Enterprise which meet the system requirements for running the Desktop Software. Desktops are not:

(1) any computer that is designated as a server and not used as a personal computer
(2) any system dedicated to run only line-of-business software (eg. An accounting or bookkeeping program used by an accountant or design program used by an engineer or architect)
(3) any system running an embedded operating system (eg. Windows 9.x embedded, Windows XP embedded)

Open Value Company Wide still provides the split payment across 3 years. The only extra payments needed are if any additional products are added throughout the term. Additional purchases of Platform products are price protected, but all other additional product purchases are not price protected. Additional purchases and are added to the agreement as soon as they are needed. For example:

Microsoft have recognised the fact that a lot of customers who add PC's to their enterprise will have pre-installed OEM licenses on the hardware. These licenses do not need to be purchased again, but they must buy Software Assurance for these licenses under the Open Value agreement. This enrolls the licenses into the agreement. These must be added within 90 days.

Once the three year term has passed the customer owns the software outright. Clients have 2 options at this point:

Not to renew the agreement and carry on using the version of the software that was current under the original agreement
Renew the Software Assurance for three years more, and continue qualifying for upgrades to the software for the extended period (at the end of the agreement the customer has 30 days to renew by just purchasing SA).

Open Value Subscription

Open Value Subscription is a similar scheme to the former Open Subscription scheme in that it is a rental based scheme. With Open Value Subscription there is only 1 pricing level, but volume discount is given for clients licensing 250 PC's or more. Open Value Subscription gives clients the right to run licensed software over a three year period. Ideally suited for small to medium businesses, Open Value Subscription is a cost-effective way to standardise on Microsoft products. It is a non-perpetual licensing program, which means that the rights to the licenses end if the agreement is not renewed. Entrance starts at just 5 PC's, however, with this scheme clients are required to license their entire enterprise, therefore all qualifying desktops must be licensed. Only the Platform Products require enterprise wide distribution, additional products are not required to be loaded on all machines. There are 2 Platforms clients can choose:

Desktop Professional Platform - this includes Windows Professional Upgrade, Office Professional and Core CAL (Windows, Exchange, SMS & Sharepoint)
Small Business Platform - this includes Windows Professional Upgrade, Office Small Business and Small Business Server CALs

Clients who choose to take out the Platform receive an additional 5% discount (Promotion: for the first year launch of the scheme Microsoft are offering a 15% discount), but they can choose to select products individually to license, for example Office Professional, but these have to be licenses on all qualifying desktops.

Open Value Subscription is a flexible program allowing the customer to adapt the licenses to match their needs. The annual ordering and payment structure make budgeting and management easier, a customer pays for the number of PC's that they have on site no more - no less. Companies requirements are bound to change throughout the 3 year term, so with this in mind Microsoft have implement a True Up or True Down feature. Outlined below is an example of how you can adjust your license structure:

The above diagram applies to the Platform products only. Platform products are price protected at the start of the agreement.

Additional products are paid for at the time of installation. If, for example, a clients adds Project Standard to 4 machines 6 months into the agreement, they would actually need to pay for a full year of licensing and then each anniversary payment. Additional products are not price protected.

As Open Value Subscription is based on enterprise-wide standardisation Microsoft recognise the fact that customer may already own licences for some products. To combat the cost of re-licensing these under Open Value Subscription, Microsoft grants a one-time discount of 50% on the fee for the first year for any current licences that they may own from the Platform. Products that currently qualify for up to date discount are:

Office XP and 2003
Windows 2000 and 2003
Windows & Exchange CALs on either 2000 and 2003 (must have both to qualify)

For three years, the Open Value Subscription covers every qualifying desktop throughout your entire organisation. When the three-year subscription term ends, you can either:

Renew the agreement for a further one or three years
Buy out their licences (they must choose to buy all the platform products that they have been 'leasing' but can choose which additional products they want to buy.
Delete the software

For a comparison table of the Open Value schemes please click here.