Microsoft Licensing: Ensuring Compliance and Avoiding Pain
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Transcript of Microsoft Licensing: Ensuring Compliance and Avoiding Pain
Microsoft Licensing:Ensuring Compliance and Avoiding Pain
Mark CavalieroCEO
Agenda• Orientation• Types of Audits• Planning/Executing Your Strategy• Q&A
The Landscape
• Increasing competition, changing profit model for Windows
• Increasing efforts to maximize revenue wherever possible
• Microsoft is auditing customers at a 2 to 1 rate over other vendors like Adobe, IBM, and Oracle—58% of executives surveyed said they have been audited by Microsoft in the last 12 months*.
The Threat• Criminal Penalties – Fines for both individuals (up to $93,500), and
corporations (up to $467,500) and up to five years imprisonment.
• Civil Penalties – Damages of an unlimited amount
• Costs can also include the recovery of the software vendor’s attorneys’ fees under 17 U.S.C. §505 of the Federal Code.
Business Software Alliance Press Releases – June, 2014
… settlement with Lawrence-based Heritage Tractor in the amount of $145,000 to settle legal claims that it had unlicensed copies of Microsoft software installed on its computers.
… settlement with Dallas-based Business Partners in Healthcare in the amount of $136,051 to settle legal claims that it had unlicensed copies of Microsoft software installed on its computers. - Much more dangerous… settlement with Denver-based United NRG Group in the amount of $114,568 to settle legal claims that it had unlicensed copies of Microsoft software installed on its computers.
Potential Impacts of an Audit
• Costs of purchasing current software• Cost of purchasing for previous years• Penalties • Your legal fees• Recovery of the software vendor’s attorneys’ fees• Damage to your brand reputation• Disruption of the normal flow of business efforts
Two Types of Audits
1. The “Microsoft Software Asset Management Review” (aka self-audit)
• Authorized by the EULA• Microsoft then evaluates what you report, and investigates
anything that appears inaccurate. • If you have any shortfalls, you must either true-up (purchase
licenses) or prove you own the licenses in dispute
Two Types of Audits
2. Business Software Alliance (BSA) Audit
• Some indication of intentional software piracy• Much more formal• Much more dangerous
https://reporting.bsa.org/r/report/add.aspx?src=us&ln=en-us
Planning Your Strategy
• Think of it like an IRS audit• You can’t opt out• It must MATCH all the way around!• Software Asset Management (SAM) is a continual effort
• Pay attention to deadlines, don’t wait until the last minute• An audit will take many hours of someone’s time• The data you provide will be examined in detail
Example – if they see 125 CALs for Server and only 75 for Exchange
• Dell systems now ship with the COA embedded, universal keys used for install don’t work for reporting
• Ask for an extension if you need it
Action Items Establish purchasing standards Implement some type of Software Asset Management
tool Active and continual allocation, de-allocation, and re-
allocation of software assets Executive buy-in and enforcement of asset management
policies
8 Takeaways• You will get audited
• Don’t use OEM licenses• Use Volume licensing or Office 365 Licensing• Formally designate policies and someone to handle licensing• Conduct regular reviews• Use an inventory/discovery tool on your network• SPLA licensing shifts to burden to your service provider• We can help!
Links• Microsoft License Advisor - http://mla.microsoft.com/default.aspx• Microsoft Software Inventory Analyzer http://www.microsoft.com/sam/en/ca/msia.aspx• Microsoft Software Asset Management: http://www.microsoft.com/sam• Free Microsoft “MAP” tool www.microsoft.com/map• Download the Microsoft Volume Licensing Reference Guide• How to use the Microsoft Volume Licensing Center• Microsoft Licensing Blog: http://blogs.technet.com/b/volume-licensing/• Software Assurance Information • http://www.microsoft.com/licensing/software-assurance/default.aspx