You’ve purchased software and read
the licensing agreement that pops up
on the screen. The lengthy notification asks you to check a box to indicate
that you “agree” with the terms.
“Virtually no one reads and they click
‘next,’” says Ron Herd, Microsoft Practice
director for Pomeroy IT Solutions in
Hebron, Ky. Herd meets with many clients
who struggle with understanding their
options related to Microsoft licensing and
how to maximize their investment in
Microsoft technologies. “A lot of people
think licensing is mundane and tactical.
But when you evaluate your business goals
and the technology you will need over the
next three to five years, you will maximize
your Microsoft investment by licensing it
under a program that makes the most
sense for your business.”
Smart Business asked Herd to discuss
Microsoft licensing options and why it is
critical that business owners choose the
appropriate agreement for their business
needs.
What is a license exactly?
You don’t actually buy software — you
buy a license to run the software. For the
vast majority of software publishers,
including Microsoft, that license is governed by an End-User License Agreement
(EULA). That is the statement that pops up
when you install a program and says ‘Read
this first and check the box before continuing.’ So, you are actually not purchasing
software, but rather, a license that says
what you can and cannot do with the programs.
What are the risks of not licensing software
appropriately?
First and foremost, the risk is not being in
compliance. Most businesses are in compliance, or want to be, but sometimes the
complexity of understanding all the
options can be daunting. The second major
business risk is not being in the right licensing program. Entering into the right program based on your business goals and objectives will ensure that you are receiving the greatest discount as well as maximizing your investment in Microsoft technologies.
When do most business owners confront
licensing issues?
A lot of times, customers don’t think
about licensing until they are ready to buy
new software or upgrade versions, or as
needed. It’s strategic if they focus on it
from a programmatic perspective and map
their business goals and objectives over
the long run to the right licensing program
to help them achieve those goals and
objectives.
How do you outfit a business with the best
licensing option?
We sit down and try to understand what
Microsoft programs the company currently
runs. What version are they on? Does the
business have a migration plan in place for
those products? We help make sure that
each account understands the features and functionality of the software they own, and
how they may be able to take better advantage of it to increase revenues, decrease
costs and enhance communications.
For example, a lot of our customers
today are looking for ways for their field-based service employees and salespeople
to have access to information anytime,
anywhere. These salespeople need the ability to connect with customers quickly with
the right information. They may just have
cell phone coverage today but they want to
take a look at enhancements to improve
their messaging and mobility. This may
sound like it has nothing to do with software licensing, but it is vital information to
help ensure we match the right licensing
vehicle to each customers’ business needs,
especially over a longer period of time.
What are some licensing agreement
options?
Agreements depend on the size of the
business and its goals, as well as its need
for flexibility. Without going into tremendous detail here, Microsoft has several different types of licensing agreements. It’s a
double-edged sword for them because, on
the one hand, these options provide a lot of
flexibility to meet each customer’s needs,
but the increased flexibility tends to create
confusion as well.
Do business owners realize that there is
much more to licensing than agreeing to
terms during software installation?
It really helps to sit down with someone
who can match a business’s goals with its
software needs and then help understand
the options. The cost savings of making the
right choice are significant. For example,
we helped one of our larger clients avoid
$5 million in unnecessary expenses. In a
small business situation, the impact can be
just as great.
RON HERD is Microsoft Practice director for Pomeroy IT
Solutions in Hebron, Ky. Reach him at (800) 846-8727 or
[email protected].