The Open License program allows you to purchase software licenses for a number of Microsoft programs at a discount. These agreements last 2 years. Open License discounts are fixed and don't get larger if you purchase more software, either as an initial purchase or during the two-year term of the agreement.

The Open License program has several subprograms:

Interestingly enough, the Open License program does not include any physical items corresponding to your software purchase. You can purchase product media and documentation separately, for a nominal fee, plus shipping, of course.

Larger companies can opt to use the Select License program, which is designed for companies with 250 or more computers and a predictable pattern of software purchases. Select License uses the same sort of points-based model as the Open Volume program, with a minimum purchase of 1,500 points of software from at least one category.

If you are willing to commit to buying more software over the 3-year license term, you can get a greater discount. There are several levels of commitment to ongoing software purchases, each with its own discount amount.

Inside Out: Choose your Select License level carefully

The discount associated with the agreement level you choose is the discount that you will receive, regardless of the amount of software you actually purchase. This means that if you commit to a Level B Select License and end up buying 60,000 points worth of software, you still get only the Level B discount. For this reason, you'll want to carefully consider the amount of software you think you will purchase and compare the various options available to you before deciding.

Large business organizations can take advantage of an Enterprise Agreement License, which provides a way to standardize on a set of Microsoft products and purchase all of those products at a discount. This includes the right to upgrade to new versions of software during the agreement period, as well as home use privileges for employees.

Products covered under this agreement are those that Microsoft considers to be enterpriseclass, such as Microsoft Windows XP Professional, Microsoft Office Professional, and core CALs. The agreement is for 3 years and can be extended for 1 or 3 years at the end of the initial term.

Software Assurance (SA) provides rolling upgrades for covered products, as well as many other benefits for both the corporation and its employees. Businesses will appreciate the access to support during "business hours," self-paced training, and special newsgroups, while employees can purchase Microsoft software at special discounts.

This program has some potential "gotchas," such as limitations on who can call for support. It's also important to remember that you must have both the server and all of the CALs that access that server covered under SA to gain the program benefits for the server.

Inside Out: Windows Product Activation

How, or even if, Windows Product Activation (WPA) is implemented is determined by your licensing method. If you purchase retail products, standard product activation is required. If you have a volume license agreement of some sort, you do not have to deal with WPA. A reusable volume license key is provided for software licensed under the Open License program, while both Enterprise Agreement and Select License customers are provided with special product CDs with embedded product keys.