Microsoft licensing agreements comparison for commercial and government.
Microsoft offers commitment-based and transactional options for organizations that want to purchase Microsoft cloud services, on-premises software, and/or Software Assurance through Microsoft-assisted, partner value-added, or self-service web options.
Microsoft Enterprise Agreements
Microsoft Enterprise Agreements are commitment-based Microsoft Volume Licensing agreements for commercial organizations signing a new enrollment with 500 or more users/devices and government organizations with 250 or more users/devices that want to license Microsoft cloud services and/or on-premises software organization-wide, over a three-year period, and at the best available pricing. Software Assurance is included.
Microsoft Product- and Services-Agreement
The Microsoft Products and Services Agreement (MPSA) is a transactional Microsoft Volume Licensing agreement for commercial and government organizations with 250 or more users/devices that want to license Microsoft cloud services and/or on-premises software as needed—with no organization-wide commitment under a single, non-expiring agreement. Software Assurance is optional.
Microsoft Open-
Agreements
Microsoft Open License, Microsoft Open Value, and Microsoft Open Value Subscription are Microsoft Volume Licensing agreements for organizations with 5 to 499 users/devices that want to license Microsoft cloud services and/or on-premises software. Software Assurance is included.
Microsoft Cloud Agreement (MCA)
The Microsoft Cloud Agreement is a transactional licensing agreement for commercial, government, and academic organizations with one or more users/devices seeking to fully outsource management of their cloud services through a Cloud Solution Provider (CSP). On-premises software and Software Assurance are not available through the Microsoft Cloud Agreement.
Microsoft Enterprise Agreements | Microsoft Products und Services Agreement (MPSA) | Microsoft Open-Agreement | Microsoft Cloud Agreement (via CSP) | |
Offerings | Commitment-based cloud services and on-premises software | Transactional cloud services and on-premises software | Transactional (Open License and Open Value non-organization-wide) or commitment-based (Open Value agreements) cloud services and on-premises software | Transactional cloud services only |
Agreement term | Three years | Non-expiring | Two years (Open License), three years (Open Value agreements), or one year (Open Value government agreements only) | One year (auto-renew) |
Purchase coverage | Organization-wide | As needed | As needed (Open License and Open Value non-organization-wide) or organization-wide (Open Value agreements) | As needed |
Purchase term | Three years for initial purchase, co-terminus for additional purchases | One year or shorter for select cloud services | Two years (Open License), three years (Open Value agreements), or one year (cloud services and Open Value government agreements) | One year |
Purchase term expiration | Enrollment expiration | Third account anniversary for Software Assurance; next account anniversary or multiyear for cloud services | Authorization expiration (Open License), agreement expiration (Open Value agreements), or subscription term expiration (one year for cloud services) | Abonnementende (ein Jahr oder monatlich) |
Minimum commitment | 250 (for government) or 500 (for commercial) qualified devices/users per pool | 500 points per product pool or 250 cloud services users by pool (per year) | Five licenses or Licenses and Software Assurance (L&SA), one user subscription license (USL), or use of Azure pay-as-you-go | One USL or use of Azure pay-as-you-go |
Target organization size | 500 or more users (250 or more users for government) | 250 or more users | 5 to 499 users for on-premises software; one or more users for cloud services (up to 300 USLs for Office 365 Business editions) | One or more users |
Sales model | Microsoft direct or partner indirect (based on geo and sector) | Partner indirect | Partner indirect | Partner indirect |
Ordering | In the month of first use for the initial product order; annually for subsequent orders (per enrollment) | As needed (per purchasing account) | As needed (Open License and Open Value non-organization-wide per agreement) or in the month of first use for the initial product order and annually for subsequent orders (Open Value agreements per agreement) | As needed (per CSP) |
On-premises software license | ✔ | ✔ | ✔ |
|
Non-perpetual license for on-premises software | ✔ (Enterprise Subscription Agreement) | ✔ (Open Value Subscription) | ||
Cloud services user subscription license (USL) | ✔ | ✔ | ✔ | ✔ |
Provisioning of cloud services prior to order | ✔ | ✔ |
|
|
Software Assurance | ✔ | ✔ | ✔ |
|
Price list | Commercial und Government | Commercial, Government und Academic | Commercial und Government plus Academic sowie gemeinnützige Organisationen für Open License | Commercial und Government |
Price level determination | Based on user and device license quantity by pool or qualifying contract for commercial; single price level for government | Based on points by pool or qualifying contract for commercial; single price level for public sector | Based on product pools (commercial Open License) or device quantity (commercial Open Value agreements); single price level for public sector | No price level (price set by CSP) |
Price protection | All products and services included in the agreement | One-year subscription for cloud services | Select products (Open Value agreements, organization-wide) | Cloud services subscription length in one-year increments |
Upfront payments | ✔ | ✔ | ✔ | ✔ |
Annual (spread) payments | ✔ | ✔ | ✔ |
|
Microsoft Financing (where available) | ✔ | ✔ | ✔ |
Bechtle: A strong partner at your side.
For many companies, software licensing is a real enigma. Will you be charged per server, VM or user? What happens if you no longer need as many licences?
Our experienced Microsoft consultants shed light on these and many other questions. We’re happy to help you choose the right licensing model for your business. Just get in touch. We look forward to hearing from you.
Please read our Privacy Policy for information on how we process your data and protect your rights as a data subject.