You would think Microsoft Volume Licensing allows businesses to purchase large quantities of software at a discount. Put simply, it doesn’t.
OEM software is far less expensive
When I order a computer, I can get a full copy of Microsoft Office for about $200. It is a retail copy meaning my usage rights are fairly restricted. I can’t move that copy to another computer. I can’t upgrade it when a new version comes out without spending a ton of money. If all I want is a copy of Microsoft Office to use until my computer dies, it will cost me $200.
Or, I can buy a copy through Microsoft Volume Licensing. I can choose between Open, Select, or Enterprise agreements. Depending on the price tier you are in and the volume you buy in you might pay as little as $400 for a copy of Microsoft Office through volume licensing. In fairness I get more usage rights with a volume license. I can move the license between computers for example which is very helpful. Is it worth paying twice as much for the convenience of moving a copy of Office from one computer to the next?
I have run the numbers every way I know how and the honest truth is there isn’t a way to justify the extra cost of buying through Volume Licensing.
Windows is getting less expensive, if you are an OEM
Although still in the rumor state, it appears Microsoft will be discounting Windows 70% to compete with Android and Apple. That would make me happy if that discount was available through Volume Licensing which to date it is not.
Once again, the most expensive way I can purchase Windows is through Volume Licensing.
Windows may end up being free
Another rumor is that Microsoft is considering making Windows free. I actually think this is a good idea but will it be free to enterprise customers? If Microsoft continues the trend of marking up software to volume customers, I suspect I will pay a hefty sum for an otherwise free product.
But the licenses are different!?!?
I can hear Microsoft salespeople screaming about how the volume license has different use rights than OEM and retail licenses and they are right. Volume licenses allow for much more freedom than OEM or retail licenses. What they fail to realize is that the math just isn’t adding up. With the cost of hardware going down every year, it is often less expensive to simply buy someone a new laptop instead of paying for upgrade rights on software.
Oh, and there is the audit thing
Read the Open, Select, and Enterprise agreement carefully and you will find that as the discounts increase, so do Microsoft’s rights to audit your software usage. If you sign an Enterprise agreement for example, Microsoft has the right to conduct an onsite audit without notice.
I would never knowingly deploy software I had not purchased but that doesn’t mean I want to volunteer for more vigorous audits. The “discount” I get would likely not pay for my time to conduct the audit.
Buying OEM is the least expensive and most painful way to get licensing from Microsoft
I am really struggling with this concept. I am tired of paying more for products using volume licensing but it is hard to order everything you need when you order a computer. It is also getting harder to buy things retail since many products are moving to subscription pricing. Regardless, it is hard for me to pay volume pricing for the limited benefit I get from it.
Decomplexification 