When it comes to Windows, Office and other Microsoft products, many small businesses are paying over the odds. However, there are plenty of discounts available. We show you where to look.

They buy software off retail shelves or online, one-at-a-time, and miss significant discounts that are available to almost every company.

If your company uses more than four Microsoft products, such as Project or Visio, there is a discount program available. You just have to know where to look.

How much can you save? Up to 50 percent in one current promotion, but more commonly five to 25 percent, depending on the product.

Microsoft offers three volume licensing programs for small and medium-sized businesses with anywhere from five to 250 PCs. They are: Open Licence, Open Value, and Open Value Subscription.

The company also offers a program called Software Assurance that, for an annual payment of 29 percent of your Microsoft apps purchases and 25 percent of server purchases, provides ongoing 'free' upgrades and other benefits.

Software Assurance (SA) is described in detail following the program descriptions.

These names appear in various forms in different places - even at Microsoft. I have used the more easily recognised form of each program name.

You would think the Microsoft Small Business site would make it easy to find out about each program, but it doesn't, instead referring customers to resellers for additional information.

It helps to know what to ask about, so here are program specifics:

Open Licence

"The easiest and simplest approach for small business is the Open License program," said Paul de Groot, licencing specialist with Directions on Microsoft, a newsletter and consulting firm that advises customers on how to best purchase Microsoft products.

"The program is very easy to get into - any five licences gets you an authorisation number - and takes somewhere between five and 25 percent off licence prices," de Groot said.

"Open License is transactional, meaning there are no long term commitments, and Software Assurance is optional. An authorisation lasts for two years, and once you get it, you can order additional licences one at a time and still get the discounted price."

Open Licences also allows customers to manage their software licences online and to install software from copies stored on local servers.

Open value

"If you want Software Assurances on every licence and slightly better discounts, you can do that with Open Value," de Groot said.

"Open Value is a program that doesn't count software licences, but the number of PCs in your organisation."

"If you're looking to do an across-the-board upgrade - say from WinXP and Office 2003 to Win7 Pro and Office 2007, with rights to Win 7 Enterprise and Office 2010 at no additional cost - Open Value might be the better option."

Open Value customers commit to purchasing a customised set of Microsoft products for their desktops and are able to simplify licence tracking, make upgrades more easily, and improve cost management for their software investment.

Open Value requires a three-year commitment.

A key feature of the Open Value program is the ability to spread payments out over three years.

Small business IT advice

NEXT PAGE: Open Value subscription

  1. We show you where to find discount programs
  2. Open Value subscription
  3. Planning is key

When it comes to Windows, Office and other Microsoft products, many small businesses are paying over the odds. However, there are plenty of discounts available. We show you where to look.

Open value subscription

Microsoft is offering potentially large discounts to customers who purchase time-limited software subscriptions, as opposed to the perpetual licences that come with boxed software and other Microsoft purchasing programs.

Here's the difference: When the subscription ends, so does your company's licence to use the software (although a buy-out option may be available). With a perpetual licence, you can use your software theoretically forever.

Open Value Subscription the same offers benefits as Open Value, but in a subscription licence.

Customers see lower up-front costs with a subscription, and have flexibility to 'true-down' or pay for fewer desktops if they've seen reductions when they reach their anniversary.

Microsoft is running a promotion called the 'Up-to-Date Discount', which allows customers to receive as much as a 50 percent off on their purchases by giving them credit for software they already own.

Microsoft is also offering financing to small business customers. Qualifying customers can receive 36 month loans for solutions that include Microsoft software, Sharpe added.

Software Assurance

Considered controversial by some business customers, Microsoft's Software Assurance program charges an annual premium of up to 29 percent of the value of the customer's Microsoft software purchases.

In return, customers get the right to upgrade their software at no additional charge during the term of the agreement.

Companies that want to keep their software current can find Software Assurance a convenient way to upgrade without having to purchase expensive new software all at once.

On the other hand, if Microsoft doesn't do a major upgrade every three or four years, the program could turn out to be too costly.

Here are some of the benefits of Software Assurance:

  • Windows 7 Enterprise is only available to Software Assurance customers, and while some of the features are targeted at large organisations, it brings key security features such as BitLocker, BitLocker To Go and AppLocker that offer benefits for organisations of any size.
  • Microsoft's Home Use Program offers copies of Microsoft Office Enterprise 2007 Enterprise to the employees of SA-member companies for their employees to use at home. Other products are also available.
  • The Home Use Program supports telecommuting and other flexible work options. Once the benefit is activated, companies provide the program code to eligible employees and they can order directly from the Home Use Program website.
  • E-learning programs are also available through SA, potentially lowering training costs and increasing employee efficiency.
  • With Spread Payments, small businesses can spread their total licencing costs (licences plus SA) into three equal annual payments with no additional fees or interest charges, providing a predictable way to licence Microsoft software.
  • Software Assurance customers also have access to the Microsoft Desktop Optimisation Pack, a collection of IT-oriented tools and technologies available as a subscription.

Small business IT advice

NEXT PAGE: Planning is key

  1. We show you where to find discount programs
  2. Open Value subscription
  3. Planning is key

When it comes to Windows, Office and other Microsoft products, many small businesses are paying over the odds. However, there are plenty of discounts available. We show you where to look.

Planning is key

Signing up for Open License is a no-brainer, provided you are willing to purchase five copies of Microsoft software at once to get started.

The other programs require a bit of thought and probably a long discussion with a reseller, plus some number crunching, before a purchase decision is made.

Questions such as how many machines do we need to upgrade and does our company like to stay current or do we delay software purchases as long as possible? are the beginning.

Money also plays a role, with Microsoft offering financing and special offers to get customers into Software Assurance, which may not otherwise be the best choice for them.

Before making a decision, customers should price their needs using all three volume licence programs, add in special offers and financing, and choose what's best for their specific circumstances.

Where to buy

Customers interested in Microsoft's volume license programs should contact one of the company's SMB specialist resellers which include PC World, Dabs and Misco.

Discounted Microsoft products are also available through local 'small business specialist' organisations, who can also provide other services to customers, such as migration and support.

The Microsoft Small Business site offers more details and contact information.

Regardless of the vendor chosen, if your company isn't buying Microsoft products through one of the three SMB volume licensing programs, you are paying too much.

Small business IT advice

See also: Microsoft licensing site crash affects users

  1. We show you where to find discount programs
  2. Open Value subscription
  3. Planning is key