How does Microsoft Licensing work with new hardware?

[Crimson]

I am looking to buy 5 workstations and one server for a business. The server will be a Windows 2000 Server platform, and the workstations will either be Windows XP Pro or 2000 Pro. What I would like to know is how the licensing works for Microsoft? Since I am purchasing new hardware, I assume I can buy OEM copies of Windows XP/2000 to put on the workstations correct?

Also, for Windows 2000 server, I see the OEM versions come with licenses as well. IE, Windows 2000 Server w/5 licenses, 25 licenses, etc. What are THOSE licenses? Client licenses? I am confused. So I need to puchase not only licenses for the Workstations but also licenses for Windows 2000 Server? IE, if I have 5 computers connected to the server I need 5 XP Workstation licenses, then a license for Win 2000 Server, plus 5 client licenses for Windows 2000?

Also, is there any reason I would need to buy retail since I am puchasing with hardware? I need this setup to be compliant.

 

[SteelCityFan]

Originally posted by: Crimson
I am looking to buy 5 workstations and one server for a business. The server will be a Windows 2000 Server platform, and the workstations will either be Windows XP Pro or 2000 Pro. What I would like to know is how the licensing works for Microsoft? Since I am purchasing new hardware, I assume I can buy OEM copies of Windows XP/2000 to put on the workstations correct?

Also, for Windows 2000 server, I see the OEM versions come with licenses as well. IE, Windows 2000 Server w/5 licenses, 25 licenses, etc. What are THOSE licenses? Client licenses? I am confused. So I need to puchase not only licenses for the Workstations but also licenses for Windows 2000 Server? IE, if I have 5 computers connected to the server I need 5 XP Workstation licenses, then a license for Win 2000 Server, plus 5 client licenses for Windows 2000?

Also, is there any reason I would need to buy retail since I am puchasing with hardware? I need this setup to be compliant.

This will probably get locked since it is not in the OS section, but anyway...

I can answer a couple questions. You are correct in that when you perchase Windows 2000 Server, the 5 licenses that come with it are CLIENT licenses. Installing Win2K Server on 5 machines is a violation. You can only install the Server software on one machine. You need to purchase enough client licenses to cover the number of PC's using the services provided by the server.

As far as I know, if you buy a Windows XP client license, it can be used as a Windows 2000, NT client license as well.


Purchasing retail only has a couple benefits IMO. You get free support for X number of days or whatever with Retail copies.. and with a Retail copy, you are permitted to install it on your desktop, and your laptop under the same license agreement... as long as they are both primarily used by one person. With an OEM copy, you are only permitted to install it on one computer.. theoretically the one you bought the hardware for.

 

[SteelCityFan]

if I have 5 computers connected to the server I need 5 XP Workstation licenses, then a license for Win 2000 Server, plus 5 client licenses for Windows 2000?

Yes.


Or, you could set up a Linux box and save a bundle... this is the reason many businesses are going down the Linux path... license agreements are written in greek, and take several readings to begin to understand them... I would suggest you look very deeply into them if you want to be 100% within the rules.

 

[Crimson]

Actually, I might just go the Linux route.. I need to talk to the client and ask them if they would be open to that.

 

[Workin']

if I have 5 computers connected to the server I need 5 XP Workstation licenses, then a license for Win 2000 Server, plus 5 client licenses for Windows 2000?

Yes. You need a client license for Windows 2000 Server for each machine that will connect to your server. So, one for each workstation, and also one for each RAS client (if any) or non-admin-mode Terminal Services client.

If you are building the machines yourself definitely go with OEM versions. The only irritating thing about them is you have to attach a stupid COA sticker to the machine using the license. Which permanantly bonds the license to that machine, i.e., you can not transfer the license to a new machine some time in the future.

 

[Workin']

and with a Retail copy, you are permitted to install it on your desktop, and your laptop under the same license agreement... as long as they are both primarily used by one person.

Be careful here - that only applies to SOME Microshaft applications, NOT operating systems!

 

[manly]

If you go the Linux route for the server, you'll probably use Samba for basic networking services. The Samba Suite _aims_ to be a drop-in replacement for NT Server.

As ambitious and perhaps worrisome as that may sound to PHBs, Samba is mature and very well-respected software, recently winning a PC Magazine Award. Beating out Sun's Java2 SDK and BEA WebLogic Server is fairly impressive IMO.

Also, as Workin' pointed out, the previous comment that you have more flexibility with retail licenses is not so true anymore. MS is really tightening the licensing noose these days, and last I heard, you can't install Office on multiple systems either.

 

[Workin']

The ONLY advantage to retail OS licenses is that you can use it on a new computer if you take it off the old one. You can't do that with an OEM license. The license is permanently "married" to the original PC it is installed on.

 

[DaHitman]

I belive your getting things confused...

There is the license for the software (Windows 2000 Pro) you put on the clients....

And then there is the "Client Access Liceneses" for Windows 2000 server... THOSE LICENSES are "permission" for the clients to access the server...

SOOooo... here is how it works..

A example office of 10 PC's and 1 server.. you need:

10 x Client OS Licenses (windows 2k pro)
+
1 x Server License (windows 2000 server)
+
10 x client access licenses for the server...


And FYI.. Microsoft changed their rules a while back so you have to purcahase CAL's for EVERY SINGLE PC that could posssibly EVER ACCESS that server... its not "concurent", you cant say "if only 4 people at a time access it, then we only need 4 licenses..." and you also cant say "Only 6 people have accounts on the server, the other 4 are only for vistors to read email.." YOU MUST GET 10 CAL's for the server in both cases.


Isn't Microsoft great? Gotta love a preditory monopoly... Do the world a favor and skip on the Microsoft software and use something else...anything else.

 

[Workin']

And FYI.. Microsoft changed their rules a while back so you have to purcahase CAL's for EVERY SINGLE PC that could posssibly EVER ACCESS that server... its not "concurent", you cant say "if only 4 people at a time access it, then we only need 4 licenses..." and you also cant say "Only 6 people have accounts on the server, the other 4 are only for vistors to read email.." YOU MUST GET 10 CAL's for the server in both cases.

That's why I'm abandoning MS and switching my server to Linux (or FreeBSD, but that's another story...).

My network will then have an Open Source server, and all the workstations except 1 will be running Linux. MS will only get my money to keep one workstation up to date with their expensive software, and that's only because I absolutely need a machine that I can use to develop ASP/VBScript web sites. And there is no non-MS web server that can do VBScript.