In the world of software, choosing the right license for usage is considered important, and Microsoft is one of the leading software companies that has a variety of license types.Supports from general users to large organizations. Understanding the different types of licenses will help users choose the right one, save costs, and manage IT resources efficiently.
This article will explain the main types of Microsoft licenses used by the general public and in companies, including details, advantages, limitations, and highlights of each type.
license for the General Public (Consumer Licenses)
For home users or the general public, they usually look for licenses that are installed on personal computers or use subscription services for regular updates. The common types are as follows.
- Retail License (Full Packaged Product - FPP)
- Details:This type of license is the purchase of the full version of the software. In the past, it usually came with a box and storage media, such as a DVD or USB, but nowadays most are online download codes.
- Advantages:Highly flexible, buyers can transfer the license from one machine to another under specified conditions. Generally, if you change computers or upgrade the machine, it can be reinstalled easily.
- Suitable for whom:Home users who want flexibility and do not want to be tied to any hardware
- OEM License (Original Equipment Manufacturer)
- Details:It is a license that comes with the new computer or laptop you purchase. The manufacturer, such as Dell, HP, Lenovo, has installed the Windows operating system or other Microsoft software for you.
- Advantages:The cost is usually lower than a Retail License, and there is no need to spend time installing the software yourself. You can start using it immediately after purchasing the device.
- Limitations:The license is tied to that specific device and cannot be transferred to another device. If the device is damaged or the motherboard needs to be replaced, transferring the license may be difficult.
- Suitable for whom:Users who do not want to move software frequently, want to save costs, and focus on ease of use from the beginning
- Microsoft 365 Personal/Family (Subscription License)
- Details:It is a subscription-based purchase, paid monthly or annually, granting the right to use the Microsoft Office suite such as Word, Excel, PowerPoint, Outlook, cloud storage services like OneDrive, and access to the latest version updates at all times.
- Advantages:Always use the latest software version, no need to worry about purchasing upgrades, can be installed on multiple devices such as PC, Mac, smartphone, tablet, and has OneDrive for online storage.
- Suitable for whom:Users who want flexibility in using multiple devices and want to access new features immediately without having to buy new software when the latest version is released
license for companies and organizations (Business/Enterprise Licenses)
At the organizational level, licenses are designed to be manageable by category and to easily accommodate changes in the number of users, while also including technical support services and tools to centrally control usage.
- Volume Licensing (discontinued, changed to CSP)
- Details:It is a purchase of a large number of licenses for an organization, which helps lower the cost per license and makes license management easier.
- Main types of Volume Licensing:
- Open License / Open Value / Open Value Subscription:Suitable for small to medium-sized businesses that want to purchase a certain number of licenses and can increase or decrease the quantity as needed.
- Enterprise Agreement (EA):For large organizations with many users, seeking long-term value, there are advanced technical support services and special discounts for bulk license purchases.
- Advantages:Easy to manage, with a Volume Activation system that reduces the hassle of entering codes for each device. Licenses can be renewed or adjusted flexibly according to the company's growth.
- Suitable for whom:Organizations that need a large amount of software at an affordable price, along with tools for centralized license management
- Microsoft 365 Business/Enterprise (Subscription License for Organizations)
- Details:It is a subscription similar to Microsoft 365 for individuals, but it is a package for businesses or organizations. It has additional tools, such as Exchange Online for organizational email, SharePoint Online, Microsoft Teams, OneDrive for Business, and advanced security systems.
- Advantages:Organizations do not have to manage software updates themselves, receive new features all the time, have centralized user management services (Admin Center), can quickly increase or decrease the number of users, and have strict security and compliance measures.
- Suitable for whom:Organizations that need a Cloud Computing system focus on team collaboration and require security and continuous software updates.
- Cloud Solution Provider (CSP)
- Details:It is a license purchasing model through a distributor that is a partner with Microsoft. Service users can immediately increase or decrease the number of users or licenses by paying according to actual usage.
- Advantages:Highly flexible, no need to be tied to a long-term contract. The usage can be adjusted according to the number of employees increasing or decreasing conveniently. Pay only for what is actually used.
- Suitable for whom:Organizations that require high agility in managing license costs and adapting to employment conditions or frequently changing business needs
Summary of the differences between individual and organizational license
- General user:Choose a one-time purchase option, such as Retail or OEM, or a subscription type, such as Microsoft 365 Personal/Family, focusing on flexibility for use on a few devices and automatic updates.
- Organization:Choose Volume Licensing, Enterprise Agreement, or Microsoft 365 for businesses that focus on managing a large number of users, reducing the cost per license, and receiving specialized technical support, including controlling software access and security at the enterprise level.
Penalties for violating Microsoft license
- Legal issues
Using unlicensed software or using counterfeit licenses is considered a license infringement in many countries. Violators may be prosecuted under the law, required to pay large fines, and in some cases, may face imprisonment. - Data security risk
Pirated software may be tampered with using harmful code, such as malware, viruses, or ransomware, which can put computers, personal data, or important organizational information at risk. Additionally, users are not entitled to receive continuous security updates from the software manufacturer. - Lack of technical support
Users of pirated software will not be able to request support services from Microsoft, will not be able to update the software to new versions, and will not be able to receive security patches necessary to protect against various vulnerabilities. - Loss of credibility and organizational image
For companies, if the use of pirated software is detected, customers and business partners may perceive the organization as unreliable, unprofessional, and it can cause damage to its reputation.
Epilogue
Choosing the appropriate Microsoft license is the first step towards using technology effectively. Whether you are an individual or a large organization, understanding the features and conditions of each type of license will help you make confident decisions, use the software cost-effectively, align with your needs, and grow alongside Microsoft technology to its full potential.
Using properly licensed Microsoft software not only helps avoid legal penalties and security issues but also allows users to receive support, updates, and new features continuously. Both at the individual and organizational levels, choosing the right license leads to valuable, efficient software usage and enhances credibility for users and organizations in the long term.
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