Microsoft 2013 Annual Report Download - page 15

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Please find page 15 of the 2013 Microsoft annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

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online include our online advertising platform with offerings for advertisers and publishers, as well as Microsoft Developer
Networks subscription content and updates, periodic product updates, and online technical and practice readiness
resources to support our partners in developing and selling our products and solutions. As we increasingly deliver online
services, we sell many of these cloud-based services through our enterprise agreements and have also enabled new
sales programs to reach small and medium-sized businesses. These new programs include direct sales, direct sales
supported by a large network of partner advisors, and resales of services through operator channels, such as telephone,
cell, and cable providers. We also sell our products through our online store, microsoftstore.com.
LICENSING OPTIONS
We license software to organizations under arrangements that allow the end-user customer to acquire multiple licenses of
products and services. Our arrangements for organizations to acquire multiple licenses of products and services are
designed to provide them with a means of doing so without having to acquire separate packaged product through retail
channels. In delivering organizational licensing arrangements to the market, we use different programs designed to
provide flexibility for organizations of various sizes. While these programs may differ in various parts of the world,
generally they include those discussed below.
Open Licensing
Designed primarily for small-to-medium organizations, Open Programs allows customers to acquire perpetual or
subscription licenses and, at the customer’s election, rights to future versions of software products over a specified time
period (two or three years depending on the Open Programs used). The offering that conveys rights to future versions of
certain software products over the contract period is called software assurance. Software assurance also provides
support, tools, and training to help customers deploy and use software efficiently. Open Programs has several variations
to fit customers’ diverse way of purchasing. Under the Open License Program, customers can acquire licenses only or
licenses with software assurance. They can also renew software assurance upon the expiration of existing volume
licensing agreements.
Select Plus Licensing
Designed primarily for medium-to-large organizations, the Select Plus Program allows customers to acquire perpetual
licenses and, at the customer’s election, software assurance over a specified time period (generally three years or less).
Similar to Open Programs, the Select Plus Program allows customers to acquire licenses only, acquire licenses with
software assurance, or renew software assurance upon the expiration of existing volume licensing agreements. Online
services are also available for purchase through the Select Plus Program, and subscriptions are generally structured with
terms between one and three years.
Partner Licensing
The Microsoft Services Provider License Agreement is a program targeted at service providers and Independent Software
Vendors allowing these partners to provide software services and hosted applications to their end customers. Agreements
are generally structured with a three-year term, and partners are billed monthly based upon consumption. Microsoft
Online Services Reseller Agreement is a program enabling partners to package Microsoft Online Services with the
partners’ services. Microsoft Online Subscription Agreement is designed to enable small and medium-sized businesses to
easily purchase Microsoft Online Services. The program allows customers to acquire monthly or annual subscriptions for
cloud-based services. Windows Azure Agreement is designed to enable small and medium-sized businesses to purchase
Windows Azure Subscription plans on a “pay-as-you-go” basis.
Enterprise Agreement Licensing
Enterprise agreements are targeted at medium- and large-sized organizations that want to acquire licenses to Online
Services and/or software products, along with software assurance, for all or substantial parts of their enterprise.