Over the course of this year we have had two of our clients audited by Microsoft. On both occasions the process has been fairly painless, though it still worries Varidan staff and clients, and raises the question; Have we accounted for everything? One can’t help but be reminded of Monty Python and the line “Nobody expects the Spanish Inquisition!”
Small businesses rely on varying licensing options to get the most bang for buck. Unlike large corporations that tend to use open licensing only, a small business may purchase three types of licences.
| OEM Licence / PKC Licence: These are specific to new computers and non-transferable once installed. | |
| Retail Licence: These tend to be purchased off-the-shelf and are transferable a limited number of times. | |
| Open Licensing Program: these are purchased with a minimum of five and are transferable. |
Each product has its own licencing needs, many people do not know that when you purchase a Microsoft Server you need to have a Server CAL (Client Access Licence) for each workstation that connects to the server. This is regardless of if you are using a Microsoft Operating System on each computer.
This is where audits become tricky and worrisome. Varidan managed clients enjoy the fact we look after their licencing needs, but not all IT support companies look after this aspect. As business owners it is crucial you understand what you have and how you use it. Also, it is important not to throw away all the docuementation you receive when you purchase licences; they are important as they are your proof of purchase and ownership over the licence.
Can Microsoft legally audit me?
When you agree to the Microsoft EULA (End User License Agreement) every time you install a Microsoft software product, you are accepting the terms of its use and part of it is allowing Microsoft to audit the use of any Microsoft software licenses installed within your organisation.
If you choose not to co-operate in the initial stage of an audit, Microsoft may press with legal action to gain access. Based on court rulings their process will be more vigorous with the use of software based auditing tools. If you are then out of specification, they may pursue fines.
However, co-operation when you are deemed out of specification, your company is more likely to get a reasonable outcome. The process tends to be a little more relaxed and based on the honour system; Where requests for any licensing issues to rectified by a purchase, rather than a fine.
How do I know our organisation is being audited?
The process normally starts with a written letter asking your company to work with Microsoft, or a third-party during the auditing process. This is then followed up with a request of product keys, number of computers, perhaps staff and other key information.
They will collate the information, then perhaps request some follow-up information, proof of purchase, or licensing information. Depending on the outcome and whether your company is within the licensing guidelines will depend on the action taken. If you have been open, honest and generally co-operative they tend to be lenient.
How do I know a third party is legitimate?
So far in Sydney, the only third party company Varidan has dealt with is the Accordo Group. They work on behalf of Microsoft, however if you are unsure, you can call Microsoft SAM (Software Asset Management) Assist engagement on 13 20 58.
What the best way to be prepared for an audit
| Keep all company licensing information together in an easy place. | |
| Understand what you use and how many copies you have installed, compare them to purchased licences. | |
| Understand the difference between licensing types and what your entitlements are to use them. |
Can Varidan help us with concerns
Of course! Varidan IT Managed Services can provide a full audit of your system and point out where you have any issues. Give us a call and we can help you today.
Author: Adam Sheridan
Futher Reading
About Client Access License (CAL)