David Mackies Blue Brain

The things that make my friends just shake their heads.

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Please make it easier to be your partner.

I think I have lost count how many times the topic of licensing comes up in lists I subscribe to but it is so often it amazes me that we can’t just get this sorted once and for all with something that makes sense for everyone and doesn’t make me look like I’m stealing from my clients.

Recently we had a question about making XP Home work in a domain, that is pretty much where it always starts my customer bought a computer from Blah Blah Blah and they sold them XP Home Edition, Vista Home Basic / Premium and now I can’t join it to the domain what can I do and how do I handle the cost conversation?

Often the list has a number of people say:

  • Sell them OEM XP Professional / OEM Vista Business with a Hard Drive or Mouse
    • Windows Vista OEM licenses — like all other OEM licenses — can only be sold with a complete system. What constitutes a complete system? A complete system consists of at least an enclosure, a power supply, a main board, a processor, memory, and a hard disk.

    • The complying peripheral rule is long gone but long remembered too

  • Once the idea of getting legal with a peripheral sale is debunked sometimes people suggest a purchase from the customer for $1, add OEM XP Pro, sell back to customer. Now that is interesting

  • I have suggested in the past that making the machine non genuine by removing the Home Edition COA would then comply for Get Genuine but even that is not a great option

  • The idea of an upgrade to Vista Business and exercise down grade rights is probably the right course but not a popular one I suspect.

Lets Assume the machine was bought from a local system builder and sold with XP Home Edition and I come to do an SBS Implementation, and I need XP Professional on the machines for either SOE or compatibility reasons.

Lets look at the licensing costs the client is hit with:

  • XP Professional OEM sold by a Knowledgeable consultative System Builder $165 + Markup + Shipping. Total ~ $195.00
  • XP Home sold buy call centre on machine $102 in cost of machine
    • Vista Business Upgrade $323.57 + Markup + Shipping ~ $369.00
    • End User Pays $471.00 for something they should have paid $195 for.
  • XP Home sold buy call centre on machine $102 in cost of machine
    • User tears off COA
    • Buys MSOEM GET GENUINE KIT XP $212.30 + Markup + Shipping ~ $246.50
    • End User Pays $348.50 for something they should have paid $195 for.
  • XP Home sold buy call centre on machine $102 in cost of machine
    • Reseller Buys Machine for $1.00
    • Reseller reloads XP Professional OEM (maybe replaces fans, replaces Mouse and Keyboard but these are not Software Costs). XP Professional OEM $165 + Markup + Shipping. Total ~ $195.00
    • End User Pays $296.00 for something they should have paid $195 for.

In all of the upgrade scenarios the clients are being robbed AND MS is making a whole second licence in the deal and the client thinks I’m robbing them, little wonder it is such a tough sell in this part of the market.

If I were king of the licensing machine in Microsoft I would offer an easy way for clients who relied on your partner channel (I’m including the OEMs as Partners) and got poor advice to get the right licence without being penalised for not being an IT Licensing guru.

How about two SKUs that do this:

  • XP Home OEM to XP Professional OEM - $63.00 in fact charge me $10 for the COA (double what referbishers get theirs for), End User Pays ~ $219.00ish for something they should have paid $195 for, not too bad IMNSHO.
  • Vista Home Basic OEM to Vista Business OEM - $64.90 plus $10 for the COA

I would have no problem selling a make good plus $10 COA to customers who want to be legal but treated like a customer should be. Why not make a condition that both COA's need to appear on the machine.

I really want to help my clients be legal and have some platform loyalty but it is tough when we are forced to sell in some cases more than double the correct licensing cost and 4 times their initial outlay for what appears to be very little benefit.

No wonder some people say just sync local credentials because all the fancy domain membership is for the Administrator anyway.

Comments

Andy Parkes said:

Hi David

Your right it sure is complex!

Just wanted to clarify something as not sure if I've got it wrong...

My understanding is that as an upgrade path you can't go from Vista home (either version) to Vista Business

I vaguely remember reading somewhere that it is to do with losing features

Just to keep it simple imagine a user has Vista home premium. He loves the chess game that comes built-in with Vista

He decides he needs to domain join the PC so gets Vista Business. Then he finds out that his chess game has gone as it's not a part of Vista Business

Since Microsoft don't want to take things away the only upgrade path is to Vista Ultimate

More expense!

Does this make sense?

Have i completely got the jist of your post wrong!

Thanks

Andy

# June 30, 2008 6:05 PM

David Mackie said:

I really don't have too much issue with losing features because if they are important I'd hope that the user would but Ultimate to Domain Join. I don't really care if I have to reinstall as we would reimage anyway from the onsite WDS server.

What I really want is a way for a user who bought home anything to get a licence to run either XP Professional, Vista Business and Yes even Vista Ultimate without buying an OS all over again.

If they should have bought one of these versions as an OEM it would be good to pay the difference for the appropriate OEM version.

We see this all the time and it is a big pain point in many of the communitees as the question is asked frequently.

# June 30, 2008 9:35 PM

Andy Parkes said:

That's fair enough

Wasn't sure if you were talking about an "upgrade - upgrade" or "upgrade - start again"

I completely agree the ability to upgrade the license and just pay the difference would be great

# July 3, 2008 11:33 PM