Reducing Microsoft License costs with fewer Qualified Devices

Your organization has a Microsoft Enterprise Agreement (EA) and you’re wondering what exactly needs to be counted for desktop licensing when it comes time for either renewing your EA or a True-up at the end of the year.  This is where you need to understand the Microsoft definition of a Qualified Device and what is in scope for counting and more importantly what can be excluded.

Scope – The Starting Point

A Microsoft Enterprise Agreement (EA) is a Volume License which is a contract to license all of the devices in your organisation that fall into a particular definition. That definition is a Qualified Device. In simple terms this means that Microsoft, or their auditors, expect you to count all devices capable of running Windows Professional and then reduce that count by proving the device is not a qualifying device or is covered by another license.

What is a Qualifying Device

The definition of a Qualified Device has changed over the years. It originally was Qualified Desktop but with VDI, tablets and other advances it has broadened in scope to include:

1. any device capable of running Windows Professional locally in a virtual or physical environment.
2. Devices accessing a VDI.
3. Device is a “managed device”

The definition of a Managed Device is very broad and you must consider all devices capable of running windows operating system. In theory any device that generates an entry in your Active Directory is in scope unless you can prove otherwise.

Industry or Line-of-business Devices?

If a device is task or application specific (POS, controller, etc.) and it can be clearly demonstrated as not being a general purpose PC, it may be designated an Industry Device. This is not to say that other supporting products (email or EXCEL) can’t be on that device also, but they must be integrated with the Industry Program.

Reducing the Device Count

You have a number of strategies to reduce the number of devices that need to be licensed in an EA:

•  Show the device is being used as a server, not a desktop.
• Demonstrate the device is Industry Specific
• Show the device is covered by Roaming rights
• Designate the device as being used for training purposes (this is limited)
• Cover the device by another license e.g. user or 365 license.
• Show the device is net-new since last true-up

General Tips to reducing Qualified Device count

• Clean up your organisation’s Active Directory on a regular basis
• Enforce a naming convention for servers and desktops
• Clearly denote industry devices in Active Directory and keep a current log
• Periodically search for all devices NOT running Microsoft Office and checking if they might qualify as an industry device.

 

Conclusion

Organisations can expect to be audited by a representative of Microsoft every 2-3 years.  By understanding what devices qualify to be counted for license purposes and having the evidence prepared  in advance, you can significantly reduce the final cost.

 

Resources

• Microsoft Briefing Paper on Qualified Devices

• Microsoft True-up process