Licensing agreements comparison

for commercial and government organizations

Microsoft offers commitment-based and transactional options for organizations that want to purchase Microsoft cloud services subscriptions, on-premises
software licenses, and/or Software Assurance. Compare the commercial and government Microsoft licensing agreements below or compare licensing options for
academic.

Microsoft Enterprise Agreement and Microsoft Enterprise Subscription Agreement are commitment-based Microsoft volume licensing agreements for
commercial organizations signing a new enrollment with 500 or more users/devices and government organizations with 250 or more users/devices that want to
license Microsoft cloud services and/or on-premises software organization-wide, over a three-year period, and at the best available pricing. Enterprise enrollments
include the Enterprise Enrollment, Enterprise Subscription Enrollment, and Server and Cloud Enrollment (SCE). Software Assurance is included.

The Microsoft Products and Services Agreement is a transactional Microsoft volume licensing agreement for organizations with 250 or more users/devices that
want to license Microsoft cloud services and/or on-premises software as needed—with no organization-wide commitment under a single, non-expiring agreement.
Software Assurance is optional.

Microsoft Open Value and Microsoft Open Value Subscription are for organizations with 5 to 499 users/devices that want to license Microsoft cloud services
and/or on-premises software. Open Value non-organization-wide is a transactional agreement. Software Assurance is included. Open Value organization-wide and
Open Value Subscription are commitment-based agreements where you agree to license certain products for your entire organization. Software Assurance is
included.

The Microsoft Customer Agreement is a transactional licensing agreement for commercial, government, and academic organizations with one or more
users/devices seeking to acquire cloud services through self-service purchases or outsource management of their cloud services through a partner in the Cloud
Solution Provider program. Cloud Solution Provider partners offer an easy way to license the cloud services you need in combination with the value-added services
offered by your systems integrator, hosting partner, or reseller partner. On-premises software without Software Assurance is also available through partners in the
Cloud Solution Provider program.

The Microsoft Online Subscription Agreement is a transactional licensing agreement for commercial, government, and academic organizations with one or more
users/devices that want to subscribe to, activate, provision, and maintain cloud services seamlessly and directly via the web, through the Microsoft Online
Subscription Program. On-premises software and Software Assurance are not available through the Microsoft Online Subscription Agreement.
Microsoft commercial and government licensing agreements comparison
Microsoft Enterprise Microsoft Products and Services Microsoft Open Value Microsoft Customer Agreement Microsoft Online Subscription
agreements Agreement agreements Agreement

Offerings Commitment-based cloud services Transactional cloud services and Transactional (Open Value non- Transactional cloud services and Transactional cloud services only
and on-premises software on-premises software organization-wide) or commitment- on-premises software (through
based (Open Value organization- Cloud Solution Provider partner)
wide and Subscription) cloud
services and on-premises software

Agreement term Three years Non-expiring Three years (Open Value One year (auto-renew) One year (auto-renew)
agreements), or one year (Open
Value government agreements
only)

Purchase coverage Organization-wide As needed As needed (Open Value non- As needed As needed
organization-wide) or organization-
wide (Open Value agreements)

Purchase term Three years for initial purchase, co- One year or shorter for select cloud Three years (Open Value One year One year or monthly on select
terminus for additional purchases services agreements), or one year (cloud cloud services
services and Open Value
government agreements)

Purchase term expiration Enrollment expiration Third account anniversary for Agreement expiration (Open Value Subscription term expiration (one Subscription term expiration (one
Software Assurance; next account agreements), or subscription term year) year or monthly)
anniversary or multiyear for cloud expiration (one year for cloud
services services)

Minimum commitment 250 (for government) or 500 (for 500 points per product pool or 250 Five licenses or Licenses and One USL or use of Azure pay-as- One USL or use of Azure pay-as-
commercial) qualified devices/users cloud services users by pool (per Software Assurance (L&SA), one you-go you-go
per pool year) user subscription license (USL), or
use of Azure pay-as-you-go

Target organization size 500 or more users (250 or more 250 or more users 5 to 499 users for on-premises One or more users One or more users
users for government) software; one or more users for
cloud services (up to 300 USLs for
Office 365 Business editions)

Sales model Microsoft direct or partner indirect Partner indirect Partner indirect Partner indirect Microsoft direct
(based on geo and sector)

Ordering In the month of first use for the As needed (per purchasing As needed (Open Value non- As needed (per Cloud Solution As needed (per order)
initial product order; annually for account) organization-wide per agreement) Provider or self-service purchase)
subsequent orders (per enrollment) or in the month of first use for the
initial product order and annually
for subsequent orders (Open Value
agreements per agreement)

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 Microsoft Enterprise Microsoft Products and Services Microsoft Open Value Microsoft Customer Agreement Microsoft Online Subscription
agreements Agreement agreements Agreement

On-premises software license ✔ ✔ ✔

Non-perpetual license for on- ✔ ✔

premises software (Enterprise Subscription (Open Value Subscription)
Agreement)

Cloud services user subscription ✔ ✔ ✔ ✔ ✔

license (USL)

Provisioning of cloud services prior ✔ ✔ ✔

to order

Software Assurance ✔ ✔ ✔
(included) (optional)

Price list Commercial and government Commercial and government Commercial, government, academic Commercial, government, and Commercial, government, and
and nonprofit (Subscription option academic academic
not available for nonprofit)

Price level determination Based on user and device license Based on points by pool or Based on device quantity No price level Based on order quantity by cloud
quantity by pool or qualifying qualifying contract for commercial; (commercial Open Value service
contract for commercial; single single price level for public sector agreements); single price level for
price level for government public sector

Price protection All products and services included One-year subscription for cloud Select products (Open Value Cloud services subscription length N/A
in the agreement services agreements, organization-wide) in one-year increments

Upfront payments ✔ ✔ ✔ ✔ ✔
(one to three years) (one to three years) (one to three years) (monthly) (monthly or annually)

Annual (spread) payments ✔ ✔ ✔

Microsoft Financing (where ✔ ✔ ✔ ✔

available)

©2022 Microsoft Corporation. This document is for informational purposes only. Please refer to the Microsoft Product Terms for current use rights and terms.

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