Microsoft 2012 Annual Report Download - page 16

Online
Although client-based software will continue to be an important part of our business, increasingly we are delivering
additional value to customers through cloud-based services. We provide online content and services to consumers
through Bing, MSN portals and channels, Microsoft Office Web Apps, Windows Phone Marketplace, Xbox LIVE, and Zune
Marketplace. We provide content and services to business users through the Microsoft Online Services platform, which
includes cloud-based services such as Exchange Online, Microsoft Dynamics CRM Online, Microsoft Lync, Microsoft
Office 365, Microsoft Office Communications Online, Microsoft Office Live Meeting, SQL Azure, SharePoint Online,
Windows Azure, and Windows Intune. Other services delivered online include our online advertising platform with
offerings for advertisers, 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. 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.
Services Provider Licensing
The Microsoft Services Provider License Agreement (“SPLA”) is a program targeted to service providers and Independent
Software Vendors (“ISVs”) 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.