Microsoft Licensing FAQ for SBS 2003

Hello gang – I am Harrybbbb and I wrote this chapter in the Advanced SBS 2003 Best Practices book featuring our beloved Small Business Server product. This post up is a virtual book reading. So enjoy mates!

Microsoft Licensing FAQs

This is an interesting section. Most of the content in this section is taken from Microsoft’s Web site regarding licensing questions, found at http:// www.microsoft.com/WindowsServer2003/sbs/techinfo/overview/ licensingfaq.mspx. But this isn’t simply a “reprint” or copy-and-paste operation to fill pages in a chapter. Nope. In most cases, I add context to specific question and in the process, I hope to add value for you in understanding the madness surrounding SBS 2003 licensing.

Here’s an interesting historical note regarding this FAQ Web page. In the fall of 2003, I participated as one of the USA hands-on lab instructors for the SBS 2003 road show. We were peppered with licensing questions in city after city. We consistently fed those answers back to the SBS marketing and development team in Redmond, and that resulted in much of the content on the licensing FAQ page that is explored below!

This section is divided into the following two discussions:

  • General Licensing
  • Transition Pack Licensing. This relates to the “transition pack” used when a company exceeds 75 CALs and needs to migrate to the full Microsoft server products.

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  General Licensing

Q. What is the difference between a Windows Small Business Server 2003 license and a Windows Small Business Server 2003 client access license (CAL)? Why do I need both?

A. The Windows Small Business Server 2003 license gives you the right to install and use the server software. The Windows Small Business Server 2003 CAL gives you the right to have a device or user access the server software.

Harry’s Viewpoint: This is an important distinction between the server application license and the client license. A server license relates to the legal mumbo jumbo associated with the actual server-based operating system or program running on the server machine. The client-side CAL relates to a user having the legal right to access the server from the network. The importance of this specific dialog is that you must purchase CALs above and beyond the server-side application and operating system.

Q. Are my CALs for Small Business Server 2000 still valid after I upgrade to Windows Small Business Server 2003?

 

 

A. If you purchased Software Assurance for your Small Business Server 2000 CALs, then you will receive free upgrades to Windows Small Business Server 2003 CALs. If you did not purchase Software Assurance, you must purchase new CALs when you upgrade to Windows Small Business Server 2003.

Harry’s Viewpoint: Software Assurance is discussed later in this chapter. The rest of us must purchase CALs (either new or upgrade CALs).

Q. How can I obtain CALs for Small Business Server 2000 or previous versions of the product now that Small Business Server 2000 CALs have been discontinued?

A. You will need to purchase Windows Small Business Server 2003 CALs, apply your downgrade rights, and then contact your reseller to order fulfillment media at a nominal fee. You need to order the fulfillment media separately since Windows Small Business Server 2003 CAL packs do not contain the floppy disk that is necessary to deploy licenses on Small Business Server 2000. The Small Business Server 2000 floppy disk also works with previous versions of Small Business Server.

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Harry’s Viewpoint: I distinctly remember this question. The context was an SBSer who had a client who was not yet ready to upgrade to SBS 2003 but needed more SBS 2000 CALs.

Q. Are Windows Small Business Server 2003 CALs (whether per user or per device) by concurrent connections?

A. No, CALs are per user or per device. They are not concurrent.

Harry’s Viewpoint: You can never use the word “concurrent” in the context of SBS 2003 licensing. This means the CALs are assigned to a specific user or a specific device. This point is the result of my being misquoted in one of Brian Livingston’s popular Windows columns (www.briansbuzz.com). I was quickly corrected by Microsoft’s PR agency, Wagner Edstrom, and I’ve since removed the word “concurrent” from my vocabulary.

Q. I purchased Software Assurance for my Small Business Server 2000 installation and CALs. Am I eligible to receive Windows Small Business Server 2003 Premium Edition?

A. Yes. If you purchased Small Business Server 2000 Software Assurance, you are eligible to receive an upgrade copy of Windows Small Business Server 2003 Premium Edition. If you purchased Software Assurance through a reseller or computer manufacturer, contact the media fulfillment center at 800/248-0655 to order your upgrade. For more information about Software Assurance, contact your reseller or see the Microsoft Web site.

Harry’s Viewpoint: This clearly supports the case for Software Assurance. See further discussion later in the chapter.

Q. Does the price of Windows Small Business Server 2003 CALs vary depending on whether I buy the standard edition or the premium edition? What is the price for CALs?

A. CALs cost the same for the standard edition and the premium edition of Windows Small Business Server 2003. For more information about the offerings of both editions of Windows Small Business Server 2003, see Pricing and Licensing for Windows Small Business Server 2003.

Harry’s Viewpoint: This topic came up numerous times in the seminars and
workshops. It seems there is a case of economic injustice here because the
SBS 2003 standard edition contains less server-side functionality then the

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  SBS 2003 premium edition (premium contains SQL Server 2000, ISA 2000/ 2004, and FrontPage 2003). YET THE CALs COST EXACTLY THE SAME. WHAT GIVES WITH THAT?!?!? (Yes-I’m yelling for effect).

Q. Does Windows Small Business Server 2003 use floppy disks to activate new CALs, like previous versions did?

A. Windows Small Business Server 2003 does not use floppy disks to distribute or install CALs. CALs are now activated over the Internet using unique activation codes, similar to how Terminal Services CALs are purchased and installed. As an alternative, you can call a local telephone number to activate CALs.

Harry’s Viewpoint: Microsoft eliminated the licensing diskette, which I consider a positive step. It eliminates the pain-in-the-ass step of remembering the order you applied the CAL diskettes in SBS 2000 and earlier time frames. See an article I wrote on the old SBS 2000 CAL diskettes in one of my early newsletters at: http://www.smbnation.com/newsletter/Issue1-9.htm (go to the bottom of the newsletter). There is also a Microsoft KBase article on SBS 2000 licensing diskette installation order (Q247944).

Q. My server does not have a connection to the Internet. How can I activate the CALs that I purchased?

A. Run the Windows Small Business Server 2003 Add Licenses Wizard, and choose to activate your CALs by calling a local telephone number.

Harry’s Viewpoint: Given that most ofSBS’s sales are to non-USA (overseas) countries and SBS’s best future prospects are in emerging countries, this is an important FAQ! Of course, as SBS-MVP and contributing author Susan Bradley correctly pointed out, you’re missing out on the “cool stuff” in SBS 2003 without an Internet connection.

 

 

Q. What is the difference between a device CAL and a user CAL?

A. A device CAL permits one device (used by any user) to access the server software. A user CAL permits one user (using any device) to access the server software.

Harry’s Viewpoint: This is an excellent explanation. Note that a user CAL will apply to a specific user and a device CAL applies to a specific device.

Q. Why is Microsoft offering both user CALs and device CALs for Windows Small Business Server 2003?

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A. Microsoft offers both user and device CALs for Windows Small Business Server 2003 to ensure that customers can implement a licensing plan that enables users to access the network using not only laptops and desktop computers, but also remote devices such as Pocket PCs and SmartPhones.

Harry’s Viewpoint: This topic was discussed earlier in the chapter, but note that remote devices such as Pocket PCs and SmartPhones are mentioned here. That is very important to understand!

Q. Can I use a device CAL and a user CAL on the same server?

A. Yes, device and user CALs can both be used on the same server. But for easier managing and tracking, we strongly recommend that you buy either user CALs or device CALs, not both.

Harry’s Viewpoint: This is the mix-and-match discussion that was presented earlier in the chapter. I don’t know why Microsoft states you should buy one form of CAL or the other but not both! Rumor has it Microsoft is viewing this from a simple logistics point of view.

Q. Is there a difference in price between user CALs and device CALs? A. No, user CALs and device CALs cost the same.

Harry’s Viewpoint: Enough said!

Q. Can I switch between user CALs and device CALs?

A. If you have Software Assurance for your Windows Small Business Server 2003 CALs, you can switch between user CALs and device CALs, or vice versa, when you renew your Software Assurance contract. If you do not have Software Assurance for your Windows Small Business Server 2003 CALs, then you cannot switch.

Harry’s Viewpoint: See the earlier discussion about the Alaskan fishing company and its CAL switching.

Q. How many Windows Small Business Server 2003 CALs are needed when using Terminal Server in application sharing mode?

A. Adding a second server (Terminal Server in application sharing mode) does not alter the Windows Small Business Server 2003 CAL requirements. You will need a Windows Small Business Server 2003 CAL for each user or device that authenticates on the Windows Small Business Server 2003 network. We

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  specifically prohibit multiplexing as a means of reducing the CAL requirement. In addition, you will also need Terminal Server CALs for each Terminal Server user. For more information on Terminal Server licensing, see Licensing Terminal Server in Windows Server 2003.

Harry’s Viewpoint: This Q and A on Terminal Services (TS) is wellpresented. Note that the context is TS running on a second server (I highly recommend a member server). It is not possible for TS to run in application sharing mode on the SBS 2003 server machine. More TS issues are discussed later in this chapter.

BEST PRACTICE: Remember that TS CALs are TOTALLY separate from any prior SBS CAL discussion and if you owned a copy of Windows XP prior to April 23, 2003, you are grandfathered TS CALs and do not need to purchase additional TS CALs for those specific computers. Note that April 23, 2003 was the release date of Windows Server 2003 in San Francisco, California.

 

 

Q. Does Windows Small Business Server 2003 provide a mechanism to track and display how many user or device CALs are in use?

A. Windows Small Business Server 2003 does not provide a mechanism to track or display CALs. We strongly suggest, however, that you choose one CAL type (user/device) for your Windows Small Business Server 2003 installation. Windows Small Business Server 2003 will display only the number of CALs that have been activated.

Harry’s Viewpoint: This is a major disappointment in SBS 2003 and I discuss this more in the More Microsoft-centric Licensing Topics section later in the chapter. You’re asked to comply with fairly rigorous licensing terms and conditions yet not given the best tools to do so!

Q. Can I upgrade or migrate from Small Business Server 2000 to Windows Small Business Server 2003 Standard edition and still use Microsoft SQL Server and/or Microsoft ISA Server?

A. Windows Small Business Server 2003 is built, sold, and licensed as an integrated server platform. Customers who purchase a new license for Windows Small Business Server 2003 Standard Edition are only licensed for the server applications that come as part of that edition. If you install that over the top of

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a Small Business Server 2000 installation, you will not be licensed to use either SQL Server 2000 or ISA Server 2000. Windows Small Business Server 2003 has a version upgrade SKU T75-00037 that is priced at $599 US to specifically address this scenario.

Harry’s Viewpoint: I agree with Microsoft on this one. The whole idea between the two versions of SBS 2003 was to give the customer more choices in selecting the right fit. It seems appropriate to me that users shouldn’t be able to bring forward SQL Server 2000 or ISA Server 2000 and pull a fast one by running it on the standard edition of SBS 2003. Nadda! By the way, there isn’t explicit blocking code in SBS 2003 standard edition that would prevent you from bringing forward SQL Server 2000 and ISA Server 2000 from the SBS 2000 timeframe, but to do so would be illegal! Note the last sentence above about the upgrade SKU (which is a good thing!). And in the real world, it would be insane, at the insanely low upgrade price, not to go from SBS 2000 to SBS 2003 premium edition.

Q. I have noticed that the Server Management console shows the maximum usage number in the licensing section. Why?

A. Windows Small Business Server 2003 shows a rough indicator of the maximum usage since the system was last restarted. This is intended as a simple indicator that allows you to evaluate if further CALs are required.

Harry’s Viewpoint: This is the high water mark indicator and I’ll be flat out honest with you: it’s not that useful.

Q. Are the five CALs that came with the server license per device or per user?

A. For these first five CALs you get to choose. At the top of the CAL End User License Agreement (EULA) in the retail packaging, you can choose to allocate these CALs (up to a maximum of five) to either user or device. Again, we strongly recommend that you choose one type for your Windows Small Business Server 2003 installation.

Harry’s Viewpoint: This confirms my discussion earlier in the chapter, but Microsoft’s recommendation for selecting just one type of CAL class for the total licensing scenario is bogus.

Q. Do I need a CAL for Outlook Web Access or Remote Web Workplace?

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  A. Regardless of how you connect to the Windows Small Business Server 2003- based server, you need either device CALs or user CALs. If you have chosen device CALs, then your use of Outlook Web Access or Remote Web Workplace will consume a CAL.

Harry’s Viewpoint: This is an excellent point. The use of OWA or RWW requires a CAL!

Q. When I buy a 20-CAL pack, can I split it into 16 per users and 4 per device CALs?

A. There are separate device CAL packs and user CAL packs. You choose at purchase time. Please see Pricing and Licensing for Windows Small Business Server 2003.

Harry’s Viewpoint: Microsoft’s answer is mildly confusing but basically you wouldn’t be able to create this division from a 20-CAL pack.

Q. Which mode do I select for licensing?

A. You choose the mode when you purchase additional CALs and when you install the server for the first 5 CALs.

 

Harry’s Viewpoint: This election for additional CALs is made by virtue of selecting the CAL SKU to purchase.

Q. How do I know which mode I have selected?

A. For the first 5 CALs that come with the server, you should complete the CAL license document. There is a field for writing in whether you would like to choose per user or per device CALs. For CAL add-on packs there are separate SKUs for per user and per device.

Harry’s Viewpoint: This is lame! The above statement is telling you that your universal CAL election is made with handwriting on a piece of paper, not via an elegant licensing management tool. Arrggg…

Q. How does multiplexing affect licensing?

A. Multiplexing does not reduce the number of CALs required for Windows Small Business Server 2003. For example, using a Terminal Server-based server does not reduce the number of Windows Small Business Server 2003 CALs required.

☛ CHAPTER So You 3 Want SBS to Be 2003 an SMB Licensing Con

Harry’s Viewpoint: This is true because your SBS 2003 network
authentication, even before you utilize TS, would require an SBS 2003 CAL.

Q. How do I know I am in compliance?

A. You will need to maintain records of what you have purchased, and how you have assigned the first 5 CALs that come with the server. Windows Small Business Server 2003 does not provide an automated way to track CAL use.

Harry’s Viewpoint: This about says it all. No licensing management tool is provided inside SBS 2003 and the burden is placed on you to keep track of your own CALs and associated compliance.

Q. How do I buy licenses for Windows Small Business Server 2003?

A. For pricing and licensing information, see Pricing and Licensing for Windows Small Business Server 2003 at the Microsoft Web site.

Harry’s Viewpoint: The Server Management console, shown in Figure 3-5, also allows you to learn about purchasing additional CALs from prized vendors. However, I still find Manage Client Access Licenses to be a lame tool.

Figure 3-5

Information about licensing can be found here. See the Purchasing Licenses

link for information about purchasing additional CALs.

 

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  Q. How do I add licenses for Windows Small Business Server 2003?

A. After you have obtained your CAL add-on packs, you use the Server Management console to enter the product key that ships with the CAL pack.

Harry’s Viewpoint: This is very easy to do. Have fun!

Q. Can I apply the CALs on multiple servers?

A. The product key that ships with the CAL pack can only be used with one server.

Harry’s Viewpoint: This makes sense. SBS’s fundamental design paradigm, in its heart of hearts, is a single server and this is consistent with that sentiment that SBS CALs would only apply to a single SBS server. Additional SBS servers on other separate domains would require additional unique CALs.

Q. I want to have additional Windows-based servers in my Windows Small Business Server 2003 domain. Do I need CALs for those servers?

A. Your Windows Small Business Server 2003 CALs cover you for any additional Windows-based servers in the domain. You do not need to buy additional CALs for them.

 

Harry’s Viewpoint: This is a KEY POINT. The SBS CALs act as CALs for the underlying network operating system (NOS) when additional Windows servers are introduced. This is a good thing!

Q. Does the Windows Small Business Server 2003 CAL allow me to access other Exchange or SQL servers on the network?

A. The Windows Small Business Server 2003 CAL only covers you for the single Windows Small Business Server server machine and any additional Windows Server System servers. Additional CALs will be required for Exchange, terminal server, or SQL servers in the network.

Harry’s Viewpoint: This is correct. If you want to add more Microsoft server applications on additional servers, you would need new application-level CALs for those servers. I liken this to an example I use in lecture. If you wanted to add an Oracle database application on a member server, do you really think your SBS 2003 CAL would cover that licensing requirement? Nope!

Q. Do accounts such as the administrator account and service accounts need a CAL?

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A. If you choose per user CALs and then install third-party applications that create accounts, you will need a single CAL for each.

Harry’s Viewpoint: This is a little known factoid about SBS 2003 licensing and very important to know! Susan Bradley notes that mileage may vary here and she has not seen any of her applications consume a CAL on an SBS 2003 network.

Q. Is each per user license tied to a specific user?

A. If you choose per user CALs, then each Windows Small Business Server 2003 user will consume a CAL, and that CAL is tied to that specific user. You can re-allocate a user CAL if that reassignment is permanent. You can also temporarily re-assign it if the user or device is disabled or on leave.

Harry’s Viewpoint: Point made and case closed. This mirrors the example of the fired CFO and bookkeeper with the Alaskan fishing company.

Q. Is each per device license tied to a specific device?

A. If you choose device CALs, then each device that accesses the Windows Small Business Server 2003 server will consume a CAL. You can re-allocate that CAL if you retire a device.

Harry’s Viewpoint: This reiterates the earlier point in this chapter that a device CAL is tied to a specific device.

Q. If I have selected to be licensed in one mode for Windows Small Business
Server 2003, am I then restricted to that mode for member servers as well?

A. Yes, your choice of licensing mode applies to any member servers within the Windows Small Business Server 2003 domain.

Harry’s Viewpoint: Betcha didn’t know this one. A strange but true fact of SBS 2003 licensing. SBS 2003 supports per user/per device mode and the other member servers must honor that fact. And the official Microsoft documentation says to use per user or device to ensure that you don’t have errors in your log files such as error 202 in the event logs.

Q. Can I use the SQL Server component for Web-based business applications?

A. Yes, new with Windows Small Business Server 2003 is the ability for you to
use the SQL Server component for an unlimited number of un-authenticated

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  users. As long as you are un-authenticated, you also do not need a Windows Small Business Server 2003 CAL.  
  Harry’s Viewpoint: This is a common question regarding e-commerce functions using SQL Server 2000 in an SBS 2003 environment. Take heed. Also note that we have friendlier SQL Server 2000 licensing terms and conditions than the standalone SQL Sever 2000 product.

Q. If I bought Windows Small Business Server 2003 from an OEM, where do I go to get additional CALs?

A. You can purchase additional CALs from any sales channel you prefer (retail, open, OEM) and use those CALs with a server purchased through the OEMs. You can also get additional CALs through some OEMs. Contact your OEM for more information on your CAL purchase options.

Harry’s Viewpoint: This is another common question. If you purchased an HP server, you could purchase your additional CALs from HP.

Q. Does Windows Small Business Server 2003 Standard Edition have downgrade rights in volume licensing?

A. No, only Windows Small Business Server 2003 Premium Edition can be downgraded to Small Business Server 2000.

Harry’s Viewpoint: This is a somewhat academic discussion because you wouldn’t want to revert back to SBS 2000 unless you had a line of business application that was incompatible with SBS 2003, eh?

Q. Does my company qualify for Live Communication Server 2003 licenses as part of our Small Business Server Software Assurance purchase?

A. If your company is licensed for Small Business Server (server license and CALs) with Software Assurance on a product that was signed and valid as of October 1, 2003, then you are entitled to an equivalent number of Live Communications Server 2003 CALs and/or server licenses at a nominal media fulfillment fee. Contact your Microsoft reseller for more details about how to take advantage of this offer.

Harry’s Viewpoint: This speaks towards the restoration of the Instant Messaging function found in SBS 2000 as part of Exchange 2000 Server BUT which was removed in SBS 2003 when Exchange Server 2003 eliminated IM functionality. This is a peace offering from Microsoft. Also note that once

 
 
 

Visit www.smbnation.com for additional SMB and SBS book, newsletter and conference resources.

 

     

☛ CHAPTER So You 3 Want SBS to Be 2003 an SMB Licensing Con

you get the LCS, you are welcome to install it on any server in the SBS 2003 network (e.g. a member server). It doesn’t have to be installed on just the SBS 2003 server machine.

cheers….harrybbbb

Harry Brelsford, CEO at SMB Nation

MBA, MCSE, CNE, CLSE, CNP, MCP, MCT, SBSC (Microsoft Small Business Specialist)

PS – my Small Business Server 2008 (SBS 2008) book is now here! J

PPS – my spring show, SMB Nation Spring 2009, is in the NYC-area on May 1-3, 2009.

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