WinXP Pro licenses: OEM vs Volume licensing

[bcb]

Hello

We develop custom software and also provide the hardware and provide
servicing, so if a customer buys a PC we pre-install all the software and
are also entitled to replace failing hardware. We install a minimum of 4
pc's per location. What I have to decide is what kind licensing we should
use, either OEM or Volume licensing.

Say I need to setup 6 pc's which use the exact same hardware configuration.
I would install the OS and all needed software and drivers on a single PC.
Then I would use Symantec's Ghost software to image that HD and then apply
that image to the other 5 pc's.

1) Is it ok I use volume licensing in this situation?

Here is what I know so far. Volume licensing does not require activation
while OEM does so that's a plus if your using a utility such as Ghost to
distribute the images. An OEM license is bound to a single machine, so if
the PC hardware fails I also lose the WinXP license for that PC.

2) Say only the motherboard has failed, I cannot just replace that failing
part and still keep the OEM license for that PC?

3) If I choose volume licensing, the license for those PC's doesn't expire
after a certain period?

4) The OEM license method needs that I place the COA sticker on each PC. Can
I place the sticker inside the PC case or must it be visible from the
outside? I suppose the volume licensing also requires a sticker to be placed
on each PC?


If someone can also recommend a reputable seller with decent pricing of XP
licenses that would also be very appreciated.

Thanks very much!

 

[Manda Luyong]

I don't think you have a choice but use OEM since it sounds like you are the
OEM.

 

[Oli Restorick [MVP]]

I will second that. In addition, volume licenses for OSes are upgrades and
so there must already be an OEM version of Windows on the PC.

As far as the sticker is concerned, it needs to go on the outside of the
case and be visible. The stickers are very robust.

Oli

 

[David Jones]

Your questions would be much better answered by the
actual Microsoft licensing pages and contacting a
reseller or Microsoft directly for Volume License
information - http://www.microsoft.com/licensing is a
good starting point.

 

[bcb]

Thanks David.

I have contacted a few resellers listed on Microsoft's site, not a reply in
24 hours :-(
Can you suggest a reseller that you've dealt with before and happy with
their service and support?

 

[bcb]

Thanks to all for trying to help

I will second that. In addition, volume licenses for OSes are upgrades and
so there must already be an OEM version of Windows on the PC.

That's the first time I've read or heard that. So if I decide on volume
licensing I must first buy an OEM license for each PC and then also include
each pc in the volume license ? which costs per pc aswell.

As far as the sticker is concerned, it needs to go on the outside of the
case and be visible. The stickers are very robust.

So I've heard ;-)

 

[bcb]

Thanks for replying

I don't think you have a choice but use OEM since it sounds like you are the
OEM.

Other than the reason Oli already mentioned
quote: In addition, volume licenses for OSes are upgrades and
so there must already be an OEM version of Windows on the PC

Are there any other reasons volume licensing will not suite me better?

and just another question please. If I do choose OEM, the license is bound
to the PC but does it become invalid if I swap a piece of hardware such as
the graphics card,motherboard or memory?

Thanks again.

 

[Manda Luyong]

According to your original post, you build and sell PCs. This makes you the
OEM. I don't think OEMs are allowed to even purchase, install and sell
Volume Licensed XP. Volume Licensing are designed for the end users and not
the OEM. There are also certain procedures that must be followed when
transferring Volume Licensed OS. As far as Oli's comment, it is true that
Volume Licenses are basically upgrades. There must be a qualifying OS
already licensed to the PC. Here is the link:
http://www.microsoft.com/licensing/resources/os_newpc.asp
What you could do is ask your customers to purchase Volume License (minimum
5 license) in advance so you could install it for them if you want.

 

[Manda Luyong]

Yes it is true that OEM XP is bound to the PC. However, you could still
change major components like what you mentioned below without a problem.
The worst thing that could happen is that you have to reactivate by phone.
My OEM version of XP has gone thru 3 motherboards and 3 CPUs already. All
it takes is a 5 min call to MS to explain what I'm doing.

 

[bcb]

Thanks for the clarifications I really appreciated it.

 

[Oli Restorick [MVP]]

The license remains as long as the PC is valid. You are certainly within
your rights to change a graphics card, motherboard or memory. The question
then arises if you change all or almost all of the components whether it is
the same PC. I don't know the answer to that, but it would be safe to say
that if you swapped all but a sound card then it is not the same PC.

I don't know where Microsoft draws the line. There may be a document
somewhere that describes what changes constitute a PC being a new PC, but I
have not seen it. If you use your own judgement as to when your PC is no
longer the old one and is now a new PC, you shouldn't go far wrong.
Personally, I would say that a change of motherboard, CPU and RAM
constitutes new PC, but that's my own judgement.

XP's product activation is a related, but separate matter. Just because XP
senses a significant change and wants you to reactivate does not mean that
you have necessarily done anything against your EULA.

Regards

Oli

 

[Guest]

FYI. There is a system builder licensing newsgroup on www.microsoft.com/oem that answers questions specific to OEM system builder licenses. Answers are posted by a team at Microsoft within 3 business days. Thanks!