Microsoft Open Value Agreement Explained; Everything you need to know

The Open Value agreement is targeted at Small and Medium-Sized Enterprises (SMEs); organizations between 5 and 250 users that want to register all Microsoft licenses via one contract, with staggered annual payments (if desired).    

There are many other benefits to Open Value Agreement. These are version updates, support, training and home-use connection. For government institutions, there is the Government Open Value Agreement (duration of 3 years). 

The Entry level for Open Value Agreement is from 5 workstations. Open Value offers the possibility to put together a platform yourself or to opt for the full Desktop Professional Platform or Small Business Platform.    

In Open Value Non Company-wide, it is possible to purchase Office Pro Plus for only part of the workplaces.  

What offers make up the Open Value Agreement? 

There are two agreement options under the Open Value Agreement  should you decide to settle on any of them for your organizational use. These are the Open Value Organization-Wide and the Open Value Non-Organization-Wide.     

The Open Value Organization-Wide agreement allows customers to purchase licenses for software, Online Services such as Office 365, and Azure through a single agreement. Products purchased under the Open Value Organization-Wide agreement are known as Enterprise Products.

A customer can start with one component covered by the agreement and add additional Enterprise Products to the agreement.  

The Open Value Non-Organization Wide option simplifies license management for more control over your IT investments or infrastructure and better management of software costs with the advantages of Software Assurance (SA). 

Payment in this agreement is either upfront or spread annually. Subsequent orders can be for as little as one license with upfront or spread payment options available. Licenses for software purchases are perpetual and Software Assurance is always included.  

Terms under the Open Value Agreement    

Open Value meets the following needs:    

  • Annual installment payments.   
  • Order additional licenses that may be required monthly afterwards.   
  • Software Assurance services such as home use of Office, e-learning.   
  • One agreement for multiple entities within the same organizations. (All participating entities must be within the same geographic region as defined on the Microsoft website.)  

Price levels in the Open Value Agreement    

The price level aims to target businesses with minimal or basic software licensing needs. Also facilitating access to essential Microsoft software at a more economical price point. It is ideal for smaller organizations that are just starting out or have limited financial resources, yet require fundamental software tools for their daily operations.     

The Open Value Agreement has two price levels:   

   Level                                                                                                 Number of PCs   

  • Open Value Organization wide No level                       5 – 249   
  • Open Value Organization wide Level C                         250+  

The choice for standardization does not entail any additional price advantage.   

Payments structure in Open Value Agreement   

All licenses ordered during the first or second year can be paid in installments if desired. You can choose between one-off and payment in installments per order.   

Your decision to pay a one-off payment may attract some discount if well negotiated and the right consultations done.    

Yes, discount options may be available but ideally, who (Microsoft) will gladly cut off a substantial slice of their revenue if it can be avoided? Our experts due to years of negotiating see a discount window of opportunity when presented and can help you save on your expenditure.   

With Open Value you are offered the flexibility to spread the license cost over three annual payments. Once the final payment is made, you gain full use of the license hence, ownership. 

How to “Reorder” as a customer of an Open Value Agreement   

At the end of each calendar month, you place an order for any additional licenses. All products can be included in this order, including products that have not previously been purchased within the Open Value agreement. There is no minimum size for repeat orders.   

Purchase obligation and what it entails     

If payment in installments has been selected when purchasing licenses, all payments must be made. The number of licenses cannot be reduced in the meantime.  

Right to updates as a user on an Open Value agreement   

When a new version, enhancements and features of a product ordered via Open Value appears during the contract period, you will acquire the right to use that new version. This is known as the Right to Update which will not incur additional cost.   

Organizations are assured a seamless up-to-date access to latest features which they will automatically receive when available.     

Signing up for Software Assurance also makes it possible for updates to take place. Software Assurance also offers training, support and tools, to help businesses maximize the value of their Microsoft products.  

Licensing On-line (cloud) services in the Open Value Agreement

Each user is assigned a User Subscription License (User SL). This is what licenses the user to access the relevant Online Services from any device. User SLs may be reassigned, but the usual 90-day rule applies. 

Some of the Online services available are Microsoft 365 and Office 365. Under the Microsoft 365 the licenses are for Microsoft 365 Business Basic and Microsoft 365 Business Standard. 

For Office 365, available licenses are for Exchange Online, SharePoint Online, OneDrive for Business, Microsoft 365 Apps for business and Microsoft 365 Apps for Enterprise. 

Duration agreement in the Open Value Agreement   

The term of the Open Value agreement is 3 years. After this period, you can choose three alternatives:   

  • Do nothing. You can continue to use the software versions that are commercially available at the end of the contract period. You receive perpetual usage rights for this and previous versions.   
  • Renew the Open Value contract for 3 years. At the start of this second three-year period, you order Software Assurance for the licenses you purchased during the first period.   
  • Switching to a different license form.   
  • Engage the services of another LSP or CSP on how to acquire other agreements. 

Are you looking for experts for independent advice, tendering, contract negotiations, on-premises & cloud optimization?   

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