The Open Value “family” includes Open Value Perpetual & Open Value Subscription. These are the replacement for MYO & OSL agreements (if you remember those!).
Open Value Perpetual (OVP):
There are a number of differences between OVP & OLP, the main ones being:
- Software Assurance (SA) as standard
- Agreement term is 3 years
- Payments are spread over the 3 years
- Software Assurance (SA) is included as standard with all licences
Software Assurance gives you access to the various benefits, including free version upgrades (there will be more on SA in another post); and as the agreement is 50% longer than OLP (3 years instead of 2) you get even better ROI (Return on Investment).
How do you pay?
The total cost of each item is divided by 3 and you pay over the 3 years of the agreement, meaning you pay 1/3 at the time of ordering, and then 1/3 again on the yearly “anniversaries” for the next 2 years . This can make budgeting a lot easier as it reduces the initial hit to the budget and brings stability to future software costs too (through Software Assurance).
There is also a “Company-Wide” version which gives you extra discounts if you standardize on a product “Platform” such as:
Professional Desktop Platform = Office Pro 2007, Vista Business, Core CAL
across every eligible machine in your organization.
Finally, OVP is a perpetual Licensing scheme which means you own the licences at the end of the 3 years. At that point you can choose to renew the SA to keep those benefits going-which I would recommend doing
Open Value Subscription (OVS):
The most important thing to be aware of is this is a NON-perpetual agreement, meaning you never “own” the licences-you’re effectively just renting them. You pay the total price for the licences each year and as they inculde SA, you’re always able to run the most current version of the software.
Pricing and Payment:
Due to their non-perpetual nature, the unit prices of OVS licences are much cheaper when compared to OLP or OVP but of course, the payments must be made each year ad infinitum.
One big benefit of OVS is the abiilty to “True-Down” on your anniversary and reduce your licence quantities if the number of PC’s in your organisation has gone down. This can prove to be especially useful in times such as those we’re experiencing now as companies, if they have been forced to make job cuts, can drop the amount of licences to bring it in line.
Also, companies need only pay for the numberof licences in use at their yearly anniversary. This can be very useful for companies that have a seasonal nature to their business such as anything to do with Christmas, Easter, Summer holidays etc, as they can have the increased workers without incurring extra costs
Do I have to keep renewing?
When it comes to your yearly anniversary, you do have a number of options:
- Renew the agreement for another year
- “Buy Out” the licences to make them perpetual
- Un-install the software
The Buy Out option gives customers a route to turn their subscription licences into perpetual licences, but it isn’t cheap! If you choose this route, you will be charged your previous annual cost x 1.75, and if you want to keep the licences covered with Software Assurance (SA), you will need to buy that separately via another licensing program such as OLP or OVP.
From my experience at work, Open Value Perpetual is by far the most popular choice, as it gives the benefits of spread payments and Software Assurance but coupled with the security of perpetual licences.