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Windows Vista Licensing Changes

Category : Ramblings

With Windows Vista comes some new licensing rules and
restrictions. While the experience for the retail purchaser is not going to
change too much, there are big changes ahead for the corporate user. 
Let’s take a look at some of these changes.

First of all, Vista introduces a new mode
called “reduced functionality mode”. This is the mode that Vista enters if it is not activated within the activation
window (generally 30 days from date of install).  Reduced functionality
mode allows the user to perform a limited amount of tasks (including web
browsing) for up to 1 hour.  After one
hour the user is forcibly logged off without warning.  Although Microsoft denies it, the Windows
Genuine Advantage checks that are performed periodically can also make Vista go into reduced functionality.  This could
happen if at some point, Microsoft determines that the product key that was
used to activate your copy of Vista is a
pirated one.  It would allow Microsoft to effectively recall a product
key.  This is obviously a good anti-piracy tool however there have been
some documented cases where a user with a valid license was locked out. 
The only way to prevent this would be to prohibit software updates which would
be foolish as we all know that vulnerabilities and exploits are going to be
found and running an unpatched version of any software product is an invitation
to disaster.

Initially, Microsoft claimed that they were going to limit the ability to move
a license from one machine to another, but they backed away from this. 
What this means to most people is that if you purchase a retail license, you
can re-activate it as necessary if you rebuild your computer of move it to a
new computer if you replace your existing one.  Note however that licenses
that ship pre-installed on computers (OEM licenses) are locked to that machine
and cannot be moved.  They die with the system.

On the business side, Microsoft is introducing some substantial changes. 
Large organizations could purchase Volume License Keys (VLK) that would allow
the installation of XP on systems without requiring product activation. 
This enabled organizations to build and deploy machines as often as they liked
- they were simply on an honor system to report how many machines they had in
their environment and pay Microsoft appropriately.  Microsoft figured out
that these Volume License versions were heavily pirated due to lack of need to
activate so they have addressed this problem in Vista
With Vista, all Volume Key installs need to be
activated. 

Microsoft provides two mechanisms to manage this.  With the first
approach, a company receives a number of VLKs called MAKs or Multiple Key
Activations.  Each of these keys can activate a specific number of
computers.  Once a company burns through these activations, they would
need to contact Microsoft and explain why they need more.  It is important
to keep in mind that if the operating system is reinstalled on the same system,
it will consume another activation.  If your organization frequently
reinstalls Vista, then the MAK method may not
work well for you.

The second approach used a Key Management Server (KMS).  With this second
approach, the organization installs the KMS service on a Windows Longhorn
Server or Windows Vista system (a Windows 2003 version is forthcoming in 2007). 
That server is then registered with Microsoft’s activation servers.  From
then on, the server with the KMS service installed handles activation for
systems within the organization.  There is no need for systems to
communicate with Microsoft’s product activation servers.  The catch is
that systems that are activated locally through the KMS, must re-activate every
six months or they go into reduced functionality mode.  This helps to
ensure that only the organization’s active systems are using the organization’s
VLK.

More detailed information on Microsoft’s licensing policies
for businesses can be found here

Regardless of whether you are a home user or a business one,
it is clear that Microsoft’s new licensing policies are going to make things
somewhat more complicated for you.  I’m
interested in hearing your feedback.  I,
for one think that with the rise of good alternatives to Microsoft Windows such
as the Mac and Linux, things are going to get interesting in Redmond. 
What do you think?

-jim

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