New Options for Microsoft Server Licensing
Microsoft Windows Server 2003 Terminal Services
New Product Licensing Options
Complement Technology Evolution



Microsoft is introducing new licensing
options to address your business needs
and complement the technical
capabilities of our server products.
This is part of our ongoing effort to make
licensing more consistent, predictable,
and flexible for you.
These new changes will be available for
the Microsoft® Windows Server™ 2003
Terminal Services release.
Key elements of User CAL
Today’s model
1.
Available for: Microsoft
Windows Server 2003 and
Microsoft Windows Server
2003 - Terminal Services
(TS)
2.
Pricing: 1 User CAL = 1
Device CAL
3.
Choice: You can acquire
 Device CALs only
 User CALs only, or
 Mix of Device and User
CALs
• “Device” CALs
• Microsoft Windows Server Licensing
modes: per server or per seat
• Acquire a CAL for every device
accessing the server software
New model
• Option of User or Device CALs
• Acquire a CAL for every User or
Device accessing the server
software
What does this mean?
• You now have a choice to license
in a way that best suits their
needs.
Key elements of the External Connector
Today’s model
Internet Connector(s) for Windows
Server and TS
 Covers your devices
 Excludes business partners’
 TS-IC was limited to 200 devices
and unauthenticated
1.
Available for: Microsoft
Windows Server 2003 and
Microsoft Windows Server
2003 - Terminal Server
2.
Pricing: One price per product
(Windows) or service (such as
TS), independent of edition
New model
External Connector license
 Covers External Users (i.e.
customers and partners)
 Provides an unlimited number of
External User access to a copy of
the server software and/or services
(such as TS)
What does this mean?
• You now have a choice to license
in a way that best suits their needs.
3.
Choice: You will be able to
choose for External Users:

EC, or

Individual CALs (either
device or user)
Note: for Non External Users:

CAL is always required*
*except when access is unauthenticated and is
through the Internet (i.e. surfing a website)
What is the Operating System
Equivalency Provision for Microsoft
Windows Server Terminal Services?
The Operating System equivalency provision (OS equivalency provision) states that there is
no need for a Microsoft Windows Server Terminal Services Client Access License (CAL) for
devices accessing Microsoft Terminal Services that are running a corresponding version of
the Professional Edition of the Microsoft Windows Desktop Operating System. The
following table summarizes the versions of the Microsoft Windows Professional Desktop
Operating System that correspond to a version of Windows Server Microsoft Terminal
Services:
Microsoft Windows Server Terminal
Services Version
Corresponding Versions of Microsoft
Windows Desktop Professional
Microsoft Windows 2000 Server Terminal
Services
Microsoft Windows 2000 Professional (or
later version of Windows Professional)
Microsoft Windows NT® Server 4.0
Terminal Server Edition (separate product
at that time)
Microsoft Windows NT Workstation 4.0 (or
later version of Windows Professional)
Why is Microsoft removing the OS Equivalency
Provision for Microsoft Windows Server 2003
Terminal Services?
Additional Product Value
Microsoft has added new functionality to Terminal Services in the Microsoft Windows
Server 2003 release. This release of Terminal Services software will provide more business
value than previous releases and the additional functionality will provide you with a better
out-of-the-box solution. The following is a summary of some of the improvements that
you will be able to take advantage of:

Better User Experience



Enhanced Manageability



WMI, Group Policy, ADSI, MMC Snap-In, Software Restriction Policy
Windows System Resource Manager (WSRM)- Included in Windows Server 2003, Enterprise
Edition
Increased Scalability



Advanced Resource Redirection: (Disk drives, Local and Network Printers, Serial devices, Smart
Card, Clipboard, Time zone, Audio output, Windows key combos)
Hi Color (Up to 24-bit), 1600x1200
Scale-up: improvements to scalability in larger SMP systems
Scale-out: support for Load Balancing (Session Directory)
Enhanced Security



128-bit bi-directional RC4 encryption
FIPS (Federal Information Processing Standard) Encryption Level
Smart Card Support
Why is Microsoft removing the OS
Equivalency Rule for TS CALs?
Ease of Management, Consistency and Flexibility for customers
The introduction of the new options for licensing Microsoft software products that are
licensed in the Server CAL model reflects our commitment to making licensing more
consistent, flexible and valuable to customers. We received feedback from customers
that the OS Equivalency provision was inconsistent with those qualities.

The OS Equivalency Provision resulted in situations where customers were at risk of becoming
noncompliant. In the past, customers using the most current version of the desktop operating
system were granted access to Windows Terminal Services in the Windows Server Operating
System. But if they upgraded to a new server operating system and didn’t upgrade their client
operating systems, they were required to acquire Windows Server Terminal Services
CALs. Depending on their client upgrade cycles, customers could easily find themselves
moving in and out of compliance with licenses. This caused a great deal of frustration and
confusion to those customers.

Microsoft Windows Terminal Services is adding the User CAL and External Connector options
to solve many customer problems encountered with our previous Microsoft Windows Terminal
Services licensing models. Keeping the OS Equivalency Provision, in conjunction with the new
CAL options, would result in customers having to do complicated calculations to figure out
what to buy and when. For more information on the User Cal and External Connector options,
please refer to: http://www.microsoft.com/licensing/resources/server_overview.asp

The new licensing model for Microsoft Windows Terminal Services in Windows Server 2003 is
more consistent with the Microsoft Windows Server licensing model. We received feedback
from numerous customers that the licensing of Terminal Services was highly confusing, largely
due to the OS Equivalency Provision. Because Windows CALs and Windows Server Terminal
Services CALs are both required when using Microsoft Windows Terminal Services, having the
same license structure removes a layer of complexity.
Transition Plan for OS Equivalency
Removal for TS CALs?
Current Microsoft Windows XP Professional customers will be
entitled to TS CALs:

For every Microsoft Windows desktop that you have licensed through
an EA or enrolled SA/UA, you will be entitled to a Microsoft Windows
Server 2003 Terminal Services CAL with SA for the remainder of the
EA, UA, or SA coverage term at no additional charge.

For every Microsoft Windows XP Professional desktop license that a
customer owns on the date that Microsoft Windows Server 2003
becomes publicly available, you will be entitled to a Windows Server
2003 Terminal Services CAL (no upgrade rights) at no additional
charge.
Migration to Microsoft Terminal Server
CALs – Open License Customers
How do I migrate to Microsoft Windows
Server 2003 Terminal Services CAL, if I
am in the following situation upon the
launch of Microsoft Windows Server
…..
Answer*
Open
License
Customer
Microsoft Windows
Desktop Professional
Edition Upgrade
L&SA/UA, with UA/SA
active at the time of
launch of Windows
Server 2003
Receive Microsoft Windows Server 2003 Terminal Services CAL and
SA/UA coverage during remaining term of SA/UA.
Microsoft Windows XP
Professional Edition
Upgrade L
Receive Microsoft Windows Server 2003 Terminal Services CAL
Microsoft Windows
Desktop Operating
System license (any
edition or version other
than Microsoft Windows
XP Professional), not
including SA/UA.
Either 1) acquire Microsoft Windows XP Professional Upgrade License
before the launch of Microsoft Windows Server Terminal Services and
receive a Microsoft Windows Server 2003 Terminal Services CAL, or 2)
acquire a CAL for Microsoft Windows Server 2003 Terminal Services
* Note: Microsoft Windows Server Terminal Server CALs can be deployed in either User or Device mode. However, any
previous version can be deployed only in the device mode, due to technical product limitations. Hence, customers may not
downgrade to User CALs for Windows 2000 Server Terminal Server and previous versions.
Migration to Microsoft Terminal Server
CALs Open License Customers – cont.
How do I migrate to Microsoft Windows
Server 2003 Terminal Services CAL, if I
am in the following situation upon the
launch of Microsoft Windows Server
…..
Answer
Open License
Customer
Microsoft Windows
Server Terminal Services
CAL (any version other
than Microsoft Windows
Server 2003 Terminal
Services.)
Either 1) acquire Microsoft Windows XP Professional before the launch of
Microsoft Windows Server Terminal Services and receive a Microsoft
Windows Server 2003 Terminal Services CAL, or 2) acquire a CAL for
Microsoft Windows Server 2003 Terminal Services
Terminal Services
CAL&SA/UA, with UA/SA
active at the time of
launch of Windows
Server 2003
Receive Microsoft Windows Server 2003 Terminal Services CAL and
SA/UA coverage during the remaining term of SA/UA.
* Note: Microsoft Windows Server Terminal Server CALs can be deployed in either User or Device mode. However, any
previous version can be deployed only in the device mode, due to technical product limitations. Hence, customers may not
downgrade to User CALs for Windows 2000 Server Terminal Server and previous versions.
Migration to Terminal Server CALs –
Select Customers
How do I migrate to Microsoft Windows
Server 2003 Terminal Services CAL, if I
am in the following situation upon the
launch of Microsoft Windows Server
…..
Answer*
Select License
Customer
Microsoft Windows
Desktop Professional
Edition Upgrade
L&SA/UA, with UA/SA
active at the time of
launch of Windows
Server 2003
Receive Microsoft Windows Server 2003 Terminal Services CAL and
SA/UA coverage during remaining term of SA/UA.
Microsoft Windows XP
Professional Edition
Upgrade L
Receive Microsoft Windows Server 2003 Terminal Services CAL
Microsoft Windows
Desktop Operating
System license (any
edition or version other
than Microsoft Windows
XP Professional), not
including SA/UA.
Either 1) acquire a Microsoft Windows XP Professional Upgrade license
before the launch of Microsoft Windows Server Terminal Services and
receive a Microsoft Windows Server 2003 Terminal Services CAL, or 2)
acquire a CAL for Microsoft Windows Server 2003 Terminal Services
Terminal Services Work
at Home CAL
Receive Microsoft Windows Server 2003 Terminal Services CAL
* Note: Microsoft Windows Server Terminal Server CALs can be deployed in either User or Device mode. However, any
previous version can be deployed only in the device mode, due to technical product limitations. Hence, customers may not
downgrade to User CALs for Windows 2000 Server Terminal Server and previous versions.
Migration to Terminal Server CALs
Select Customers – cont.
How does a customer migrate to
Microsoft Windows Server 2003
Terminal Services CAL, if I am in the
following situation upon the launch of
Microsoft Windows Server …..
Answer*
Select License
Customer
Microsoft Windows
Server Terminal Services
CAL (any version other
than Windows Server
2003 Terminal Services)
Either 1) acquire Microsoft Windows XP Professional before the launch of
Microsoft Windows Server Terminal Services and receive a Microsoft
Windows Server 2003 Terminal Services CAL or 2) acquire a CAL for
Microsoft Windows Server 2003 Terminal Services
Terminal Services
CAL&SA/UA, with UA/SA
active at the time of
launch of Windows
Server 2003
Receive Microsoft Windows Server 2003 Terminal Services CAL and
SA/UA coverage during the remaining term of SA/UA.
* Note: Microsoft Windows Server Terminal Server CALs can be deployed in either User or Device mode. However, any
previous version can be deployed only in the device mode, due to technical product limitations. Hence, customers may not
downgrade to User CALs for Windows 2000 Server Terminal Server and previous versions.
Migration to Terminal Server CALs –
EA Customers
How does a customer migrate to
Microsoft Windows Server 2003
Terminal Services CAL, if I am in the
following situation upon the launch of
Microsoft Windows Server …..
Answer*
Enterprise
Agreement
Customer**
Microsoft Windows
Desktop Operating
System enrolled in an EA
that is active at the time
of launch of Windows
Server 2003
Receive Microsoft Windows Server 2003 Terminal Services CAL and
maintenance coverage during remaining enrollment term.
Terminal Services Work
at Home CAL
Receive Microsoft Windows Server 2003 Terminal Services CAL and
maintenance coverage during remaining enrollment term (unless
otherwise stated in your agreement).
Microsoft Windows
Server Terminal Services
CAL (any version)
(without Microsoft
Windows Desktop
Operating System
Upgrade)
Receive Microsoft Windows Server 2003 Terminal Services CAL and
maintenance coverage during remaining enrollment.
* Note that Microsoft Windows Server Terminal Server CALs can be deployed in either User or Device mode. However,
any previous version can be deployed only in the device mode, due to technical product limitations. Hence, customers may
not downgrade to User CALs for Windows 2000 Server Terminal Server and previous versions.
** Note that maintenance coverage is included during EA enrollment.