Microsoft Office Licensing

Microsoft Licensing can be a bit confusing – so here is a 5-minute guide.

We can offer all license types – OEM, FPP and Volume License, but we normally find most people are happy with OEM licensing. This is where you purchase a license at the same time as the PC, which can only be used on that PC. For the Office Home & Business edition (which includes Word, Excel, Powerpoint and Outlook) usually costs around £149.

PKC is the new name for OEM, so if you see PKC it mean’s the same thing.

For home users who don’t need Outlook, Microsoft has started a new line called Home & Student. This offers a significant discount for purchasing the software for non-commercial use only. Typically you can get Office 2010 Home & Student as OEM for around £79, and FPP for around £99.
The FPP – Full Package Product – is a little dearer but can be used on any 1 computer at any one time, so if you change your PC or laptop, you can uninstall Office from your old computer and use the same license on the new computer. We tend to find people want the new software to go with their new PC, so the advantage of this isn’t always that attractive. Additional advantages are that if you have a desktop and a laptop that only 1 person uses, you can use the same office license on both. This is a trust-based license that only the same person ever uses Office on both the desktop and laptop. FPP for Home & Business edition (as above) is around £179
The Volume License option is favoured by larger companies, because of some of the technical advantages you gain (ie 1 installation code for 1000+ installations). Typically we find the cost of these licenses outweigh any benefits that our (relatively small) customers would gain. Other advantages include the option to spread payments over 3 years, and to purchase Software Assurance, which is an additional subscription allowing you to run the latest version of the software, as of the moment your subscription expires. The cost for Office Standard is around £299 with a minimum purchase of 5 units, so is significantly more costly than the other 2 options.

These prices are correct as of August 2011, and exclude VAT and delivery.