How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 483.88

+1.6%

3:59 PM EST

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To: Stephen O who wrote (48119)	7/24/2000 10:58:35 PM
From: rudedog	Read Replies (3) of 74651

Stephen - here's the way it works. If you buy a new computer on which the manufacturer has preloaded a Windows OS and perhaps the office suite, that OEM has a deal with MSFT which licenses that software on that machine. The end user gets the right to that license on that machine, not on any other machine. If you buy a machine with no OS, your only legal option to use MS products is to install software that you have purchased yourself, not as a part of an OEM bundle. The ways you can do that are through a select license, which is a volume licensing agreement between MSFT and the company using the products, or by buying the product "shrink wrapped" - either through a small volume agreement (typically 3 unit lots) or individually. Large customers go the Select route because they get pricing which is close to the OEM price, they get "free" upgrades (if they have a platinum support agreement) and they can shift the hardware without worrying about software - they just need enough licenses for whatever is currently running. This has been the way MSFT licensed software for many years.

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