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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: FJB who wrote (146144)	10/27/2001 1:16:10 AM
From: rudedog	Read Replies (1) \| Respond to of 186894

It sounds like these are MOLP licenses, which are a hybrid between OEM and retail and are designed for Mom and Pop stores. Unlike the blanket OEM distributions, which have special installation requirements, serial number tracking, and require the OEM to provide the support, MOLP licenses can be bought by pretty much anyone in quantities as low as 3 units. And, as you say, the difference is primarily that you don't get the box. But you also don't get much discount. Microsoft figures the value of the license closely. OEMs get the best deals - but they have to commit to huge volumes, and their discounts are proportional to the "min commit" level (they have to buy at least that many). Also, the OEMs have to provide support. They get no media, and they get only a stripped down documentation pack. So Microsoft does not have the back end cost of support and they don't have to worry about media. Those licenses have no hologram or activation code - that information is on the computer, not on the software documentation. Select licenses work almost the same way - those are for corporate customers who buy large quantities direct from Microsoft, and again the discount is proportional to a minimum commit. Select licenses have NO documentation - it's a virtual sale. The corporate customer gets master files for the software, and distributes it directly. Compliance with the agreement is done by an agent called a LAR (Large Account Reseller) whose only job is to sell select agreements and collect license fees. MOLP discounts vary from around 5% for a 3-pack to as much as 15% for fairly large quantities. MOLP packs have media and a hologram / activation code in the package. Microsoft provides support. Based on what you are saying, that is the kind of software you are referring to. MOLP licenses are supposed to be sold with hardware, but there is actually no restriction in the license. They are also transferable although there are restrictions. MOLP licenses are really a kind of stripped down retail package and are treated internally as end user sales for support purposes. But given that the discount tops out at 15%, that amounts to $30 on a $200 license - so someone competing with a big retailer like Best Buy pays more than the retailer does. Maybe they have upped the discount for XP... that would be surprising, I have not known Microsoft to be a philanthropic outfit. In any event, I think I now understand what kind of license you are talking about, and I have talked myself into thinking it's probably legal to buy a MOLP license with no hardware. After all, anyone with a reseller license can buy a MOLP 3-pack and get his $10 discount.