“If you can’t explain it simply, you don’t understand it well enough” – Albert Einstein

This is one area where SAM Assured hope we can save you years of self-education.  We have meticulously put together all the terms/acronyms you might encounter when it comes to Software/Licensing/Compliance in one easy place.  Click here to get a downloadable copy. 

Active Usage

Standard usage captured usually just tells you when a user has simply had an application open. Active usage focuses on the time spent actively working within the application (regardless of how long the application has been open).  For example, Jane Doe might have Outlook open for 9 hours every day, but she might only have 3 hours of active usage.

Add-on Licenses

These licenses are applied just as they suggest…they are added to an existing license purchase.  For example, if you have a Microsoft365 E5 license or a Power BI Pro license for a user, you can add on a SKU (Stock Keeping Unit) for Power BI Premium at a very affordable price.

Agent

A program that you can install on a computer to gather information.  It is usually very small and has a well-defined task.  Agent-based discovery is arguably the best way to gather software inventory.

Agentless

Agentless scanning/inventory is a way of gathering software inventory from a device without having to install an agent.  This method is often used in secure environments that won’t allow for an agent to be deployed.  Agentless scanning uses various network protocols and APIs (Application Program Interfaces) to observe your assets and their applications.

Agreement

Another word for a contract.  Contracts/agreements will be signed for a set term and will preside over all the agreed software products (and therefore supersede any of the direct product terms).  It is usually here where software manufacturers set their expectations around audit frequency. It is important to remember that agreements can be negotiated, and you don’t have to accept the initial terms proposed.

Air-Gapped Environments

This refers to environments that don’t have access to the public internet.  Either they are completely offline or just have no access to local networks.

Applications

An application is a computer program aimed at end users designed to carry out a specific task other than one relating to the operation of the computer itself, typically to be used by end-users.  We recommend some videos explaining the different types of software (see Training).

Application Streaming

Also associated with terminology such as Terminal Usage/Services, Citrix, and Remote Desktop Services.  End users who don't have an application locally installed can access these from a server off of a company/home device.  This type of access is often licensed differently to standard rules.

Audit

There are many types of audits, self-audits, manufacturer audits….audits that get called ‘Customer Engagements’, ‘Self Declarations’ etc.  Essentially an audit is simply a formal examination of one's software assets, usually performed by an independent party.

Base License

This is what a license becomes referred to once an upgrade/step-up/add-on license is applied to it (the initial application purchase).  For example, if I purchase Microsoft Windows Server Standard licenses and then apply step-up licenses to Microsoft Windows Server Datacenter, the Windows Server Standard licenses would be considered the Base Licenses.

Best Practices

A term that means exactly what it says.  There may be 10 ways to peel an apple, but there will be a way that suits the peeler best and is the most efficient way.  This is the same with Best Practice guidelines within an organization, they are drawn up to ensure good outcomes are produced if followed.

Bring Your Own Device (BYOD)

Staff may be allowed to bring in and use their own devices from home for work purposes. This practice is called BYOD. It is important to note that the rules around such activity are usually quite restrictive and these particular devices and the liability they create is very hard to manage.  It is often company policy not to allow this.

Central Processing Unit (CPU)

This is a piece of hardware also known as a Processor.  It carries out the instructions of a computer program by performing basic operations of the computer system.  You can think of a CPU as a calculator that runs incredibly fast.

Client

An easy way to think of these would be workstations/end devices, but essentially the term applies to any system or program that requests the activity of servers.

Client Access License (CAL)

This is a Microsoft license type.  It has been named very aptly as it is required when users/devices have access to a particular environment and/or services.  The requirement for CALs has been replaced in large by more modern management-based packages (365 products and suites) but are still required for things like Remote Desktop Services.

Configuration Management Database (CMDB)

A database that contains not only relevant information about the hardware and software in an organization's IT environment but also the relationship between these.  ServiceNow, Flexera, and ManageEngine are all good examples of CMDB software manufacturers.

Contract

Another word for a software agreement.  Contracts/agreements will be signed for a set term and will preside over all the agreed software products (and will supersede any of the direct product terms).  It is usually here where software manufacturers set their expectations around audit frequency. It is important to remember that agreements can be negotiated, and you don’t have to accept the initial terms proposed.

Competitive Upgrade

We don’t really see a lot of these anymore, but essentially it was the part name for a purchase, transitioning customers over from a competitor’s software.  For example, Microsoft users might have received a competitive upgrade to Google products.

Component

This term relates to the individual products that make up a suite of products.  Microsoft Office is a good example here as Word, Excel, Outlook, etc. are all components of the Office suite.

Concurrent Usage/Licenses

These might also be referred to as ‘floating’.  And essentially means that as long as you aren’t using more than x number of licenses at any given time, you are OK.  We usually find this type of license/usage in the educational space.  For example, you may have 500 users/devices, and only 400 concurrent licenses; as long as no more than 400 users/devices are accessing the software at any given moment, you are compliant.  This is usually managed within the software itself.

Consumption-Based Licensing

A rare licensing model that allows the user to only pay for the actual usage of the product.  This often requires a down payment in advance and this pool of funds is then ‘eaten’ away based on the amount of use and colloquially known as pay-as-you-go.

Core

A computer core is essentially a processor for the computer's Processor (CPU).  Whilst original computer processors used to have just one core, modern computers have extremely more. A single core can work on one task while another core works on a different task.

Cloud Solution Program

A Microsoft program that enables partners to directly manage their customer’s entire Microsoft cloud lifecycle.  CSP agreements are considered more flexible given there is no upfront cost, requirements can be adjusted monthly and they can be cancelled at any time.  You can also opt to be billed monthly.

Discovery/Inventory Tool

In the SAM space, these are practically the same thing.  It is a tool that will discover devices and report back software inventory.  Some are more basic, and others will also report on things like terminal usage/application streaming.

De-Militarized Zone (DMZ)

This is a perimeter network that protects (adds security) to an organization’s internal Local-Area Network (LAN).  Where firewalls filter inbound traffic on a private network, ie.DMZs isolate private networks from public ones.  Therefore, accessing data within a DMZ can be tricky sometimes.

Downgrades

Some software Manufacturers (albeit through specific purchasing models) allow you to apply a higher licensed edition of the software to cover a lower edition. For example, you can deploy Microsoft Windows Server Standard and cover it with some spare Microsoft Windows Datacenter licenses in a pinch.  However, it is worth noting that a lot of software providers do not allow this.

Dynamic Resource Scheduling/Allocation (DRS/DRA)

Although called by different names on different platforms, DRS/DRA/vMotion is essentially the automation of load balancing in a virtualized environment.  Several servers can be ‘clustered’ together and the hypervisor technology on the physical servers will ‘dynamically’ manage the resources available to the group as a whole.  If this feature is enabled, it means that virtual servers can be moved strategically between the various physical hosts of the cluster for optimal performance.  This also has major implications for licensing.

Edition

Software manufacturers might choose to have different editions of their software in order to cater to different customers' requirements and budgets; allowing them to cover a variety of customer types and sizes.  Not to be confused with the Software Version which simply indicates patched or updated releases of the product.  Common terminology used for Editions in software includes Standard, Professional, Enterprise, Business, etc.

Effective License Position (ELP)

Originally a term coined by Microsoft, the ELP is now widely used to describe the ‘balance’ report for many software manufacturers.  The ELP will show the SAM scale (i.e., License entitlement vs. License deployment), any downgrades applied, and the balance based on these inputs.  Where 0 is indicative of a compliant situation (i.e., the license deployment = the license entitlement), anything greater than 1 indicates over-licensing (i.e., the license deployment < the license entitlement), and anything less than 0 indicates non-compliance (i.e., the license deployment > the license entitlement).

End of Life (EOL)

Most software versions have a lifespan. A period of time that they are patched and supported.  When this lifespan comes to an end, it is referred to as the End of Life for that version.  This indicates a time for retirement/upgrade of the version for those customers who seek to have secure, supportive software deployed (which should be everyone!).

End User License Agreement (EULA)

Probably the most common name for basic software terms and conditions.  These are often the terms that are presented to you for acceptance before a piece of software is deployed/opened for the first time.

Evaluation Licenses

These licenses allow you to evaluate (test) any software of interest.  These usually give you limited functionality for a limited period to allow you to decide whether you want to commit to a purchase.

External Connector License

A license usually from Microsoft that you can apply to an entire server, that will allow external traffic access to the services.  A replacement for services that require a CAL (Client Access License) where the quantity of external access is either vast or unknown.

External User

Any users that aren’t directly employed by the organization.  These can be solutions or service providers.

File Server

A central server where files can be stored and shared.  Often when scanning with inventory tools, software will ‘appear’ to be installed on these servers, but this is just the software media stored on the server.  As it stands, no inventory tool can differentiate between an install and an install file.

Floating Licenses

These might also be referred to as ‘concurrent’.  And essentially means that as long as you aren’t using more than x number of licenses at any given time, you are OK.  We usually find this type of license/usage in the educational space.  For example, you may have 500 users/devices, and only 400 concurrent licenses; as long as no more than 400 users/devices are accessing the software at any given moment, you are compliant.  This is usually managed within the software itself.

Freeware

Software that is provided Free of Charge (FoC).  Terms and conditions still apply though as there are often limitations to its use/development.

From SA

A Microsoft-driven SKU option that allows organizations that have on-premise licenses with SA (Software Assurance) to migrate to Microsoft 365 subscriptions at a reduced price – taking into consideration their existing licensing investment.

Fully Packaged Product (FPP)

A retail licensable product.  These are usually found boxed in-store with each box containing the needed media to install the software.

General Public License (GPL)

A free license that guarantees end users four freedoms; to run, study, share, and modify software.

Host

You can have many variations of hosts from Hypervisors to Servers, Computers, to IPs.  A host in essence plays host other things.  Whether it is other virtual computers/servers or services/IP/Internet.  For SAM, you will be most interested in where virtual machines are hosted, as this will depend on how they are to be licensed.

Hyper-Threading

A process by which a CPU divides up its physical cores into virtual cores (that are treated as though they are physical by the operating system).  These virtual cores are also called threads.  A standard CPU focuses on one task at a time, by dividing it up into virtual cores, your computer can process multiple tasks at a time, making it faster and more efficient.  Also called Multi-Threading.  The result of hyper-threading will be logical cores.  We do recommend a video explaining this (see Training).

Hypervisor

This also can be known as a VMM (Virtual Machine Monitor) and is software that creates and runs virtual machines. A hypervisor allows the host computer to support multiple guests by virtually sharing its resources (memory, processing, etc.).  Not all hypervisors can entertain an agent for scanning purposes.

Infrastructure

This is broadly defined as a set of components that are the foundation for any IT services.  Examples include Computers, Networks, and Software components.

Infrastructure as a Service (IaaS)

IaaS is essentially a hosted infrastructure, provided by a third party, within the cloud.  The third-party provider would provide the storage, network, servers, and virtualization technology enabling companies to reduce hardware costs.  The customer would still supply all other components.

Internet Protocol (IP)

Is the set of rules governing the format of data sent via the internet or local network.  The first part of an IP address is usually the network address, and the last bit is usually the host address.  IP addresses can be purchased in blocks but are a fleeting resource that is becoming more and more costly.

Key Management Service (KMS)

KMS allows organizations to activate systems within their own network.  It is suitable for bigger organizations with more devices.  The KMS host key is used to activate the KMS host server, allowing the KMS service to accept activation queries from client devices on the same network.  Within a minimum threshold of 25 devices, activation must be renewed every 180 days.

Large Account Reseller (LAR)

Large Account Resellers are Software Resellers approved by Microsoft for large companies to purchase their licensing through.  However, Microsoft has moved away from this term and has replaced it with LSPs (Licensing Solution Providers) as they realign their efforts towards the cloud.

License Key

You use a license key to access your purchased software.  Often a code or a token, this tells the software that you are a licensed customer.

License Management Tool

A License Management Tool is a tool that can record your licenses/entitlement, align these against your deployment/usage, and report on your license compliance.  Even though a license management tool can be separate from the Discovery/Inventory tool you use to collect your data, it requires this data to fulfil its function and therefore either is published alongside a Discovery/Inventory tool or forms part of a packaged SAM solution.

Licence Metric

License Metrics are the units of measure for your license purchase.  In the world of SaaS, the Named User Metric is very popular, historically per installation/per device metrics were more common.  Server software can often be found to be licensed by processors, cores, capacity, etc. 

License Pool

An accumulation of licenses can often be referred to as a License Pool.  This is used to describe an accumulation of available licenses.  Purchase, but not yet deployed/assigned.

Licensing Solutions Provider (LSP)

The LSP title replaced that of the Large Account Reseller when it comes to Microsoft.  They are essentially the same thing, a partner that can transact in enterprise-level licensing.

Local Area Network (LAN)

A LAN is a network that connects computers within a limited area, such as an office building.  In contrast, a WAN (Wide Area Network) covers a larger geographic distance.

Logical Cores

A result of multi/hyper-threading your physical cores.  Splitting out the singular thread of logic into multiple threads (tasks) that can co-exist.  Please see Multi-Threading/Hyper-Threading further below as well as our recommended YouTube (see Training).

Maintenance

Also called Software Assurance by Microsoft.  Maintenance against a software license usually provides users with additional support and sometimes extra features against their software purchase.  More often than not this includes upgrade rights (entitlement to the latest and greatest version of the software purchase).

Multiple Activation Key (MAK)

Activates systems on a one-time-only basis, using Microsoft’s hosted activation services.  It is more suitable for smaller organizations with fewer devices.  MAK is a client-based activation method where each device is individually activated with a unique activation key supplied by Microsoft.  And can be registered either online or over the phone.

Multi-Threading

A process by which a CPU divides up its physical cores into virtual cores that are treated as though they are physical by the operating system.  These virtual cores are also called threads.  A standard CPU focuses on one task at a time, by dividing it up into virtual cores, your computer can process multiple tasks at a time, making it faster and more efficient. Also called Hyper-Threading.  We do recommend a video explaining this (see Training).

Middleware

Middleware sits between an operating system and its software applications.  Middleware facilitates a data and communication management layer.  Web servers are a very good example of middleware that links a website and a backend database.  We do recommend a video explaining this (see Training),

Microsoft Products and Services Agreement (MPSA)

The MPSA originally replaced the Microsoft Select Plus agreement.  It is a transactional agreement for customers with 250 users or more.  Purchases through the MPSA are accessed through the Business Centre and not the VLSC like other agreements.  It also appears in its own tab on your MLS and isn’t included in the license summaries for the document.

Multiple Activation Key (MAK)

Activates systems on a one-time basis, using Microsoft’s hosted activation series.  It is more suitable for smaller organizations with fewer devices.  MAC is a client-based activation method where each device is individually activated with a unique activation key supplied by Microsoft.  And can be done either through online/phone registration.

Named User

A good term for a license that is ‘attached’/’assigned’ to a single person, e.g., Ms. Jane Doe.  These licenses usually have restrictions on how often they can move between users. 

Network

A group of two or more computers or other electronic devices that are interconnected to exchange data and share resources.

On-Premises

This relates to the location of an asset and means on the company's premises (i.e. building). Today's companies often work in a hybrid environment where they might manage some of the infrastructure (servers, devices) on-premises, and some of it in the cloud/hosted by third parties. 

Open Source

Open Source licenses are free for all to use (terms and conditions considered).  The software also allows for the source code to be modified and for these changes to be distributed.  A good example of this would be Oracle Java’s OpenJDK which is then rebranded as Amazon Corretto, another FoC product that includes manufacturer support, whereas Oracle’s support is only community-based.

Original Equipment Manufacturer (OEM)

A company that produces products that are used in the production of other more complex offerings.  You will hear this more often when it comes to Operating Systems that come shipped with the devices from the hardware supplier.

PaaS

PaaS is a platform hosted by a third party, in the cloud.  The third-party provider will provide everything you might need to build, run, and manage applications.  This will include both the infrastructure and the operating systems.  The customer will bring any applications to the party.

Passive

The term passive can be used against Servers/Nodes/Databases.  This indicates that the object does not run any active workloads of its own and acts as a backup/failover for another active element.

Perpetual Licenses

Perpetual licenses are the opposite of subscriptions and come with 'lifetime' access to a specific edition and version of the software.  Adding software assurance/maintenance to these licenses can secure access to later versions and other perks, but if you choose not to renew your SA/maintenance, you are still left with the usage rights for the version available to you when you terminate.

Policy

A guideline of organization requirements on a specific subject that can be widely applied throughout the organization.  It is from Policy guidelines that Best Practises can be derived.  It is commonly accepted that Policies should not make direct reference to objects that are variable (systems or third parties).

Portable Use Rights

A feature of some Microsoft License Agreements.  They allow you to install application software on a portable device in addition to the desktop computer for which the software was purchased.  It is important to note (and often overlooked) that these are not included in the EA agreement as all Qualified Devices should be counted.

Procedure

A procedure is a set of instructions on how to complete a single step within a process. E.g., Instructions on how to download software media for a particular vendor.

Process

A process is essentially a workflow of steps needed to achieve a goal. e.g., Joiners, Movers, and Leavers process.

Processor

This is a piece of hardware also known as a CPU.  It carries out the instructions of a computer program by performing basic operations of the computer system.  You can think of a processor as a calculator that runs incredibly fast.

Product Key

A Product Key is usually a 25-character code used to activate software.

Product Use Rights (PUR)

A Microsoft document that contains the use rights for licenses acquired through volume licensing.  This term is widely replaced by Product Terms nowadays.

Proof of Concept (PoC)

Before customers decide on which software they are going to opt for, they sometimes request a PoC.  This usually involves trying out the software across a small cross-section of their estate, for a limited time, to ensure that it does everything it says on the box.  The software partner/manufacturer usually is heavily involved in a PoC.  This is what sets it aside from a run-of-the-mill trial.

Proof of Purchase (PoP)

An invoice or order acknowledgment that serves as confirmation that one has paid for a software license.  There are other forms of PoP, but invoices and order acknowledgments are the most widely accepted by software manufacturers.

Proprietary Software

Software that is developed, owned, and distributed by a specific organization; and will often limit user access to the underlying source code.  For example, Microsoft Windows is proprietary software. Amazon’s Corretto is not.

Proxy Server

A proxy server is a system or router that provides a gateway in between users and the internet; helping prevent cyber attackers from entering a private network.

Purchase Order (PO)

A PO is a legal document a buyer sends to a supplier or vendor to authorize a purchase.  They outline what is being purchased and how much it will cost and sometimes come with terms and conditions. POs are issued a number for reference.

Qualified Devices

Qualified devices are important when establishing a Microsoft Enterprise Agreement where a platform commitment is agreed to.  These devices are used by or on behalf of the organization and are considered to be personal desktop computers/portable computers/workstations (or similar) that can run Windows locally.

Reharvesting

This is the process of pulling unused software back from deployment/assignment, into the license pool, in order to be able to redeploy/reassign this to new users genuinely requiring the license.  Terms and conditions allowing of course.

Remote Desktop Services (RDS)

Also associated with terminology such as application streaming, terminal usage, and Citrix.  End users who don't have a local desktop can access one on a server off of another device.  The services running on the server to perform this task are called Remote Desktop Services.  This type of access is often licensed differently to standard rules.

Return On Investment (ROI)

A measure of success/performance against an investment.  For SAM, ROI should always be calculated against your business case projections to validate business investment into the program and to ensure focus is retained on the high-ticket items you have set out to achieve.

SAM Tool

Often incorporated with discovery/inventory/license management software/elements, a SAM tool should allow you to offset your license entitlement against deployment to provide a compliance balance at the very minimum.  We also expect SAM tools to monitor usage to allow for proactive reharvesting of licenses (to avoid bloating).  As well as monitor component usage to be able to better assign/break down suites and align the right offerings to users based on their usage profile.  Modern SAM Tools are also expected to tether to SaaS platforms like Microsoft 365 and Adobe tenants to bring in key information from these that can’t be found through traditional inventory methods.  Comprehensive SAM Tools will tether to hosted platforms such as Azure too.

Seat-Based Licensing

A seat basically represents a user.  A user that would take up a seat.  Not generic in any way, shape, or form.  Seat-based licensing is essentially Named User Licensing, whereby an individual user is given access to a service/product.  There are usually restrictions against how often this license can be swapped between users.

Second-Hand Licensing

This refers to the practice of buying and selling software that has originally been owned by someone else.  Previously not allowed, a 2012 judgment by the Court of Justice of the European Union confirmed that software is an asset and like any other asset, this can be resold.  Provided that it is a perpetual license that is fully owned by the seller and was purchased within the European Union.

Secondary Use Rights

A term referring to the rights of using software on two devices.  One office-based workstation and another either portable or home-based device.  For Microsoft, these rights only apply to their Office software and are subject to terms and conditions.

Select Plus

This was an agreement type of Microsoft’s where you could purchase perpetual licenses with or without SA and receive discounts based on a pooling system.  It was considered an evergreen agreement and essentially was replaced by the MPSA (Microsoft Products & Services Agreement).

Serialized Deployment

Often seen referenced in older Adobe communications, this essentially means deployment with a license key.  For Adobe serialized deployment was replaced by their Creative Cloud suite of products, which requires user registration instead of a license key for activation.

Service Provider Licensing Agreement (SPLA)

When companies/service providers want to offer a SaaS/PaaS offering to end users, they wouldn't look to license this environment the same as they would a corporate/production environment but would rather procure licensing under this agreement.  It comes with its own special terms and conditions and discounted pricing.  SPLA usage is typically reported every month (and charged accordingly) as figures fluctuate quite often for these providers.

Shareware

This is a type of proprietary software that is shared by the creator for little or no cost but often comes with limited functionality or specific terms around its allowed use.  Typically, more of a trial situation.

Site License

In extremely rare circumstances, organizations can purchase a site license that covers an entire site.  Typically targeted at large enterprises with great fluctuation/management difficulty when it comes to licensing.  The site license allows for convenience for the purchasing company and stable revenues for the vendor.

Software as a Service (SaaS)

This is where a cloud provider hosts applications and makes them available to end users via the internet.  This is by far the more popular model of software purchase and will almost always be a subscription model.

Software Asset Management (SAM)

SAM is the business practice that involves managing and optimizing the purchase, deployment, maintenance, utilization, and disposal of software applications within an organization.

Software Assurance (SA)

Predominantly a Microsoft term (also called Maintenance by other software vendors).  SA against a software license usually provides users with support and sometimes extra features against their software purchase.  It also includes upgrade rights (entitlement to the latest and greatest version of the software purchase).

Software Metering

A more legacy term denoting the monitoring of software usage.  Where an agent will essentially count how many times an application is opened and how long it stays open.  More advanced software metering capabilities include differentiating between applications being just open and those being actually used (active usage).

Standalone Agent

Discovery/Inventory tools usually have a client/agent on every device that reports back to the server/database software through the company network.  Devices off network or in a secure environment therefore might have an issue.  A standalone agent is therefore a slightly differently configured client/agent that can talk back to the server without the requirement for a network.  Without a standalone agent, certain customers will lose total sight of their environments like these.

Step Up License

Some software manufacturers offer a 'step up' license option to their customers.  This allows the users to purchase a lesser edition of the software and change their minds without having to forfeit what they paid for the edition they are on.  The step-up license is merely applied to the base edition (e.g., Standard) to allow the use of a greater edition (e.g., Professional).

Stock Keeping Unit (SKU)

A way for software retailers to track their product sales.  In licensing these SKUs will also allow retailers to easily quote for these products, as there are different SKUs for different industries, agreements, and metric options.

Sub-capacity Licensing

For most models of server licensing, you have to purchase licenses for the full-capacity potential of any given server.  In rare cases, you will be allowed to access sub-capacity licensing that allows you to license for a subset of that capacity.  For example, Microsoft will usually require you to license a server for the full number of cores available.  Whereby manufacturers such as IBM will allow you to take into account partitioning when calculating your licensing needs.

Subnet

Essentially a network within a network, a way of partitioning the network if you will.  By creating a subnet, network traffic can travel a shorter distance without passing through unnecessary routers.

Suite

A grouping of software components/applications.  It allows users to purchase a group of software usually utilized/associated with each other in a more cost and management-effective way.  I.e. Committing to a full suite will always be rewarded by software manufacturers over picking and choosing from a subset of components.  And it will always be easy to deploy/manage suites over individual products for the end user.

System Software

A software system is a computer program that is designed to run a computer's hardware and software applications.  Essentially operating systems.

Tenant

Strictly speaking, a software tenant is a group of users that share common access to a software instance.  In the real world, reference to a tenant means a collection of services/products mutually accessible to many users.  Microsoft’s 365 Tenant is a good example.

Terminal Services

Terminal Services are used when end users don't have an application (or sometimes a whole desktop) locally installed and can access these externally from a company/home device.  This type of access is often licensed differently to standard rules.

Third-Party

This term usually refers to a person or group that isn’t directly employed by the organization.  A good example of these would be contractors or any outsourced business function.

Total Cost of Ownership (TCO)

This is how much it actually costs to own a piece of software or hardware (including upgrades, maintenance, technical support, and training).  The total cost of ownership should always be considered outside the initial costs of acquisition.

Transactional License Program (TLP)

This is a program introduced by Adobe.  As opposed to the CLP, the TLP is transactional, i.e. the discount is based on each transaction.

True-up

Often associated with Enterprise Agreements where tallies are taken (often of qualified devices) at the agreement anniversary annually and purchases are increased as necessary.  It is very seldomly allowed for customers to true-down.  The ability to simply true-up once a year is a true draw card when it comes to EAs as it allows ease of management for both parties along with flexibility for enterprises with large, fluid environments.

Upgrade

As this term suggests, it suggests a move upward.  For software, this is usually to a newer version of the software.  For example, software assurance/maintenance includes upgrade rights to the latest version.

User Acceptance Testing (UAT)

This refers to the development phase where software is tested by real-world users and clients to evaluate the software and its functionality/usability.  Some software providers allow for FoC (Free of Charge) User Acceptance Testing in connection with their software applications.

Value Added Reseller (VAR)

A largely legacy term to describe companies that sell Microsoft business software in combination with services/expertise.

Vendor

Often used as another word for Manufacturer.  But technically means a person or company selling something.

Virtual Machine Monitor (VMM)

Another word for a Hypervisor.  Software that creates and runs virtual machines.

Volume Licensing Service Centre (VLSC)

The VLSC is a Microsoft portal where organizations manage licenses purchased through selective volume licensing programs (e.g. Enterprise, Open…).

vMotion

Although also called different names on different platforms, DRS (Dynamic Resource Scheduling)/DRA (Dynamic Resource Allocation); vMotion is essentially the automation of load balancing in a virtualized environment.  Several physical servers can be ‘clustered’ together and the hypervisor technology on those servers will ‘dynamically’ manage the resources available to the group as a whole.  If this feature is enabled, it means that virtual servers can be moved strategically between the various physical hosts of the cluster for optimal performance.  This also has major implications for SAM.

Wide Area Network (WAN)

As opposed to a Local Area Network (which is very much local), a wide area network refers to a wide area of computers grouped together.  It is a telecommunications network that extends over a large geographic area.  LANs are usually connected via the WAN.