Key takeaways
- OEM licenses come preinstalled with a new device and stay with that device; they cannot be moved to another computer.
- Retail (FPP) licenses are bought separately and can usually be transferred to a new device, but cost more and are hard to manage at scale.
- Most businesses now buy Microsoft 365 and many other products through Cloud Solution Provider (CSP) partners, while Windows Server is licensed per core plus client access licenses (CALs).
Microsoft licensing confuses many companies, and buying the wrong type can mean paying twice or falling out of compliance in an audit. This guide explains the main ways businesses buy Windows, Windows Server and Microsoft 365. Licensing terms change, so confirm details for your situation before buying.
OEM licenses
OEM (original equipment manufacturer) licenses come preinstalled on new computers and servers from manufacturers such as Dell, HP and Lenovo. They are the cheapest way to get Windows on a new device, but the license is tied to that device and cannot be moved to another one.
Retail licenses
Retail or full packaged product (FPP) licenses are bought separately. They can usually be transferred to another device, but they cost more and each key must be tracked individually, which becomes hard to manage as you grow.
Volume and subscription licensing
Organizations buying many licenses use Microsoft's volume and subscription channels. Today, most small and mid-sized businesses buy Microsoft 365, Windows upgrades for business, and many server and cloud products through Cloud Solution Provider (CSP) partners, with monthly or annual billing. Larger organizations may also use enterprise agreements.
Windows Server: cores and CALs
- Windows Server Standard and Datacenter are licensed per physical core.
- Minimums apply: 8 core licenses per processor and 16 per server.
- Standard covers a limited number of virtual machines; Datacenter covers unlimited virtual machines on the licensed host.
- Users or devices that access the server also need client access licenses (CALs).
Which should you choose?
- New laptops and desktops: OEM Windows Pro included with the device is usually enough.
- Email, Office apps and collaboration: Microsoft 365 business plans through CSP.
- On-premises servers: Windows Server core licenses plus CALs, sized to your hardware and virtual machines.
- Keep records of what you bought, for which devices or users, so renewals and audits are easy.
How Thoughts House can help
We supply Microsoft licenses to businesses across Saudi Arabia, including Microsoft 365, Windows and Windows Server, size licensing to your servers and users, and track renewals for you.
Frequently asked questions
Can I move an OEM Windows license to a new laptop?
No. An OEM license is tied to the device it was first installed on and ends with that device. Retail licenses can generally be transferred.
How is Windows Server licensed?
Windows Server Standard and Datacenter are licensed per physical core, with minimums of 8 cores per processor and 16 cores per server, plus client access licenses (CALs) for users or devices that access the server. Check current Microsoft terms for your edition.
What is CSP?
The Cloud Solution Provider program lets Microsoft partners sell and manage Microsoft 365, Azure and other subscriptions for customers, typically billed monthly or annually, with the partner providing support.