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Mastering the 70-672 Exam: An Introduction to Microsoft Volume Licensing

The Microsoft 70-672 Exam, officially titled "Designing and Providing Microsoft Volume Licensing Solutions to Large Organizations," was a critical certification for professionals specializing in software asset management and procurement. Passing this exam demonstrated a comprehensive understanding of how to advise large organizations on the most cost-effective and compliant ways to acquire Microsoft software and services. It was designed for individuals in roles such as licensing executives, sales specialists, and procurement managers who needed to navigate the complex world of Microsoft's licensing agreements. A candidate who successfully passed the 70-672 Exam was recognized for their expertise in a highly specialized field.

This certification validated a candidate's ability to analyze an organization's business needs, IT infrastructure, and budget constraints. Based on this analysis, the professional would then design a tailored licensing solution. The exam tested knowledge of various volume licensing programs, Software Assurance benefits, product-specific licensing rules, and the legal frameworks governing software use. The skills verified by the 70-672 Exam were essential for helping companies maximize the value of their technology investments, ensure legal compliance, and plan for future software needs, making it a valuable credential in the IT ecosystem.

The Core Principles of Microsoft Volume Licensing

Microsoft Volume Licensing programs exist to simplify the process of acquiring and managing software licenses for organizations. Instead of purchasing individual retail copies, or Full Packaged Products (FPP), businesses can buy licenses in bulk at a reduced price per license. This model is designed for scalability, allowing organizations to easily add new users or devices without the administrative overhead of tracking numerous individual licenses. The core principle is to provide a more manageable and economical framework for software acquisition, particularly for businesses with dozens, hundreds, or thousands of computers. This structure is a cornerstone of the 70-672 Exam.

Beyond cost savings, volume licensing promotes standardization across an organization. When all employees use the same versions of software like Windows and Office, it simplifies IT support, training, and document compatibility. This uniformity reduces complexity and can lower the total cost of ownership (TCO) for an organization's IT infrastructure. The agreements also provide rights to deploy standard images across multiple machines, a crucial time-saving benefit for IT departments. Understanding this fundamental value proposition is essential for anyone preparing for the 70-672 Exam and advising clients on their licensing strategy.

Key Terminology in the Volume Licensing Landscape

To succeed in the 70-672 Exam, a firm grasp of key terminology is non-negotiable. A Stock Keeping Unit (SKU) is a unique identifier for a specific product, license type, and program, used for ordering. A License grants the legal right to run a specific software product. This is distinct from the software media itself. The primary license types are often tied to either a user or a device. For server products, the concept of a Client Access License (CAL) is critical. A CAL provides a user or device with the legal right to access the services of a server.

Software Assurance (SA) is a comprehensive maintenance program offered through Volume Licensing that includes a range of benefits, such as rights to new software versions and technical support. Understanding SA is a major component of the 70-672 Exam. Finally, the Product Use Rights (PUR) document, now part of the Product Terms, is the definitive legal guide that details the specific use rights for each product acquired through a Volume Licensing agreement. These terms define how software can be installed and used, forming the basis of licensing compliance and advisory services.

Differentiating License Types: Full vs. Upgrade Licenses

A fundamental concept tested in the 70-672 Exam is the distinction between a full license and an upgrade license. A full license, such as one acquired with a new computer through an Original Equipment Manufacturer (OEM), provides the complete rights to run an operating system. Volume Licensing programs, however, almost exclusively offer upgrade licenses for the Windows desktop operating system. This means an organization must first have a qualifying underlying operating system license on each device before they can apply a Volume Licensing upgrade. This is a common point of non-compliance if not understood correctly.

The qualifying operating system is typically a professional-grade version of Windows acquired through OEM or a retail copy. Home versions of Windows do not usually qualify as a base license for a Volume Licensing upgrade. This rule ensures that Microsoft's primary channel for full operating systems remains with its hardware partners. For a licensing professional, verifying the existence and eligibility of these base licenses is the first step in designing a compliant Windows deployment strategy for any large organization. This principle is a recurring theme within the 70-672 Exam material.

An Overview of Major Licensing Agreement Categories

Microsoft's Volume Licensing programs can be broadly categorized into two types: transactional and relational. Transactional agreements, such as the Open License program, are designed for pay-as-you-go acquisitions. An organization makes a purchase when it needs software, with minimal upfront commitment. The pricing level is often determined by the size of the initial order. These programs are simpler and offer flexibility for organizations with fluctuating or unpredictable software needs. While important, the focus of the 70-672 Exam is primarily on the other category.

Relational, or commitment-based, agreements are designed for large organizations and form the core of the 70-672 Exam curriculum. Programs like the Enterprise Agreement involve a multi-year commitment to license certain products organization-wide. In exchange for this commitment, the customer receives significant benefits, including the best pricing, simplified management, and comprehensive Software Assurance benefits. These agreements foster a long-term relationship between Microsoft and the customer, enabling predictable budgeting and strategic IT planning. Understanding when to recommend a transactional versus a relational agreement is a key skill for a licensing specialist.

Introduction to Open Value and Open License Programs

While the 70-672 Exam focuses on large organizations, having contextual knowledge of programs for smaller to mid-sized businesses is beneficial. The Open License program was a transactional option for organizations that wanted to make an initial purchase of at least five licenses. It provided a simple way to acquire perpetual licenses with optional Software Assurance. There was no long-term commitment beyond the initial purchase, making it suitable for businesses with straightforward IT needs. This program has since been retired and replaced by newer models in the cloud-first era.

The Open Value program, on the other hand, offered a three-year agreement term, similar to the Enterprise Agreement but for smaller organizations. It provided more predictable costs and included Software Assurance as a standard component. A key feature was the "company-wide" option, which offered discounted pricing for standardizing on a Microsoft platform product across all qualified desktops. Another option, Open Value Subscription, provided lower upfront costs with non-perpetual, subscription-based licenses. Grasping these foundational programs helps build a complete picture of the Microsoft licensing ecosystem relevant to the 70-672 Exam.

The Role of a Licensing Solutions Provider (LSP)

In the context of the 70-672 Exam, understanding the channel is crucial. Large organizations do not typically purchase Volume Licensing directly from Microsoft. Instead, they work with a specialized partner known as a Licensing Solutions Provider (LSP), formerly called a Large Account Reseller (LAR). LSPs are authorized by Microsoft to sell and manage complex agreements like the Enterprise Agreement. They possess a high level of expertise in licensing and are certified to provide the advisory services that large customers require. Their role goes far beyond simple transaction processing.

An LSP acts as a trusted advisor, helping the customer navigate the complexities of Microsoft licensing. They assist with product selection, agreement structure, and cost analysis. Throughout the term of an agreement, the LSP helps the customer manage their licenses, track consumption, and maximize the value of their Software Assurance benefits. For any professional preparing for the 70-672 Exam, it is essential to understand that the solutions being designed are delivered and managed in partnership with an LSP, who is the primary point of contact for the customer's licensing needs.

Navigating the Product Use Rights (PUR) Document

The Product Use Rights (PUR) document, now known as the Product Terms, is the ultimate authority on how Microsoft software acquired through Volume Licensing can be used. This legally binding document is updated regularly and provides the specific terms, conditions, and rights for each product version. It is a critical resource that every licensing professional must know how to navigate. The 70-672 Exam expects candidates to be familiar with its structure and know where to find information on key use rights, such as virtualization rights, downgrade rights, and license mobility.

For example, the PUR clarifies how server software can be licensed, whether per core or per server/CAL, and outlines the specific rules for each model. It details the rights granted by Software Assurance, such as the right to deploy new versions or use Office on a home computer. A common mistake is to rely on marketing materials or general knowledge instead of this definitive document. A key skill tested in the 70-672 Exam is the ability to interpret the PUR to answer specific customer questions and design a fully compliant licensing solution.

Preparing for Success in the 70-672 Exam

Embarking on the journey to pass the 70-672 Exam requires a structured approach. The first step is to thoroughly review the official exam objectives. These objectives outline all the skills measured, from analyzing client needs to designing licensing solutions and managing agreements. This blueprint should guide your entire study plan, ensuring you cover every topic in the required depth. Focus your initial efforts on building a strong foundation in the core concepts, such as the different agreement types, the purpose of Software Assurance, and the rules for licensing major products like Windows, Office, and Windows Server.

Develop a habit of consulting the official source documents. While study guides are helpful, proficiency with the Product Terms (formerly PUR) and program guides is essential. Create flashcards for key terminology and acronyms, as the language of licensing is very specific. Begin to think in terms of scenarios. For any given concept, ask yourself, "How would this apply to a customer with 5,000 employees?" or "What would I recommend for a company that is growing rapidly?" This practical, application-focused mindset is exactly what the 70-672 Exam is designed to evaluate.

Analyzing Customer Needs for a Licensing Solution

The first and most critical skill for a professional preparing for the 70-672 Exam is the ability to thoroughly analyze a customer's environment and business requirements. This process goes beyond simply counting desktops. It involves understanding the organization's structure, its geographic distribution, and its long-term IT strategy. You must ask probing questions to uncover key details. For instance, is the workforce centralized or remote? Is the company expecting significant growth, or is it downsizing? Does the IT department favor standardization, or do different departments have autonomy over their software choices?

A comprehensive analysis also includes a review of the customer's existing software inventory and licensing agreements. Identifying what licenses the company already owns is crucial to avoid over-purchasing and to determine eligibility for certain programs. The goal is to build a complete picture of the customer's current state and future goals. This information forms the foundation upon which a tailored, cost-effective, and compliant licensing solution, as expected by the principles of the 70-672 Exam, will be built. Without this initial discovery phase, any recommendation is merely a guess.

Introduction to the Enterprise Agreement (EA)

The Enterprise Agreement (EA) is Microsoft's flagship Volume Licensing program for large organizations and a central topic of the 70-672 Exam. It is a commitment-based agreement designed for customers with 500 or more users or devices. The EA is structured around a three-year term, during which the organization commits to licensing one or more Microsoft enterprise products organization-wide. In return for this commitment, the customer receives the best pricing and terms available, predictable annual payments, and the comprehensive benefits of Software Assurance, which is included on all licenses.

The core principle of the EA is standardization. By licensing products for every qualified user or device, organizations simplify license management and ensure all employees have access to the same technology. This is particularly beneficial for products like Windows OS upgrades, Office Professional Plus, and the Core CAL or Enterprise CAL Suites. The predictable payment structure helps with budgeting, transforming large, sporadic capital expenditures on software into manageable, annual operational costs. Understanding the fundamental structure and value proposition of the EA is essential for any 70-672 Exam candidate.

The Structure of an Enterprise Agreement

An Enterprise Agreement is structured around the concept of an "enterprise-wide" commitment. This means the organization must license selected enterprise products for all of its "Qualified Desktops" or "Qualified Users" within the defined enterprise. The number of these is established at the beginning of the agreement and is adjusted annually through a process called the "True-up." During the True-up, the organization counts any new users or devices added over the past year and places an order to license them for the remainder of the agreement term. This allows the company to deploy software immediately and reconcile the licenses annually.

The EA also allows for the purchase of "Additional Products" on an as-needed basis. These are products that are not part of the enterprise-wide commitment and can be licensed for any quantity, at any time. This flexibility enables organizations to use the favorable pricing and terms of the EA for a wide range of other Microsoft software, from Visio and Project to advanced server solutions. Mastering the distinction between Enterprise Products and Additional Products is a key competency tested in the 70-672 Exam, as it directly impacts solution design and cost.

Enterprise Agreement Enrollment Types

To accommodate the diverse needs of large organizations, the Enterprise Agreement offers different enrollment options. The most common is the Enterprise Enrollment, which covers on-premises software like Windows, Office, and the CAL Suites. This is the traditional EA structure that many professionals preparing for the 70-672 Exam will focus on. It provides a straightforward path for standardizing on Microsoft's core desktop and infrastructure access technologies. The pricing is based on the number of qualified users or devices within the organization.

For organizations looking to license Microsoft's server and tool products, there is the Server and Cloud Enrollment (SCE). The SCE offers the best value for customers who make a significant investment in technologies like Windows Server, SQL Server, and Microsoft Azure. It provides discounts and benefits specifically tailored to server infrastructure and cloud services. Understanding that an EA is not a monolithic structure, but rather a framework with specialized enrollments, is crucial for designing a solution that precisely matches a customer's IT priorities, a core objective of the 70-672 Exam.

The Enterprise Subscription Agreement (ESA)

A variation of the standard Enterprise Agreement is the Enterprise Subscription Agreement (ESA). The key difference, and a critical point for the 70-672 Exam, lies in the nature of the licenses. Under a standard EA, the licenses acquired are perpetual, meaning the organization owns the right to use the software indefinitely at the version current when the agreement expires. Under an ESA, the licenses are non-perpetual, or subscription-based. The organization has the right to use the software only for the duration of the agreement term.

The primary advantage of the ESA is its lower annual cost compared to a perpetual EA. This makes it an attractive option for organizations that prefer to fund IT as an operating expense (OpEx) rather than a capital expense (CapEx). It also offers greater flexibility for companies that anticipate a decrease in their workforce, as they can reduce their license counts at the annual anniversary. However, if the customer chooses not to renew, they lose the rights to use the software. A buyout option is available to convert the subscription licenses to perpetual ones at the end of the term.

Deep Dive into the Select Plus Agreement

Another major program for large organizations covered in the 70-672 Exam was Select Plus. Unlike the Enterprise Agreement, Select Plus was a transactional program with no enterprise-wide commitment. It was designed for organizations with 250 or more PCs that wanted the flexibility to purchase licenses as needed while still benefiting from volume pricing. The agreement was perpetual, with no specific end date, and allowed decentralized purchasing across different departments or affiliates under a single master agreement.

Pricing in Select Plus was determined by a points system. Each product was assigned a point value, and the total number of points accumulated from purchases over a year determined the price level for the following year. This model rewarded customers for their aggregate purchasing volume across the entire organization. Select Plus was an excellent choice for companies that could not commit to standardization or had unpredictable software needs but still wanted better pricing than entry-level programs. This program has since been retired, but its principles are vital for a historical understanding of licensing.

Comparing the EA, ESA, and Select Plus

A key skill for the 70-672 Exam is the ability to compare and contrast these major agreements to determine the best fit for a customer. The Enterprise Agreement is ideal for organizations committed to standardizing on Microsoft technology and wanting the most predictable costs and best overall pricing. Its mandatory Software Assurance coverage ensures technology is always current. The Enterprise Subscription Agreement offers the same benefits but with lower annual payments and non-perpetual licenses, suiting customers who prioritize cash flow and flexibility to downsize.

Select Plus, on the other hand, was the preferred choice for organizations that required flexibility and could not make an enterprise-wide commitment. It was purely transactional, allowing departments to buy what they needed, when they needed it. The trade-off was typically a higher price per license compared to the EA and the administrative overhead of managing Software Assurance as a separate, optional purchase. Recommending the right program required a deep understanding of the customer's financial preferences, IT strategy, and organizational structure, which is the essence of the 70-672 Exam.

The True-up and Renewal Process

Managing the lifecycle of an Enterprise Agreement is a critical responsibility and a topic of focus for the 70-672 Exam. The annual True-up process is a fundamental component. Each year, on the anniversary of the agreement, the customer must conduct an inventory of any new qualified users or devices that were added since the last count. An order is then placed for these net new licenses, and payment is prorated for the remaining years of the agreement. This allows the organization to deploy software to new employees immediately and settle the cost annually.

As the three-year term approaches its end, the renewal process begins. The customer has several options. They can renew their Enterprise Agreement for another term, continuing their commitment and locking in pricing for another three years. They can choose to expire the agreement, in which case they retain their perpetual licenses but lose their Software Assurance benefits unless they are renewed separately. Finally, they could transition to a different agreement type if their business needs have changed. Guiding a customer through these lifecycle events is a key function of a licensing specialist.

Scenarios for Recommending an Enterprise Agreement

To excel at the 70-672 Exam, one must be able to apply knowledge to real-world scenarios. An ideal candidate for an Enterprise Agreement is a large, stable organization with 500 or more employees that sees value in standardizing its desktop and server platform. This could be a financial services company that requires a consistent and secure environment for all its knowledge workers. By committing to the Professional Desktop or Enterprise Desktop platform, they simplify management, enhance security, and ensure all users have the tools they need.

Another classic scenario is a company undergoing a technology refresh. If an organization plans to upgrade all its desktops to the latest version of Windows and deploy a new version of Office, the EA is the most cost-effective vehicle to do so. The inclusion of Software Assurance provides access to the new versions automatically. The predictable, three-year payment structure allows the company to budget for this large-scale project effectively, avoiding a massive upfront capital outlay. These practical examples solidify the theoretical knowledge required for the 70-672 Exam.

The Role of Software Assurance (SA)

Software Assurance, or SA, is a central concept in Microsoft Volume Licensing and a major focus of the 70-672 Exam. It is a comprehensive maintenance program that helps organizations get the most out of their Microsoft software investment. Rather than being a product itself, SA is a set of benefits attached to a software license. The primary and most well-known benefit is New Version Rights, which allows customers to upgrade to any new version of a licensed product released during the term of their SA coverage. This eliminates the need to repurchase licenses for every new release.

However, SA offers much more than just upgrades. It provides a broad range of benefits spanning deployment, support, training, and unique use rights. These benefits are designed to help organizations improve productivity, streamline software deployment, and lower the total cost of ownership. For any professional taking the 70-672 Exam, it is not enough to know that SA exists; a deep understanding of its specific benefits and how they apply to different customer scenarios is absolutely essential for designing effective and valuable licensing solutions.

Key Benefits of Software Assurance: Technology

The technology-focused benefits of Software Assurance are designed to provide access to the latest software and offer unique use rights. As mentioned, New Version Rights are paramount, ensuring customers can deploy the latest technology without additional license costs. Another key benefit is the Windows Enterprise edition. SA coverage on a Windows Professional license grants the right to deploy the Enterprise edition, which includes advanced security and management features crucial for large organizations. This is a significant value proposition and a common topic in 70-672 Exam scenarios.

For server products, SA provides benefits like License Mobility Across Server Farms, which allows licenses to be reassigned between servers more frequently than standard licensing rules permit. This is vital for dynamic datacenter environments. Furthermore, for certain products like SQL Server, SA grants fail-over rights, allowing the installation of a passive, non-production instance for high-availability purposes. These technical benefits directly address the complex needs of modern IT infrastructure, making SA an indispensable part of a large organization's licensing strategy.

Key Benefits of Software Assurance: Support and Training

Beyond technology rights, Software Assurance provides significant value through support and training benefits. Customers with SA receive 24x7 Problem Resolution Support, which provides continuous access to Microsoft technical support for business-critical issues. This can be a lifeline for IT departments and represents a substantial cost saving compared to purchasing support incidents separately. The level of support entitlement often scales with the size of the customer's investment in SA. Understanding this benefit is a key part of the value justification tested in the 70-672 Exam.

SA also offers training vouchers that can be redeemed at certified training centers for technical courses on Microsoft products. This helps IT staff stay current with the latest technology and effectively manage their new software. Additionally, end-user training is available through E-Learning, providing self-paced online courses for employees on applications like Microsoft Office. These training benefits help organizations accelerate user adoption and increase the return on their software investment, making them an important component of the overall SA value proposition.

Key Benefits of Software Assurance: Deployment

Software Assurance includes several benefits aimed at simplifying software deployment and management. The Home Use Program (HUP) was a popular benefit that allowed employees of an organization with SA on Office applications to purchase a low-cost license for use on their home computer. This helped drive user proficiency and satisfaction. Another powerful benefit is Planning Services, which provides structured consulting engagements with Microsoft or certified partners to help plan complex deployments of new technology, such as migrating to a new version of SharePoint or deploying Skype for Business.

For desktop management, the Microsoft Desktop Optimization Pack (MDOP) was a suite of technologies available exclusively to SA customers. MDOP included tools for application virtualization (App-V), user state virtualization, and desktop management, which helped reduce the cost and complexity of managing a large fleet of Windows PCs. These deployment-related benefits are critical talking points when designing a solution for a large organization, and their details are relevant material for the 70-672 Exam.

Licensing the Windows Desktop Operating System

Licensing the Windows desktop OS is a foundational topic for the 70-672 Exam and has unique rules. As covered previously, Volume Licensing agreements only provide upgrade licenses for Windows. The device must first be licensed with a qualifying underlying operating system, typically obtained through an OEM when purchasing a new PC. Once that prerequisite is met, a company can purchase a Windows Enterprise Upgrade license with Software Assurance through their volume agreement. This provides the rights to run the Enterprise edition and any new versions released during the coverage term.

A key use right granted by Windows SA is virtualization rights. It grants the primary user of a licensed device the right to access a Windows environment running in a virtual machine (VDI) from any device. It also provides rights to install Windows on a USB drive with Windows To Go. These flexible use rights are designed to support modern workstyles, such as remote access and bring-your-own-device (BYOD) scenarios. Correctly explaining these nuanced rules is a core competency for anyone aiming to pass the 70-672 Exam.

Licensing Microsoft Office Suites

Microsoft Office is one of the most commonly licensed products in any volume agreement. It is typically licensed on a per-device basis. When a company purchases a license for Office Professional Plus for a specific device, any user of that device is permitted to use the software. A critical benefit of Software Assurance for Office is the right to a second copy. This allows the primary user of the licensed device to install a copy of Office on a portable device, such as a laptop, for their exclusive use. This is a valuable benefit for an increasingly mobile workforce.

Another important SA benefit for Office is Office Online Server, which gives the organization the right to provide browser-based versions of Word, Excel, and PowerPoint from their own datacenter. This can be a key component for organizations that need to provide document viewing and editing capabilities to users without a full local installation of Office. Understanding the various use rights and SA benefits associated with the Office suite is critical for building a comprehensive desktop standard as part of a 70-672 Exam solution design.

Understanding Server Licensing Models

Server product licensing is a complex area and a significant portion of the 70-672 Exam. Microsoft uses several different licensing models for its server products. The most common model historically was the Server/CAL model. In this model, the organization must purchase a license for each instance of the server software running, and a Client Access License (CAL) for each user or device that accesses the server. This model is used for products like Windows Server and Exchange Server. CALs are a critical component and are often purchased as part of a cost-effective CAL Suite.

A second major model is the per-core or per-processor model. This model is used for products like SQL Server and BizTalk Server. Here, the organization purchases licenses based on the number of physical processor cores in the server running the software. This model does not require CALs, meaning an unlimited number of users and devices can access the server. Choosing the right model and calculating the required number of licenses for a given hardware configuration is a frequent challenge in 70-672 Exam questions.

Client Access Licenses (CALs) and CAL Suites

A Client Access License (CAL) is a license that grants a user or a device the right to access the services of a server. It is important to note that a CAL is not software; it is a legal document. There are two types of CALs: Device CALs and User CALs. A Device CAL licenses one device to access the server, regardless of the number of users who use that device. A User CAL licenses one user to access the server from any of their devices. Choosing between User and Device CALs depends on the customer's environment, a common scenario in the 70-672 Exam.

To simplify purchasing and management, Microsoft offers CALs in bundles called CAL Suites. The Core CAL Suite includes CALs for Windows Server, Exchange Server, SharePoint Server, and System Center Configuration Manager. The Enterprise CAL Suite includes everything in the Core CAL Suite plus additional CALs for advanced server capabilities, such as advanced security and compliance features. The Enterprise CAL Suite is available as an add-on to the Core CAL Suite and requires active SA on the underlying Core CAL.

Licensing in Virtual Environments

Virtualization adds another layer of complexity to licensing, a topic thoroughly tested in the 70-672 Exam. For Windows Server, the licensing model is tied directly to virtualization rights. The Standard edition license allows for up to two virtual operating system environments (OSEs) when all physical cores on the server are licensed. The Datacenter edition, however, allows for an unlimited number of virtual OSEs when all physical cores are licensed, making it the ideal choice for highly virtualized environments.

For applications like SQL Server, licensing in a virtual environment follows the rules of the chosen model. If using the Server/CAL model, a license is required for each virtual machine running SQL Server. If using the per-core model, the customer must license all virtual cores assigned to the virtual machine, with a minimum of four core licenses per VM. Software Assurance adds a crucial benefit called License Mobility within Server Farms, allowing licenses to be moved between physical servers in a datacenter as often as needed to support virtual machine migration.

The Solution Design Process

The core competency validated by the 70-672 Exam is the ability to design a licensing solution. This process begins after the initial discovery and analysis of the customer's needs are complete. The design process involves translating business requirements, technical needs, and financial constraints into a concrete licensing recommendation. It requires synthesizing information about the organization’s size, growth projections, IT infrastructure, and existing software assets. The goal is to create a solution that is compliant, cost-effective, and aligned with the customer's strategic objectives.

A well-designed solution is not a one-size-fits-all product list. It is a carefully constructed plan that selects the right licensing program, the appropriate products, and the correct license types. It considers the value of Software Assurance benefits and how they can address specific customer pain points. The final proposal should be presented as a clear and logical recommendation, justifying why certain choices were made and outlining the total cost of ownership and return on investment. This consultative approach is the essence of the professional role targeted by the 70-672 Exam.

Scenario 1: The Growing Enterprise

Consider a company with 1,200 employees that has been growing steadily and plans to hire an additional 200 employees each year for the next three years. They currently have a mix of Windows 7 and Windows 10 Pro, and various versions of Microsoft Office. Their IT strategy is to standardize on Windows Enterprise and Office Professional Plus for all users to improve security and management. They prefer predictable annual payments to manage their budget. This is a classic scenario for the 70-672 Exam.

The ideal recommendation here is a Microsoft Enterprise Agreement. The company easily meets the 500-user minimum. Committing to the Professional Desktop platform (Windows Enterprise Upgrade and Office Pro Plus) on an enterprise-wide basis provides the best pricing and simplifies deployment. The three-year agreement with fixed annual payments aligns perfectly with their preference for predictable budgeting. The annual True-up process is designed for exactly this type of growth, allowing them to easily add new users each year while maintaining compliance and their advantageous pricing level.

Justifying the Enterprise Agreement Recommendation

In the scenario of the growing enterprise, justifying the Enterprise Agreement (EA) is a critical step that mirrors the communication skills required for a licensing professional. The first point of justification is cost-effectiveness. By committing to an organization-wide standard, the customer receives the highest discount level available. The EA price for the Professional Desktop platform will be significantly lower than acquiring the same licenses transactionally. This directly addresses the customer's need for a financially sound solution, a key consideration for the 70-672 Exam.

The second justification is simplified management. The EA eliminates the need to track individual licenses for the committed products. The company is licensed for every user, so compliance is assured as long as the annual True-up is completed accurately. Furthermore, the inclusion of Software Assurance provides new version rights, so they are automatically licensed for future versions of Windows and Office. This future-proofs their investment and reduces the administrative burden on the IT department, demonstrating clear business value beyond just the initial purchase price.

Scenario 2: The Decentralized Conglomerate

Imagine a large holding company with multiple independent subsidiaries, totaling 10,000 employees. Each subsidiary manages its own IT budget and strategy. There is no mandate to standardize on any particular software. One subsidiary might need 100 licenses of Visio, while another needs 50 licenses of SQL Server. They want to leverage their collective size to get better pricing but cannot commit to an enterprise-wide standard. This complex situation is a perfect test of the knowledge required for the 70-672 Exam.

For this decentralized organization, the Enterprise Agreement would be a poor fit due to the lack of a standardization commitment. The ideal recommendation would have been the Select Plus agreement. This program was specifically designed for such scenarios. The parent company would sign a single master agreement. Each subsidiary could then issue purchase orders against this agreement, buying the specific licenses they need, when they need them. This allows for decentralized purchasing while consolidating the total volume to achieve a better price level.

Explaining the Select Plus Solution

The key benefit of the Select Plus solution for the conglomerate is flexibility. It imposes no minimum purchase requirements on the subsidiaries after the initial order and does not require an organization-wide commitment. This aligns perfectly with their decentralized operational model. Each business unit retains full autonomy over its IT procurement, a crucial requirement for this customer. This demonstrates an understanding of how to match a licensing program to a customer's organizational structure, a skill central to the 70-672 Exam.

The second major benefit is cost savings through aggregation. While each subsidiary purchases independently, their purchases all contribute points toward the master Select Plus agreement. As the total volume of points increases, the entire organization achieves a better discount level. This means even a subsidiary making a small purchase benefits from the buying power of the entire conglomerate. Software Assurance could be purchased optionally on specific licenses where it was needed, providing further flexibility and cost control. This transactional yet aggregated model is the perfect fit.

Scenario 3: The Cost-Conscious Organization with Fluctuating Headcount

Consider a business in a seasonal industry with a core staff of 600 employees, but which hires an additional 300 temporary staff for six months each year. They need to provide these temporary workers with access to Office and core server resources. They are highly focused on minimizing upfront costs and want the flexibility to reduce their license count when the seasonal staff leave. This financial and operational challenge is a nuanced scenario that a 70-672 Exam candidate should be prepared to address.

Here, the best recommendation is the Enterprise Subscription Agreement (ESA). The ESA offers lower annual costs compared to a perpetual EA, addressing the customer's focus on minimizing upfront expense. Most importantly, the subscription model provides the flexibility to adjust license counts downward on the agreement anniversary. The company can license for its peak of 900 users during the busy season and then reduce the count back to 600 at the next anniversary, paying only for what they need and avoiding the cost of perpetual licenses for a temporary workforce.

Calculating Costs and Creating a Proposal

Once a program is selected, a crucial step tested implicitly in the 70-672 Exam is the ability to perform a basic cost calculation. For an Enterprise Agreement, this involves multiplying the number of qualified users or desktops by the unit price for the chosen products. This determines the annual payment for the three-year term. The proposal should clearly state this annual cost and what it includes, such as the specific software products and the accompanying Software Assurance benefits.

The proposal document is the culmination of the design process. It should start with a summary of the customer's business needs as you understand them, demonstrating that you have listened. It should then present the recommended solution—the specific agreement, the products to be licensed, and the term. The core of the proposal is the justification, explaining why this solution is the best fit. Finally, it should include a clear and simple pricing table, an outline of next steps, and a summary of the key benefits the customer will receive.

Addressing Compliance and Software Asset Management

In any solution design, a licensing professional must address software compliance. A key benefit of programs like the Enterprise Agreement is that they greatly simplify compliance for the standardized products. By licensing every user or device, the risk of accidental non-compliance is significantly reduced. For any products purchased outside of the enterprise commitment (Additional Products), it is crucial to recommend good Software Asset Management (SAM) practices. This involves keeping accurate records of what is purchased and what is deployed.

A comprehensive proposal, such as one expected from a professional who has passed the 70-672 Exam, should include a brief discussion of SAM. You can position the new agreement as an opportunity to establish a clear baseline of licenses and recommend tools and processes to maintain that clarity going forward. Highlighting how the chosen solution simplifies license management and reduces audit risk adds significant value and shows that you are considering the customer's long-term operational health, not just the immediate sale.

Presenting the Solution to the Customer

The final step is presenting the solution. This is not just a matter of sending a document; it involves walking the customer through the proposal, explaining the rationale, and answering questions. A successful presentation, and a skill that underpins the purpose of the 70-672 Exam, focuses on benefits, not just features. Instead of saying, "You get Software Assurance," you would say, "The included Software Assurance ensures your technology is always current and gives your IT team access to 24x7 support, reducing downtime and support costs."

Be prepared to discuss alternatives. The customer may ask why you recommended an Enterprise Agreement over a subscription, or vice versa. Your ability to articulate the pros and cons of each option based on their specific needs will build trust and confidence. The goal is to act as a trusted advisor, guiding the customer to the best possible decision for their business. This consultative approach is the hallmark of a true licensing solutions expert.

Advanced Licensing: SQL Server

SQL Server licensing is a deeply technical topic and a prime example of the advanced knowledge required for the 70-672 Exam. SQL Server is offered in two main editions relevant to large organizations: Standard and Enterprise. It can be licensed in two models: Server + CAL or Per Core. The Server + CAL model requires a license for each server running SQL Server and a CAL for each user or device accessing it. This model is often cost-effective for scenarios with a limited number of users accessing a specific application.

The Per Core model is required for the Enterprise edition and is an option for the Standard edition. In this model, all physical cores on the server must be licensed, with a minimum of four core licenses per physical processor. No CALs are required, making it ideal for internet-facing workloads or applications with a large, unknown number of users. A key Software Assurance benefit is License Mobility, which allows licensed virtual machines to be moved across a server farm. Understanding when to recommend each model is a critical skill for the 70-672 Exam.

Advanced Licensing: Windows Server

Windows Server licensing is another fundamental yet complex area. The two main editions are Standard and Datacenter. Both editions are licensed using a per-core model, where all physical cores in a server must be licensed, with a minimum of 16 core licenses per server. Both editions also require Windows Server CALs for every user or device accessing the server environment. The primary difference between the editions lies in virtualization rights, a key concept for the 70-672 Exam to test.

A set of core licenses for Windows Server Standard edition allows the customer to run up to two Operating System Environments (OSEs), or virtual machines, on the licensed server. To license more VMs, the customer must assign additional sets of core licenses to the same server. In contrast, a fully licensed Windows Server Datacenter edition server allows for an unlimited number of virtual machines. This makes Datacenter the clear choice for highly virtualized servers, as it is more cost-effective and simpler to manage at scale than stacking Standard edition licenses.

Licensing for Cloud Transition

While the 70-672 Exam was created before the widespread adoption of cloud services like Microsoft 365 and Azure, the foundational principles it teaches are relevant to cloud transitions. A key benefit of Software Assurance that bridged this gap was the Azure Hybrid Benefit. This benefit allowed customers with active SA on their on-premises Windows Server and SQL Server core licenses to use those licenses for virtual machines in Azure. This effectively meant they did not have to pay for the base compute cost of the Windows or SQL virtual machine, only the infrastructure resources.

Understanding this benefit is crucial as it demonstrates how existing on-premises investments could be leveraged to make the move to the cloud more affordable. For a licensing professional, this meant being able to show a customer a clear path from their current Enterprise Agreement to a future state that incorporated cloud services. The ability to articulate this value proposition showcases a forward-thinking approach that, while modern, is built on the licensing mechanics covered in the 70-672 Exam.

Managing License Compliance and Audits

A significant responsibility for any organization is maintaining software license compliance. An audit, officially known as a Software Asset Management (SAM) review, can be a disruptive and costly event if the organization is unprepared. A key role of a licensing specialist, and a theme within the 70-672 Exam, is to design solutions that simplify compliance. Centralized agreements like the Enterprise Agreement are powerful tools for this, as they provide clear entitlement for standardized products across the entire organization.

The professional’s role extends to advising clients on best practices for ongoing management. This includes tracking all license purchases, maintaining a current inventory of software deployments, and periodically reconciling the two records. For products not covered by an enterprise-wide agreement, meticulous record-keeping is essential. By helping a customer establish good SAM hygiene, a licensing expert provides value long after the initial agreement is signed, helping them to be prepared and confident in the event of an audit.

Final Preparation Strategies for the 70-672 Exam

As you finalize your preparation for the 70-672 Exam, shift your focus from learning new concepts to applying them. Use practice exams to simulate the test environment. This helps you get used to the question formats, which are often scenario-based, and manage your time effectively. When you review your practice test results, do not just look at what you got wrong. Also, analyze why you got it wrong. Did you misunderstand the question, misremember a rule, or fail to consider a key detail in the scenario?

Create your own case studies. Write down a brief description of a fictional company and its challenges. Then, go through the entire process of designing a solution, from choosing an agreement to selecting products and justifying your choices. Try to create complex scenarios that involve virtualization, multiple subsidiaries, or a mix of on-premises and cloud needs. This active application of knowledge is far more effective than passive reading and will solidify the concepts in your mind, preparing you for the practical nature of the 70-672 Exam.

The Evolution of Microsoft Licensing

The world of Microsoft licensing has evolved significantly since the 70-672 Exam was prominent. The focus has shifted from on-premises perpetual licenses to cloud-based subscriptions. Programs like the Enterprise Agreement still exist, but they have been modernized to incorporate cloud services like Microsoft 365 and Azure. The Select Plus program has been replaced by the Microsoft Products and Services Agreement (MPSA), and the Open License program has been phased out in favor of the Cloud Solution Provider (CSP) program.

Despite these changes, the fundamental skills validated by the 70-672 Exam remain incredibly relevant. The process of analyzing customer needs, understanding product use rights, and designing a cost-effective, compliant solution is timeless. The products and program names have changed, but the core logic and the consultative approach are the same. A professional who mastered the content of the 70-672 Exam would have a strong foundation for quickly learning and adapting to the modern licensing landscape of Microsoft 365 and Azure.

Conclusion

Achieving a passing score on the 70-672 Exam was a significant accomplishment that opened doors to specialized roles within the IT industry. Professionals with this certification were highly sought after by Licensing Solutions Providers (LSPs), large enterprises, and consulting firms. The credential served as a clear indicator of a deep and practical understanding of a complex and business-critical subject. It demonstrated an ability to engage in high-level strategic conversations with CIOs and procurement leaders, helping them make multi-million dollar technology decisions.

In today's landscape, while the specific exam number is retired, the expertise it represented is more valuable than ever. Companies continue to struggle with the complexities of software licensing and cloud subscription management. The ability to optimize software spend, ensure compliance, and maximize the value of technology agreements is a critical business function. The journey of studying for and mastering the topics of the 70-672 Exam provided a career-long foundation in the discipline of software asset and license management that transcends any single exam or product era.

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