I saw Vijay's posting on MS licensing and I have to admit I was quite amazed. 1st off it was a huge rant, it seemed to fail to understand the basics of how businesses make money and finally there was not a good suggestion on how to make it better, except to remove the ways to pay. I will do a reply to the blog later, but first I thought I would offer some insight on licensing. Why does Microsoft sell licenses Microsoft uses licensing to get paid for our products. Customers buy the license if they see the value in the products. If the customer does not see the value, they would not buy. People who say Microsoft should give it away or reduce the price seem to not understand the basic economics of supply and demand - every business, while it may have many goals, ultimately has a responsibility to the investors and this is nearly always to make money. Even when I was treasurer for a charity we needed to make money - it was probably the biggest problem we had, followed by how we deliver the services the charity delivers. What about license types Microsoft has lots of license types, why? Well, 1st off since we have an estimates 600-800 million customers, we need some standardisation, both from a simplicity point of view and from a legal and time point of view. Our contracts are discussed by many lawyers, we need them to work, to protect our intellectual property, the Microsoft staff and the 3rd parties working with Microsoft. We also need the contracts to not be in breech of any legal requirements, so, for example, we need to ensure we can not compete with desktop OEM providers or control how they operate. We also can't customise every license, so we provide flexibility and options without having to involve lawyers - this is probably where most complexity comes from. Finally we have volume discounts and benefits. OEM - installed when the system is sold and in the desktop space, Microsoft can't offer anything that competes with this because of the DOJ ruling, so it is a must have for any other licensing option...