What anniversary and renewal notices do customers with Open Value Agreements, and the Partners that sold them, receive and when?

Since the Open Value Program provides customers with the benefit of Spread Payments if they choose to use them (no interest or finance charges), a question we have received is, “What notifications does the customer receive from Microsoft that their anniversary payments (2^nd and 3^rd year) are coming due or that their Agreement is coming up for renewal, if they wish to extend their Software Assurance benefits?” Here is a list of the notifications they receive as well as the timeline:

Spread Payments

Open Value Non-Companywide and Open Value Companywide:

The reseller sends invoices to the customer for licenses on the initial order at the start of the first, second, and third years.

For licenses that are ordered during the first or second year, the reseller sends an invoice to the customer for the first installment upon receipt of the customer’s purchase order. Payments for the second (for orders in year one) and third year are included in the anniversary invoices for the initial set of licenses.

For licenses that are ordered during the third year, the reseller sends an invoice to the customer upon receipt of the customer’s purchase order. No spread payments are offered for licenses ordered in the third year. Only for licenses added in the last month of the agreement will payments be due at the end of the third year of the agreement.

Invoicing

For Open Value, the invoices are generated after receipt of a purchase order.

• The customer places purchase orders with you as his or her reseller, you place a purchase order with your distributor, and your distributor places a purchase order with Microsoft.
• After Microsoft invoices your distributor, you receive an invoice from your distributor, and you send an invoice to your customer.

Notifications — Annual and Anniversary

• Open Value customers will receive several notifications during the term of the agreement.
• The reseller will be copied and distributor blind-copied on all notifications, except the MVLS invitation letter.
• Anniversary and expiration notification include part numbers and quantities according to their last order
• Notifications may be e-mail messages or hard-copy letters as required.
• Anniversary notifications from Microsoft reminding Open Value customers that the annual purchase orders are sent:
  • 45 days prior to the agreement’s anniversary.
  • On the agreement anniversary date if no purchase order has been received.
  • 30 days after the agreement anniversary date if no purchase order has been received.
  • 60 days after the agreement anniversary date if no purchase order has been received. This notification is only sent as a hard copy and explains that the agreement has been terminated.

Renewal notifications from Microsoft reminding Open Value customers of the renewal are sent:

• 180 days prior to the agreement expiration date if no purchase order has been received.
• 60 days prior to the agreement expiration date if no purchase order has been received.
• 30 days prior to the agreement expiration date if no purchase order has been received.
• Expiration date if no purchase order has been received.
• 30 days after expiration if no purchase order has been received. This notification is only sent as a hard copy and explains that the agreement has ended.
• NOTE: Once client makes all 3 annual payments, they own their licenses and have perpetual license use rights. It is the Software Assurance benefits that would be expiring and would need to be renewed at this time. Read my, “Do my licenses expire after three years with Open Value?” post for a full explanation on this including pictures.

Thank you and have a wonderful day,

Eric Ligman
Microsoft US Senior Manager
Small Business Community Engagement
This posting is provided "AS IS" with no warranties, and confers no rights