I have worked for a few American companies in my career; from my IT observation I can say that one of the hot topics of Sarbanes-Oxley (SOX) is software compliance. The question is; are you SOX compliant? Buying computer hardware for your business is easy. Once you have evaluated what you need place the order, take delvery and hand over the money. Software purchasing however, is more complicated. Unlike hardware, where you're buying a physical product with software you're purchasing a licence to use that application - invariably on a single PC if it's a boxed. Install it on more than one and you've broken the terms of agreement. Thus you could be liable for prosecution for software piracy.
Microsoft issues 2 types license agreement, depending on how you purchase.
Microsoft End User License Agreement (EULA) –
This comes with Full Package Product (FPP). This can be bought off the shelf. This can come in a boxed software which comes with CD supporting manuals. Software bought this way can be transferred from one PC to another (as long as it is has been uninstalled from the first one). Alternatively pre-installed software bought from Original Equipment Manufactures (OEM). This is the cheapest option to buy your software such as Windows. But it comes with some restrictions like you can not transfer between PC’s as you can with FPP.
Microsoft Volume License Agreement –
This is advised when purchasing more than five licenses for Microsoft products. These include Open, Select or Enterprise Agreement. Purchasing this way brings you additional rights that aren’t included in (FPP) or (OEM) licenses. With Volume license you can create a standard software image and use it across other machines in your network. Also downgrade rights lets you use any older version of the software.
