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derekkrommFlag for United States of America

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Licensing - 2003 Server SBS + 2003 Server Standard

I've sort of asked this before, but I don't fully understand it yet, so here it goes 1 more time:

Currently, we have 1 server w/ SBS running. We're looking to purchase a 2nd server. I understand that it must be 2003 Standard since you can only have 1 SBS running.

Now, we currently have 20 CALs on SBS. So my question(s) are:

1) Do all CALs on SBS apply to any Standard installs? i.e. Will I need to purchase additional licenses if I install 2003 Server Standard on a new machine.
2) On Dell, HP, etc, when you purchase the OS w/ the server, they come with a minimum of 5 CALs. Is there a way to purchase just the OS w/out any additional licenses? If not, can I apply those CALs to the SBS server (that is, if #1 holds true).

Basically I need to know whether or not separate licenses are required for Standard Edition and whether or not any Standard Edition licenses can be applied to SBS.

Thanks!
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Lee W, MVP
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1.  Yes, all SBS CALs cover you for other servers.  You do not need to purchase any additional CALs.

2.  You may be able to purchase a Microsoft Volume License for the OS WITHOUT CALs, but all OEM licenses I've seen include 5 CALs.  (OEM license is what you get when you buy Windows from your hardware vendor - DELL, HP, Etc.).  And note: I DO NOT KNOW FOR CERTAIN that volume licenses will permit purchase without CALs.

To get into a Volume License Agreement, you should contact a large vendor - Dell should sell them (but will not preinstall them), zones.com, CDW.com will also sell them.
First of all, PLEASE NOTE that the following comments apply to licensing within the U.S.  It looks like you're in the country, so I'm answering based on that.  I do not know anything about licensing outside the U.S. except that the requirements and rules may be different.

1)  When licensing is done on a per user basis for the domain, then one license covers one user connecting to as many servers as are on the domain.  When licensing is done on a per client basis, then one license covers one client PC connecting to as many servers as are on the domain.  In either case, the license covers multiple server connections from one user or workstation.  So, you do not need to purchase additional CALs for your second server.

2) Standard CALs and SBS CALs are very different.  A standard CAL covers only the connection from user/client to the Windows servers on the domain. Additional specific CALs would be needed for Exchange, SQL, etc.  SBS CALs cover all of the server applications running on the SBS server - including Exchange, SQL (if included), ISA, etc.  You cannot use the 5 CALs that come with a standard Windows 2003 server license on the SBS server.  If you need additional CALs in your case, because your domain is running under SBS, you would have to purchase SBS CALs.  

The additional 5 CALs that come with the standard server license are sort of "free" - you can't purchase a server license without them.
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Interesting. Our plan is to migrate our SQL Server off of the SBS server onto its own box. We use Microsoft Dynamics, which is basically a SBS application for financials/management. It comes with a copy of SQL Server. Would I need to purchase additional licenses for SQL Server if I want to make it standalone?
Are you sure it's using full SQL?  If it is, then yes, you would have to purchase SQL CALs for your client workstations.  It may be using SQL Express, though (SQL 2005 version of what used to be called MSDE), which doesn't require CALs.
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Hypercat (Deb)
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We're not using a consultant, but we have a couple of free support questions w/ microsoft that I could use. But yes, the 2005 install is the full standard edition.

Thanks for the help. if you happen to stumble upon an answer, let me know :)