The reason: You're getting a "volumediscount." A volume discount is a common seller's practise of charging lessper item as you increase the number of items you buy.



Leading software makers follow thismarketplace custom, too. Unfortunately, small businesses operators often missout. When it's time to add new software or upgrade existing programs, theysimply visit a computer store and pay retail prices. Or, if they know aboutvolume discounts, they believe they have to buy dozens of software programs toqualify.

Adding to the confusion is the vocabularythat surrounds software buying. So perhaps the best place to start thediscussion about saving money on software is with the term "license."

What's a Volume License?

When it comes to selling and buying software, software makers talk aboutlicenses. That's because when you buy a software product you do not actuallyown it. Instead, the software maker sells you a license to use it. This licensealso stipulates what you can do with it - such as install and use it on yourcomputer?and what you cannot do with it?such as also install it on yourcousin's computer or make copies and sell it on the Internet.

When you're interested in buying more thana few copies of a software title, software makers will sell you a "volumelicense." A volume license lets you legally install a software program onmultiple computers?and at a price often much less than buying a separatesoftware CD to use for each PC.

A volume license specifies how manycomputers you can install the software on or, in the case of server software,how many users (or "seats") can access the software on a network. Volumelicensing agreements can call for the installation of monitoring componentsalong with the software so that the software maker can tell how many times thesoftware has been installed or how many employees are using the applicationover a network at any time.

What's the exact number of computers orusers required to qualify for a volume license? It varies by software title andmanufacturer, but initial discounts start at levels less than you might think.

For example, Microsoft has a licensingprogram for small businesses that allows you to qualify for volume discountswhen purchasing as few as five licenses. In fact, the purchase of one copy ofWindows Server 2003 or Windows Small Business Server 2003 qualifies you forvolume discounts because each automatically includes five client accesslicenses.

Volume Licensing Benefits

A volume license contract - which can typically run two or three years - canalso bestow the right to purchase additional licenses at the same initiallydiscounted price. Also worth noting is that some manufacturers enable you toqualify for their volume discounts by buying a mix of their software titlesinstead of having to buy multiple licenses for one product.

Volume licensing deals may have otherattractive features that apply over the license contract period. For example,you can get:

Free software upgrades

Technical support for a specified period

The ability to make payments over time

Automated license registration to validateyour right to use the software

You don't buy a volume license at a retailstore selling software. Software companies will either sell licenses directlyto you or make volume discounts available through their authorised partners orresellers. Visit a software company's Web site to find out how it handles volumelicense sales.

Another Option: Pre-installed Software

Maybe you are not ready to take advantage of volume licensing, but are ready toreplace or add a PC to your workplace. If so, another excellent opportunityexists to save on software costs. Buy your new computer with the softwarepre-installed on the machine. Most leading computer manufacturers will packagemajor software products with their PCs at far less cost than if you bought theproduct at a retail store.

One drawback to the licenses from equipment manufacturers isthat?unlike boxed software from a retailer?you cannot uninstall it from themanufacturer's PC and install it on another PC. All you can do with thesoftware is re-install it on the computer you purchased. Also, pre-installedsoftware does not include free upgrades or technical support from the softwaremaker. You may be able to purchase technical support from the computer maker,however.

For more information on volume licensing visit Microsoft VolumeLicensing .