Still, Microsoft said the intent is to reduce software piracy, counterfeiting, illegal loading of Windows on PCs and leakage of volume license keys, all illegal practices that have cost Microsoft and many of its legitimate resellers millions of dollars in lost profits and cheated consumers.
The new activation requirements for small and mid-sized businesses and volume licensed customers will impact OEMs, system builders and solution providers in new ways.
The new OEM activation procedures, for example, will make it far more difficult for unethical dealers to illegally copy legal copies of Windows onto non-licensed computers.
Beginning with Windows XP, Microsoft instituted a System-Locked Preinstallation System. The new OEM Activation process that kicks off with Vista improves upon that by ensuring that Windows Vista SKUs licensed to an OEM function only on that OEM's hardware.
But this means customers and their system builders and solution providers must maintain recovery media for each OEM's system configuration.
It will also force resellers and solution providers to be more accountable for illegal software, implement their customers' activation procedures and implement software asset management systems to ensure license compliance, partners say.
Microsoft is offering two Volume Activation 2.0 options, which are different ways of activating client PCs: Multiple Activation Keys (MAK) and a Key Management Service Key (KMS).
Like retail activation, the MAK key requires activations with Microsoft directly but allows multiple activations at one time. The MAK has a limited number of activations to it and can activate only a specific number of machines. It is the preferred option for customers with fewer than 25 clients or whose clients do not connect up to a network for more than 210 days per year, Microsoft said.
Microsoft said customers can set up a MAK proxy activation service that acts on behalf of multiple PCs with one PC connected to Microsoft server electronically, or they can deploy a MAK Independent Activation service that requires each PC or server to individually connect to the Microsoft activation server.
Customers will be required to seek more activations when the number hits "the pre-set" limit and can request more activations directly from Microsoft.
The other option, the Key Management Service Key, is stored on a systems managed by the IT administrator, solution provider or managed service provider. It is aimed at companies with at least 25 PCs and systems consistently connected to the network, Microsoft said.
With this option, clients must renew their activation by connecting to the KMS server, a local system, every 180 days to stay legal. Clients that have not activated will be nagged. They will, for example, automatically attempt to connect to the KMS service every two hours and renew their activation locally every seven days.
As with other options, clients have 30 days to complete their activation or go into reduced functionality mode, Microsoft said.
Microsoft said the new platform will help business customers comply with licenses and manage their software assets.
Many observers, resellers, system builders and solution providers say the Redmond, Wash., software giant should do all it can to prevent loss and protect its own software assets, as well as those of its resellers and customers within reason.
"Microsoft has the right to ensure its software is legitimate. As long as its not intrusive or violates privacy rights, Microsoft can do what they need to protect their intellectual property," said Ken Winell, CEO of ExpertCollab, a Florham Park, N.J.-based Microsoft partner.
"The protection program will allow companies to focus on deployment instead of compliance so there will be some benefit to it," the solution provider added. "For those companies that have been less than stellar in policing how software is distributed may experience some initial pain as the activation seems to be more stringent, but I also think if the companies want to have improved information about distributed copies of their software, the program will offer better visibility."
