Visual Studio Subscription (formally known as MSDN subscription): Understanding licensing

Visual Studio Subscription is one of most widely used Microsoft's application used by various organizations to develop their application with most efficient and cost effective way, however one needs to be understand the advantages and obligations of Visual Studio subscription.

One most important concept which I came across while discussing with clients is clarity on Production and Development environment. So,

Production Environment: As per Microsoft, A production environment is defined as an environment that is accessed by end users of an application (such as an Internet Web site) and that is used for more than Acceptance Testing of that application or Feedback. In simplest word "An environment used to make money or carry out the business of an organization"

Development Environment: Used to develop and create and application for production systems.

From November 2017 Microsoft Whitepaper:

"All Visual Studio subscriptions and Visual Studio Professional are licensed on a per-user basis. Each licensed user may install and use the software on any number of devices to design, develop, test, and demonstrate their programs. Visual Studio subscriptions also allow the licensed user to evaluate the software and to simulate customer environments in order to diagnose issues related to your programs. Each additional person who uses the software in this way must also have a license"

Their are many options to buy Visual Studio subscription but it is important to understand what are the features each option has in order to get most value for money and to make sure that developers and compliant for all their undertaking development activities. 

Some features I am listing here are common in both the options: 

1- User based Licensing: Visual Studio subscription licenses operate on a named used basis. Each subscription is activated and assigned to a uses's Microsoft account. All users who come to the contact of software which has been download form Visual Studio portal must be assigned a Visual Studio Subscription license. For example: A system engineer who installs the software on machines should also covered by Visual Studio subscription. One exception to this rule is those end users who are involved in UAT( User acceptance testing) but downloaded the software from Visual Studio subscription portal can ONLY use it.

2- License Reassignment: Subscription can be assigned to other users but only once in a 90 days. It can also be reassigned to an employees, contractors, third party etc. but re-assignment restriction would remain once in a 90 days. 

3- Software available on subscription portal: Any developer who is assigned a Visual Studio subscription can download and use any software available on their subscription portal**. 

4- Multiple Machine Use: Subscription allows to use a software downloaded form Visual Studio portal to any number of devices simultaneously, no matter whether the machines belongs to home or office. 

5- Perpetual use rights: Visual Studio subscriptions purchased through certain channels( like EA, Open Agreement) provide perpetual use rights that allows developer who is assigned the Visual Studio subscription can still make use of all software they had downloaded and obtained keys even after the expiration of subscription, however they cannot install any subsequent upgrades of that software.

Generally, Visual Studio which do NOT provide perpetual rights includes:

- Visual Studio cloud subscriptions

- Visual Studio subscriptions purchased through Enterprise Agreement Subscription, Open Value Subscription, Campus Agreement, or other “subscription” Volume Licensing programs

- Visual Studio subscriptions offered through the Microsoft Partner Network to competency partners and to Microsoft Action Pack partners.

6- Transfer rights: If a Visual Studio subscription is transferred or sold,any perpetual use rights are transferred to the new party and the seller can no longer use the software

Other most common considerations

1- Training is not considered a development activity, so Visual Studio subscription can not be used.

2- Environment used for DR( disaster recovery) and back-up activities are considered production environment so Visual Studio subscription can not be used.

3- Visual Studio subscription can be used for non-production use as well ONLY in case of Office Pro plus. Visual Studio Enterprise subscription gives right to use Office Pro Plus on to one machine by one user.

References:

https://visualstudio.microsoft.com/wp-content/uploads/2017/11/Visual-Studio-2018-Licensing-Whitepaper-November-2017.pdf 

https://visualstudio.microsoft.com/vs/pricing/