Microsoft Developer Tools & Visual Studio Licensing Guide

Microsoft Developer Tools & Visual Studio Licensing Guide

Software Asset Management (SAM) professionals face unique challenges when managing Microsoft developer tools licensing. Visual Studio, Azure DevOps, and GitHub Enterprise offer powerful capabilities for development teams, but their licensing models are nuanced. Missteps can lead to compliance risks or overspending.

This guide provides a comprehensive, advisory-style overview of Microsoft’s developer tool licenses – from individual Visual Studio editions to enterprise offerings – with actionable recommendations.

It is written in a professional, Gartner-style tone to help SAM professionals understand, optimize, and confidently manage these licenses. We emphasize independent insights (e.g., consulting firms like Redress Compliance) rather than deferring to Microsoft’s sales guidance, enabling you to make objective decisions.

Below, we break down Visual Studio editions, volume licensing programs (EA, CSP, etc.), Azure DevOps, and GitHub Enterprise considerations.

Each section includes practical recommendations to ensure compliance and cost-effectiveness. Use this as a reference to navigate the complex landscape of Microsoft developer licensing and to proactively manage licensing risks and opportunities.

Overview of Microsoft Developer Tools Licensing

Microsoft’s developer tools ecosystem encompasses the Visual Studio family of IDEs, related subscription benefits (formerly MSDN), collaboration platforms like Azure DevOps (formerly TFS), and GitHub Enterprise. Licensing these tools involves a mix of per-user subscriptions, server licenses, and service plans.

Key points include:

• Visual Studio IDEs: Ranging from the free Community edition to paid Professional and Enterprise editions. Paid editions are typically licensed per user, often as annual subscriptions with a rich set of included benefits for development and testing.
• MSDN/Visual Studio Subscriptions: Subscriptions (now just called Visual Studio subscriptions) provide rights to use a broad catalogue of Microsoft software for development/test purposes, plus cloud services credits and other perks. Each subscription is assigned to a specific user.
• Azure DevOps: Azure DevOps is available as a cloud service (Azure DevOps Services) or on-premises (Azure DevOps Server). Azure DevOps licensing can be per user (for cloud services) or per server plus client access licenses (for the on-prem server). Visual Studio subscribers get certain Azure DevOps rights included.
• GitHub Enterprise: GitHub’s enterprise offering (now part of Microsoft) is licensed per user (for cloud or self-hosted server usage). Microsoft offers bundled licensing options combining GitHub Enterprise with Visual Studio subscriptions for volume licensing customers, although it remains a distinct product with its own terms.

SAM Impact:

Managing these licenses requires careful attention to per-user assignments, permitted use cases (development/test vs. production), and the channel through which licenses are acquired (retail, volume license, or cloud subscription). The following sections delve into each area in detail, with guidance on how to optimize and remain compliant.

Visual Studio Editions and Licensing Models

Microsoft offers several editions of Visual Studio for developers, each with different features and licensing requirements. All paid editions (Professional, Enterprise, Test Professional, etc.) are licensed per named user.

This means each license must be assigned to an individual entitled to use the software on any number of devices for development purposes.

Below, we outline the main editions and their licensing:

Visual Studio Community & Code (Free Developer Tools)

• Visual Studio Community – a free, full-featured IDE for individual developers, open-source projects, academic research, and small teams. The community edition provides the same core IDE capabilities as the Professional. However, its license has usage restrictions:
  • Individual developers can use Community for free for any purpose (including commercial).
  • Organizations can use Community only if they are non-enterprise (defined by Microsoft as having <=250 PCs or < USD 1 million annual revenue) and with up to 5 active users. Larger “enterprise” organizations cannot use Community except for training or open-source project contributions.
  • The Community edition cannot be used in enterprise environments (large companies) for general development beyond those exceptions. SAM managers should ensure that any usage of Community in a bigger company is compliant with these limits.
• Visual Studio Code – a free, lightweight code editor. VS Code is open-source and usable by anyone with no license fees. It has no special licensing constraints (it falls under a standard free software license for all users). VS Code is often used alongside Visual Studio or as an alternative for lightweight development; it does not require tracking for licensing purposes.

SAM Recommendation:

Include Visual Studio Community in your compliance reviews. Ensure that if your company qualifies as an “enterprise” by Microsoft’s definition, developers are not using the Community edition in violation of the terms.

Limit the Community to eligible scenarios (small teams, OSS projects, etc.). Visual Studio Code requires no license tracking, but using VS Code doesn’t grant rights to other Microsoft software.

Some developers in large firms mistakenly think using VS Code means they don’t need Visual Studio licenses for certain tasks. Communicate the allowed usage of Community and the difference between Community vs. paid editions to your development teams.

Visual Studio Professional Edition (Individual Developers & Small Teams)

Visual Studio Professional is the entry-level paid edition for professional developers. Key points of Visual Studio Professional licensing:

• License Model: Per-user license. Each licensed user can install and use Visual Studio Professional on several devices for development and testing. The license is typically obtained as a Visual Studio Professional Subscription (annual subscription), which includes the IDE plus a set of benefits (formerly MSDN benefits). Buying Visual Studio Professional as a standalone “license-only” product (one-time purchase) without ongoing subscription benefits is also possible.
• Included Benefits: A Professional subscription includes rights to download and use many Microsoft software products for dev/test (Windows, Windows Server, SQL Server, etc.), though not as comprehensively as the Enterprise edition. Notably, Visual Studio Professional excludes some high-end software from its included downloads – for example, certain server products (like SharePoint Server, Exchange Server) or services like Power BI Pro are not included with a Pro subscription. In contrast, they might be included in the top-tier subscriptions. Professional subscribers get up to $50/month Azure credits for dev/test use and basic access to Azure DevOps (more on that later).
• Standalone License Option: Visual Studio Professional can be purchased as a perpetual license (without the MSDN-style subscription benefits). In this case, you pay a one-time fee (e.g., approximately USD 499 retail) for a specific version (e.g., Visual Studio Professional 2022). This perpetual license allows the use of that version indefinitely. However, it does not include rights to newer versions, Azure credits, or software downloads beyond the Visual Studio IDE itself. Standalone licenses are less common in enterprises (which prefer subscriptions for the latest version and benefits), but SAM managers might encounter them. A perpetual license of VS Pro is akin to licensing just the IDE as a standard piece of software.
• Usage Rights: The Professional edition (whether via subscription or standalone) permits using the Visual Studio IDE and includes Microsoft software only for development, testing, and certain demonstration purposes. Production use of the IDE or any software obtained via the subscription is prohibited. For instance, a developer’s Visual Studio cannot troubleshoot production systems unless that is strictly part of testing a program. Additionally, any Windows or SQL Server instances installed under the Visual Studio subscription license must not host “live” production data or serve end-users in production.

SAM Recommendation:

Match developers with the right edition. Visual Studio Professional is sufficient for many scenarios – it’s cheaper than Enterprise – but ensure those needing the additional benefits of Enterprise (like advanced testing tools or access to the full range of Microsoft server software for test labs) are properly licensed with Enterprise instead.

Keep an inventory of who has Professional vs. Enterprise and review whether some Enterprise subscriptions can be “downgraded” to Pro at renewal to save costs (Microsoft uniquely allows “renewing down”—you can renew a higher edition to a lower edition subscription when the term is up). Conversely, monitor if any teams outgrow Professional and need an upgrade.

If your organization purchased any, track standalone VS Pro licenses – treat them like perpetual software assets tied to a specific version. Suppose developers with standalone licenses need newer versions; factor that into the budget, or consider moving them to subscriptions.

Always reinforce to users that Visual Studio (and any software from its subscription) is for non-production use only if there’s a need to use Microsoft software in production (e.g., an SQL Server for a production system), which requires separate proper licensing outside of any Visual Studio/MSDN subscriptions.

Visual Studio Enterprise Edition (Enterprise & Advanced Development Teams)

Visual Studio Enterprise is the premium edition aimed at large teams, enterprise-grade projects, and advanced development/testing scenarios. It is available only as a subscription (there is no one-time perpetual purchase for the Enterprise edition).

Key licensing aspects of Visual Studio Enterprise:

• License Model: Per-user annual subscription (often called “Visual Studio Enterprise with MSDN”). Each Visual Studio Enterprise subscription must be assigned to a specific user, and that user can use the Visual Studio Enterprise IDE on any device and access all included benefits. Visual Studio Enterprise subscriptions typically cost more, reflecting the broader rights and features. The subscription can be purchased through volume licensing agreements or retail channels (discussed later). Renewals: Enterprise subscriptions have a lower renewal price than the initial purchase; organizations should budget for annual renewals. If not renewed, the user’s access to subscription benefits ends, but (if originally purchased through a perpetual licensing program) the user may retain perpetual rights to the last version obtained (more on “perpetual fallback” below).
• Included Benefits: Enterprise subscriptions come with the most comprehensive set of MSDN benefits:
  • Software for Dev/Test: Access all Microsoft on-premises software for development and test environments. This includes Windows client and server OS, SQL Server (all editions), SharePoint, Exchange, Dynamics 365 on-prem, older products, etc. Enterprise level even includes things like Office Professional Plus for test/dev use (Enterprise subscribers can install Office Pro Plus or Microsoft 365 Apps for Enterprise on one device for development/testing purposes). In short, an Enterprise subscriber can build full replica environments of your Microsoft infrastructure for dev/test without additional license cost – a huge value if used correctly.
  • Azure Credit: The user can receive $150 per month in Azure dev/test credits. This credit can be applied to Azure services in a special Dev/Test subscription (which offers discounted rates for VMs, etc., and allows the use of Windows client OS images). This encourages developers to use Azure for testing. (Ensure developers understand these credits are only for dev/test, not production workloads.)
  • Azure DevOps & CALs: Visual Studio Enterprise includes use rights for Azure DevOps Server (one server license), and it automatically confers an Azure DevOps Client Access License (CAL) for that user. That means if your company runs Azure DevOps Server (on-premises), each Enterprise subscriber already has the necessary CAL to access it, and the organization doesn’t need to buy a separate CAL for them. (Professional and other VS subscriptions include a CAL – see next section – but Enterprise additionally includes Test Plans extension use). On the cloud side, an Enterprise user also gets unrestricted “Basic + Test Plans” access to Azure DevOps Services (we’ll detail this under the Azure DevOps section).
  • Advanced Tools: Enterprise edition unlocks the highest-tier Visual Studio features: advanced testing tools (Microsoft Test Manager, load testing capabilities), IntelliTrace debugging, architecture and modeling tools, etc. Some of these features are not available in Professional.
  • Other Perks: Enterprise subscriptions may include partner benefits like Pluralsight or LinkedIn Learning access (these offers change over time), priority support incidents, and collaboration tools integration (since Microsoft acquired GitHub, Enterprise subscribers can also be part of special GitHub Enterprise plans – covered later).
• Usage & Restrictions: Like all Visual Studio subscriptions, Enterprise is strictly for the development and test use of included software. No production usage is allowed under the license terms. The user can run any number of copies of the software on any device as long as it’s for development-related activity. Visual Studio Enterprise subscribers also have more flexibility with cloud use: they can use Azure to host their dev/test environments (including Azure shared infrastructure) without violating the “dedicated hardware” rule – Microsoft explicitly permits subscriber use on Azure. However, running subscriber-licensed software on other public clouds (Amazon, Google, etc.) has been restricted in recent years unless dedicated hosts are used due to updated outsourcing terms. SAM teams should ensure developers aren’t, for example, running MSDN-licensed Windows VMs on AWS or GCP shared clouds, which is not allowed under current rules (post-2019 license changes).

SAM Recommendation: Leverage the full value of Enterprise subscriptions – and monitor their use. Ensure that any developer or IT professional who requires broad access to Microsoft product licenses for testing (e.g., setting up test SharePoint farms, using Exchange in a dev lab, etc.) is assigned an Enterprise subscription rather than trying to cover such needs with lower licenses (which would be non-compliant). Regularly review your roster of Enterprise subscribers; these are expensive licenses, so reclaim and reassign them if someone leaves or no longer needs the full capabilities. Microsoft allows reassigning a Visual Studio subscription to a new user after 90 days (like most per-user licenses) – track those reassignments carefully in your SAM system or the Visual Studio admin portal to avoid inadvertent unlicensed users. Also, plan renewal time as an opportunity: you could “true-down” or reduce the count of Enterprise subscriptions if your needs decreased, or renew some users as Professional instead of Enterprise if their role has changed (this is the “renew down” option unique to Visual Studio subscriptions). This requires purchasing the appropriate renewal SKUs, but it can yield significant savings. Conversely, if new projects demand more Enterprise features, budget for upgrading some Pro users to Enterprise at renewal. Finally, educate Enterprise subscribers about the responsible use of their benefits:

• They should clearly separate dev/test environments from production to avoid confusion during audits (mixing MSDN-licensed dev VMs on the same host as production VMs can make license evidence murky).
• If they use Azure credits, have them use the dedicated Azure Dev/Test subscription offers, which are more cost-effective and compliant.
• Warn that using subscriber downloads like Windows or Office on their primary work machine beyond development purposes crosses into production use (e.g., a developer using an MSDN-licensed Office on their laptop for daily real work unrelated to development would violate terms). Such scenarios should be avoided or properly licensed via production licenses.

Visual Studio Test Professional & MSDN Platforms (Specialized Subscriptions)

Microsoft also offers specialized subscription levels aimed at team members who need access to the testing tools or just the software library, but not the full Visual Studio IDE:

• Visual Studio Test Professional: This user-based license includes Microsoft’s Test Professional software (a lightweight test runner and Microsoft Test Manager for managing test cases) and includes the MSDN subscription benefits similar to Visual Studio Professional. However, it does not include the Visual Studio IDE itself. It’s intended for testers or QA engineers who don’t write code in Visual Studio but must run tests and access the development/test software catalogue. Test Professional subscribers get the rights to use Azure DevOps Server (including a CAL) and have the same $50 Azure credit as a Pro subscription and access to older Visual Studio releases if needed for test environments. The cost is usually lower than full Visual Studio subscriptions. SAM note: Count your Test Professional licenses among MSDN subscribers – they have the same compliance considerations (per user, dev/test use).
• MSDN Platforms: This is essentially a “subscription without Visual Studio”. It provides access to the MSDN software library, Azure dev/test credits ($100/month for this subscription level), Azure DevOps Server rights CAL, etc., but no Visual Studio IDE license. MSDN Platforms are often used by IT professionals, project managers, or other technical team members who need to set up and evaluate software in test environments but don’t need the Visual Studio IDE. It’s a way to license non-developer staff for dev/test environments. For example, a system administrator who builds test environments or a business analyst who needs to test a product could be given an MSDN Platforms subscription to legally use all the necessary Microsoft software in that sandbox.
• Feature Differences: Test Professional and MSDN Platforms include nearly all the same software access benefits as VS Professional subscriptions. MSDN Platforms includes a few server products that the Visual Studio Professional subscription does not (notably, it was noted that certain enterprise server products like SharePoint or Exchange are available in MSDN Platforms, whereas VS Pro might not include those in its download list). This is a niche detail, but if your organization has any MSDN Platforms subscribers, be aware that they might have slightly expanded dev/test rights in certain areas compared to VS Pro subscribers.

SAM Recommendation:

Don’t overlook non-developer roles. Ensure that testers, DevOps engineers, build/release managers, or system admins working in the dev/test environment are properly licensed. A common mistake is to license only the software developers and assume others in the team don’t need licenses. 

In reality, anyone installing, configuring, or using the software in the development/test environment needs an appropriate MSDN subscription. For example, if a QA engineer logs into a UAT environment built with MSDN-provided licenses, that QA person should have at least an MSDN Platforms or Test Professional license.

The only exception is for user acceptance testing by end-users or other brief UAT demos – Microsoft permits unlicensed end users to access dev/test instances temporarily for UAT purposes (and up to 200 anonymous users can access a web app for demo via an MSDN feature using Remote Desktop/Terminal Services for demo – a special right included with standard subscriptions). However, aside from such scenarios, every person touching the non-prod environment needs coverage.

Audit your development and test environments for accounts and users involved, and make sure each is accounted for with a Visual Studio/ MSDN license as appropriate.

This includes system administrators who maintain the dev/test servers—as surprising as it is, they require a subscription if they interact with the MSDN-licensed environment (e.g., deploying a new SQL dev server or applying updates).

By licensing these roles with Test Professional or MSDN Platforms instead of full Visual Studio, you can meet compliance at a lower cost. Track these subscriptions like you track developer subscriptions and ensure they’re reassigned when staff changes.

Comparison of Visual Studio Subscription Options

To summarize the key differences between the main Visual Studio subscription levels, the table below highlights features and inclusions:

Note: Visual Studio Community (free) is not shown above because it isn’t a paid subscription. It includes the Visual Studio IDE with core features but no MSDN benefits, and its usage is limited by organization size, as described earlier. Visual Studio Code is also free and outside of these subscription tiers.

Retail, Volume Licensing, and Subscription Channels

Microsoft developer tools can be purchased through various channels, each with pricing, flexibility, and license rights implications.

SAM professionals should understand the differences between retail licensing, volume licensing programs (including Enterprise Agreements), and Cloud Solution Provider subscriptions for Visual Studio and related tools.

The channel choice can affect how you manage license counts, renewals, and post-expiration rights.

Retail (Direct Purchase) Licensing

“Retail” in this context refers to purchasing licenses directly from Microsoft’s website or a reseller without a formal volume agreement, as well as any one-off, license-only purchases:

• Visual Studio Subscription Retail Purchase: You can buy individual Visual Studio subscriptions (Professional or Enterprise) from the Microsoft Store or via authorized resellers as retail SKUs. For example, a small business or individual could go online and buy a Visual Studio Professional Annual Subscription with a credit card. Retail subscriptions typically last one year and then must be renewed. The pricing is generally pay-up-front for one year (for instance, around $1,200 for a new VS Pro subscription or about $5,000-$6,000 for a new VS Enterprise subscription; renewal rates are lower than the new purchase). Upon purchase, the buyer/organization assigns the subscription to a user via the Microsoft account/Visual Studio subscription portal.
• Standalone License Purchases: Visual Studio Professional (standalone IDE) can be bought retail as a perpetual license for a fixed version. That is also a retail SKU (no MSDN benefits). Additionally, things like Azure DevOps Server licenses or extra CALs can be bought as retail licenses (though this is more common via volume licensing).
• Retail vs. Volume Characteristics: Retail purchases are simple and quick for small quantities. However, they’re usually more expensive per license than volume pricing for larger organizations and lack the centralized management benefits of volume agreements. One noteworthy aspect: if you buy a Visual Studio subscription through a retail channel, you typically get a product key that can activate the software, and you might have perpetual rights to use the software obtained up to the subscription’s expiry (similar to volume, a user who bought an annual VS subscription and doesn’t renew can continue using the IDE version they have but loses access to new downloads and benefits). Always check the specific terms of the SKU.
• Renewals in Retail: If a retail Visual Studio subscription lapses, you often have a short grace period (30 days) to renew it to retain continuity. Otherwise, after expiration, the user should cease using the subscription benefits (though installed software can continue under the last valid license if perpetual rights apply). A new purchase would be required to reinstate it later.

SAM Recommendation:

Use retail purchases strategically. Buying a handful of VS subscriptions directly can be straightforward for a small company or a pilot project. However, once you scale beyond a few developers, evaluate volume licensing or CSP options for better pricing. If your organization has ad-hoc retail Visual Studio licenses from the past, catalogue them in your SAM database – including any keys or subscription IDs – so they aren’t forgotten. These should be managed just like any other license entitlement.

Retail subscriptions can sometimes slip through the cracks (e.g., an individual developer expensing a subscription on a credit card). Put policies in place: Ideally, route all developer tool purchases through centralized procurement so you know them.

If you find many retail subscriptions, you might consolidate them at renewal by moving into a volume program or CSP for easier management (Microsoft often allows transitioning those when time to renew). Also, keep proof of purchase details for retail licenses in case of an audit (invoices, emails with activation keys, etc.).

Volume Licensing Programs (EA, Open, MPSA, etc.)

Volume Licensing is how larger organizations typically purchase Microsoft licenses in bulk, often at a discount and with enterprise-friendly terms. Visual Studio and related tools can be acquired through several volume programs:

• Enterprise Agreement (EA): The EA is a 3-year agreement aimed at organizations with 500+ users or devices (although there are EAs for 250+ in some cases). Under an EA, you can include Visual Studio subscriptions in your order. Visual Studio subscriptions in an EA are generally treated as additional products (not a part of the EA “enterprise products” unless you choose to make them organization-wide, which is uncommon unless all employees are developers). You commit to a certain quantity, pay annually (spread payments), and can true-up (increase) licenses annually if needed. Benefits of EA:
  • Typically lower unit pricing for Visual Studio subscriptions than retail, due to negotiated discounts.
  • Ability to add GitHub Enterprise to a bundled SKU (Microsoft has a combined offering for EA customers, e.g., a “Visual Studio Enterprise with GitHub Enterprise” subscription). Starting around 2019 and with price drops in 2020, EA customers could get GitHub Enterprise users at a relatively small incremental cost on top of VS – a strong incentive to negotiate that in the EA if you need GitHub.
  • Easier management via a single agreement – all subscriptions co-term to the EA end date. At EA renewal, you can true-down (reduce quantities) or change editions (e.g., switch some Enterprise subscriptions to Professional, as mentioned).
  • Perpetual rights: With an EA, typically, if you complete the 3-year term and have paid for the licenses, you gain perpetual rights to the last version if the subscription licenses were under an EA that included perpetual benefits. (Visual Studio subscriptions under EA are usually covered by Software Assurance over the term – effectively, they behave as subscriptions. However, Microsoft’s documentation indicates that if bought through “perpetual license programs,” you have perpetual use of the software acquired up to expiration. In practice, confirm with your Microsoft Product Terms – generally, after an EA, users can keep using the IDE version they have, but won’t receive future versions or continued cloud benefits.
• Open Value / Open License: In the past, smaller organizations could purchase Visual Studio subscriptions through Open License or Open Value programs. Open License (a transaction-based program) was retired in 2021 for new purchases. Open Value (a 3-year program for SMBs, with payments spread annually) is still available. Under Open Value Subscription, you could license Visual Studio on a subscription basis with the option to buy out perpetual use at the end. These are suitable for 5+ license scenarios, but are less common now with the rise of CSP.
• MPSA / Select Plus: Microsoft Products and Services Agreement (MPSA) or legacy Select Plus agreements also allow purchasing Visual Studio subscriptions. These are transactional volume programs for larger orgs that don’t need an EA. Visual Studio subscriptions bought via MPSA are typically perpetual licenses with Software Assurance. For example, you might purchase “Visual Studio Enterprise with MSDN” under MPSA – this gives a perpetual license for VS Enterprise (for the version at that time) plus 2 years of Software Assurance (SA), which provides updates and benefits. After the SA expiry, if not renewed, the user can continue using the last obtained version perpetually (but lose the ongoing benefits). This is one way organizations maintain some perpetual rights as a fallback.
• Campus/Education Agreements: For academic institutions, there are volume agreements (Enrollment for Education Solutions, etc.) where Visual Studio subscriptions can be included at special pricing. These often allow faculty, staff, and sometimes students to use Visual Studio Enterprise or Professional. (Academia also has DreamSpark/MSDNAA – now Azure Dev Tools for Teaching – providing free access to certain dev tools for students, which is separate from our scope but worth noting if you manage licenses in an academic setting).

SAM Recommendation:

Optimize your volume licensing strategy. If you have an Enterprise Agreement, ensure you have thoroughly negotiated the pricing for Visual Studio subscriptions – Microsoft might bundle them with other products, but don’t assume the initial quote is the best. Always approach EA negotiations with independent benchmarks or the help of a licensing advisor (like Redress Compliance) to secure discounts, especially if you’re also adopting GitHub or Azure DevOps at scale.

Keep track of true-ups: if, during the EA term, you add developers, you’re obligated to report those and pay pro-rated true-up fees. Avoid the compliance pitfall of “quietly” assigning more subscriptions than you contracted for – Microsoft can audit and back-bill for those.

For organizations not on an EA, compare the costs of Open Value vs. Cloud subscriptions (CSP) for your dev tools. Volume licensing (like Open Value) might give you a perpetual rights safety net, but CSP could offer flexibility (month-to-month adjustments). It often comes down to whether you value flexibility over long-term cost certainty.

Documentation for all volume license purchases, including licensing agreements, purchase orders, Microsoft Volume Licensing Service Center (VLSC) records of Visual Studio subscriptions, etc., should be centralized.

This helps in an audit to show entitlements. Lastly, watch out for “version lock”: if you leave a volume program and have perpetual rights to an older version (say VS 2019) but all your developers move to VS 2022, you’d technically need to relicense or renew SA. So, plan to renew subscriptions or shift to CSP so that your licensing always covers the current versions.

Cloud Solution Provider (CSP) and Visual Studio Marketplace Subscriptions

In recent years, Microsoft has provided more flexible cloud-based purchasing options for Visual Studio:

• Cloud Solution Provider (CSP) Program: CSP is a licensing program where a Microsoft partner manages your subscriptions, often with a monthly or annual billing model and no long-term contract. Visual Studio subscriptions are available via CSP on a month-to-month or annual basis. For example, you can get a Visual Studio Professional subscription for a certain price per user per month (around $45 USD/month) via a CSP, and you can increase, decrease, or cancel these subscriptions with short notice (usually a month-to-month commitment). CSP essentially “rents” the license to you, which can be ideal for organizations with fluctuating developer counts or short-term contract developers. CSP offers for both VS Professional and Enterprise (and possibly Test Pro/MSDN Platforms through certain partners) exist. Note that CSP subscriptions do not confer perpetual rights – if you cancel, the license goes away entirely. They also may not include all the same benefits: CSP can provide the full standard benefits if you choose the annual paid Visual Studio standard subscriptions. However, CSP also allows “monthly cloud” subscriptions (described below).
• Visual Studio Marketplace (Visual Studio Online Subscriptions): Microsoft’s online marketplace (often tied to Azure) allows customers to buy Visual Studio Cloud Subscriptions directly. These are identical to CSP monthly subscriptions but procured directly from Microsoft by the customer. For instance, through the Azure portal or Visual Studio website, you could subscribe to Visual Studio Enterprise every month (around $250 per user/month listed price) and cancel anytime. These cloud subscriptions are billed via your Azure account or credit card. They provide the Visual Studio IDE and basic associated rights (like Azure DevOps access), but importantly, Microsoft distinguishes “Cloud subscriptions” vs “Standard subscriptions”:
  • Standard (MSDN) subscriptions – the annual subscriptions that include full MSDN benefits (software downloads, older versions, Azure credit, etc.). These are available via volume licensing, retail, or annual offers via CSP.
  • Cloud subscriptions – the month-to-month offers typically do not include the downloadable software library or some legacy benefits. They give you the IDE, Azure DevOps Basic access, and some lightweight benefits, but not the full software download rights. Microsoft positions these for teams working mainly with cloud services or those who only need the IDE and perhaps Azure DevOps without the on-prem software testing rights. For example, a contractor who needs Visual Studio for a few months to write code might be fine with a cloud subscription. If that contractor needs to also spin up a SharePoint test server, the cloud subscription alone wouldn’t suffice.
• GitHub in CSP: GitHub Enterprise is not typically sold via CSP; it’s mainly via direct GitHub contracts or volume licensing (EA). CSP is more focused on Azure and Office 365-type subscriptions. So, for GitHub, you’d go through other channels.

SAM Recommendation:

Harness CSP for flexibility, but mind the trade-offs. CSP is excellent for short-term needs – for example, onboarding a team of external developers for a 6-month project and giving them Visual Studio Enterprise only for that duration. It can also be a way to avoid upfront commitment and align costs monthly.

Many SAM professionals use CSP to get licenses of the right size on the fly. Implement governance around CSP usage: because it’s easy to add licenses, ensure there’s a process to remove them when not needed (e.g., as contractors roll off, promptly reduce the CSP count to avoid ongoing charges).

One caution: because monthly cloud subscriptions lack perpetual rights and some MSDN benefits, be careful not to rely on them if your devs need those benefits. We’ve seen cases where companies switched to all CSP monthly to save money, then realized developers lost access to certain software (like downloading older Windows versions for a lab).

If those benefits are needed, you might mix in some Standard subscriptions. Another consideration is cost vs. EA: if you have a steady need for many licenses, CSP can end up pricier over 3 years than negotiating an EA. Do the math: monthly flexibility comes at a premium.

Engage an independent licensing advisor to model scenarios. For instance, if you need 100 Enterprise subscriptions long-term, an EA might yield better discounts and predictability. In contrast, if your needs vary between 50 and 150 throughout the year, CSP could save money by scaling down in slower periods.

From a compliance perspective, CSP simplifies things: as long as you pay monthly, you’re always current on licensing.

Just ensure your CSP partner provides you with regular license reports and that you document the assignments of those subscriptions to users (especially if names aren’t in a typical license portal like VLSC – though Microsoft’s admin portal for Visual Studio should list them).

Perpetual vs. Subscription License Rights

One more important concept for SAM managers is understanding what happens when a Visual Studio subscription ends. Unlike many software licenses,

Visual Studio has this nuance:

• If you acquired the subscription via a perpetual licensing program (such as an EA or Open/MPSA with Software Assurance), then after the subscription term, you have perpetual rights to the software acquired. This means the user can continue using the last version of Visual Studio IDE and any software downloaded (for dev/test) obtained during the active period. However, they lose the rights to upgrades, cannot download new product versions or keys, and should not receive any new benefits (no new Azure credits, etc.). Essentially, it freezes at the last state. This provides some fallback in case budgets or needs change.
• If you acquired via a pure subscription model (like CSP monthly or retail annual that you choose not to renew), then once it expires, the rights terminate completely. The user is supposed to stop using Visual Studio and any MSDN-provided software. The software might continue to run technically (since product keys were installed), but it would be out of license compliance to keep using it. There is no perpetual fallback here.
• Microsoft’s rules allow that if a subscription expires and is not renewed, any product keys already used from that subscription can continue to activate software up to their limit – so in an audit, you could show you had a subscription at the time of deployment – but after a lapse, no new deployments should be done and no new activations beyond what was already installed. It’s a bit of a grey area, so to be safe, treat non-renewed subscriptions as a need to uninstall or re-license any software if development work continues.

SAM Recommendation:

Plan for end-of-term and maintain license records. Keep a schedule of Visual Studio subscription expirations (especially if you have retail or open licenses that might expire at various times or an EA coming up for renewal). Well before expiration, determine if you will renew or transition.

If you choose not to renew some subscriptions, make sure the developers in question either stop using the software or you have alternative licenses (e.g., maybe you had 10 contractors, and you decided not to renew their 10 subscriptions after they left—then also ensure those software installations are removed or reassigned to other licensed users).

As a best practice, archive the proof of license entitlements for any expired subscriptions you rely on for perpetual rights. For example, if you had Visual Studio 2019 subscriptions via MPSA and didn’t renew in 2022, you might still allow those developers to use VS 2019 under perpetual rights.

Document that thoroughly because an audit might question it years later, and you’ll need to show the entitlement back then. Also, communicate with your developers whether their MSDN benefits are active.

There have been cases where developers continue downloading software or using Azure credits, not realizing their subscription has lapsed, potentially leading to unlicensed usage. An independent SAM audit or true-up internally each year is a good practice to catch such situations.

Azure DevOps Licensing Considerations

Azure DevOps is Microsoft’s suite for application lifecycle management, source control, and CI/CD.

It comes in two forms: Azure DevOps Services (a cloud service hosted by Microsoft) and Azure DevOps Server (an on-premises server product formerly Team Foundation Server/TFS).

SAM professionals must manage licensing for both scenarios, especially as they intersect with Visual Studio subscriptions.

Azure DevOps Server (On-Premises) Licensing

If your organization hosts its own Azure DevOps Server, licensing closely resembles a client-server model:

• Server License: To deploy Azure DevOps Server on a server, you need at least one server license (analogous to a server software license like SQL Server or Windows Server license). If you have multiple instances (e.g., Production and Test instances of Azure DevOps Server), each might require a server license unless covered by dev/test rights.
• Client Access Licenses (CALs): Each user who accesses Azure DevOps Server must have a CAL (similar to how Windows Server or SQL Server require CALs for users). A CAL permits users to connect to the Azure DevOps Server to use services like source control, work item tracking, build, etc.
• Included CALs with VS Subscriptions: Here’s where Visual Studio subscriptions help: Every standard Visual Studio subscription (Enterprise, Professional, Test Pro, MSDN Platforms) includes an Azure DevOps Server User CAL for that subscriber. The license also allows the subscriber to install Azure DevOps Server (the whitepaper indicates the software is included for dev/test scenarios). If all your Azure DevOps Server users are already VS subscribers, you technically do not need to purchase separate CALs for them – their subscription covers it. Many companies rely on this and don’t buy separate CALs for the dev team. Just ensure each active user has a VS subscription.
• Stakeholder Access: Azure DevOps Server has a concept of “stakeholder” access—users who have limited, read/basic access (for work items, etc.) without a CAL. Stakeholder access is free for unlimited users, but it’s very limited in functionality (no code access, etc.). Typically, only non-technical stakeholders use it.
• Production vs. Dev/Test usage: Microsoft’s licensing guide notes that Azure DevOps Server is considered a production service even if used to support development. This is an important nuance: unlike spinning up a SQL Server under MSDN, which is non-production if only used by devs, the DevOps server itself is often considered infrastructure. In practice, if your Azure DevOps Server is only used by licensed MSDN users and only for development projects, you could consider it part of the dev/test environment (and indeed, the server software and CALs are provided by MSDN). However, some experts caution that because ADO Server coordinates work and could be mission-critical, Microsoft tends to view it as needing full licensing if it’s used in any significant capacity. The safest route is to use the included rights for non-production/low-risk scenarios, but if your Azure DevOps Server is used company-wide, treat it as a production system for licensing.
• Example – Dev/Test vs Prod separation: A best practice is to keep the Azure DevOps Server on a separate infrastructure from other production servers. If you deploy Azure DevOps Server on a machine that hosts production VMs or is part of your production domain, auditors might question its status. Keeping it isolated makes it easier to assert it’s purely a dev tool under MSDN. If you use it for actual production releases or as part of your live deployment pipeline, that’s arguably production use.

Azure DevOps Services (Cloud) Licensing

Azure DevOps Services (hosted by Microsoft in Azure) uses a per-user licensing model with tiered access levels:

• Free Tier: An Azure DevOps Services organization (tenant) has 5 free Basic users. This means the first five users can access the core features (repos, pipelines, boards, etc.) at no charge.
• Visual Studio Subscriber Access: Unlimited Visual Studio subscribers can be added for free. All users with a Visual Studio subscription (any level, including Enterprise, Pro, etc.) get Basic access to Azure DevOps Services at no additional cost. You add them to your Azure DevOps org, and the system recognizes their Microsoft account as having a VS subscription and grants them access without consuming the five free slots or requiring payment. This is a huge benefit: if your dev team has VS subscriptions, you likely pay nothing for Azure DevOps Services users.
• Paid Users: If you have more than five users who do not have VS subscriptions, you need to buy Azure DevOps user licenses. These are usually bought via an Azure subscription (the Azure DevOps user is billed at about $6 per user/month for “Basic” access, which is the standard feature set). Often, companies ensure all developers have a VS subscription instead, which covers it and also provides other benefits—a more cost-effective approach if the person does development work.
• Extensions: Some Azure DevOps Services features are add-ons. For example, Test Plans (for advanced testing management) and Artifacts (package hosting) are extensions billed per user or usage. Visual Studio Enterprise subscribers automatically include the Test Plans extension for that user (another VS Enterprise perk). Other users might need a separate license for Test Plans. Similarly, stakeholders (free user type for limited access) can be added beyond the five free, but they can’t do much beyond read/comment. GitHub integration or other marketplace extensions might have costs, too.
• Azure DevOps Services Billing: This is typically managed via an Azure subscription. Azure DevOps user licensing falls under Azure’s billing, which can complicate SAM oversight if those costs are buried in a cloud invoice. Pull Azure DevOps billing details or user lists to reconcile license counts outside VLSC or the Visual Studio admin centre.

Recommendations for Azure DevOps License Management

• Maximize use of VS subscriptions for Azure DevOps access: From a cost perspective, if your developers already need Visual Studio for coding, leverage that to cover Azure DevOps. It usually doesn’t make sense to pay separately for Azure DevOps Services users if those same users have (or should have) a Visual Studio subscription. Ensure your Azure DevOps organization is configured to recognize those subscriptions (usually by having users sign in with the same email associated with their VS subscription). Audit the Azure DevOps user list: anyone marked as “Basic (Paid)” should be checked – do they have a VS subscription that wasn’t recognized (perhaps they used the wrong email)? If yes, fix it and save money.
• License non-developer users appropriately: Project managers or others sometimes need access to Azure DevOps. If they only need the “stakeholder” features (no code or backlog editing), add them as free Stakeholders. If they need more, consider giving them an MSDN Platforms subscription, which covers their access and also gives them rights to set up test environments if needed. Depending on the situation, this could be cheaper than paying Azure DevOps per-user fees (and gives that user more capabilities).
• Track Azure DevOps Server deployments: If you run Azure DevOps Server on-prem, maintain a record of your server licenses (usually acquired via volume license). Also, track which users have CALs via their VS subscriptions. If external users (contractors from another company) access your Azure DevOps Server, remember that Visual Studio subscriptions are not transferable across organizations for CAL use – i.e., if they bring their own VS subscription, that covers them. Still, you cannot use one of your company’s CALs for someone in another company unless you assign them one of your VS subscriptions or buy a separate CAL. Ensure any external developer accounts are licensed by their company or you assign a license to them (compliance often fails here in outsourcing scenarios).
• Segregate production vs. non-production: If you treat Azure DevOps Server as part of production (perhaps it’s used to deploy actual releases), then license it fully (server + CALs for all, even if not all have MSDN). If you keep it as non-production, be ready to defend that in an audit by showing it’s only accessed by licensed developers and not used for live operations. Also, if Azure DevOps Server is integrated with your production infrastructure (like domain-joined to production AD or running on a production-licensed host), those are grey areas. One licensing expert advises running Azure DevOps Server on separate VM hosts so you don’t inadvertently require the host to be production-licensed (because a production workload on a host can sometimes require host-level licensing).
• Use independent advisors for tricky scenarios: If unsure, get a second opinion on complicated Azure DevOps licensing setups. For instance, if you have a globally distributed dev team or mixed usage of cloud vs on-prem, an independent Microsoft licensing specialist can recommend the most efficient licensing approach (maybe consolidating entirely on Azure DevOps Services to eliminate server licensing, or vice versa if needed for data control). They can also advise on contract negotiation if you plan to obtain an Azure DevOps Server via an EA (possibly as part of a DevOps offering or Azure consumption).
• Monitor Azure DevOps user count and usage: Implement a quarterly or semi-annual review of all users with access to the cloud service. Remove those who no longer need it (to maintain the least privilege and to avoid any unnecessary paid licenses slipping in). Also, review if you are paying for parallel pipelines, extra build agent pools, etc., in Azure DevOps Services – those are not direct “licenses” but related costs that can grow if not watched. They might be covered by self-hosted agents or included in pipelines with VS Enterprise licenses (VS Enterprise subscribers get certain quantities of free pipeline time).

GitHub Enterprise Licensing Considerations

Since Microsoft acquired GitHub, many organizations have started integrating GitHub Enterprise alongside or in place of Azure DevOps. GitHub Enterprise comes in two flavours: Enterprise Cloud (hosted by GitHub, part of ) and Enterprise Server (self-hosted appliance). Both are generally licensed on a per-user (per seat) basis, but their licensing and procurement have some unique aspects:

• GitHub Enterprise User Licensing: Whether Cloud or Server, GitHub Enterprise is typically sold as a subscription for certain users. For Enterprise Cloud, you purchase several “seats” (users) for an annual term, and those users gain access to private repositories and enterprise features. For Enterprise Server, you purchase user licenses to be loaded into your GitHub Enterprise Server instance (usually with a minimum purchase, e.g., 10 seats or often larger minimums). Pricing historically has been around $21 per user per month (roughly $250 per user/year) for the Enterprise plan, though volume discounts and specific deals can vary.
• Volume Licensing via Microsoft EA: Microsoft has made GitHub Enterprise available through Enterprise Agreements. EA customers can negotiate GitHub as an add-on service, often billed through Azure or as part of the EA. Microsoft introduced Visual Studio Subscriptions with GitHub Enterprise – combined offerings where a Visual Studio Enterprise or Professional subscription is bundled with a GitHub Enterprise seat for the same user. Initially, these bundles carried a price premium, but around 2020, Microsoft significantly reduced the cost of adding GitHub Enterprise to Visual Studio subscriptions in EAs, making it very attractive. For example, instead of buying GitHub Enterprise for $XX and Visual Studio for $YY separately, you might upgrade a Visual Studio Enterprise user to “VS Enterprise with GitHub” for a small incremental cost, effectively licensing both in one go.
• Separate Direct Contracts: Many companies still purchase GitHub Enterprise via a direct contract with GitHub (now Microsoft). This might be managed outside of typical Microsoft volume licensing channels. SAM professionals should liaise with procurement to get visibility into any GitHub contracts since those are software subscriptions, too. Sometimes, the GitHub contract is handled by a development team separately from the Microsoft licensing team, which can lead to duplication or missed opportunities.
• Enterprise Cloud vs Server differences: Enterprise Cloud licensing is straightforward: X users at price Y, hosted by GitHub. Enterprise Server licensing includes the right to run the server software and often includes support; you must count either named users or active users (GitHub uses a named-user model for licensing – each person with access counts against the license seat count). You’re non-compliant if you exceed licensed seats and should true up at renewal. Enterprise Server also requires a GitHub-provided license key that enforces the user limit (but it’s easy to exceed if not careful because, in older versions, the server wouldn’t hard-stop at the limit).
• GitHub Advanced Security (GHAS): This add-on license in GitHub Enterprise provides advanced code scanning, secret scanning, and other security features. GHAS is also charged per active user (it can effectively double the cost per user). If your company uses these features, be aware that each enabled repo or user might incur an additional license. This may or may not be included in your EA; often, it is separate.
• Overlapping with Azure DevOps and Visual Studio: Some organizations run Azure DevOps and GitHub. There is no automatic license bundle covering Azure DevOps and GitHub together (they are separate services). You’ll need to manage each set of licenses if you have both. Visual Studio subscriptions do not automatically include GitHub (unless you explicitly bought the bundle SKU). Also, having a Visual Studio subscription does not give you a free GitHub Enterprise user account – they are distinct entitlements.

Recommendations for GitHub Licensing Management

• Decide on procurement route: If you have a Microsoft Enterprise Agreement and are planning widespread GitHub Enterprise adoption, discuss adding it to the EA with your independent licensing advisor or procurement team. Microsoft often gives discounts or incentives via the EA (especially if you are also an Azure customer) to bundle more. The Visual Studio with GitHub Enterprise subscription bundle can simplify tracking – one SKU per developer covering IDE and GitHub access. It can ease compliance since Microsoft will true-up those users in one process. However, ensure the bundle edition aligns with each user’s needs (no point giving all developers Enterprise-level Visual Studio if many only need Professional + GitHub).
• Avoid dual licensing or over-provisioning: Different departments might buy GitHub seats and Visual Studio subscriptions separately without coordinating. This can lead to paying twice for overlapping capabilities or lost volume discount opportunities. SAM teams should consolidate visibility by getting a list of all GitHub Enterprise users (your GitHub admin can usually export this, or check your GH billing). Reconcile that with Visual Studio subscription holders. Consider the combined licensing to save money if you see nearly a 1:1 overlap. If there are GitHub users who don’t have VS subscriptions (e.g., maybe non-developer stakeholders in GitHub), ensure you’re not assigning them a costly Visual Studio license they don’t use.
• Monitor active user counts: GitHub Enterprise (especially Server) is licensed by active user count. Regularly audit who has access. Remove users who are no longer with the company or no longer need access. GitHub Enterprise Cloud has an option for dormant users not counting against the license if they haven’t been active for 90 days – familiarize yourself with those policies to optimize seat usage. Since licensing is annual, true-down opportunities might exist only at renewal (GitHub typically doesn’t refund mid-term if you remove users; you free a license slot). So plan for renewals: adjust your purchased seats to match actual usage patterns, with a bit of headroom if growth is expected.
• Manage GitHub Advanced Security separately: If using GHAS, track those users or repos. Not everyone in GitHub needs that feature; it might be enabled repository-wide or for certain users scanning code. Because it can get expensive, coordinate with security/devops teams to scope it appropriately and include its cost in your licensing considerations. Microsoft sometimes offers promotions or bundles for GHAS if you negotiate in an EA context.
• Training and Governance: Ensure your development teams know that just because GitHub is “cloud-based” and easily accessible, it doesn’t mean it’s free for enterprise use. All too often, devs start using (perhaps on a Team or Free plan) for company code, which can bypass SAM controls. Establish clear policies: e.g., “Any use of GitHub for company projects must be under an approved Enterprise license/org.” This prevents unofficial usage that might later require retroactive licensing or cause IP governance issues. GitHub’s free tier is great for open source, but company proprietary code should reside in properly licensed Enterprise repositories for security and compliance.
• Leverage Independent Expertise in Negotiations: GitHub Enterprise pricing can be flexible, especially if Microsoft views it in the context of your broader account. Bring in an independent negotiation expert to benchmark quotes. For example, the list price might be $XX per user/year, but large deals can see significantly lower effective rates. Also, if you’re renewing an EA, Microsoft might offer some GitHub credits or discounts to sweeten the deal – an independent advisor can help identify these opportunities. Avoid accepting standard pricing or going directly through Microsoft sales without a sanity check; third-party licensing advisors (like the one authoring this guide) have insight into where Microsoft tends to negotiate.

Best Practices for SAM Professionals

Managing Microsoft developer tool licensing is an ongoing effort. Here is a summary of best practices and actionable steps SAM professionals should implement:

• Centralized License Assignment Tracking: Maintain a clear registry of all Visual Studio subscriptions and to whom they are assigned. Use Microsoft’s Visual Studio Administrator Portal to assign and unassign subscriptions and periodically export the list of subscribers. This helps ensure that only authorized, licensed users can access MSDN benefits. In an audit, it also serves as evidence that each user running Visual Studio or using dev/test software had a corresponding license.
• Enforce the 90-Day Reassignment Rule: When reassigning a Visual Studio subscription from one user to another (e.g., a developer leaves, and you want to give their license to a new hire), ensure that it has been at least 90 days since it was last assigned. Microsoft’s terms generally prohibit frequent swapping to prevent license “sharing.” Keep a log of assignment dates. In practice, an admin portal will flag you if you try too soon, but a manual process or tracking sheet is wise if you manage licenses outside of the portal.
• Separate Development and Production Environments: Work with your IT teams to segregate environments wherever possible. Ideally, have clearly labelled development/test servers (and even separate network segments or virtualization hosts) for anything running under Visual Studio/MSDN licensing. This makes it far easier during compliance reviews to demonstrate what is covered by dev/test licenses versus what needs full production licenses. Mixed environments (where prod and test intermingle) can lead to costly misunderstandings in audits – for example, if a SQL Server instance runs on a host with both prod and test VMs, an auditor might claim it needs full licensing. Avoid that by separation and documentation.
• Periodic Internal Audits: Conduct your internal true-ups or audits of developer licensing at least annually. Check that every user with Visual Studio installed is licensed, verify that no one is using an edition higher than what they’re assigned (e.g., someone with a Pro license isn’t accidentally using an Enterprise-only feature), and ensure any expired subscriptions have been removed or addressed. Also, scan for installations of the “Community” edition – validate that those installs are legitimate under the rules. If you find Visual Studio Enterprise installations but only own Professional licenses for those users, that’s a red flag to remediate proactively.
• Monitor Non-Developer Access: Ensure that any IT admins or support personnel accessing dev/test systems are licensed. This is a frequently overlooked area. If DBAs or sysadmins occasionally log into a dev/test SQL Server or manage a VM set up under MSDN licensing, they technically should have at least an MSDN Platform license. An alternative approach is to strictly limit who can log into those environments to only MSDN-licensed users. Clarify roles: Perhaps your dev team has one or two infrastructure folks – get them licensed or restrict their access. Remember the exception: end-users doing UAT don’t need a license, but they must only use the system for UAT and not as a regular production system.
• Educate and Communicate: Conduct training or send guidelines to your development and IT teams about what the MSDN subscription covers and the dos/don’ts. Developers are often aware of broad strokes but not the fine print. For instance, make sure they know:
  • You cannot use MSDN-provided software for production or production standby servers (e.g., using an MSDN-licensed SQL Server as a DR instance for prod is prohibited).
  • There is no “free ride”: Every person interacting with the dev/test environment must be licensed (with noted exceptions for UAT). This prevents the misconception that “only developers need it.”
  • Clarify Community edition rules if applicable, so no one accidentally violates them.
  • How to properly use Azure credits and Dev/Test Azure subscriptions.
  • The process for requesting a license if they need one so they don’t just download software on their own.
• Optimize Renewal and Negotiation Cycles: Time your analysis of needs a few months before the renewal of any agreements. For an EA, start 6-12 months in advance to determine if you should increase/decrease Visual Studio counts, add GitHub, etc. Use independent advisors to benchmark and formulate asks. For CSP or retail, do an annual review of whether those subscriptions are still the best route or if moving to an EA (if you’ve grown) makes sense. Conversely, if you have a lot of unused licenses, maybe moving some to CSP (so they can be dropped) would save money. The goal is continuous alignment of licensing with actual usage.
• Avoid Over-Reliance on Microsoft’s Advice: Microsoft and its resellers will certainly offer guidance on licensing, but remember, they have a sales incentive. Consult an independent expert (like Redress Compliance or other SAM consultants) for truly optimized and rightsized licensing. An independent review can find redundant licenses or more favourable program options that Microsoft might not volunteer. They can also assist if you’re facing a Microsoft audit or need to defend your license position regarding dev/test usage – they’ll help you compile the necessary evidence and perhaps push back on any incorrect auditor assumptions.
• Document Everything: Keep a well-organized repository of licensing documentation: purchase records, license certificates, emails assigning GitHub Enterprise seats, records of Azure DevOps users and their license status, etc. In the event of an audit or a management question, you can quickly demonstrate control. For example, maintain a document that clearly outlines “Our Development Environment License Usage” – listing all the servers and VMs running under MSDN with their purpose and mapping which user’s subscription covers them. This kind of documentation prepares you for audits and helps onboard new SAM team members to the landscape.

Conclusion

Managing Microsoft developer tool licensing is complex but achievable with careful planning and oversight. Visual Studio subscriptions empower your technical teams with immense capabilities—from the latest IDE features to a vast library of Microsoft software for dev/test.

On the flip side, mismanaging these licenses can lead to compliance pitfalls (unlicensed users or inadvertent production use) and wasted budget (paying for more than needed or suboptimal purchasing channels).

As a SAM professional, your role bridges the gap between developers’ needs and licensing compliance.

By understanding the nuances of Visual Studio editions, aligning procurement methods (EA vs. CSP vs. retail) to your organization’s profile, and keeping a tight rein on entitlements like Azure DevOps and GitHub, you can ensure your developers have the tools they require without surprises in the next audit or true-up.

Finally, remember that you don’t have to navigate this alone. It’s often beneficial to get an independent perspective on your Microsoft licensing. Engaging a third-party licensing advisor – for example, Redress Compliance, which specializes in Microsoft (and another vendor) licensing and negotiation – can provide clarity and confidence.

They can validate your compliance position, identify cost-saving opportunities, and support you in negotiations with Microsoft while being on your side (with no conflict of interest from reselling licenses).

By implementing the guidance in this report and leveraging expert help when needed, you’ll build a robust SAM strategy for Microsoft developer tools. This ensures your organization can innovate and develop with Microsoft’s best-in-class tools while staying compliant, optimized, and ready for changes in the licensing landscape.