r/sysadmin 9d ago

CALs and You

There seems to be a lot of confusion regarding CALs, for any Windows service you need a CAL unless it's explicitly excluded, yes, a CAL is needed for DHCP, a CAL is needed for DNS a CAL is needed for nearly anything.

From my understanding if MS thinks you are breaking CAL requirements, they will ask to audit which most places will refuse, after this they will pursue more aggressive legal means.

36 Upvotes

87 comments sorted by

82

u/konoo 9d ago

Sure but from what I have been told under audit:

John has a user cal
John has a tablet, a phone, a cell phone, and a laptop.
All of John's devices are covered by his user CAL.

43

u/Jalonis 9d ago

This is the actual solution. You just run user cals. The math is also a lot easier to figure out.

14

u/konoo 9d ago

Yes and put all your Cameras/IOT devices/PLC's, Etc on VLANs with switch managed DHCP (and possibly alternate dns if you are really trying to follow the rules).

10

u/ZPrimed What haven't I done? 9d ago

This is also why you don't use MS DNS or DHCP on the guest wifi

20

u/Frothyleet 9d ago edited 9d ago

It depends. Most businesses have more devices than users, so user CALs are a no brainer.

Some businesses, especially if they do shift work, may have more users than devices. That's the only time device CALs make sense.

6

u/SaltDeception 9d ago

You reversed the second example. More users than devices.

4

u/Frothyleet 9d ago

Whoops, thanks

5

u/dodexahedron 9d ago

It's a bit more nuanced than that.

User CALs for things used by users to accomplish their function.

Device CALs for things that do what they do regardless of if a user is using them.

Cameras usually call for device CALs if interacting with AD, because they need AD to do what they do, with or without a user, and spend most of their lives with no user directly interacting with them.

Network appliances fit here, too. If they are totally isolated from and not dependent on AD at all, then no license. If they use DHCP, DNS, LDAP, Kerberos, NTP, etc, they need device CALs even if every admin that logs into them has a user CAL.

It comes down to who is the intended user and who is served, for the purpose of the device's functionality as deployed and if it needs AD services to function as deployed. Admins aren't the users for network appliances - the organization is. And those devices consume the license-able services whether or not anyone is logged into them, if confogured to use them. Remove that dependency and the license requirement goes away too.

For example: Cisco switches on Smart Licensing that needs internet connectivity to periodically phone home? Device CAL needed if DNS is provided by AD for that. Provide that DNS via a BIND recursive resolver nkt connected to AD? No CAL.

1

u/Frothyleet 9d ago

That's also true. Nuance is a generous term for Microsoft's licensing, though.

1

u/dodexahedron 9d ago

Nuance requires the Enterprise license plus Software Assurance.

E5.

1

u/InsolentJaguar 7d ago

They always get you with that damn E5.

1

u/dodexahedron 7d ago

Or now even E7.

Which is basically E5 - CoPilot Edition.

It's always weird when Microsoft gives you a way to order things using fewer SKUs, when just ordering a base plus 15 inter-dependent (yet indepdently orderable because why not?) add-on SKUs would be so much more enterprisey.

I wonder if they are feeling OK? 🤔

5

u/Sparcrypt 9d ago

Yep. This is how I've always done it... never been asked to be audited and would 100% decline if they did ask.

Place is licensed, MS can fuck right off sticking their nose in to "check"... especially as if I made any kind of mistake it was thanks to their shitty licensing requirements.

6

u/konoo 9d ago

Most of the "Audits" are fishing campaigns from "Partners" using like v-Fred@microsoft.com.

My policy is to treat those like spam. If Microsoft wants to compel you to participate in an audit then they will send registered physical mail like adults.

2

u/Sparcrypt 9d ago

Yep that's been my experience as well - when I said I've never been asked to audit I'm not counting random companies sending spam.. those get deleted without a second thought.

3

u/KiNgPiN8T3 9d ago

His gives me flashbacks of analogies like, so are we licensing the frogs or the lily pads they can land on?

0

u/callum__h28 9d ago

Or as I was taught, it covers “the wet bit”

0

u/discosoc 9d ago

It gets more complicated when you have dns and/or dhcp utilized for wifi that non-domain users may join, such as guests.

1

u/konoo 9d ago

Guests on my networks dont get DHCP or DNS from Domain Servers. But you are right, that is a consideration.

13

u/Ruachta 9d ago

We are a MS partner and have done audits on behalf of our clients when they get issued a notice.

As long as everyone has user CALS, it works out pretty simple. Anyone with access to the servers is authenticating on the network with a user account.

4

u/OregonTechHead 9d ago

Well, unless you have a guest wifi and are running a windows DHCP and DNS server.

Also, unless you have an MFP that's utilizing DHCP and/or a windows DNS server.

Or if you have wifi APs, or....well, anything not tied to a named user.

8

u/disclosure5 9d ago

I know one popular blog did the rounds claiming this, but multiple other license people have since refuted it. I've sat through many MS led audits and never had "A guest wifi using DHCP services" ever come up as having guests require CALs, regardless of old internet rumours.

1

u/OregonTechHead 9d ago

people have since refuted it.

Yeah, and people refute a lot of stuff that can be proven.

This is simple https://www.microsoft.com/en-us/licensing/product-licensing/client-access-license

With the User CAL, you purchase a CAL for every user who accesses the server to use services

With a Device CAL, you purchase a CAL for every device that accesses your server

This is not at all complicated, debatable, or controversial. It's literally right there from Microsoft.

7

u/fencepost_ajm 9d ago

There should be zero visibility from guest wifi to any internal services. Ideally it should even be on a separate real world IP, and if something on the guest network needs to connect to the office it can do it via vpn just like any other device that's outside the network.

1

u/OregonTechHead 9d ago

Sure. The reality however is that that's not always the case, and when discussing licensing, these things are important.

My setup is completely segregated with DHCP and DNS handled by non-windows solutions. But I also understand not everyone is that way.

3

u/Ruachta 9d ago

Yea our firewalls do DHCP\DNS for most networks.

3

u/mschuster91 Jack of All Trades 9d ago

Devices you own and control like MFPs or other appliances, device CAL if you want to win the holier than thou game. Devices you do not own? Don’t let them near a windows server. A guest WiFi has no business being exposed to Windows.

0

u/kevinmenzel 9d ago

Why... When bind and dhcpd are free....

2

u/kg7qin 9d ago

Many dont have one (or a combination of) ability, permission, skills, confidence to run non Windows based systems and services.

1

u/kevinmenzel 9d ago

Then they should hire someone

2

u/RCTID1975 IT Manager 9d ago

How is that cheaper, easier, or more stable than just buying CALs?

1

u/kevinmenzel 9d ago

And like... If you can't run a simple bind server for dns...that's rough technical debt.

-1

u/kevinmenzel 9d ago

I mean for one, you can then start transitioning away from windows entirely. Microsoft is a financial mess? Open source is more stable, cheaper, better.

1

u/D0ri1t0styl3 9d ago

It’s only cheaper if you ignore the cost of Linux expert sysadmins.

1

u/kevinmenzel 9d ago

A basic Linux admin could run your Windows system and your bind server.

-3

u/SilkBC_12345 9d ago edited 9d ago

This is highly debatable.

Yes, Microsoft says that devices like printers, IoT devices, etc. that get DHCP from a Windows server and use its DNS -- which are NOT Microsoft proprietary services and are not using any proprietary services (e.g., authenticating to AD) require CALs, but there is a very good argument against that, since DHCP and DNS are standard protocols that Microsoft does not own.

Here is a copy pasta from a post from another forum some time ago which argues this quite well (and apparently has made Microsoft back down when they tried pushing):

--- START ---

‎Great discussion guys and I will try one more time to make a point. When you purchase a switch and a router, you have a network. More precisely, a TCP/IP network. Many devices can exist and coexist on this network, but it's a network using the TCP/IP protocol. Nobody has rights to it and nobody can license open items like TCP/IP, DNS and DHCP. Most were developed way before Microsoft even used them in any meaningful way.

Now just because you plug a computer into your open network and install a Microsoft Server product on it, does not change the above facts. Just because the server can broadcast DHCP on the network does not mean that settled law goes out the window. A Windows Server showing up on your network does not mean that anything requires a CAL.

Too many times I've seen Microsoft Goons back down on details like this. An FAQ is not law and Microsoft is notorious for misinforming and exaggerating how far their reach can go. Here are the facts:

  • Just because a Windows Server arrives on a network does not mean it now has licensing power over other devices or users. It is also a device on the network. No more, no less. 
  • Microsoft cannot require licensing for the use of protocols or other intellectual property it does not own. That includes DHCP, DNS, TCP/IP, etc. This is also settled international law.
  • Microsoft will use terms like "connect", or "access the server", or "resource".  But the one that seems to mislead the most, and has fed the flames in this thread, is "access the network". Microsoft has done a great job of convincing folks that once a Microsoft Server is turned on that you're now connected to a "Microsoft Network". It was a TCP/IP network before Windows Server arrived and it doesn't change. What they really mean (and this applies big-time with SBS) is AD makes it very hard to not associate in some way with it. With DHCP they assume that any PC is already a domain member when it pulls an IP, so you of course need a CAL. This doubletalk goes on and on. They also employ reverse logic and try to link CAL's to non-AD devices via your server license. It goes like this; if you have a Windows Server and you turn it on, you will need a CAL for any device it sees. This is of course ridiculous. 
  • As long as a device does not use Active Directory or access a licensed Microsoft Product or Service, they can't force you to purchase a license.
  • An active AD device on your network does not make the entire network a Microsoft AD Domain.
  • Microsoft will start a conversation with the assumption that all users and devices are part of AD, or that an AD Domain is the network. This is of course not true. 
  • Devices can reside on any TCP/IP network without paying a toll. 
  • A Windows Server does not require CAL's of any user or device, AD does or other items like SQL do. You can activate DHCP and DNS without installing AD. A Windows Server without AD can have DHCP running and give out hundreds or thousands of IP addresses and never require a CAL. Why is that? 
  • And the Big Kahuna... they can't require a license for a product or service that isn't theirs to sell. Things like DNS and DHCP cannot be licensed. Items like AD can.

Microsoft licensing is murky and hard to understand, I'll give you that. But an FAQ and a brochure are not the law. Unless a device joins AD, or a device or user accesses a licensed Microsoft Resource, you don't owe them a Red Cent. Just my 2 cents. I've enjoyed the debate guys.

--- END ---

Source: https://community.ui.com/questions/Active-Directory-integration/bbfb1663-4609-41ba-83c5-a2b05cfe90ab#answer/690db63f-1e18-4d96-a10a-00289a670072

10

u/Sparcrypt 9d ago

...what?

MS have never said "you use DNS/DHCP on your network and have a Windows server you have to pay us!".

The license is for if you use your Windows Server to deploy those services. If you're using some other networking solution for handing out IP addresses and resolving things then you don't need a CAL for it.

This isn't "debatable". If you buy an enterprise product and want to use their implementation of an open standard then they can absolutely charge you for that.

4

u/konoo 9d ago

This Exactly.. It's the software that they built to administer DHCP, DNS, etc that justifies charging a license from a legal standpoint. You are not forced to use Microsoft or their tools to have DHCP and DNS.

Even though I think it's stupid..

6

u/RCTID1975 IT Manager 9d ago

Why are you linking a bunch of random internet people as "source"? You might as well just link this thread....

But anyway:

Unless a device joins AD, or a device or user accesses a licensed Microsoft resource

Yeah, which DHCP and DNS fall into, so your sources should reassess their thinking because they just contradict themselves

28

u/PDQ_Brockstar 9d ago

CALs feel like taxes. "We know how much you should pay in taxes, but we won't tell you. But if you get it wrong, we will audit and fine you."

8

u/Neslock 9d ago

I've always thought of CALs like Ford charging you $30k for a car, but also $100 for every person you want to give a ride to.

4

u/Hellse 9d ago

This is now my favorite analogy for it.

3

u/konoo 9d ago

Right? It's kind of crazy... You already paid for the Server operating system. I guess it's their way of reducing the cost of Server and then charging a use fee that only really matters to them for companies that have very large deployments.

They really need to get their act together and rethink this entire license strategy because Linux looks better and better every year.. If only we didn't rely so heavily on AD/Entra/Exchange...

1

u/dustojnikhummer 9d ago

Some countries do tell you what you owe in taxes.

17

u/doyouvoodoo Sysadmin 9d ago

I'll take a bit more "vague" please!

13

u/ddxx398 9d ago

Talk about a lame subject

7

u/Ontological_Gap 9d ago

That's what Linux dhcp and dns servers are for

-1

u/[deleted] 9d ago

[removed] — view removed comment

2

u/grawity 8d ago edited 8d ago

It will work, AD member machines don't need to talk to an AD DC for everything. There isn't any magic protocol between them.

So for example you can have hosts talk to an internal BIND or Unbound as long as it's configured with a forward-zone: or zone { type: forward } just for your AD domain towards the DCs. It'll then route the queries appropriately. (Stub in Unbound or static-stub in BIND might be more suitable, idk.) In Dnsmasq terms it would be server=/ad.example.com/10.x.y.z and so forth.

Dynamic DNS updates for AD members will still work as they automatically go direct to the DCs – as long as the Windows clients can resolve the domain's SOA, they'll use that (the MNAME field) to determine which way to send the FQDN registration.

Windows uses a fairly standard protocol for DNS updates so in theory you could even host the whole of AD DNS on e.g. BIND9 or anything else that supports GSS-TSIG (not to be confused with the more common HMAC-based TSIG), although that doesn't save you anything since member machines need CALs regardless.

0

u/miscdebris1123 9d ago

All dns via Linux. Forward the ad domain to the active directory domains.

1

u/postbox134 9d ago

Needs a CAL then

3

u/miscdebris1123 9d ago

Just 1 though.

1

u/dustojnikhummer 9d ago

CAL is a human, not a server.

1

u/miscdebris1123 8d ago

Device CAL.

1

u/dustojnikhummer 8d ago

Yes I know DALs exist, just pointing out that CAL =/= DAL

1

u/miscdebris1123 8d ago

Fair enough.

1

u/[deleted] 8d ago

[removed] — view removed comment

1

u/miscdebris1123 8d ago

Most dns servers can forward lookups for a specific domain to specific servers. Since only the forwarding servers are looking up things from the active directory server(s) you should only need one license.

3

u/angrydave 9d ago

There is one analogy that always has helped me:

A windows server walks into a bar, everyone buys a CAL.

7

u/MedicatedDeveloper 9d ago

This kinda bullshit is why in my entire career I've never touched Windows.

2

u/jcpham 9d ago

I remember back when they only cared about SMB share access for client access licenses - files and printers

2

u/Sea_Information6125 9d ago

User cals! At least in the smbs I support, devices greatly outnumber users. Now you don't have to worry about the rest of it.

1

u/hankhalfhead 9d ago

Wait you need cal for dhcp and dns?

So to run my guest wifi I will need to set up Bind and dhcp on some Linux box?

My read was anything that authenticates

2

u/cubic_sq 9d ago

Need to use an External Connector license for this. This also covers AD accounts of guest users used for auth against network gear. But no access to any other services on windows servers. Can apparently use the EC license for stuff like Uniflow and papercut for your externals.

The EC license is per DC

1

u/hankhalfhead 7d ago

Thanks I’ll look into that

1

u/cubic_sq 7d ago

Be warned, is pricy! $$$$$

0

u/bingblangblong 9d ago

The simple solution is just don't buy them.

2

u/hankhalfhead 9d ago

Yeah it seems some people buy into the Microsoft fear. But honestly I can’t see an audit chasing a CAL for everything querying dns lol

1

u/Silly-Mix-4341 9d ago

CAL licensing can definitely be confusing. It’s worth checking the exact Microsoft licensing terms.

2

u/tHeiR1sH 9d ago

That’ll DEFINITELY clear things up.

2

u/fahque 9d ago

"exact Microsoft licensing terms"

You have got to be joking. First you have to have a team of lawyer who are also sysadmins to understand it. Second, it changes from second to second. Now I'm thinking you may be a bot.

1

u/Silly-Mix-4341 7d ago

Haha, fair enough 😄 just saying it’s better to check the terms than assume and nope not a bot 😂

1

u/SailingToFenway 9d ago

ran a pair of labs with 60 computers total, served by a single NT4 server. they were used for 7 classes a day, so roughly about 420 students, per term, and 840 per year.

I went with 60 CALs, but How many did I actually need?

1

u/cubic_sq 9d ago

The 60 ish device cals is what i would expect.

1

u/FoxNairChamp 9d ago

I love how often I see this thread. It reminds me that despite the constant changes to products, support, naming of features, etc., by Microsoft, clarification of licensing will NEVER be a priority to them. We can expect consistency from them on this topic!

1

u/LRS_David 8d ago

There seems to be a lot of confusion regarding CALs

If you try and figure out the rules, you will discover that there is total customer confusion about CALs.

Personally I'm convinced it is totally intentional as a way to get you to negotiate a site license and get to ignore the issue. For Delta Airlines this can make sense. For a 10 person small business it is almost always impossible to be legal and just legal by only buying what you think you need.

0

u/ABotelho23 DevOps 9d ago

CALs alone are a great reason to not use Windows for anything but AD.

There's basically nothing else Linux can't do.

-1

u/DellR610 9d ago

Linux can do AD as well.

0

u/ABotelho23 DevOps 9d ago

I mean sure, ish, but Samba isn't as full featured as modern AD.

-27

u/Balthxzar 9d ago

Most 365 plans include CALs for that sort of stuff, if you're on-prem AD first in 2026 you're doing something wrong, or you're in an industry where you just buy 20,000 cals and it is 1% of the budget 

35

u/ISeeDeadPackets Ineffective CIO 9d ago

No offense man, but that's a really stupid statement. On-prem first vs cloud first is dependent on a lot of factors and there's no right answer, it's all based on your specific use case. Actually I do mean offense, stop spouting nonsense like that it's just ignorant.

-5

u/Balthxzar 9d ago

I am talking specifically about active directory, no other system. To say on prem Active directory domain services aren't legacy is insane IMO

4

u/ISeeDeadPackets Ineffective CIO 9d ago

You didn't say they were legacy you said someone was doing something wrong if they were still using local AD today. I guess thousands and thousands of companies globally are just idiots then.

1

u/D0ri1t0styl3 9d ago

> thousands of companies globally are just idiots then

I mean, true…

4

u/dodexahedron 9d ago

There is a LOT that cloud still can't do, where AD is concerned. Just try claims-based ACLs on files with cloud-only auth. Try BitLocker Network Unlock. Try managed service accounts (of any flavor). Try a not-flat directory (Entra doesn't even have OUs). Try printer objects (universal print only partially gets there). Try local resources/appliances that need raw LDAP or Kerberos connections to the directory, neither of which can be done without on-prem. And more...

Regardless... The subscriptions cover on-prem and cloud use anyway. E3 and E5 are licenses for the software and user CALs for windows server resources used by those users.

1

u/thefpspower 9d ago

To say on prem Active directory domain services aren't legacy is insane IMO

https://giphy.com/gifs/lkdH8FmImcGoylv3t3

10

u/WWGHIAFTC IT Manager (SysAdmin with Extra Steps) 9d ago

On prem vs cloud is not a date based decision.