Microsoft 070-121 Exam Questions : Designing and Providing Microsoft Volume Licensing Solutions for Small and Medium Organizations

Exam Code: 070-121
Exam Name: Designing and Providing Microsoft Volume Licensing Solutions for Small and Medium Organizations
Updated: Sep 17, 2026
Q&As: 149 Questions and Answers

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Microsoft 070-121 Exam Syllabus Topics:

Section	Objectives
Microsoft Licensing Programs for SMB	- Software Assurance benefits 1. Training and deployment benefits 2. Upgrade rights and support benefits - SMB-focused licensing offerings 1. Subscription-based licensing options 2. Open License program
Designing Licensing Solutions for Small and Medium Organizations	- Solution design considerations 1. Cost optimization strategies 2. On-premises vs cloud licensing decisions - Customer requirement analysis 1. Mapping business requirements to licensing options 2. Assessing organizational size and IT needs
Providing Licensing Solutions and Customer Advisory	- Documentation and compliance 1. Ensuring licensing compliance in deployments 2. Licensing documentation requirements - Sales and consultation process 1. Positioning Microsoft licensing to customers 2. Handling customer objections and compliance questions
Microsoft Volume Licensing Fundamentals	- Licensing models and agreements 1. Overview of Microsoft licensing programs 2. Open, Select, and Enterprise Agreements concepts - Licensing terminology and structure 1. Product licensing vs. service licensing 2. License metrics and compliance basics

Microsoft Designing and Providing Microsoft Volume Licensing Solutions for Small and Medium Organizations Sample Questions:

Question #1

You are a licensing specialist. Your customer is Northwind Traders, a large ski equipment manufacturer.
Company Background
Northwind Traders has one location. The companys five departments are accounting, manufacturing, human resources (HR), sales, and information technology (IT). Business is cyclical. During peak periods, the company adds more employees. During slow periods, the number of employees is reduced.
Network Description
The number of desktops fluctuates between 300 and 400. The desktops run either
Microsoft Office 2000 Standard or Office XP Professional, and either Microsoft Windows
98, Windows 2000 Professional, or Windows XP Professional.
Twelve servers run Windows 2000 Advanced Server. Three of the servers run Microsoft
Exchange Server 5.5, and two of the servers run Microsoft SQL Server 7.0. The HR department stores personnel data on one of the servers. The accounting department runs all the accounting applications on two of the servers.
Current Licensing Solution
Northwind Traders currently purchases software through an Open Business agreement.
The company finds this agreement difficult to manage and not cost effective. The company is looking for ways to cut costs.
Business Goals
The sales department needs to implement a Web site to simplify customer ordering. To accomplish this goal, the department plans to purchase a new dual-processor server to host a SQL database. The database will store product information, and customers will be able to access the database.
The IT department recently installed Microsoft Internet Security and Acceleration Server
2004 in addition to other third-party security products. The main goals of the IT department are to improve network security and to reduce costs.
The IT manager realizes that the company is losing money by using inefficient and out-of- date software. He wants to upgrade to the latest versions of SQL Server and Exchange
Server. However, the IT department would require additional training to use the latest versions.
End of repeated scenario
You need to recommend a licensing program for Northwind Traders.
Which factor most influences the companys licensing solution decision?

A. the number of desktops at any given time
B. the use of older versions of server software
C. concerns about network security
D. the variety of desktop software

Reveal Solution Discussion 0

Correct Answer: A 🗳️

Question #2

You are a licensing specialist. Your customer is A Datum Corporation, a fast-growing consulting company that specializes in customer relationship management solutions.
Company Background
A Datum Corporation owns the following interests in two other companies:
Owns 51 percent of Contoso, Ltd, which produces accounting systems
management software.
Owns 100 percent of Fabrikam, Inc., which produces and administers customer service training.
The number of company employees is shown in the following table.
All three companies have a flexible work environment that allows employees to work from home.
Network Description
All employees of all three companies have their own desktop. The desktops run either
Microsoft Windows 2000 Professional or Windows XP Professional, and various versions of
Microsoft Office.
The number of servers for each company is shown in the following table.
All servers currently run Windows 2000 Server.
The software refresh cycle is two years. However, it is difficult for the employees and the IT staff to keep current with the new technology.
Current Licensing Solution
The two affiliate companies do their own purchasing and often pay a higher price for their software than A Datum Corporation pays.
Business Goals
The three companies share many of the same customers and sometimes work on the same projects. The president of A Datum Corporation wants to implement Microsoft
SharePoint Portal Server 2003 to allow the employees in all three companies to collaborate internally and to allow the customers of all three companies to access some of the data as needed.
The president of A Datum Corporation has the following goals:
Upgrade the servers in all three companies to Windows Server 2003.
Standardize operating systems across the companies.
Standardize desktop applications across the companies to decrease support costs.
Implement Microsoft Exchange across all three companies in the next six months so that all employees can use Outlook Web Access.
Sales are expected to increase significantly over the next three years, and the number of employees is also expected to increase.
End of repeated scenario
You need to ensure that the correct client access requirement is met for the companys
Exchange messaging solution.
What Exchange client access licensing will be required?

A. Exchange Server Device client access licenses (CALs)
B. Exchange Server User client access licenses (CALs)
C. External Connector

Reveal Solution Discussion 0

Correct Answer: B 🗳️

Question #3

The following five questions all present the same scenario.
For your convenience, the scenario is repeated in each question. Each question presents a different goal, question sentence, and answer choices, but the text of the scenario is exactly the same in each question in this section.
You are a licensing specialist. Your customer is Wingtip Toys, a growing company that specializes in toys and computer games.
Company Background
Wingtip Toys has 45 full-time employees and 10 part-time employees.
The company is opening another division for high-end electronics and games. Twenty additional employees will be hired to support this division.
Network Description
Forty-five desktops are used by the full-time employees. Five additional desktops are shared among the part-time employees. A single server runs Microsoft Small Business
Server 4.5 for the 50 desktops.
All desktops run Microsoft Windows 98 and Microsoft Office 97 Professional.
Current Licensing Solution
All software is purchased at the local computer store.
The software budget is small. The server software refresh cycle is four years.
Business Goals
The IT manager of Wingtip Toys wants a solution that will simplify managing the companys increasing number of desktops.
The IT manager has the following goals:
Standardize all desktops on the latest versions of desktop application software, and stay current.
Upgrade the server software.
Purchase new desktops for the 20 new employees.
Improve security for the part-time employees who share computers.
End of repeated scenario
You need to advise Wingtip Toys about changes in their company that will have an impact on their licensing solution. Which two changes will have the greatest impact? (Choose two.)

A. staying current on desktop software
B. experiencing sales growth
C. increasing the number of employees
D. upgrading Small Business Server 4.5
E. expanding the product line

Reveal Solution Discussion 0

Correct Answer: A,D 🗳️

Question #4

You are a licensing specialist. You have a customer in England who is interested in
Software Assurance.
You need to identify the cost per year of Software Assurance for Systems, Applications, and Servers licenses for your customer.
Which cost should you identify?

A. 29 percent of the Systems license price, 29 percent of the Applications license price, and 25 percent of the Servers license price
B. 29 percent of the Systems license price, 25 percent of the Applications license price, and 25 percent of the Servers license price
C. 25 percent of the Systems license price, 29 percent of the Applications license price, and 25 percent of the Servers license price
D. 25 percent of the Systems license price, 29 percent of the Applications license price, and 29 percent of the Servers license price

Reveal Solution Discussion 0

Correct Answer: A 🗳️

Question #5

The following five questions all present the same scenario.
For your convenience, the scenario is repeated in each question. Each question presents a different goal, question sentence, and answer choices, but the text of the scenario is exactly the same in each question in this section.
You are a licensing specialist. Your customer is Northwind Traders, a large ski equipment manufacturer.
Company Background
Northwind Traders has one location. The companys five departments are accounting, manufacturing, human resources (HR), sales, and information technology (IT). Business is cyclical. During peak periods, the company adds more employees. During slow periods, the number of employees is reduced.
Network Description
The number of desktops fluctuates between 300 and 400. The desktops run either
Microsoft Office 2000 Standard or Office XP Professional, and either Microsoft Windows
98, Windows 2000 Professional, or Windows XP Professional.
Twelve servers run Windows 2000 Advanced Server. Three of the servers run Microsoft
Exchange Server 5.5, and two of the servers run Microsoft SQL Server 7.0. The HR department stores personnel data on one of the servers. The accounting department runs all the accounting applications on two of the servers.
Current Licensing Solution
Northwind Traders currently purchases software through an Open Business agreement.
The company finds this agreement difficult to manage and not cost effective. The company is looking for ways to cut costs.
Business Goals
The sales department needs to implement a Web site to simplify customer ordering. To accomplish this goal, the department plans to purchase a new dual-processor server to host a SQL database. The database will store product information, and customers will be able to access the database.
The IT department recently installed Microsoft Internet Security and Acceleration Server
2004 in addition to other third-party security products. The main goals of the IT department are to improve network security and to reduce costs.
The IT manager realizes that the company is losing money by using inefficient and out-of- date software. He wants to upgrade to the latest versions of SQL Server and Exchange
Server. However, the IT department would require additional training to use the latest versions.
End of repeated scenario
You need to recommend the most appropriate overall licensing solution for Northwind
Traders. What should you recommend?

A. an Enterprise Subscription Agreement for desktops with servers as additional products
B. Open Volume for both desktops and servers
C. Select License with Software Assurance Membership for both desktops and servers
D. an Enterprise Agreement for desktops with servers as additional products

Reveal Solution Discussion 0

Correct Answer: A 🗳️