Microsoft 70-121 Exam Questions : Designing and Providing Microsoft Volume Licensing Solutions for Small and Medium Organizations

  • Exam Code: 70-121
  • 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 70-121 Exam Syllabus Topics:

SectionWeightObjectives
Licensing Fundamentals20%- Volume Licensing program overview
- User vs Device licensing models
- Software licensing basics
Microsoft Volume Licensing Programs for SMB30%- Select License basics
- Open Value
- Open License
- Open Value Subscription
Designing Licensing Solutions25%- Renewal and true-up processes
- Assessing customer environment
- Matching programs to business needs
- Cost and compliance optimization
Product Licensing Rules25%- Virtualization licensing rights
- Server and CAL licensing
- Office and application licensing
- Windows Desktop licensing

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

Question #1

The following eight 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 identify the most appropriate purchase process for Northwind Traders.
What is the most appropriate purchase process?

  • A. A central purchasing department should purchase all software, after purchases are approved by the IT department.
  • B. The IT department should purchase server software. Each employee should purchase his or her own software as needed, after the purchase is approved by the IT department.
  • C. Each department should be responsible for its own desktop and server software purchases.
  • D. The IT department should purchase server software. Individual departments should purchase all other software products.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Question #2

You are a licensing specialist. Your customer is Lucerne Publishing, which is a book publishing company.
Company Background
Lucerne Publishing has 75 employees. The company departments are sales, accounting, and human resources (HR).
Network Description
Employees use several versions of Microsoft Windows and Microsoft Office. Six users need Microsoft Project Professional. Eight users need Microsoft SharePoint Portal Server.
The software and hardware refresh cycle is four years.
Current Licensing Solution
The company acquired all hardware and software through an Original Equipment
Manufacturer (OEM) five years ago.
Business Goals
The company plans to upgrade all desktops to the latest versions of Windows and Office.
The budget is sufficient to achieve this goal.
End of repeated scenario
You need to recommend the desktop licensing solution that offers the greatest discount level for Lucerne Publishing. What should you recommend?

  • A. Original Equipment Manufacturer (OEM)
  • B. Open Business
  • C. Open Volume
  • D. Full Package Product (FPP)
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Question #3

You are a licensing specialist. Your customer is Litware, Inc., a large company that has 15,000 employees.
Company Background
Litware, Inc. has 15 locations in North America and six locations in Europe and Asia. The companys two divisions are the custom software division and the hosting services division.
Both divisions are experiencing significant sales growth.
The custom software division creates custom software solutions that account for 75 percent of the total revenue for Litware, Inc. The hosting services division offers Microsoft
Exchange and Web hosting services for customers around the world. The company frequently adds 1,000 developers and testers for up to 28 months to work on specific projects.
Network Description
The custom software division creates highly integrated solutions by using Microsoft SQL
Server. The solutions must be delivered and deployed by using custom installation media.
In the past, Litware, Inc., purchased SQL Server through Full Package Product (FPP). This purchasing method no longer meets the companys solution deployment needs.
The hosting services division has one server farm that contains 500 servers. These servers run Microsoft Windows Server, Microsoft Exchange Server, Microsoft Operations Manager
Server, Microsoft Systems Management Server, and Microsoft Internet Security and
Acceleration Server. These applications are licensed through the companys current Select
License agreement.
Current Licensing Solution
Litware, Inc. has no established purchasing procedures. Each location has a different set of desktop products.
The offices in Europe and in Asia acquire software licenses under Open License and FPP purchases. The offices do not have Software Assurance for the servers or the desktops.
The offices in North America acquire software licenses through a Select License agreement that has Software Assurance for the servers.
Business Goals
The companys executive team suspects that the various locations do not keep track of software purchases and could not prove ownership if the company is audited. The team wants to standardize all desktops.
End of repeated scenario
You need to recommend a more convenient solution for licensing SQL Server for use in the custom solutions.
What should you recommend?

  • A. Acquire the SQL Server licenses through a Services Provider Licensing Agreement (SPLA).
  • B. Require each customer to obtain the SQL Server licenses through the customers own licensing agreement.
  • C. Acquire the SQL Server licenses through an Open License agreement.
  • D. Acquire the SQL Server licenses through the Independent Software Vendor (ISV) Royalty Licensing program.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

Question #4

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 solution for Northwind Traders.
What additional information do you need?

  • A. the products that currently have Software Assurance
  • B. the additional server products that will be deployed
  • C. the hardware refresh cycle
  • D. the third-party products that are installed
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Question #5

You are a licensing specialist. Your customer is Consolidated Messenger, a messenger company.
Company Background
Consolidated Messenger has 120 employees who work in the companys office in Toronto.
The company recently acquired another messenger company that has 35 employees who work in an office in Montreal and five employees who are field sales representatives.
Consolidated Messenger anticipates a 75 percent increase in sales over the next two years.
Network Description
The Toronto office of Consolidated Messenger has 120 desktops that run Microsoft
Windows 2000 Professional. One hundred of the desktops run Microsoft Office 2000
Standard and 20 run Office XP Professional. The Toronto office also has a single server, which runs Windows 2000 Advanced Server.
The Montreal office of the newly acquired company has a single server, which runs
Microsoft Small Business Server 2000. The office also has 35 desktops that run Windows
98 and Office 97. The sales representatives connect to the server remotely by using
Terminal Server.
Current Licensing Solution
Consolidated Messenger acquired licenses through an Open Business agreement. The
Montreal company purchased software through retail channels and OEM.
Business Goals
The IT manager at Consolidated Messenger has the following goals:
Upgrade Windows 2000 Server to Windows Server 2003.
Standardize both offices on the same desktop software.
Deploy Windows Server 2003 at the Montreal office.
Manage and track all software licenses for both companies.
Deploy Microsoft Exchange Server in both offices within two years.
Due to budget constraints, Consolidated Messenger seeks a solution that can help the two companies stay current without making large software purchases.
End of repeated scenario
You need to recommend the most appropriate software acquisition model for Consolidated
Messenger.
What should you recommend?

  • A. Software for the Toronto office should be acquired by the Toronto office. Software for the Montreal office should be acquired by the Montreal office. The sales representatives should acquire their software as needed.
  • B. Software for the server and the desktops in the Toronto office should be acquired by the
    Toronto office. All desktop software for the Montreal office should be acquired by the
    Montreal office.
  • C. Software for the Toronto office should be acquired by the Toronto office. Software for the Montreal office and for the sales representatives should be acquired by the Montreal office.
  • D. Software for all of the companys servers and desktops should be acquired by the
    Toronto office.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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