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One of our hosted customers wants to upgrade some Windows XP machines to Windows 7. I can see that with the volume licensing Service Center gives me access to Windows 7 or 8 DVD images but how do I sell these licences Under SPLA to our customer?

Please note that Microsoft do not allow Windows Desktop OS to be hosted in a shared hardware environment. 

You may use the Windows Desktop Upgrade licenses only in a “managed-pc” solution – i.e. you have signed a Rental Addendum under SPLA & are renting out your pc/laptop to the customers.

In a “managed-pc” solution, you may use the Windows Desktop upgrade license from VLSC and report the Windows Pro Upgrade SKU under SPLA.