Windows server licensing question: A case study

Am I correct to say that if I run one copy of Windows Server 2003 on a computer that has a dual core CPU, I only pay the license for a single CPU instead of two? This and whatever CAL numbers I want, starting with the default 5 CALs where I can have 5 client machines like Windows XP Pro connect to it as domain members?

Now to the specifics. I can get a copy of Windows Server 2003 Small Business Edition for about let's say $500 with 5 CALs. I can run this OS on a 3Ghz dual core machine that acts as a domain controller and as a file server and a print server. The domain has 5 XP Pro machines (or less) as clients. So softwarewise as in particular to Windows, I pay $500 for the server OS and $150 for each of the 5 XP Pro clients? So far so good? Does the DC itself consume a CAL?

Now let's say I want to have 8 XP Pro clients. I will then have to pay $150 for each of the 3 additional XP Pro licenses. And then buy 3 more CALs for these 3 additional machines to join the domain. Correct so far? Incidentally, how much is a CAL these days for an XP Pro client? And instead of buying an additional 3 CALs, can I buy one additional "group" package of 5 more and save some money and still have 2 more as spares?

Ok, now I want to add Exchange to this pre-existing domain of 8 XP Pro clients and 1 domain controller running Server 2003 Small Business Edition. Since the Small Business Edition also includes Exchange, how does this work? Obviously it's a good idea to run Exchange on a physically separated server PC, but Exchange itself is not an OS, but "simply" a program that runs on top of the Windows Server OS. Does the original $500 license cover a second installation on this second PC because I do not use Exchange on the DC? If so, does it include the 5 CALs that comes with the original license inclusively? If so, I do not have to pay anything more and simply install the same copy of Windows Server 2003 SBE and activate Exchange on this member server? And since I have already paid for the at least 8 CALs, all 8 clients in the domain can use Exchange and have 8 distinct email accounts? Come to think of it, does the member server that runs Exchange itself take up 1 CAL because it is a member of this domain, so that I actually have 7 CALs instead of 8? What would happen if I decide to double up the member server that runs Exchange also as a file server and a print server? Would these additional roles create the required newer additional licensing? I am aware by the way, that I may not have more than 1 domain controller with the Small Business Edition domain environment. But that is ok since in this case, Exchange runs on a member server not a DC.

 

I am not positive about the dual core issue, but I don't think there is any other way to license Windows SBS 2003 than individually. The limit for SBS is 75 CALs. After that you must buy the "transition pack" to the full version of Windows Server 2003.

Yes, the 5 pack is the way to go: Newegg (of course!)
Microsoft T74-01215 Windows Small Business Server 2003 (Upgrade Version) - 5 User CAL License - Retail $178.95

From what I have read, I don't believe you can separate the Exchange installation from the SBS and put it on another machine.

Hope that helps...