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

  • Exam Code: 70-121
  • Exam Name: Designing and Providing Microsoft Volume Licensing Solutions for Small and Medium Organizations
  • Updated: Jun 20, 2026
  • Q&As: 149 Questions and Answers

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

1. You are a licensing specialist. Your customer is Fourth Coffee, a small coffee retailer that specializes in coffee beans from around the world.
Company Background
Fourth Coffee was founded on September 4, 2003, and has 35 employees. The companys main office and 10 retail stores are located in Canada.
Due to budget constraints, Fourth Coffee does not have a dedicated IT department and can upgrade hardware and software only every four years.
Network Description
The main office has five desktops and two servers. One server runs Microsoft Small
Business Server 2003, and the second server runs Microsoft Windows Server 2003,
Standard Edition, with Microsoft Office 2003 Professional Enterprise Edition through
Terminal Server.
Each retail store has a new desktop that connects to the terminal server in the main office.
Current Licensing Solution
Before Terminal Server was deployed, some older versions of Office were acquired through Full Package Product, and some older versions were preinstalled on desktops that were purchased one year ago. Some Office licenses were purchased with Software
Assurance through the Open Business program.
Confusion exists as to whether Fourth Coffee is properly licensed.
Business Goals
Fourth Coffee expects to open a total of 10 additional stores in England and Australia in the next year.
The company president wants to standardize all desktops on the latest version of Office
Professional, Enterprise Edition; Windows XP Professional; and Windows Server with
Terminal Server enabled.
End of repeated scenario
You need to recommend a technology solution to meet Fourth Coffees expected growth.
What should you recommend?

A) Add one additional terminal server at the main office.
B) Add one additional server running Windows Server 2003, Datacenter Edition, at the main office.
C) Move from using Terminal Server to having all software installed on the local desktops.
D) Replace Small Business Server 2003 with Windows Server 2003.


2. 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 Software Assurance to help Northwind Traders meet its business goals.
Which two Software Assurance benefits meet the companys business goals? (Choose two.)

A) Corporate Error Reporting (CER)
B) Spread Payments
C) training vouchers
D) Home Use Program
E) New Version Rights


3. You are a licensing specialist. Your customer is Graphic Design Institute, a company that provides graphic design services for small businesses.
Company Background
Graphic Design Institute has 60 employees. The company expects the number of employees to increase by 10 percent each year for the next five years.
The company has the following departments:
Sales
Design
Human resources (HR)
Accounting
Hardware and software have been added as needed by employees with no oversight or control. The company recently hired an IT manager and asked her to evaluate the current environment and to propose a plan to support the companys expected growth.
Network Description
The company has three servers. Each runs Microsoft Windows NT Server 4.0, and one also runs Microsoft Exchange Server.
The company has 60 desktops, of which the following groups have software configurations as described in the following table.
Current Licensing Solution
The purchase records for the current software are incomplete. The IT manager has no way to prove ownership of the Office software that is currently being used.
Business Goals
The president of the company wants to control IT costs. However, he also wants to stay current with the latest software versions.
The IT manager does not have staff, so she needs to leverage all the resources she can.
The IT manager has the following goals:
Replace the three existing servers with a single server running Microsoft Small
Business Server 2003.
Replace the 21 desktops in group Y.
Standardize the remaining desktops, except those in group Z, to Windows XP
Professional and Office 2003 Professional.
End of repeated scenario
The IT manager purchases 21 replacement desktops with OEM Windows XP Professional and Office 2003 Professional installed.
You need to recommend the most appropriate licensing solution for all the desktops.
What should you recommend?

A) Acquire only Software Assurance for the 20 desktops in group W, which are currently licensed for Windows XP Professional. Acquire licenses and Software Assurance for Windows XP Professional for any remaining desktops. Acquire license and Software Assurance for Office 2003 Professional for all desktops.
B) Acquire licenses and Software Assurance for Office 2003 Professional and the Windows XP Professional upgrade for the 56 desktops in groups W, X, and Y.
C) Acquire licenses and Software Assurance for the Windows XP Professional upgrade and Office 2003 Professional for the 35 desktops in groups W and X. Acquire only Software Assurance for the 21 new desktops.
D) Acquire licenses and Software Assurance for Office 2003 Professional for the 56 desktops in groups W, X, and Y. Acquire only Software Assurance for the Windows XP Professional upgrade for these 56 desktops.


4. You are a licensing specialist. Your customer is Margies Travel.
Company Background
Margies Travel first opened more than 30 years ago with two employees, two telephone lines, and two typewriters. In addition to the two full-time employees, the company currently has 12 part-time employees, who share desktops.
Recently Margies Travel began advertising its services on the Internet. The positive response to the companys seasonal travel specials caught the company by surprise.
Network Description
Margies Travel has one server and eight desktops. The server runs Microsoft Windows
2000 Server and Microsoft Access 97. The desktops run a third-party travel software program and Microsoft Office 97.
The anticipated software refresh cycle is 5 years.
Current Licensing Solution
The owner of the company did not budget for new hardware and software acquisitions, and he is having difficulty managing software acquisition.
Business Goals
In order to keep up with sales growth, the company will need to upgrade the existing server to Windows Server 2003 and Access 2003 and all desktops to Office 2003 Professional.
The owner will also need to hire at least two additional full-time employees, who will require their own desktops.
End of repeated scenario
You need to recommend the most cost-effective licensing for Windows Server 2003.
Which two options are the most cost effective? (Choose two.)

A) Windows Server 2003 license with External Connector
B) Windows Server 2003 license with User client access licenses (CALs)
C) Windows Server 2003 licensed in Per Server mode
D) Windows Server 2003 license with Device client access licenses (CALs)


5. 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 licensing solution for the internal use of Microsoft software at
Litware, Inc.
Which factor most influences the companys internal licensing solution decision?

A) the geographic locations of the companys employees
B) the increase in sales last year
C) the number of desktops and servers that the company owns
D) the fluctuation in the total number of users
E) the custom software solution business


Solutions:

Question # 1
Answer: D
Question # 2
Answer: C,E
Question # 3
Answer: C
Question # 4
Answer: C,D
Question # 5
Answer: D

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