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: Jun 02, 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. 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) Select License with Software Assurance Membership for both desktops and servers
B) an Enterprise Subscription Agreement for desktops with servers as additional products
C) an Enterprise Agreement for desktops with servers as additional products
D) Open Volume for both desktops and servers


2. 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 recommend the most cost-effective licensing solution for the server.
What should you recommend?

A) Full Product Package
B) Select License
C) Open Volume
D) Open Business


3. You are a licensing specialist. Your customer is Tailspin Toys, a gift retailer.
Company Background
The peak sales season for Tailspin Toys is in July. During July, the number of employees increases by as much as 50 percent. During the remainder of the year, the company has a core staff of 500 employees.
Network Description
The Tailspin Toys network contains 500 desktops that run Microsoft Office 2000
Professional and the Core client access license (CAL). The number of desktops increases to a maximum of 750 during the peak sales season. When the staff increases to its highest level, many employees use desktops that were inactive for a long time. These desktops run older versions of software.
The network contains five servers that run Microsoft Windows 2000 Server. One of the servers also runs Microsoft Systems Management Server 2.0.
The company is planning the following technology changes:
Deploy the latest version of Systems Management Server so that the latest version of Office Professional can be deployed and the company can manage its desktop count and other software.
Standardize the desktop applications. This task is difficult because staffing levels fluctuate.
Current Licensing Solution
The desktop software was licensed through an Open Business agreement that ended in
2002.
Business Goals
Tailspin Toys wants to use the latest technology to meet customer demands. However, the company requires flexibility in purchasing to meet its organizational needs. The chief financial officer (CFO) suspects that the cost of maintaining the latest technology will exceed the company budget, particularly during the slow seasons, when the desktop requirements are reduced. In addition, the CFO states that she wants the company to own all assets.
The company needs a solution that will meet its technology requirements without exceeding its budget goals.
It is currently January, which is a slow sales season. The company needs to enter a licensing agreement as soon as possible to prepare for the peak sales season.
End of repeated scenario
Tailspin Toys needs to update all the older versions of Microsoft Office Professional. What should the company do?

A) Acquire Software Assurance only.
B) Acquire new licenses and Software Assurance.
C) Acquire Microsoft Office Professional upgrade licenses.
D) Acquire Microsoft Office Professional Step-up licenses.


4. You are a licensing specialist.
You have a new customer who purchased Microsoft Windows XP Professional through
Original Equipment Manufacturer (OEM) channels.
The customer needs to create a standardized desktop image of Windows XP Professional for all company desktops. The customer needs to deploy the new image without activating the product.
What should the customer do?

A) Use retail media or OEM media and a volume license product key to create the standardized image.
B) Use volume license media and a retail product key or an OEM product key to create the standardized image.
C) Use volume license media and a volume license product key to create the standardized image.
D) Use retail media or OEM media and a retail product key or an OEM product key to create the standardized image.


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 the most appropriate licensing solution for the server farm.
Which solution or solutions should you recommend? (Choose all that apply.)

A) All products should be licensed through an Enterprise Subscription Agreement.
B) All products should be licensed under the current licensing agreement.
C) Operations Manager Server, Systems Management Server, and Internet Security and
Acceleration Server should be licensed under the current licensing agreement.
D) Windows Server and Exchange Server should be licensed through the Independent
Software Vendor (ISV) Royalty Licensing program.
E) Windows Server and Exchange Server should be licensed through a Services Provider
Licensing Agreement (SPLA).
F) Windows Server and Exchange Server should be licensed through an Enterprise
Subscription Agreement.
G) All products should be licensed through a Services Provider Licensing Agreement
(SPLA).


Solutions:

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

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