How to Speak Microsoft: Ten Terms to Know When Licensing Windows IoT
Navigating Windows IoT Licensing can feel like learning another language.
If you have looked into Windows IoT before, you may have come across terms and acronyms that were unclear. Since the details of these terms are crucial to outlining the business implications of embedded licensing, you want to get it right.
Kontron works to make your Windows IoT licensing journey as easy as possible. Use this breakdown of key terms so you’ll be ready to license your fixed-function devices with ease.
1: CLA (Customer License Agreement)
Definition: The CLA is an agreement with Microsoft that gives an OEM (original equipment manufacturer) the right to license and install Microsoft IoT products with dedicated solutions. There is no cost to sign up for the program and no minimum purchase.
What it means to you: Before you can proceed with your Windows IoT development, you will need to sign the CLA. Your CLA will identify parties that you will be working with on the device, including any contract manufacturers and your Windows IoT distributor.
2: AT (Additional Terms)
Definition: Extension of the CLA with usage rights and restrictions for specific products.
What it means to you: The AT will guide you on how a specific Windows IoT product can be used by defining specific use case restrictions. It will also provide the EOL (End of Life) date for the product, which lets you prepare for how often you will need to replace or update your operating system.
3: OPK (OEM Pre-install Kit)
Definition: The OPK is a downloadable kit of tools and documentation available to OEMs after the CLA has been signed.
The kit includes:
the installation files for the Windows IoT version you are licensing,
the utilities for creating, customizing, and applying images
keys for testing and activation during your device build
information and guidance on compliance for Certificate of Authenticity (COA)
instructions and rights for creating recovery images
What it means to you: The OPK is downloaded directly from Microsoft after you have completed the agreement documents. You will use the OPK to build your custom OS image (branding, lockdown features, updates) to test for your devices.
4: EOL (End of Life) / EOS (End of Service)
Definitions: EOS, or end of support (sometimes referred to as end of service) indicates the date after which no further security updates will be made to the OS.
After the period of service and support has passed, a product moves to EOL, or end of life. This means that the license can no longer be purchased, nor shipped to end customers.
What it means to you: If your device is running an OS that is EOS or EOL, you could potentially be putting your devices, business, and customers at a security risk. Keeping these dates on your roadmap help you prepare for when you will need to replace your operating system.
5: COA (Certificate of Authenticity)
Definition: A product-specific sticker that represents the licenses to distribute an embedded system with Microsoft products installed.
What it means to you: Each device running Windows 10 IoT Enterprise or Windows 11 IoT Enterprise must have the COA sticker prior to distribution. After you download the OPK and build your image, you will purchase the COA to commercialize your product. When you purchase from Kontron, we manage the logistics to deliver the COA stickers to your production facility.
6: LTSC (Long Term Service Channel)
Definition: The Long Term Service Channel (LTSC) is designed to be used only with single-use, purpose-built devices. Releases are supported for 10 years, with optional feature releases every 2-3 years.
What it means to you: If you are building a dedicated-use device, then the LTSC is the right option for you. LTSC removes the consumer-facing applications, so you have an optimized Windows OS for your device. LTSC is supported for ten years, so you can have confidence you will get the necessary support and security for your devices in the field.
7: and SAC (Semi-Annual Channel)
Definition: The SAC is designed for general-purpose devices. Releases are supported for 18 months, with optional feature updates every six months. SAC includes Windows Store, Cortana, and other consumer-facing applications not included in LTSC.
What it means to you: If you are building a general-purpose device that needs to stay up to date on the latest software updates, SAC provides updates twice a year. This helps your devices benefit from the most recent developments in security and software.
8: Fixed-Function Device
Definition: A fixed-function (or dedicated-purpose) device is built to perform specific, pre-defined tasks. Examples include kiosks, digital signs, ATMs, vending machines, and medical devices. They should be preloaded and delivered as a complete, functional unit with the operating system and any application(s) needed to complete its task(s) – sometimes called an appliance.
What it means to you: Windows IoT is licensed only for fixed-function devices, meaning they are not intended to be used like general-purpose PCs (for example, email, accounting, word processing, or CRM). This keeps devices locked to their intended role, resulting in a more predictable, secure environment that’s easier to manage and scale over time.
9: PKEA (Product Key (entry) Application)
Definition: PKEA is one of the two ways that you can activate Windows loT OS images. If you are purchasing PKEA, the activation key can be used only once: for the device the license sticker (COA) is affixed to.
A unique key for each machine
Manual activation
Your unique key is on the license sticker (COA)
What it means to you: To manually activate, you will need to scratch off the security layer from the product activation key on the license (COA) and manually type the key in before allowing the system to finish the activation via the internet.
10: and EPKEA (Embedded Product Key (entry) Activation)
Definition: The other way to activate is by purchasing an EPKEA product; this is the option most commonly used by our customers. EPKEA allows you to activate multiple devices with a single company-unique key that is assigned to your CLA.
A unique key for your organization
One key good for 50k activations, all images have the same key
No manual activation or internet connection needed
What it means to you: For customers deploying at scale or in a factory environment, EPKEA is the recommended and most operationally efficient activation method.
By eliminating manual key entry and per-device handling, EPKEA activation significantly simplifies large-scale or factory deployments. With your activation key embedded directly into the image, devices can be activated automatically during manufacturing or provisioning - without user interaction, network access, or risk of key-entry errors.
This all results in faster production, fewer activation failures, reduced overhead, and a more repeatable, scalable deployment process.
Navigate with Experts
Understanding the terms in the Microsoft licensing agreements is a critical step to your success with Windows IoT. We help our customers navigate the entire Windows embedded experience, from procurement to deployment to upgrades. For more information on the end-to-end process, check out our helpful guide on purchasing a Windows IoT license.
Have more in-depth questions about a Windows IoT Enterprise license or how your business can implement it? As a Microsoft IoT partner, we can answer your licensing questions and help you craft a fixed-purpose IoT strategy tailor-made for your business. Learn more about our available Microsoft embedded and Windows IoT products or contact our licensing professionals to get started.