OnLive, cloud provider of Windows and Office

OnLive, a company that recently began offering hosted Windows and Office software remotely from its servers to iPad and Android tablet users, is in violation of Microsoft licensing rules, according to a Microsoft official.

In January, OnLive launched OnLive Desktop, a free cloud service that offers its subscribers "a seamless" Windows desktop experience and "full-featured" Office applications, as described by the company's CEO Steve Pearlman in a blog post then.

Originally available only for the iPad, OnLive Desktop now as well works on Android tablets and the company plans to add support for more platforms. Fee-based versions of OnLive Desktop add more features, just as accelerated browsing, additional storage and Flash support.

The issue until Matz's post

Microsoft remained mum about the issue until Matz's post, published on Thursday afternoon, in which he outlined how partners and outsourcers can use Windows 7 Customers on hosted server platforms to deliver desktops as a service during complying with their licenses.

According to Matz, clients can have a partner host Windows 7 in a Virtual Desktop Infrastructure for them, as long as the customer has licensed the software directly from Microsoft. "The hosting hardware must be dedicated to, and for the benefit of the customer, and may not be shared by or with any other clients of that partner," he wrote.

Another valid scenario allows partners that have entered into the Services Provider License Agreement to provide "some desktop-like" functionality to any customer, even those that haven't licensed the software directly from Microsoft. The software involved is Windows Server and Remote Desktop Services.

However, partners aren't allowed to provide Windows 7 as a hosted client or Office as a service through Windows 7. "Office may only be provided as a service if it is hosted on Windows Server and Remote Desktop Services," he wrote.

Juan Carlos Perez covers enterprise communication/collaboration suites, operating systems, browsers and general innovation breaking news for The IDG News Service. Follow Juan on Twitter at @JuanCPerezIDG.

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