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Sell Your Computers, Keep Paying MS For Licenses

An anonymous reader writes "Microsoft Licensing 6.0 requires a company to pay up on software maintenance when the computers that are covered under the license are sold off. Here's the kicker though: MS is no longer obligated to provide maintenance even though the contract is paid up! Read the Infoworld article."

48 of 573 comments (clear)

  1. So? by Anonymous Coward · · Score: 1, Insightful

    If you don't like it, don't use Microsoft products.

    1. Re:So? by gl4ss · · Score: 5, Insightful

      better way to put it:

      -hey, there's this company that wants us to pay them even if we stop using their product and there's an extra contract included that gives them rights to anything we have on our systems if they would want it. the contract also includes an extortion option for them we can do nothing about, and the system is going to go through expensive forced migration to another backwards incompatible system in short time, and this we can do nothing about either if we want our business to be safe. oh, and there's an alternative for using them that would free our balls from their fist.

      -why exactly are we doing business with this company again?

      surely, not as black'n'white as that, but if executives actually read and understood half of the stuff they agree with ms...

      --
      world was created 5 seconds before this post as it is.
    2. Re:So? by Anonymous Coward · · Score: 1, Insightful

      All of this can be done with software that runs on a variety of platforms, not just MSWindows. It doesn't all have to be done in a week... Plan it out, take your time.
      Oh... here's a question for ya:
      Why on earth would you run ANY business critical software tha only runs on one platform?

    3. Re:So? by Anonvmous+Coward · · Score: 3, Insightful

      "So, it sounds like Micro$oft has got you by the ball's eh. It's called a monopoly."

      Nope, at least not in the example he used. The problem he described wasn't that the stuff wasn't unavailble, the problem was that it'd cost them money. The ability to move is there, he's not being prevented from switching platforms. His company was too reliant on one vendor.

      This can easily happen whether the vendor is a monopoly or not.

    4. Re:So? by Grishnakh · · Score: 4, Insightful

      So if it's too much trouble, and they'd rather pay for maintenance that they're not going to use, then they should shut up and stop complaining.

      Honestly, if I really hate some vendor I'm a customer of, I simply dump them and go somewhere else. The only time I can't do this is if it's a utility monopoly, like the trash service. The phone system used to be like this too, but now I've dumped Qwest and gotten a cellphone, so I have no need for that monopoly anymore. MS is a monopoly too, in the sense that they have control of 90%+ of some markets, but just like Qwest vs. cellphones, there are alternatives out there for those willing to go through the trouble.

      Reading articles here on /. about MS Licensing is fun in order to keep up with the evil empire's latest shenanigans, and to laugh at people who willingly put up with them. But I really have no sympathy for anyone who does, for no really good reason. If they're not willing to go through some trouble to free themselves of this abuse, they deserve all the abuse they get. At no time in history has liberty come without cost.

    5. Re:So? by Grishnakh · · Score: 2, Insightful

      Why would they need to learn the Unix shell interface? If they can learn Windows, then they can certainly learn KDE or GNOME.

  2. remember..... by Lxy · · Score: 5, Insightful

    You don't own software. Software is a contract, and even though you shelled out $x for a piece of software, you are bound to the agreement. Transfering a Windows license is like any other contract.. read it carefully and make sure you're permitted to do so.

    I'm not saying that MS is good, quite the contrary. They will rape their customers for as much money as they can, but from a bunsiness standpoint they're just just doing business.

    If you don't like it, use linux.

    --

    There is no reasonable defense against an idiot with an agenda
    :wq
    1. Re:remember..... by dachshund · · Score: 5, Insightful
      read it carefully and make sure you're permitted to do so.

      And if you don't like the terms, suck it up. MS has a monopoly on the desktop, especially in terms of business software. They can put any damned thing they want into their licenses, because most businesses have nowhere else to go.

      This story simply helps to illustrate the difference between having a monopoly and abusing one.

    2. Re:remember..... by fobbman · · Score: 2, Insightful

      In Redmond, Washington, software owns YOU!

      *shudder*

    3. Re:remember..... by Mac+Degger · · Score: 5, Insightful

      Yes, correct. But the only reason software is a contract is because we have let it become that. It's still rediculous: it's like the phones of old (at least in parts of europe) which you rented/leased instead of bought.
      Personally I want it spelled out to me: do I buy this or do I lease it. And for me, if I go to a store and buy something, without having to sign a piece of paper which I'd read very carefully, I have bought something. No matter what some clickthru EULA says.

      Of course, Licence 6.0 is nothing like that. But even so, I'd say that this is a perfect example of MS leveraging their monopoly position for vendor lock-in. due to the fact that it is unfeasable for many companies already running MS to switch to anything else [yeah, it's possible, but only with clear changeover protocols and policies...which these companies might not have]. This can have multiple reasons, from financial (retraining) to time factors (retraining ;) ) and many others. But the end result is that MS gains a lot of extra money for no effort, due to restrictive and amoral licencing which many companies jhust can't get out of.

      --
      -- Waht? Tehr's a preveiw buottn?
    4. Re:remember..... by gilesjuk · · Score: 3, Insightful

      Try buying a brand name computer without a Microsoft license though, Microsoft throw their weight around whenever one of the major suppliers like Dell starts selling naked PCs.

      Microsoft even go so far as to say that PCs without an OS installed are machines for pirates and even have a scheme where OEMs are rewarded for reporting people asking for such machines.

      They don't seem to be able to comprehend that a customer may already own Windows or wish to install an alternative OS.

    5. Re:remember..... by gregmac · · Score: 2, Insightful
      I'm not sure if it's still this way or not, but back in the day, when OS/2 was poised to take the desktop market, one of the things Microsoft did was to require their vendors to purchase a windows licence for every computer they sold, regardless of whether or not it had windows installed. So now vendors had a choice - either pay the licence, and only use windows (paying for two licences is obviously more expensive, and would cost them business, as they obviously can't compete with someone selling only one licence), or don't sell windows at all. Windows was already starting to take a foothold, so NOT selling computers with windows was cuting out a large portion of the market.

      So what happened? They only sold the Windows OS, on ALL of their computers, no matter if you wanted it or not, because basically, they had to pay for it either way.

      --
      Speak before you think
  3. last two paragraphs in article sums it up... by emptybody · · Score: 5, Insightful

    ..."What microsoft is really doing is saying, 'Hey, just recognize you are truly at our mercy.' "
    If you didn't already know that, you just haven't been paying attention.


    How many more reasons do companies need to dump Microsoft and go with unix/linux?

    --
    comment directly in my journal
    1. Re:last two paragraphs in article sums it up... by Sylver+Dragon · · Score: 4, Insightful

      How many more reasons do companies need to dump Microsoft and go with unix/linux

      1 and only 1. The problem is, that 1 reason has to be that Linux/Unix/etc. have a similar level business app that just runs on them. None of this silly, get the source, modify if for a company's purpose, and then complie it. Ah, shit, ok, go find dependancies, complie. Damn, missed one, get that one, compile. Crap, that one had 4 more, ok get those, complie. Hey, we have an app that looks like hell and really doesn't do what we need.
      The *nix community needs to get some serious developer support before companies will really start to look at it seriously. Also the whole RTFM attitude is doing tons of harm to the movement as well. When the only support you can get for an OS is found on the web, and half the responses are along the lines of "RTFM 1d10t, y0ur a 1user, and 1m 37337" this does not instill confidence in that OS.
      Sadly, in the end, the things that make Linux attractive are going to be the same things that hold it back from taking more of the business desktop market.
      - It's free - Which usually means there isn't a company behind it that will support it.
      - It's open source - So you can modify it to do what you want it to do. This, of course, takes time and money, and there isn't a company you can go to and pay them to do it.
      Businesses like fire and forget solutions, they don't care about the politics of it. And for all its flaws, Windows is quick and easy to get going.

      --
      Necessity is the mother of invention.
      Laziness is the father.
  4. Blah blah blah, it's called a contract by stratjakt · · Score: 5, Insightful

    If I sign a 4 year maintanaince contract with Pedros lawn care, I have to keep paying even if I move and the new owners dont want them running around the yard spraying pesticide.

    The same goes with many other maintanaince/support contracts. Dont like it? Do business with someone else.

    We have customers who still contractually pay for support on HP big iron boxes that havent been plugged in for years.

    Another case of MSFT doing the same thing everyone else does, execpt (heres the kicker!) for some reason it's "evil" because you dont like windows.

    Big fat whoop. MS Licensing is a business support contract, and pretty much a standard one at that.

    --
    I don't need no instructions to know how to rock!!!!
    1. Re:Blah blah blah, it's called a contract by sehryan · · Score: 4, Insightful

      Actually, the first post was a very good analogy. Look at it like this:

      I am with Sprint PCS and have a one year agreement with them. I choose to switch to Verizon before my agreement is up. I cannot use my Sprint PCS phone with Verizon, so I decide to sell it.

      1. Sprint PCS is going to charge me for breaking my contract.

      2. The new owner of the phone has to start their own contract with Sprint PCS if they want service. The remainder of my contract will not carry over to the new owner of the phone.

      This example is what actually happens if I were to do all of this. But we don't see Sprint PCS, Verizon or any of the other carriers posted on Slashdot.

      Fact is, this is just basic business. It only makes headlines on Slashdot because it's Microsoft.

      --
      The world moves for love. It kneels before it in awe.
    2. Re:Blah blah blah, it's called a contract by Carbonite · · Score: 5, Insightful

      Actually your analogy also has serious flaws. The companies in the posted article weren't trying to terminate the contract, they were simply transferring it to new owners. In many cases it would be the same person using the computer, just under a different company name.

      If John Smith changes his name to John Jones, does Sprint PCS force an "acceleration" of the original contract and then make John Jones sign a new contract? No, that would be absurd. However, if a computer that once was part of Company X is now part of Company Z, the contract must be paid in full, yet Company Z must now also purchase a new contract.

      The main reason your analofy doesn't hold up is because the situation are just too different. Cell phone contracts are relatively short (1-2 years) and inexpensive ($25-50/month) compared to software licenses. There's also numerous companies who offer very similar service. Microsoft is the only company who sells Windows XP, 2003 Server, etc. You can't go "somewhere else" unless you plan on migrating away from MS entirely. This is usually far too expensive, it's not at all like switching cell service. I do agree that companies need to read the contract much more carefully, but that doesn't excuse the fact that Microsoft is abusing its monopoly status.

      --
      ich muß mehr Kuhglocke haben
    3. Re:Blah blah blah, it's called a contract by sehryan · · Score: 2, Insightful

      But a single person changing names versus a company transferring part of itself to a new company, even if they are keeping all of the former employees and doing all of the same work, do not equate. Now if the company were to rename itself, then sure. But a separate company is a separate entity, which is not necessarily bound to any of the contracts held by its parent.

      Basically, the contract is non-transferrable, and there is nothing wrong with that. Maybe the prices that they are charging are being abused, but what they are doing is perfectly acceptable.

      And since you seemed to be concerned with scale, we can switch to a home mortgage analogy if you would like. Same house doing the same thing it was, but I still have to pay off my mortgage, and the new owner still has to get one himself.

      --
      The world moves for love. It kneels before it in awe.
    4. Re:Blah blah blah, it's called a contract by Carbonite · · Score: 2, Insightful

      A home mortgage analogy may be more appropriate, but it still doesn't hold. If I sell a house that I've paid $200K out of an original mortgage of $300K, I'll have to settle the remaining $100K. I get whatever the selling price is minus $100K.

      If you apply the Microsoft license situation to a mortgage, it might happen like this:

      I choose to sell my house to my brother for $1 (I'm a very nice guy, but want to avoid gift tax). As above, I've already paid $200K, so I settle the remaining $100K. The bank now decides that my brother must also pay them $300K for the house even though its been paid in full. The bank makes out like a bandit. Is this perfectly acceptable?

      --
      ich muß mehr Kuhglocke haben
    5. Re:Blah blah blah, it's called a contract by SuiteSisterMary · · Score: 2, Insightful

      Exactly. If I agree to pay him fifty bucks a week, for one year, to spray Lawn X, then I move away from Lawn X, I'm still contractually obligated to him. Whoever now owns Lawn X isn't.

      Hence, contracts of this sort tend to include both who and where.

      And tend to have provisions for things like somebody moving away.

      --
      Vintage computer games and RPG books available. Email me if you're interested.
  5. Re:What happens with licences on dead computers? by stanmann · · Score: 3, Insightful

    The answer according to microsoft is no. Some would argue that the first sale doctrine in Copyright law says differently, the truth is that it is impossible to determine until it is tested in court.

    However the article addresses the issue of business enterprise and site licenses and doesn't directly apply to consumers.

    IANAL so this is just what I would do, but I would not have any moral problem using it on a different computer. And since Microsoft/BSA are very unlikely to go after consumers who have no money... likely you won't ever get sued.

    --
    Food not Bombs is a nice platitude but it breaks down when you notice that the Bombees are usually well fed
  6. Re:And the GPL requires you to release your source by be-fan · · Score: 4, Insightful

    Not to *use* it, it doesn't. The GPL only asks for your source if you use it's source. It's like consensual sex vs rape...

    --
    A deep unwavering belief is a sure sign you're missing something...
  7. this will change by tacokill · · Score: 3, Insightful

    As businesses get wise to these kind of contracts, they will get smarter about entering into them. For years now, most companies have been "stupid" when it comes to IT -- but times are changing. Companies are getting MUCH more sophisticated about how they handle their IT.

    This is a short term problem.

  8. Standard contracts by sjbe · · Score: 2, Insightful

    My guess is that this is just a side effect of whatever the standard contract is. When licensing software you don't want to have to negotiate a different licensing agreement with each customer unless you have to. Of course one size doesn't always fit all so this sometimes has some unintended consequences. MS can afford to ignore some of these because there aren't exactly a lot of realistic alternatives. Behavior is nearly always explained by incentives.

    While I fully agree that this is not the most ethical behavior, But I also think this might fall under the category of "never attribute to malice that which can adequately be explained by stupidity". I think this is just something that was overlooked or ignored because it was problematic. Plus who else are you going to go to? (*cough* monopoly *cough*)

  9. Linux Call the Manufacturer Day by cyber_rigger · · Score: 4, Insightful


    Instead of whining
    here are some things that you can do.

    Ask computer manufacturers if their machines are linux compatible

    (especially laptops)video cards, sound cards, etc.

    Most have a toll free numbers.

    If the don't support linux ask "them when will they?".

    Ask software suppliers it they have ported their products to linux.
    Call their main office. Once one company listens others will follow.

    We need a "Linux Call the Manufacturer Day".

    They will get the message.

  10. It's called a bad contract by dachshund · · Score: 2, Insightful
    If I sign a 4 year maintanaince contract with Pedros lawn care, I have to keep paying even if I move and the new owners dont want them running around the yard spraying pesticide. The same goes with many other maintanaince/support contracts. Dont like it? Do business with someone else.

    Most reasonable contracts have escape clauses that kick in if you move, or some such. Very few businesses can convince customers to sign a contract that potentially leaves them paying bills and getting nothing in return. People will, as you suggest, push that nonsense away and head over to the competition.

    The fact that Microsoft can get away with this is a testament to the lack of options most businesses feel they have.

  11. Re:What happens with licences on dead computers? by stratjakt · · Score: 3, Insightful

    No, the activation 'scheme' is to ensure its running on one machine at a time. You call MS to 'reactivate' - they purge the old record from the database, and put on a new one - when you install on another machine. (They've never really 'turned on' the activation servers to enforce this stuff).

    Its like my cable provider only allowing my account to be used from one cablemodem at a time. If I replace it, I have to call and tell them, they purge the old MAC address and enter the new one.

    Personally, I think its a bunch of crap and a show of good faith is in order. But then there are probably millions of the same copy of windows 2000 installed on machines. MSFT is after all, a publicly traded for-profit company.

    --
    I don't need no instructions to know how to rock!!!!
  12. Re:What happens with licences on dead computers? by Mr.+Mai · · Score: 2, Insightful

    This should be a starting point for a law that obligates the computer manufacturers and resellers to sell computers without OS or better yet with Open source Alternatives =). Let the buyer of the equipment decide whether they want to have a license of an OS that mut be payed either you keep the computer or not after some time.

  13. Microsoft and the RIAA are actually useful by TrueJim · · Score: 5, Insightful

    Legislatures often pass bad laws. Their intentions are good, but the letter of the law often leads to ridiculous conclusions when taken to the extreme.

    It usually takes many years to discover how badly a law has been written, because it usually takes many years for people (or companies) to get around to pushing the wording to its logical conclusion. When Microsoft (or the RIAA, etc.) imposes seemingly ridiculously licensing terms on the public, they're actually doing us all a service in the long run, by quickly demonstrating to legislators that the applicable public policies are (in the long run) unworkable.

    We know Microsoft isn't going to "win" in the long run (they're losing our data centers already, and eventually they'll lose our desktops and office suites as well), but when they do these extremely silly things they actually help hasten their own eventual demise, by rapidly educating the public (and the policy makers) about what's wrong with current regulation.

    Getting laws corrected may feel like it's occuring with glacial slowness to those of us who already understand where things are heading, but it'll actually happen much more quickly than it would otherwise, the worse Microsoft behaves. So I say, heck ya Microsoft! Charge us twice for things you don't deliver...charge us ten times, twenty! Let's show the world what the phrase "illegal monopoly" -really- means.

    --
    I hope that after I die the one word people use to describe me is "resurrected."
    1. Re:Microsoft and the RIAA are actually useful by jandrese · · Score: 2, Insightful

      Yeah, like my representatives read the EULAs.

      --

      I read the internet for the articles.
  14. Re:How these guys "won" the "OS Wars"... by Anonymous Coward · · Score: 1, Insightful

    No kidding.

    When MS announces some new restriction or awful licensing schemes, the magazines like InfoWorld are full of letters: "I hate this" "I'm switching to Linux" "That's it, I'm through with Microsoft".

    All my friends do the same thing. They curse Windows. They ask to use my Mac. They hate Bill Gates and the crap software he rode in on.

    But do any of them actually switch to another platform? Nope. It's WAY too much trouble to switch your documents and programs. Even moving your email and bookmarks from wherever they are buried is a huge pain for Joe Average. Business has to keep running, and until Windows is $10,000 per copy, it will always be cheaper to stick with windows.

    What to do? Keep preaching software freedom I guess, and hope that people get so sick of MS they jump to open formats.

  15. What I think people don't realize.... by MortisUmbra · · Score: 3, Insightful

    Is that even if MS went away tomorrow, we wouldn't suddenly have a great new OS to replace them. I mean, 12 years later Linux, while having made great strides, is NOT ready for mainstream yet.

    Sad but true.

    Once Linux becomes capable enough to make it mainstream MS won't be able to keep it out. Because there is little real financial burden on Linux. It's an open source product where ALOT of the work is done, in essence, for free. So MS can't bully it out of the marketplace by putting pressure on their vendors until the OS suffocates itself for lack of funds like a competing comppany would surely do.

    It's here to stay because nobody is paying for it, and nobody is financially burdened by it. So it developson it's own, with TONS of fierce competition from MS. And it does nothing but grow and grow.

    People should STOP complaining about Ms being a monopoly and START contributing to Linux/GNU.


    One of the above posters said if you don't like it, don't use it. Thats dead wrong. As with everything else in life, if you don't like it, do something to change it. Do something to enhance Linux and/or its acceptance.

    --

    "The saddest words of mice and men, are not those which were, but should have been."
    1. Re:What I think people don't realize.... by TeknoHog · · Score: 2, Insightful

      *sigh* Linux is not a drop-in replacement for Windoze, and it was never intended so. If Windows suddenly disappeared from the face of Earth (I can dream, can't I?) then people would have to accept the alternatives, and they would be happy with it, just like the old-timers who loved going uphill both ways because they had no choice. Right now there's no such direct incentive for switching.

      --
      Escher was the first MC and Giger invented the HR department.
  16. Re:Ethics by ibi · · Score: 2, Insightful

    Um and what do you think businesses would have to run on those Macs? MS Office perhaps?

    You can't leave the empire that easily (Bwahaahaa... :-)

  17. Linux and Macs will not solve world hunger by psxndc · · Score: 2, Insightful
    I wish to God they would, but they won't. If you run a business of anything beyond a dozen people, you cannot just drop your IT Infrastructure and switch to Macs and/or Linux. I have an iBook. I just installed Red Hat 9 on one of my home servers last night. I think they're great for doing what I want. But I am not a whole company. I also didn't invest hundreds of thousands of dollars into my current set up. Telling a business "Can't you just switch" or "If you don't like it, do use it" is completely naive.

    I love Linux and OS X as much as the next guy, but it's not that simple. If you think it is, I can't believe that you work in a mainly microsoft shop like myself and most clients I work with.

    psxndc

    --

    The emacs religion: to be saved, control excess.

    1. Re:Linux and Macs will not solve world hunger by RoLi · · Score: 3, Insightful
      I wish to God they would, but they won't. If you run a business of anything beyond a dozen people, you cannot just drop your IT Infrastructure and switch to Macs and/or Linux. I have an iBook. I just installed Red Hat 9 on one of my home servers last night. I think they're great for doing what I want. But I am not a whole company. I also didn't invest hundreds of thousands of dollars into my current set up. Telling a business "Can't you just switch" or "If you don't like it, do use it" is completely naive.

      I don't know why anybody would want to throw everything out overnight.

      But haven't it occured to you that maybe just stop upgrading Windows and using Linux boxes when the hardware needs to be replaced is a viable alternative.

      That's what I would do.

    2. Re:Linux and Macs will not solve world hunger by Grishnakh · · Score: 4, Insightful

      How do I sell my CFO and my CEO on non-Microsoft platforms when all our clients want work done using MS technologies?

      Simple: you don't! If your clients want MS crap, then you have two choices: 1) give it to them, and put up with all that entails. 2) tell your clients to go to hell, and get some new clients.

      Your decision here can be made using simple economics; for choice 1, you determine how much revenue you're getting from these MS-loving clients, and how much you're paying (license fees, etc.) to provide what they want. If you're profitable, then be happy. But if you're losing money, then who cares what the clients want? Either raise prices to become profitable (which may cause the clients to bail on you) or find some new clients.

      Seriously, why are you here? If you're happy using MS crap, because a bunch of dumb clients are paying you to provide stuff using MS crap, and you're profitable, then you have nothing to complain about, regardless of MS's crazy licensing schemes, and might as well ignore this whole discussion topic. If you, as an individual, is unhappy working with MS crap, but your company is happy, then you need to either learn to put up with it or find a better job. If your company is losing money because of Licensing 6.0 and is about to go down the toilet, but management is too stupid to make the hard decisions necessary to fix the problem (i.e., get new customers), then you should probably start working on your resume.

    3. Re:Linux and Macs will not solve world hunger by wkitchen · · Score: 2, Insightful
      Simple: you don't! If your clients want MS crap, then you have two choices: 1) give it to them, and put up with all that entails. 2) tell your clients to go to hell, and get some new clients.
      I suspect the primary reason that one's clients are demanding MS crap is that they think they need it to provide what their clients want. They're correct, of course. It's a self-fulfilling thing, and thus very hard to overcome. As long as a majority believe it, it is true. And since it's true, they're inclined to keep believing it.

      You can't break out of that just by offering non-MS alternatives to your clients (though that is important). More effective is to demand non-MS alternatives from your suppliers. And if you choose vendor B's product over vendor A's because B doesn't lock you into MS crap, be sure to let B know why you chose them, and let A know why they lost a sale. (Politely. Being an ass about it won't help.).

      The old "lead a horse to water" adage seems apt here. The point is that unless you're a monopoly, you have very minimal influence over what your clients demand from you. But you have complete control over what you demand from your suppliers. Forget about leading horses to water. Be the horse.
  18. One more reason... by msoftsucks · · Score: 2, Insightful

    To avoid using M$ products. This just highlights the extortion scheme that the Microsoft Licensing really is. It's time to start using open source products to help shut this down. Lets face it guys, our politicians have been bought and paid for to look the other way while M$ fleeces its customers. Don't want to get caught in this nightmare? Don't upgrade to new versions of M$ products. Instead start using OSS products. Don't feel that they are not as good as the M$ crap? Start by bringing it in to the non-critical areas. For instance, instead of using IIS, use Apache. Don't code for .NET, code for J2EE, Pearl, PHP or other OSS languages. You don't have to move everything over to OSS at one time. You can move gradually. Each time you move over a piece, you deny M$ its license fees. As this revenue starts to dwindle, they will either revise their extortion schemes, or suffer the fate of extinction. Plain and simple. Don't just whine about M$'s licensing, do something about it.

    --
    Quit playing Monopoly with Bill.
    Linux - of the people, by the people, and for the people.
  19. You're so naive by Anonymous Coward · · Score: 1, Insightful

    "take a look at all the software you could ever want for that platform."

    I own 5 different Macs, but the variety of vertical market apps for that platform just isn't there.

    Yes, you can do Word, Powerpoint, Email, but what if you want to run AutoCAD. Not something "just as good", but AutoCAD? Or you need to trade MS Access files with a customer? There are lots of smaller apps that a large company needs that only run on a PC. They may be crappy, you may not like them, but you end up running them anyway because you need to.

    Your comment simply shows you to be young and naive.

  20. I thought this was common knowledge? by Doc+Hopper · · Score: 2, Insightful

    I thought it was common knowledge that this was how Microsoft treated their volume licensing customers. It was what we figured would happen with our several-hundred license shop when we decided to shut down, and it's played out that way.

    The company I work for has one of these agreements with Microsoft, and is about to make payment number two of three in a few months. It's about $20,000 every year for 400 licenses or so. When we informed them we were closing the business before the third payment would come due, they in turn informed us that they would hold us to the letter of the contract, and require that third payment in full.

    So if you decide to close your business one month into an MS volume licensing agreement, expect you will have to figure in the next two payments for part of your cost of closing the business. Or else file bankruptcy to get out of it. Either way, Microsoft will inform you that you owe in full to the last penny of your agreement if you try to get out early, and you'll be left holding the bag at the end with whatever version of the software was the "latest" at the time the SA ran out. It sucks, but at the time the decision was made the company was moving to become an all-Microsoft shop. I came in several months after they abandoned that approach (thank goodness), but we are left with the legacy. So we'll be forking out another $20K next year for 360+ unused seats if we want to get the most value out of the contract, even though we'll have a handful of people as a skeleton crew.

    This is yet another reason I pushed hard for an all-GNU/Linux approach. Unfortunately, we discovered to our disappointment that GNU/Linux cannot yet handle the needs of a small financial institution like ours. You can chalk that up to lack of good bank-level accounting, payment processing, recovery (in the repossession sense, not tape backups), and loan origination/management software. Eh, well, the stuff for Windows isn't much better than doing it by hand yet either unless you're really big :) And most of what we're doing has been running off our AS/400 up until now anyway.

    Oh, yeah, what was my point? Right, if you buy into these agreements, what you save in convenience you pay in terms of contract inflexibility. Know what you're getting into at the get-go, that it's not something you can get out of or "transfer" (despite language to the contrary in the contract which is only for small numbers of machines to individual transferees with somewhat onerous record-keeping requirements), and that you're not really paying for ongoing support, but instead just for the licenses to use the product.

    Makes me wish I could start up a new company using solely free software, making annual grants of $20K or so to free software developers...

  21. Re:This situation can be fixed by fudgefactor7 · · Score: 2, Insightful

    "Why is the "one computer at a time" line okay? If I bought the software why should I not install it on all my computers?"

    Because that's how the system works now, and that's how it sould work in the future: One copy per machine or one copy in use at a time on multiple machines. Don't let the "freedom" Linux grants you to cloud your thinking in an economic matter such as this. If it was your way (buy it once, install it anyplace you want) the cost of software would go dramatically up since software makers need to make money and with the lower sales comes the need to increase per unit pricing to off set that ... the alternative is a whole lot of out of business companies. Then you get no software of "retail value" at all...and no support. In short: your plan would fux0r the "electronic economy."

  22. Re:Major headache by Anonymous Coward · · Score: 1, Insightful

    So the HMO's need to do what the visual effects industry did. Get together, announce their plan to move to Linux/FreeBSD/MacOS X in the next x years, and if the apps don't follow then contract their own versions.

    Neeless to say Maya, Houdini etc. all were ported to Linux when given the ultimatum.

  23. How are other contracts different? by eberry · · Score: 2, Insightful

    If I sign a 12 month lease for a building and my company folded two months, I still owe rent for the next 10 months.

    Just because the company goes out of business doesn't mean it automatically get's off the hook for its financial obligations.

    --
    Whoa, whoa, whoa, whoa, whoa, whoa, whoa, whoa, whoa, whoa, whoa, whoa. Lois, this isn't my Batman glass. - Peter
  24. Re:Another funny concept by Gilmoure · · Score: 2, Insightful

    And this would be a bad thing?

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    I drank what? -- Socrates
  25. Re:buy a cell phone w/ 2 year license... by Anonym0us+Cow+Herd · · Score: 4, Insightful

    buy a cell phone w/ 2 year license
    lose cell phone after 6 months
    still pay remainig 1.5 years left in license...

    How hard is that to understand?


    This is easy to understand, and fair.

    The cell phone network heavily subsidizes your purchase of the cell phone. equipment. They want you to commit in order to get that subsidy. You can't just buy the phone, and then switch service in 30 days, taking the phone that they mostly paid for over to their competitors network, paying the competitor for network service.

    There is no such comparison here. If I'm going to pay for 3 years of upgrades, even if I pay today, then it seems fair that this covered computer should get three years of upgrades, even if said computer is in someone else's hands. You can't have it both ways. (Of course, Microsoft can because they have monopolost control -- the very definition of which is not the absence of competition, but one of control where they can get away with stuff that they could not in a non-monopoly situation.)

    If I pay for 3 years of insurance, the covered computer gets coverage for three years. What is so different here? If I cancel the policy, then I stop paying, and stop getting coverage.

    Why are you trying to defend Microsoft's unfair practice? (Just curious.)

    If I'm 1 year into a 3 year payment and upgrade plan, then why wouldn't it be fair that the software on my computer today is fully licensed if I cancel the plan today. It is also fair that I should get no further upgrades under the plan. But not getting either of these is simply unfair. Remember this plan is upgrade advantage. Not acquisition. You still have to acquire the product before enrolling it in upgrade advantage. I stop paying in 2 months, I stop having any rights to upgrade at that time. The original acquisition, and any upgrades received thus far should be mine. Shouldn't they? (If everything were fair.)

    --
    The price of freedom is eternal litigation.
  26. I can transfer my cell phone agreement. by cduffy · · Score: 2, Insightful

    If I sell my cell phone, I can transfer the agreement to someone else and have them take over the service.

    OTOH, if I sell my computers licensed via this scheme, I have to pay off the standing costs *and* they need to buy new licenses for themselves.

    Big difference.

  27. Perfect solution! by miffo.swe · · Score: 3, Insightful

    Run something else!

    There arent that many killer apps not availiable on alternative OS any longer. On a average company you can come a long way with linux if you plan for linux from day one. Same with Apple albeit more expensive hardware is required. The only problem as i can see it is if a company is tailored to run on Microsoft software. With licenses like that it sure looks as if its is well worth the pain to migrate away to ABM.

    Im sitting on a friends Windows right now and i feel it lacks a lot of things. The ONLY thing Windows has is more applications, as an OS it is just an empty shell.

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