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MS Tweaks Ill-Received Licensing Plan

ahooton writes "C|Net is reporting that Microsoft has updated it's Software Assurance licensing program. The company has admitted that it's initial approach angered a large number of customers. No huge difference in pricing or terms -- changes are comprised of bundling some training and support. The one interesting concession is that corporate licensees of Microsoft Office can now use that suite on a home computer as well." What a concession. (Paddo points to this similar article on Australian IT via News.com.au.)

22 of 263 comments (clear)

  1. Otherwise known as... by flacco · · Score: 4, Funny

    ...rearranging deck chairs on the Titanic.

    --
    pr0n - keeping monitor glass spotless since 1981.
  2. M$ is being quite clever about this, IMHO by Bold+Marauder · · Score: 5, Insightful

    Between this, and all of the charity software donations that they're making, they're basically changing thier public perception, while maintaining their draconian licensing terms.

    I have to give them kudos, even if only for the sake of sheer diabolicalness!

  3. Oops by lendude · · Score: 4, Funny

    "The one interesting concession is that corporate licensees of Microsoft Office can now use that suite on a home computer as well." You mean that under the previous terms I couldn't before now???? Oops!!!

    --
    "Get off the cross - we need the wood" - Tori Amos
  4. The first one is always free by Anonymous Coward · · Score: 4, Funny
    The one interesting concession is that corporate licensees of Microsoft Office can now use that suite on a home computer as well.


    Okay, we won't call it piracy if you've be brainwashed into our cult and take a copy of our scriptures home with you. Soon you'll be quoting them to all of your old friends.
  5. Assurance? by mao+che+minh · · Score: 5, Insightful

    There really isn't any beneficial changes here. People's gripes were largely with prices and restrictive measures that were associated with the new scheme, not what kind of "assurances" they were recieving ("assurances" that they thought they were already getting for free with older Microsoft products and that they usually get for free with other venodrs' software products: real support, limited training, and manufacturer accountability).

    I still don't understand why Microsoft calls their scheme "Software Assurance". This implies that by being forced into expensive licensing schemes you are entitled to an extra degree of software security and performance.

    Security and performance should be qualities that sell your product initially, something to be proud of as a manufacturer, not aspects of a product that you get only after paying annual fees.

    Large companies end up paying tons in license fees for a plethora of different software products that fit individual needs. They could instead find a few open source products and pay the salaries of a few programmers to customize them to their needs, or outright integrate them. Lotus Notes for mail, Novell for meta, People Soft for CRM, Windows clients, etc. Instead, you could take one strong open source CRM, expand upon it, integrate web based mail (or even make a quick client), and integrate their features to work flawlessly, all running in an open source browser that is running on Linux terminals (which removes the need for de-centralized administration) - instead of forcing the admins to find ways around making all of these closed products work together in hack jobs, with expensive tools like Zen Works deployed just to install and configure software on expensive Windows workstations - or worse. Oh well - I'm being a square headed open source zealot again. I'll go lay down.

    What's really ironic is that I'm using WIndows 98 right now, because I screwed my Linux kernel and don't feel like fixing it. My girl just bought me "Enter the Matrix" for the Game Cube man....been busy.....damn agents.

    1. Re:Assurance? by Hangtime · · Score: 4, Insightful

      Large companies end up paying tons in license fees for a plethora of different software products that fit individual needs. They could instead find a few open source products and pay the salaries of a few programmers to customize them to their needs, or outright integrate them. Lotus Notes for mail, Novell for meta, People Soft for CRM, Windows clients, etc. Instead, you could take one strong open source CRM, expand upon it, integrate web based mail (or even make a quick client), and integrate their features to work flawlessly, all running in an open source browser that is running on Linux terminals (which removes the need for de-centralized administration) - instead of forcing the admins to find ways around making all of these closed products work together in hack jobs, with expensive tools like Zen Works deployed just to install and configure software on expensive Windows workstations - or worse. Oh well - I'm being a square headed open source zealot again. I'll go lay down.

      Your kidding right...go find a couple of open source packages and pay some developers to integrate them together. I'll take this one at a time.

      1. Besides packages like MySQL and Open Office that are dual-use meaning can be used in the home, name me five "business" open source packages out there? Better yet name me this elusive "strong open source CRM." Please tell me that product that bests Peoplesoft or Seibel, or duplicates 60% of the functionality, where can I find this elusive piece of software. It doesn't exist. I can't name you five Linux/Open Source packages that function as business applications but I can name you five off the top of my head in my niche of Builder's Mortgage Banking.

      2. Hire a bunch of Developers to Integrate It All: Problem, I'm not in the business of building applications, I am in the business of making loans to home builders. We only build things if its not already done. I looked 12 months for one software package even though we had developers in the bullpen waiting for a project because I have to then maintain that software! Chances are if your not in the mainframe world or you don't run a company like Disney or GE where turnover is minimal; your going to have turnover. That means maintenance, new releases, new features for a product that's already built and maintained by someone else! A complete waste! Its called a real option. If I build one piece of software I sacrifice building another. I would rather build software keeping us on the cutting edge of business then duplicating the functionality of another package.

      3. That hodgepodge of programs you referred to is Best-of-Breed buying its their to ensure that I get the most bang for my license buck. Yes integrationn is tough but if you go into the purchase with integration as a checklist item in criteria your less likely to be burned.

      4. Large companies end up paying tons in license fees...over a time span. All software can be depreciated over three years and based upon your tax strategy and the purchase maybe even longer. Its just like buying furniture and computers, yes its an immediate cash outlay but its affect on income can be spread over multiple years.

    2. Re:Assurance? by Daniel+Phillips · · Score: 4, Funny

      There really isn't any beneficial changes here. People's gripes were largely with prices and restrictive measures that were associated with the new scheme, not what kind of "assurances" they were recieving ("assurances" that they thought they were already getting for free with older Microsoft products and that they usually get for free with other venodrs' software products: real support, limited training, and manufacturer accountability).

      It's a little-known fact that the "assurance" in "Software Assurance[tm]" refers to assuring that Microsoft's current high profit level continues, rather than anything a customer might want.

      --
      Have you got your LWN subscription yet?
  6. Of course they're letting home users have it by SirTwitchALot · · Score: 4, Insightful

    Allowing Office users to use the product at home with a corporate license will just help to keep people using office. People who want to work from home are either going to pirate office or install open office (a lot more people are learning that it works well enough for most uses.) This is a good way for them to keep their domanance in the productivity category.

    --
    Go away, or I will replace you with a very small shell script.
  7. Concession by aeinome · · Score: 4, Funny

    Finally, Microsoft makes a concession we knew had to happen at some point.
    Now to wait for the "Linux is much better than Windows" concession...

    --
    When you don't have a leg to stand on, don't even get up.
  8. Love-hate relationship by FearUncertaintyDoubt · · Score: 5, Interesting
    As a DBA in a pure-MS shop with dozens of servers and about 1000 desktops, I can say that we are probably typical of the corporate customer who lives by MS but also resents the cost and control they exert over our enterprise. It sometimes feels like being a colony ruled by the king. Life can be good, but taxes are high and you are pretty much under the thumb of the big guy. When he says pay up, it ain't cheap, and you don't get much say in the process; it's pay up, or else starve. I think in general, the natives are getting restless, and it will not be long before we see open revolt against microsoft and their expensive licensing model.

    Microsoft seems to be getting the picture. While it looks like they are making just a couple of strategic concessions to try to maintain their stranglehold on the market. However, I don't think that they can stem the tide so easily. Eventually, they will have to make concessions to just about everyone -- i.e., they have to reduce their price pretty much across the board, because the market, having real competition, won't sustain their artificially high prices anymore (how do you think they got their $40 billion, not to mention Gates' 40?).

  9. Re:I lay the blame on the pirates by gadlaw · · Score: 5, Insightful

    Microsoft will be glad to hear that some of their propaganda/education money has been put to good use. Yes indeed, blame it all on the 'pirates.' Microsoft isn't a greedy company bent on controlling all aspects of your computer/entertainment/multimedia experience- everything bad or stupid they do can be blamed on those 'pirates'

    --
    Enjoy your Karma, after all you earned it. Feel your Karma Joe, feel it burn.
  10. Remember... by Faust7 · · Score: 4, Insightful

    Security and performance should be qualities that sell your product initially, something to be proud of as a manufacturer, not aspects of a product that you get only after paying annual fees.

    Security is hardly a static entity. What's the more convincing sell, the idea that the product is already secure, period, or the idea that the product was as secure as possible when released and can be continually upgraded to maintain that level of security?

  11. MS apparently loves quietly changing things... by Anonymous Coward · · Score: 5, Informative

    Don't know about the Software Assurance program, but the academic Campus Agreement 3.0 has had the "Work at Home" clauses in it for a while now. Though in traditional MS fashion they've made one minor change in the new revision 3.1... from what I understand from reading the pages, we can't let employees check out a set of install discs and the Volume License key anymore.

    Now the only option is to have employees bring in their machines while we install (don't even want to think about the liability issues there) or buy official MS copies of the media, for $7-20 each in minimum quantities of 25, which supposedly come with their own keys. If we have 1500 employees who each want a copy of Office XP, at $7 a copy we now have a nice added expense of $10,500, not to mention the logistics hassles of media ordering and inter-departmental chargebacks.

    Of course, those new keys are the 1-machine-only activation-enabled version, while the older agreement let us give out the activation-free Volume License keys and just keep a few sets of CDs at the helpdesk for check-out.

    Ugh. Gotta love MS.

    (posted anon to protect my employer)

  12. No crap by mao+che+minh · · Score: 4, Interesting

    My boss asked me to take home some work that was all compiled in various Word, Excel, and whatever that PDF-like Microsoft format is (Visio I think). I lied and said that I only have Linux installed at home and use Star Office (which is 2/3 true). He asked me how I could afford to pay for a Unix workstation and not Windows, which he thought was "free" with each PC. When I showed him Redhat.com and explained what Linux was to him, he was truly puzzled. He had no idea that there were any other operating systems other then Windows, Unix, and Apple/Mac. This is coming from a guy that has been in a management position within a rather large tech company for 6 years.

  13. In other news by jsse · · Score: 5, Funny

    Master Bill Gates, Chief Architect of Matrix^H^H^H^H^Hicrosoft, in response to customers' whining at license changes, said in his dark mask:

    I am altering the deal. Pray I don't alter it any further.

  14. Re:I lay the blame on the pirates by Blackhalo · · Score: 5, Insightful

    I think you lay the blame on the wrong suspect. The driving business reason for "Licencing 6.0" is to continue to grow revenue or at the very least to create a continuous revenue stream. With the market pretty much saturated in Microsoft's primary revenue generating bussineses (desktop OS and Office apps) they have little room for new revenue growth. Short of moving into new markets, X-Box (loss leader) and the Enterprise (Linix is the ecnomical choice in a down economy), Microsoft must use licencing stragegies to maintain income or the stock price will suffer. Over the years MS has gotten very large, and it is really hard to continue to grow a large company, big slow growth companies have relatively low P/E's and have to do things like pay dividends (a Microsoft first) to woo investors. Problem with MS is that they only have two notably, profitable businesses and they have only one directon to go with those.

    --
    "There is nothing to do it. But to do it." -Floyd Pepper
  15. Re:I lay the blame on the pirates by mdwong · · Score: 4, Insightful

    Exactly. Microsoft did not introduce the Assurance program to counter piracy, they did it to increase their revenue stream. If all their large scale customers paid a yearly fee to keep their software current, MS could cite those sales as money in the bank when they report their earnings.

  16. Did anyone else read this and think... by JudgeFurious · · Score: 4, Interesting

    ...of Johnny Cochran in the South Park episode where he's talking to the jury and then pulls out a monkey?

    "Look at the monkey. See the monkey? Look at the monkey."

    None of this addresses any of the things that people really had a problem with regarding their licensing scheme. None of this is going to make a bit of difference to our shop. We're getting open source alternatives lined up and mapping out our "Escape from Redmond" plan with the idea of getting it done by the end of 2003. This simply couldn't be less relevant to us.

    --
    Appended to the end of comments you post. 120 chars.
  17. Simple... by lactose99 · · Score: 4, Funny

    Go out of business.

    --
    Fully licensed blockchain psychiatrist
  18. Re:I lay the blame on the pirates by maxpublic · · Score: 4, Insightful

    Software pirates are the main reason these draconian licensing agreements have come into existence.

    Argh, matey! Blame it all on us nasty high-tech pirates! Certainly the woes of Microsoft fall entirely upon our shoulders!

    Funny, I do remember something about an anti-trust suit, illegal business practices, unethical conduct, etc. I also have a vague recollection of a conviction. Might as well blame all of that on the pirates too!

    What is worse is that there is a large group of people dedicated to making excuses for and promoting these software pirates.

    Although it's not nearly as large as the group of people dedicated to making excuses for and promoting Microsoft. Nor as large as the group of losers who worship Bill Gates in the hopes that his divine favor will somehow magically rain down upon them, like manna from the heavens.

    I'm not saying that I like draconian licensing agreements, but it's easy to understand where the impetus to create them comes from when the goodwill of the software publisher is exploited time and again.

    It's even easier to understand the frustration of the consumer after he/she has been exploited by Microsoft time and time again. It might just be that every once in awhile you *really do* reap what you sow.

    Sailing the digital seas since 1980,
    Max
    (insert skull and crossbones here)

    --
    My god carries a hammer. Your god died nailed to a tree. Any questions?
  19. ... the Guido Public Licence by xixax · · Score: 4, Funny

    CTRL-C CTRL-V

    GPL: The Guido Public License

    Preamble

    The licenses for most software are designed to take away your freedom to share and change it. By contrast, the the Scarpelli family's Guido Public License gives you more freedom with the benefit of protection for you, your family and your business. The Guido Public License applies to most of the Scarpelli Family Software Foundation's software and to any other program whose authors commit to using it. (Some other Scarpelli Family Software Foundation software is covered by the Guido Library General Public License instead.) You can apply it to your programs, too.

    Accidents, fires and floods happen. The Guido Public License protects you.

    We protect our rights with two steps: (1) copyright the software, and (2) offer you this license which gives you legal permission to copy and distribute the software.

    Failure to abide by the rules of any of the Guido Public Licenses will mean a visit from Guido Scarpelli himself.

    You don't want that.

    --
    "Everything is adjustable, provided you have the right tools"
  20. Some licenses do/did, some not by msobkow · · Score: 4, Informative

    There are four common commercial licenses:

    1. System licensing requires a seperate license for each machine.
    2. User/Seat licensing requires a seperate license for each user, but not each machine.
    3. Session licensing requires a license for each process, user, or device that is using the product, including those that access the product with sharing/concentrator products (e.g. the webserver only has 10 active database connections, but 300 users, so 300 session licenses are required.)
    4. Corporate licensing is negotiated on a per-customer basis and sometimes includes the most "interesting" terms and conditions.

    Microsoft is just conceding corporations the right to per-seat/user licensing, which is already one of the most common product licensing arrangements in the industry.

    Don't underestimate the impact to Microsoft's bottom line. Under prior interpretations, Microsoft was requiring the corporations to pay for two licenses per telecommuting employee instead of one. They were also requiring extra licenses for failover systems which aren't intended to be used unless the primary fails!

    --
    I do not fail; I succeed at finding out what does not work.