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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.)

7 of 263 comments (clear)

  1. 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!

  2. 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.

  3. 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?).

  4. 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.
  5. 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)

  6. 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.

  7. 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