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Microsoft Customers Get No Bang for Buck

sammy baby writes "Software missing its ship date is commonplace enough that it's usually only mentioned for yuks. However, subscribers to Microsoft's Software Assurance program are discovering that it can have some very real repercussions. According to NetworkWorld, many licencees are discovering that due to slipping release dates, many thousands of dollars spent on these contracts have brought them zero return."

5 of 328 comments (clear)

  1. Re:Try this the next time you buy. by Canadian1729 · · Score: 4, Informative

    So many were sold because of Microsoft's agressive sales schemes. Their enterprise customers were basically given a choice of signing up for the plan to get an enterprise license or buying a retail copy for every machine. In that case, there is no choice.

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  2. For instance: by eddy · · Score: 5, Informative

    Just to show that this couldn't possibly come as a surprise for whoever PHB'es penned these agreements:

    Customers who "upgrade" to the Licensing 6.0 scheme also lose ownership of Microsoft software products and are thereby nudged into limited term licensing with periodic extensions (with or without any code updates), as shall be dictated by Microsoft -- in other words, software leases. -- The Inq. 16 July 2002

    ..and..

    "According to a report on News.com, a survey of 1000 technology managers around the world showed that the 60% of companies that signed up for the deal have ended up paying more." -- The Inq.. 21 March 2003.

    So it's not "news" that this scheme would cost you a whole lot with the possibility (and high probability) of giving almost nothing in return.

    If anyone who signing up for Licensing 6.0 actually believed that Microsoft would let them get the next great thing "for free", then I've got one nice bridge to sel^H^H^Hlease them.

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  3. Re:Can't Finger Just Microsoft by Anonymous Coward · · Score: 5, Informative

    Im unsure whether you read the article, but the problem is 2-fold.

    Yes, the CTO of Digitech is an absolute fool. He was "expecting" a release, but you don't sign a contract in July, 2002 for something thats going to be released. I assume he wasn't given any guarantee's in writing about the release date.

    That said, the main reason to buy into Software Assurance is to get the upgrades. Hell, the whole thing is marketed towards smaller companies so they can get upgrades when they are released. And if you don't buy into Software Assurance (or the Enterprise Agreement), you don't get things like "Intelligent Message Filter" for Exchange, for example. If you want to get all the upgrades and software, they do tricks like that to force companies into signing Software Assurance (if they want all of MS's products, that is), and the companies are realizing there is no guarantee of any value for the Software Assurance program.

    So in other words, companies might start looking for alternatives, a whole host of contracts are coming up for renewal, and MS are looking at a lower bottom line because of it. Expect some announcements for MS soon that announce new software releases, or "sweeteners" in their licensing agreements.

  4. Re:Can't Finger Just Microsoft by ePhil_One · · Score: 5, Informative
    They could offer something like perpetual licensing . . . then there is no risk with slipped schedules. Term licensing is where you get fucked.

    Microsoft does offer perpetual licenses. Buy a copy of Windows XP and you are licensed to run it forever. What software assurance offers is an entitlement to all upgrades released while your contract is in effect, only Open Source and a few small titles offer upgrades in perpetuity. Plus, many companies already took advantage of these term to upgrade Windows 2000 workstations to Windows XP, so its not as bad as the headline makes out. Then again, I've successfully negotiate terms in my maintenance contracts that they are valid until Product X is released to cover for slippage, in those cases where the manufacturer was attempting to collect for Product X in advance. I wouldn't be surprised to see MS release Windows YA (NT 5.2) as an interim, just to keep folks happy, Sort of a Windows ME for the NT generation.

    Of course, we also passed on the killer opportunity MS's Software Assurance offered us. We're not racing to be the first on the block with MS's latest.

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  5. WinZip by Xenographic · · Score: 4, Informative

    I grant that you don't get many applications that offer unlimited upgrades, but WinZip is one of them.

    I've used it for many years now, and just recently updated to the most recent version to fix a security flaw in the old one.