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Microsoft Steeply Raising Enterprise Licensing Fees

hypnosec writes "Microsoft is trying to make up for below expected earnings following Windows 8's and Surface RT's lack luster adoption rates by increasing the prices of its products between 8 and 400 per cent. Trying to make more out of its enterprise customers who are tied under its Software Assurance payment model, Microsoft has increased user CALs pricing 15 per cent; SharePoint 2013 pricing by 38 per cent; Lync Server 2013 pricing by 400 per cent; and Project 2013 Server CAL by 21 per cent."

19 of 571 comments (clear)

  1. great news for open source! by jsepeta · · Score: 5, Interesting

    corporations are more responsive than ever to finding and deploying alternatives to Microsoft software. let's hope this spurs more open source development.

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    1. Re:great news for open source! by Anonymous Coward · · Score: 5, Funny

      See if those posts were about Windows Vista I could see the problem but Windows 7 is actually a really good OS. But have you tried Windows 8 yet? It's even faster than Windows 7 and has tons of features including our... I mean their new Metro interface. If you leave me your address I will send you a flyer or maybe a pamphlet about it.

    2. Re:great news for open source! by Patch86 · · Score: 5, Interesting

      Normally I'd reply with some dry cynicism, but actually I have noticed a bit of a sea change in my company recently (my company being a big UK national). We're just kicking off a project to implement a big MS software suite (SharePoint and peripheries, as an upgrade). The Architecture guys are dead set on the MS solution, which is no surprise (and the right choice, considering our ecosystem and our appetite for change at this exact moment). But what is a surprise is how much push back we've had from Procurement (who are not techies). They've been pushing us, HARD, to source alternatives and do a full tendering process.

      I doubt it will come to anything, but it's the first time I've ever seen anyone with clout from outside of the IT department pushing against a Microsoft solution. If they have truly wised up and started to look at software sourcing with a bit more of a hard nose, future projects could be very interesting indeed.

  2. Economic Geniuses by ryan.onsrc · · Score: 5, Insightful

    I see: so if demand goes down, price goes up?

    Good luck with that ...

  3. Re:How to treat a loyal customer by Raven42rac · · Score: 5, Insightful

    It's strong-arming if you vendor lock a customer than steeply raise rates. blah blah free market blah blah still an adversarial dick move.

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  4. Re:How to treat a loyal customer by Anonymous Coward · · Score: 5, Insightful

    It's a free market. Microsoft is not forcing anyone to buy its products. If may be mildly coercive in the short term to companies that feel they "must" use Microsoft products, but raising prices is also the best method to charge customers what the product is really worth to them.

    If it's worth it to switch, they will. But if not, then fair is fair.

    A free market? Are you shitting me? Microsoft has a near monopoly on corporate workstations. If it was a free market then you wouldn't need to make a free operating system like Linux just to try to compete. Microsoft has worked long and hard to make sure that nobody can compete with them by erecting barriers to the free market. The free market is Microsoft's enemy number one.

  5. Australian prices by mjwx · · Score: 5, Informative

    Microsoft has increased user CALs pricing 15 per cent; SharePoint 2013 pricing by 38 per cent; Lync Server 2013 pricing by 400 per cent; and Project 2013 Server CAL by 21 per cent."

    Allow me to translate, for Australian license partners,

    Microsoft has increased user CALs pricing 45 per cent; SharePoint 2013 pricing by 114 per cent; Lync Server 2013 pricing by 1200 per cent; and Project 2013 Server CAL by 63 per cent."

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  6. Re:Ballmer needs the net profit by DoofusOfDeath · · Score: 5, Funny

    After Ballmer has run the company for 10 years and it's been in decline, you have to realize that astroturfers cannot save him, he needs to go.

    Actually, given the way things are going, I'm quite content with him staying.

  7. Re:How to treat a loyal customer by Tough+Love · · Score: 5, Informative

    It's strong-arming if you vendor lock a customer than steeply raise rates.
    blah blah free market blah blah still an adversarial dick move.

    Not merely a dick move, but illegal under the Sherman and Clayton antitrust acts.

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  8. Re:How to treat a loyal customer by Anonymous Coward · · Score: 5, Insightful

    Funny, I've been running my Linux desktops for like 15 years, so I guess I'm not doing 95% of whatever the Windows people are using. Of course, we also use Linux on our desktops at work, which is like 200 machines, so I guess we don't get any work done either.

    Windows is required for gaming, nothing else.

  9. Re:How to treat a loyal customer by crutchy · · Score: 5, Funny

    95% of day-to-day computing for Windows is either playing freecell or masturbating under the desk... Linux users can do both just as well so the op is just full of shit :)

  10. Re:How to treat a loyal customer by Anonymous Coward · · Score: 5, Funny

    One license to hold them, and in the darkness bind them!

  11. Re:How to treat a loyal customer by Anonymous Coward · · Score: 5, Informative

    No, it means the switching costs are high. Which can be the case even if you are using an expensive, shitty product and there is an absolutely perfect, free alternative.
    Even if the switching costs were certain to be amortized within a year you might not be able to switch e.g. because there is no money for a steep short-term investment.

  12. Re:Ballmer needs the net profit by wvmarle · · Score: 5, Interesting

    Euhm well yes and no. As much as I'd like to see Dr Evil go, I'd even rather see Dr Evil lose their evilness, be cut down to size, and play nicely along with the rest.

    MS is a big company, it's never a good thing to see a big company fail, and not just because of the collateral damage it causes. MS going bankrupt (unlikely to happen any time soon considering how much assets they have, but just imagining) would, in short, be a disaster for this world. It would mean no more updates for Windows, and virus/malware writers would have the time of there life. There are no easy alternatives - Linux while a great alternative is by no means an easy switch, when you consider the taking along of all the user's existing data files and applications, many of which don't have a Linux version. OS-X is even worse as it requires complete change of hardware.

    Secondly, MS as a big company is one of the few that can actually form viable competition against Google and Apple. Competition that's badly needed to keep those two in check.

    And finally as a big company with all the money and brainpower that they have, they do have the potential to come with many innovations. The Surface is a good example of this, from the looks of it, it's a very nice device. Too bad their management can't make it really shine: too expensive, unappealing software.

  13. Re:How to treat a loyal customer by mindwhip · · Score: 5, Interesting

    vendor lock in? try version lock in...

    We are still using XP and Office 2003 at my work on the standard desktop build as the cost of switching up and migrating legacy stuff (Office/vba and some very old in-house 16 bit/windows 3.1 era programs) is too high

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  14. Why does the farmer care about the cows feelings? by SmallFurryCreature · · Score: 5, Interesting

    Enterprise is MS cash cow and cows are milked and cows that protest to loudly are killed for fun, meat and an example to other cows.

    The farmer does not care what the cow thinks of him, the opinion of cattle is worthless. Their enterprise customer have shown over decades to be completely incapable of independent thought so why should they change now? Oh, this price increase is the straw that broke the camels back? Breaking a back only works in animals that have a back bone. Cattle does not. The reason you can overwork donkeys and cows and dogs is because they are dumb animals that are easily domesticated. A smart animal would resist long before you overload it. Enterprise customers have not resisted. In fact, they resist every which way they can to any attempt to set themselves free or at least not be under complete and total control of their Microsoft master. Just go ahead, ask for a Linux desktop at a large Enterprise business like say Shell just to come up with a name. Can't be done. These slaves don't just accept the whip, they buy it for their master, oil it so it gives optimal whipping power and turn in anyone who tries to set them free or introduce laws trying to limit the amount of whipping that can be done.

    And you think these Enterprise customers can be alienated? Same with the OEM's. They could have EASILY done a Linux machine by now. They didn't. And nothing MS will do will change that. They are OEM's, not Apple or a (the old) Nokia, they sell cheap clones with a generic OS and make their money from crapware. They don't have the willpower, brains, imagination to do anything else. Oh they might protest a bit, just like a cow might kick and kill a farmer but just as the cow will then just stand there and wait to be killed, the OEM's will throw a hissy fit and then assume the position again to be shafted by their beloved master.

    Ballmer is a lot of things but one thing he really is, is a good sales manager. He knows just how much to squeeze the market for. And don't worry, any Enterprise that balks about a 400% price increase will get a special discount, just for them of say a 10% discount, now ain't you a special little cow! Any MS rep gives their big customers massive discounts. Just all big Enterprises give their loyal customers a big discount and NONE of them ever figure out that if THEY only give discounts that are less then the previous price increase, someone else might do the same to them.

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  15. Re:How to treat a loyal customer by FaxeTheCat · · Score: 5, Insightful

    If it was a free market then you wouldn't need to make a free operating system like Linux just to try to compete.

    Just remember that Linus created Linux because the UNIX licenses were too expensive (this was the early 90's).
    It was not created as an alternative to Windows, but an alternative to the expensive, proprietary UNIX versions. In that respect one can say that it has been a fantastic success.

  16. Re:How to treat a loyal customer by erroneus · · Score: 5, Insightful

    Some people can't put their brains in that place.

    At work a problem once ensued when a person wanted to set up an MSSQL server for a project. My boss said "too expensive." I asked what language, he said VB.net. I said great! Have you considered mysql? He said it would violate license agreements. I said mysql, he heard SQLExpress. Idiot. Another person my boss reports to believes mysql is not a professional database server. It is used by hobbyists. But also used by professionals. It's free. It can't be good right? Forget that commercial licenses can be had and that Oracle now owns it.

    People, and especially decision makers, simply can't wrap their heads around not using Microsoft for everything. The mental impairment is very visible to me. It's one thing to prefer one thing over another, but another to not even learn what the truth may be.

    Similar discussion about iPhone/iPad in the business while excluding Android. The reason? Android is unix based and can't be trusted.

    Seriously. It's what they believe!!!

  17. Re:How to treat a loyal customer by prowler1 · · Score: 5, Informative

    Zimbra. To a large extent, it's a drop in Exchange replacement which will plug straight into an existing AD environment if you so wish.