July 30, 2002

Microsoft's Subscription-Software Plan Produces Grumbles

To reach its goal of selling software by subscription, Microsoft will have to get its customers to move from one-time software purchases to leasing software.

Microsoft's (Nasdaq: MSFT) push to convert business customers to a new subscription software plan by Wednesday is causing some customers to abandon its products for cheaper alternatives. Cash-strapped companies and governments are complaining about the insurance-like plan they must purchase now to avoid paying more for software upgrades in the future. (full article)

My spin:Microsoft's new licensing is going to be a dilemma for smaller businesses who participate in its open license program (even bigger ones - all of us). Do we "subscribe" to Microsoft's software or pay a premium for software later on. It used to be that you'd get a big discount on software purchase if you had already purchased a previous product. But now MS is changing those rules - a lot of money is at stake and businesses need to carefully analyze what's going on here and how it affects their business.

Educate yourself here (from Microsoft's web site), (online retailer CDW) , and CNet

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