September 19, 2005

Microsoft Licensing Policy Changes: Good for Microsoft or the Customer?

I've never gone into the depths of Microsoft's licensing policies but I know that in this case there's pretty much only ONE side to the story. Microsoft sells software and it can't make a lot of money if people keep using the old software and not regularly upgrading to buy the new software. The solution? Have people sign up to buy regular updates of new software at discounted prices. This all sounds good but many businesses don't like the fact that they are "FORCED" to upgrade when they really don't want to. But if they don't they are going to have to pay high prices for software later on.

Information Week writes At least one analyst was unimpressed. "Software Assurance has outlived its usefulness," said Paul DeGroot of Directions on Microsoft, a Redmond, Wash.-based research firm that specializes in tracking Microsoft's moves. "The farther we get into this [new upgrade cycle], the less attractive SA has begun to look."

Software Assurance, which was launched in 2001, lets customers pay an annual fee -- ranging from 25 to 29 percent of the outright license -- for the right to upgrade to any and all updates of that product during a two- or three-year span. Read the full IW article here

Get more information on MSFT's licensing from MSFT here and here.

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