shockz Posted July 31, 2002 Share Posted July 31, 2002 July 31, 2002 | Paul Thurrott Welcome to Microsoft Licensing 6.0 http://wininformant.com/Articles/Index.cfm...ArticleID=26096 Beginning tomorrow, Microsoft will institute its reviled Licensing 6.0 scheme, the oft-delayed and oft-maligned new software purchasing program for corporations. It's the first major change in the way Microsoft sells software in half a decade, but the company's customers remain unimpressed with the plan, which has come under criticism for requiring that companies opt into lengthy software contracts. Microsoft, however, says that the move to Licensing 6.0 was necessitated by the complexity of its previous volume licensing practices, which awarded larger customers with steep discounts. According to some reports, Licensing 6.0 effectively raises prices 33 to 107 percent over the previous scheme. This sad state of affairs has predictably alienated many of the software giants customers, some of whom are now actively researching Linux and other open source alternatives. Microsoft maintains that Licensing 6.0 is simply misunderstood, and though the company delayed the start of the program twice in order to ease the transition, the midnight deadline tonight is final. Starting tomorrow, Licensing 6.0 is Microsoft's only option for corporate customers. "The fact that our customers probably didn't understand our licensing as well they might have earlier makes the transition and the perceived pain higher than it actually is," Microsoft CEO Steve Ballmer said during last week's annual financial analysts meeting at the company's Redmond campus. Under the new Licensing 6.0 scheme, corporate customers can sign up for regular, subscription-like payments over a two or three year period under an option called Software Assurance. This option gives them access to the latest Microsoft software whenever it's released, and provides Microsoft will a steadier income stream. Alternatively, customers can opt out of this plan and simply pay full price for software whenever it's released. Many companies evaluating the plan have found that they will pay more than before regardless of which option they choose. And they complain that Microsoft is trying to smooth their financials by essentially forcing customers to upgrade on a more regular basis, raising future sales figures for cyclic products like Windows and Office in the process. Regardless of opinion, Licensing 6.0 will likely prove very successful for Microsoft. After all, what other options do its large customers have? But the company's new licensing plan might have the opposite effect that Microsoft planned: Instead of forcing more frequent upgrades, tight-fisted corporate buyers might instead opt to use older technologies for longer periods of time, effectively widening the time between upgrades. Link to comment Share on other sites More sharing options...
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