Users could see their Microsoft Windows licence fees almost double
when they come to renegotiate their contracts, analyst group
Gartner has warned.
Caroline DavisThe software giant is taking advantage of a technicality in its
licensing terms, which it has previously let pass, according to
Neil MacDonald, Gartner's vice president and research director. He
said six of his major US clients had recently been affected.
The problem arises with companies that buy windows licences in
volume under Microsoft's Select programme. When these companies buy
new PCs they usually come pre-loaded with Windows and covered by an
end-user licence agreement from the supplier.
Many firms then use the CDs they get under the Select programme
to overwrite the PCs with a standard configuration of the software,
a process known as re-imaging, using tools such as Symantec Ghost.
This ensures consistency across the company's PCs, for example,
eliminating unwanted applications.
But Microsoft is arguing that this is not allowed unless the
customer pays for a licence upgrade, at a cost of either $117 or
$157 (£73 or £98).
Simon Moores, chairman of The Research Group, said many UK users
could find themselves affected and called on them to protest
vociferously.
"Microsoft needs to clarify what this means," said Moores. "It
has implied that it is OK over a period of time. It is important
that it is not seen as trying to wring more money from
licences."
John Perkins, chief executive of NCC Group, said Microsoft's
actions have highlighted the need for users to take proper legal
advice before entering into agreements. "But if there are issues
that are difficult to get around, the supplier should point them
out. The best way to avoid this is for the supplier and user to
have an open and honest relationship," he said.
Microsoft said it is "not trying to secure additional revenue by
causing confusion over Windows licence compliance".
The software giant did not respond to Gartner's claim that in
the past, re-imaging using Select appeared to be permitted.
However, it likened the OEM Windows licence to an economy-class air
ticket. "Because of the low costÉ it typically does not extend the
rights to make changes to the ticket, or to the flight, without an
appropriate upgrade fee," Microsoft said.
Leader
Microsoft software re-imaging
What's the problem?
Microsoft is charging users between $117 and $157 to let them
reload Windows onto a computer bought from an OEM which already
runs Windows. This practice is known as re-imaging.
Who is affected?
Companies using the Microsoft Select licensing scheme. Gartner
Group estimates that 60% of enterprises could be in violation of
their Select or OEM agreements.
Why?
This is a technicality in the licence contract that Gartner
believes has been present in agreements since the days of Windows
3.1. In the past, Microsoft implied that the practice of re-imaging
was permitted, but has now retracted this view.