Local authorities in the UK will need to find between £50m and £80m
over the next two years to satisfy Microsoft's new licensing terms,
according to the Society of IT Managers (Socitm).
These figures are based on feedback from the public sector IT user
group's members and findings from the Socitm Trends Survey 2000/01,
which reports on IT expenditure.
In May, Microsoft announced it would end Upgrade Advantage trade-in
terms and move to a subscription model and introduce the Software
Assurance program with tighter upgrade cycles.
Len Graves, a former president of Socitm, said, "Clearly, such an
excessive increase will need to be contained within existing local
authority budgets at a time when local government is seeking to
deliver e-government solutions - often using Microsoft software -
within budget.
"Such added costs will inevitably require local authorities to
review their desktop software strategies for both the short-term
and medium to long-term."
Socitm has passed its findings on to corporate IT user group The
Infrastructure Forum (Tif), which is due to meet today (Thursday)
to discuss members' fears that Microsoft's licensing changes will
lead to hugely increased costs.
Tif, whose members represent 1.25 million desktops and an IT spend
of £25bn, said its members are worried that the licensing changes
will increase costs because of both the new licensing agreements
and more frequent upgrades.
Tif members - which include BP, Shell, the BBC and the Royal Bank
of Scotland - are due to discuss the best strategies to force
Microsoft to change tack.
David Roberts, Tif's chief executive, told Computer Weekly that the
group hopes to "present a collective argument" to Microsoft.
Meanwhile, early results from a confidential survey of members of
the Computer Weekly 500 Club, an invitation-only club of senior IT
directors, revealed further anger and apprehension over the
licensing changes.
Almost 75% of respondents said the changes would result in extra
cost, while more than 90% said the Government should take action
against Microsoft under general competition policy.
Comments made by 500 Club members revealed the depth of feeling
over the licensing issue. "We are being exploited - it needs to be
stopped," said one. "With this type of pressure, Microsoft will
perhaps concede something," said another.