Users advised to consider additional concessions
announced by Microsoft as organisations’ Software Assurance
contracts come up for renewal
IT organisations that took out Microsoft’s controversial
Software Assurance maintenance programme in 2002 are beginning to
assess the value of renewing the contract.
Many businesses still on Microsoft’s Upgrade Advantage licensing
scheme, which was replaced by Software Assurance, also face tough
decisions about their future licensing, with analyst organisations
estimating that globally £580m of software contracts are due to
expire this year.
Software Assurance was initially sold to users as a way of
securing the right to move at no extra cost to the newest release
of Microsoft products introduced in the duration of the
contract.
However, the cost – 25% to 29% of the basic licence fee per
annum – is one of the highest rates in the industry for what
amounts to little more than upgrade protection, according to
analysts.
Product releases, such as Longhorn, the next generation of the
Windows operating system, have not materialised and some users have
said they have not received the benefits they expected from the
programme.
In response, Microsoft has made a number of changes to boost the
benefits, ranging from improved tools to vouchers for approved
Microsoft end-user courses and software discounts for home
users.
If users are not tempted by the enhancements to the Software
Assurance contract as announced by Microsoft and decide not to
renew their contracts, they can carry on running the software they
have.
When the business needs to upgrade its software, users can
either either buy a licence for the new software outright or buy
the licence and also take out a new three-year Software Assurance
contract.