Microsoft's decision to delay the release of Vista, the
next version of its Windows operating system, has reignited the
controversy over the value of the company's enterprise licensing
terms.
Last week, Microsoft said it would put back the release of some
versions of Windows Vista and Office 2007. Among the reasons cited
was the need to "crank up" security levels on Vista.
Microsoft said the release date for the business versions of
Vista, previously code-named Longhorn, and Office 2007 would remain
November 2006, but consumer versions of the product would not be
available until 2007. Security on the business version of the
operating system would not be inferior to that of the consumer
version, the company said.
David Roberts, chief executive of the Corporate IT Forum, whose
members include IT leaders from FTSE 100 firms, said delays to
product releases were damaging the credibility of Microsoft's
Software Assurance licensing programme.
"Every time there is a delay there are a number of organisations
that find the release is outside the renewal timeframe. That has
been a problem for Software Assurance for several years."
Ben Booth, chairman of the BCS Elite IT directors group, said
Software Assurance represented value for some users but product
delays had tarnished its image. "Microsoft has started listening to
clients more than in the past, and that is a positive thing, but if
the gap between releases is too long, people will question whether
Software Assurance is value for money."
Analyst group Gartner said businesses with licensing agreements
that expire in September 2006 should pressure Microsoft to extend
new version rights to Windows Vista, no matter when it ships.
Microsoft told Computer Weekly it would not extend these rights
or pay compensation because of delays to the operating system that
was originally scheduled to ship in 2004. It insisted businesses
had received strong return on investment from Software Assurance
regardless of whether they had received new versions of
products.
Brian Gammage, research vice-president at Gartner, said
businesses would increasingly ask, "Will you receive value?" when
taking out subscription licensing agreements.
"Microsoft wants to move as many of its business customers as
possible towards subscription annuity revenue. The value of these
depends on Microsoft in respect of delivery. This [delay to Vista]
can only be a step backwards."
He added that Microsoft's efforts on security should be
commended. "Microsoft takes the blame and tries to set a good
example; it has got to get some points for that."
Microsoft said that Software Assurance does not guarantee rights
to upgrades. David Weeks, Microsoft Windows Vista product marketing
manager, said, "Nobody offers a technology upgrade guarantee in a
maintenance programme."
He also said Microsoft had never committed to release Vista
before the end of this year.
What IT directors say about Software
Assurance
"Most previous OS releases from Microsoft have slipped, and
increasingly I think users are happy to accept this in preference
to an unreliable or insecure product.
"We chose to avoid Software Assurance some years ago, seeing
little value in it, and that still seems to be the case. The longer
organisations leave [before an upgrade] the more choice they will
have in terms of alternatives. I am sure some organisations will
want to leave Vista out and skip to its successor to at least gain
a greater step change of benefit."
Nick Leake, director of operations and infrastructure,
ITV
"Software Assurance has allowed us to offer our users increased
functionality year on year from Microsoft without me having to cost
justify, delay or cancel upgrades because of cost. My belief is
that Microsoft has taken the right decision."
Simon Merry, head of IT, Chemring
"It is hard to see the real reason for the delay - they have
apparently dropped a lot of features from Vista in order to not let
the release date slip further. I am also concerned that Microsoft
appears to be forcing people to take out Software Assurance if they
want some of the more heavyweight business versions, as a desktop
is now seen as a commodity that you source as cheaply as possible.
We are going to wait for Vista Service Pack 1 before making any
decisions to deploy."
Peter Bramhill, IT director, Groupama Insurances
"I feel Microsoft will need to lengthen the timescale [of
Software Assurance] to more than three years as their recent
history is more like a five-year upgrade cycle. Has it ever
released a product on the original timetable? I would rather the
product was reliable and secure than was rushed."
David Tidey, head of IS, Royal Borough of Kensington and
Chelsea