Microsoft is likely to make changes to the way its
products are licensed that could, in effect, make itsSoftware Assurancesubscription
licensing programme mandatory by 2009, analyst firm Gartner has
predicted.
Through the software company’s subscription plan, users pay an
annual fee of 29% of the licence cost of their desktop software, or
25% of the server licence fee licence, over a three-year term.
The main benefit for users is that they can upgrade for free to
new versions of Microsoft products covered by the Software
Assurance contract.
However, Ollie Ross, director of research at IT directors group The
Corporate IT Forum, said, “Unfortunately, many businesses have not
benefited here and they are understandably questioning what they
have received for the large sums of money involved.”
Microsoft has added enhancements to make the scheme more
attractive to users, such as the ability to run back-up servers
using free Microsoft licences, access to
e-learning courses and use of
TechNet technical resources.
But the incentives do not appear to be increasing the scheme’s
renewal rate. Last week, Gartner research vice-president Alexa Bona
told Computer Weekly that 50% to 60% of Software Assurance users
were renewing their contracts, compared with the industry average
renewal rate of 90% for enterprise software maintenance
contracts.
To attract more renewals, Bona said Microsoft was likely to make
certain new products available only to users who buy Software
Assurance. “Microsoft is also taking features out of the operating
system, such as the language pack for Windows Vista, and making
them available only through Software Assurance,” she said.
The language pack, also known as the multi-user interface,
provides support in
Vista for multinational
character sets, which are important for international companies
that want to install Windows Vista globally.
“Gartner believes that 25% to 30% of Microsoft customers with
more than 1,000 desktops who sign new agreements on Windows client
will not be renewing.” However she said some businesses were now
being upgrading their Software Assurance because they needed the
multi-user interface, said Bona.
Gartner also predicted that Micro-soft was likely to make
Software Assurance a prerequisite for Premier Support, a 24x7
technical support contract popular with businesses running critical
IT infrastructure on Microsoft technology.
Bona said the supplier could even restrict Service Pack
releases, which have been used in the past by Microsoft to
distribute patches and new functions, as in the 2003 release of
Windows XP SP2.
Microsoft was unable to say whether it would continue to make
new software or support available exclusively to businesses running
Software Assurance.
A spokesman said, “Software Assurance helps customers get the
most value from their IT investment.”
He said the programme provided users with access to the latest
technology and productivity benefits. The Microsoft Desktop
Optimization Pack, which helps users build a Windows IT
infrastructure that can deliver applications as services, is only
available through Software -Assurance, for example.
Software Assurance value
questioned >>
Software Assurance deals in doubt >>
Microsoft offers two license options >>
Comment on this article:
computer.weekly@rbi.co.uk