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TIF erupts over Microsoft licensing price increases

Microsoft was locked in meetings with customers and partners late last week in an attempt to ease the transition to its new...

Microsoft was locked in meetings with customers and partners late last week in an attempt to ease the transition to its new licensing programme on 1 October.

In May, the software giant revealed plans to switch to a fee-based model under which resellers are paid a fee for their involvement in a sale.

But The Infrastructure Forum (TIF) has vowed to fight the pricing of the scheme, which it has dubbed the "Windows tax", and has complained to the DTI.

While Microsoft claimed only 20 per cent of customers would experience price increases, TIF contended that all of its members are facing price increases, with licence costs rising by an average of 94 per cent.

TIF chairman David Roberts said it had sought government intervention because the price increases were an "abuse of monopoly" and would affect "all organisations in the UK".

"It has made a big mistake in its estimates of how it impacts on its customers," he argued.

"This pricing policy is a slap in the face of every Microsoft customer. For our members and all UK businesses, there are no immediate alternatives to Microsoft software and the company knows this," Roberts commented.

A Microsoft spokeswoman said it was "focusing on customers and partners".

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