Microsoft licensing programme promises bigger software discounts

Microsoft is launching a new enterprise...

Microsoft is launching a new enterprise software licensing programme tomorrow to enable firms to qualify for bigger software discounts, but it might cause some firms problems.

The Select Plus programme, which was introduced to potential customers this summer, allows firms to combine purchasing budgets of different departments to qualify for bigger discounts.

Select Plus is similar to the existing Select programme as far as this feature is concerned, but there are others areas which may put some firms off from signing up.

For instance, unlike the Select programme, Select Plus does not feature customers trying to estimate their annual purchases in advance, in order to calculate the volume discount they will receive.

This could potentially ensure more cash for Microsoft. This is because with the existing Select, if firms overestimate what they think they will buy, they do not have to pay anything back to Microsoft at the end of the year, as a result of the difference between the discount they got and the lower discount they actually qualified for.

With Select Plus, if an enterprise underestimates the actual amount of software they needed, Microsoft will not give a refund to make up the actual volume discount the customer qualified for.

Read more on Software licensing

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