Feeds

MS to hike enterprise pricing 50 per cent – Gartner

Or over five years, 224 per cent for 5000 desktop installations

  • alert
  • submit to reddit

Intelligent flash storage arrays

A Gartner report just released warns that the cost of Microsoft software to enterprises will go up 50 per cent by 2002. The increase will be not from increased prices, but from changes in the terms and conditions that will adversely impact major users. The report claims that Microsoft will start charging 20 per cent more for non-perpetual licences. This is of course the holy grail for Microsoft -- to get as many guaranteed revenue streams as possible. It failed to achieve this with MSN, and with financial transaction fees, but there is no holding back stock-option-incentivised Microsoft operatives. Blowing away the mist, this claim is nothing but a guess. John Connors, Microsoft vp worldwide enterprise group, said at Gartner's ITexpo in Orlando that Microsoft hadn't yet announced W2K pricing, "but like the rest of our software, it will be very reasonable". Of course. Connors did admit that Microsoft is in the process of "simplifying" the licensing and pricing of its software, which sounds like a euphemism for an effective-price hike. According to Gartner, Microsoft is cutting back on home-use entitlements, concurrent use entitlements, and tightening up on maintenance deals, with the net effect being an increase of 224 per cent over five years in a 5,000 desktop situation. Nor is Gartner sure that Microsoft will be able to manage eight operating systems in 2002. These suppositions, which have much in common with water-cooler talk, depend on there being no negative outcome in the Washington trial. That is a considerable premise: in any interim injunction pending an appeal, there is likely to be a freeze on many practices, and the chance of Microsoft being able to slip through such an increase -- a prima facie demonstration of monopoly pricing -- is not great. If it were true, it would be good for Microsoft's office suite rivals. It might well cause some considerable changes in corporate purchasing strategy: those making such decisions often know nothing about software of course, but they do understand the numbers. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Hey Brit taxpayers. You just spent £4m on Central London ‘innovation playground’
Catapult me a Mojito, I feel an Digital Innovation coming on
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
EU probes Google’s Android omerta again: Talk now, or else
Spill those Android secrets, or we’ll fine you
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.