Feeds

MS Enterprise resellers should adapt or die

IDC warning

  • alert
  • submit to reddit

IDC has warned Microsoft's enterprise resellers they will need to change their business model if they want to survive the upcoming software licensing changes.

From October, Microsoft will try to snare more companies by dropping the minimum number of computers a customer needs from 500 to 250 desktops.

The Licensing 6.0 scheme is also expected to put a more direct model in place, while ending a stack of popular upgrade options, IDC cautions.

"The implications of this on resellers that target the middle market are large, as Microsoft's strategy to lock more users into its products encroaches on their territory," according to Steve McHale, research VP for IDC's Software Partnering and Alliances program.

Microsoft wants to make the changes to the licensing agreement so it can try and sell to customers with at least 250 desktops direct or via its big account resellers, IDC says.

It adds that most of Microsoft's resellers don't know enough about licensing, and rely on distributors to explain the various vendor schemes.

"Because Microsoft is making major changes to the way its software is fulfilled, IDC believes channel players that provide marginal value better get ready to change their business models quickly," it warns.

"The current initiative affects midsize accounts, but Microsoft is sending a clear message about what constitutes value, and other software vendors are likely to follow suit in the near future," McHale says. ®

Turn on to Channel Flannel, our section for reseller/distie and system builder stories.

Related Stories

Microsoft rolls out volume software 'leases'
Microsoft squeezes business for more dough with rental mode
MS licensing switch to trigger mass upgrade to Win2k, WinXP?

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
Designing and building an open ITOA architecture
Learn about a new IT data taxonomy defined by the four data sources of IT visibility: wire, machine, agent, and synthetic data sets.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.