Feeds

MS customers flirt with increased Windows costs

Deadline looms

  • alert
  • submit to reddit

Boost IT visibility and business value

ComputerWire: IT Industry Intelligence

The majority of Microsoft Corp's enterprise customers risk missing the deadline for looming licensing changes, and face massive increases to software price rises as a result.

Analyst GartnerGroup warned yesterday customers who miss the July 31 start for Microsoft's Licensing 6.0 could pay up to 45% more for software at their next upgrade cycle.

The reason is that after this date, Microsoft will eliminate a series of one-time upgrade programs - such as Upgrade Advantage - for the all-encompassing Software Assurance (SA).

SA spans the life-cycle of new versions of Microsoft's Enterprise Agreement and Select programs and gives customers the right to install any new release of a Microsoft product covered in the agreement's life-cycle.

SA is an integral part of the new Enterprise Agreement but is optional under Select. Customers who do not adopt SA with Select 6.0 on July 31 will be excluded from upgrade options, and forced to buy new copies of Microsoft software at full price.

Gartner warned up to two-thirds of customers risk being affected. Gartner research director Alvin Park estimated 65% of organizations have either taken a conscious decision not to adopt Licensing 6.0 or simply procrastinated.

Park strongly urged procrastinators to take urgent action. He estimated negotiations could take up to 30 days as final agreements required sign-off from the customer, reseller and Microsoft. "This can take weeks to months," Park warned.

Non-procrastinators, though, are likely opposing Licensing 6.0 on cost. A separate Sunbelt Software and ITIC research of 1,500 senior IT executives published recently found 37% will not adopt Licensing 6.0 and that 36% are unable to afford the new program. Thirty eight percent are seeking alternatives to Microsoft products.

Park said one option would be for customers on Select 5.0 to simply renew their existing agreements. The combination of Select and Upgrade Advantage offers customers the potential for "significant" savings he said.

Microsoft was unavailable for comment.

© ComputerWire. All rights reserved.

Boost IT visibility and business value

More from The Register

next story
NO MORE ALL CAPS and other pleasures of Visual Studio 14
Unpicking a packed preview that breaks down ASP.NET
KDE releases ice-cream coloured Plasma 5 just in time for summer
Melty but refreshing - popular rival to Mint's Cinnamon's still a work in progress
Leaked Windows Phone 8.1 Update specs tease details of Nokia's next mobes
New screen sizes, dual SIMs, voice over LTE, and more
Another day, another Firefox: Version 31 is upon us ALREADY
Web devs, Mozilla really wants you to like this one
Put down that Oracle database patch: It could cost $23,000 per CPU
On-by-default INMEMORY tech a boon for developers ... as long as they can afford it
Secure microkernel that uses maths to be 'bug free' goes open source
Hacker-repelling, drone-protecting code will soon be yours to tweak as you see fit
Mozilla keeps its Beard, hopes anti-gay marriage troubles are now over
Plenty on new CEO's todo list – starting with Firefox's slipping grasp
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
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.