Microsoft licence cops kick in TWICE as many customers' doors as rivals
30,000 companies face Redmond audit, says analyst
Posted in Management, 12th December 2012 10:28 GMT
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Microsoft audited far more customers on software licensing than its rivals managed during 2012 - and Redmond is expected to turn the screws further over the next two years.
Redmond’s compliance troops swooped on 51 per cent of enterprises and partners polled for the 2012 Software Pricing and Licensing Survey by IDC and sponsored by Flexera Software.
Microsoft audited nearly double the percentage that Oracle checked: Larry Ellison's company knocked on the door of a mere 27 per cent of the customers. IBM was third on 24 per cent, with SAP and Adobe trailing behind.
As a result of the audits, 45 per cent of the survey's respondents paid up to $100,000 to settle unlicensed use of software, while 19 per cent paid between $100,000 and $300,000 and 15 per cent $1m and $5m. Four per cent, the smallest group, paid more than $10m to the software companies.
Software Licensing Advisors, a Microsoft licensing expert, has warned users that they should expect more audits from Microsoft. The firm claims to have seen an internal Microsoft memo that states 30,000 companies will be audited in the next two years.
Software Licensing Advisors warned customers to be wary of demands for payment coming from Microsoft during that time. In an October blog post here, the firm alleges that sales teams are being given unreasonable targets to perform by management:
According to the consultant, Microsoft is calling the audits Software Asset Management (SAM) engagement. "But make no mistake. You’re on track for an audit, and over the course of that audit you may be asked to pay money to comply with licensing rules that are made up on-the-fly as we’ve experienced recently," Software Licensing Advisors wrote.
“We have encountered numerous cases where this pressure has led to desperate behaviors that challenge integrity at all levels. Microsoft will demand compliance payments for alleged breaches of user rights or contract language that, on deeper examination, is unfounded, in order to achieve untenable sales goals.”
The consultant claims it has encountered three cases where Microsoft sought more than it was entitled to on an audit, and claims that it "turned back" claims totaling $1m.
Software Licensing Advisors said Microsoft’s opaque and complex licensing makes it difficult for customers to decipher compliance.
The Register asked Microsoft to comment on the cases cited by Software Licensing Advisors and respond to its claims. Also, we asked Microsoft to confirm whether audits are being used to drive growth, whether targets are being set by Kevin Turner, and if the goal is for 30,000 companies to be audited during the the next two years.
Instead, a Microsoft spokesperson issued a short statement saying the company's Software Asset Management offering is not an audit "despite claims to the contrary from some software licensing analyst firms".
The spokesperson called Microsoft's Software Asset Management something to help companies achieve ROI and simplify their licensing management.
"Like most enterprise software vendors, Microsoft audits a small percentage of its customers annually," the spokesperson said.
The IDC 2012 Software Pricing and Licensing Survey drew responses from 334 individuals from enterprises, software vendors and device manufacturers, with 45 per cent drawn from the US, 33 per cent from Europe and 7 per cent from Australia. More than half had revenue of more than $1bn. You can read the report here (warning: it's a big PDF). ®
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COMMENTS
Install Linux and let 'em come
Esp with the new Samba 4 fully supporting Active Directory.
Re: Install Linux and let 'em come
If by "support" you mean "provide network shares and other services that Excel could consume" then the answer AIUI is "Yes".
More to the point, Excel barely supports Excel at times!
we were audited this year
With two months wasted going back and forth with the agency Microsoft used to perform the audit and despite my claims backed with with hard evidence that our business had shrunk since the last time ms had visited us with no change to the architecture besides retirement of some systems, they still persisted like we were criminals. Thus to eventually make them go away I simply asked what they wanted from me and I settled for fifty quid worth of terminal server licenses for a system that no longer existed. It was cheaper to settle than to continue spending time on the audit. Scumbags. Treating sys admins like this ensures that the brand Microsoft will remain forever in the uncool bracket and drive adoption of alternative suppliers. The one thing I hate in life is people wasting my time combined with extortion.
Re: database software.
"You're thinking of Access, not Excel" -- The same could be said of Access, but, I see Excel used where a database solution would be ideal too often. Just look at the complex shit NoNomNom is doing with server side and client side spreadsheets, I mean WTF? One web interface, one database behind it; Job Done.
Re: Install Linux and let 'em come
No it won't
Congratulations, you have locked yourself into a single source solution.
Don't moan when they put their prices up, you have made your bed now sleep in it.
The new Office Garage series:
