Microsoft alters pricing structure

Microsoft is to gear its pricing structure to the number of processors running its back office software, rather than the number of users.

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By  Peter Conmy Published  August 5, 2000

Microsoft is to gear its pricing structure to the number of processors running its back office software, rather than the number of users.

The changes to the licensing structure will come into effect with the release of SQL Server 2000 and will be followed with the release of Application Centre 2000, BizTalk Server 2000, Host Integration Server 2000 and Internet Security & Acceleration Server 2000, for which users will pay a fixed rate per CPU.

“We’ve done a lot of research into these price changes,” Haider Salloum, enterprise platform manager, Microsoft Gulf & Eastern Mediterranean, told Arabian Computer News.

“These changes reflect a change in the way that these products are used; increasingly in the future these products will be used over the Internet by business partners. In these circumstances it’s not practical to continue to charge customers on a per user license.”

Simple Pricing

Although the change in the MS’ pricing will simplify the complex licensing structure and bring the company into line with other software vendors, there are doubts it will bring many price benefits to large enterprise accounts.

According to Barry Goffe, group manager for Windows DNA at Microsoft the changes could mean enterprise accounts facing price hikes of much as 50% or more. Microsoft says that the increase partly intended to keep the vendor on a par with its competition.

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