Microsoft licensing plans seen as negative

Microsoft has unveiled a licensing programme which Gartner analysts believe is likely to lead to a dramatic increase in the cost of software for businesses.

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By  Robin Duff Published  May 15, 2001

Microsoft has unveiled a licensing programme which Gartner analysts believe is likely to lead to a dramatic increase in the cost of software, particularly for those customers that upgrade their operating systems every four years or so.

The analyst group says that a company with 5000 Microsoft-run desktops, for example, would face added costs of up to $700,000 for a three year upgrade and between $900,000 and $1.6million for a four year upgrade cycle. The latter figures point to a an increase of between 68 and 107%.

“As Microsoft has moved from a retail, shrink wrap approach to more of an enterprise focus, our licensing programs have also needed to change,” commented Bill Henningsgaard, Microsoft’s vice president of worldwide licensing and pricing.

It is likely that end users with more than 250 PCs will be able to license all Microsoft enterprise software as a subscription through the Enterprise Agreement 6.0 Subscription Programme.

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