MS backs SMEs

By Candice Jones for Microsoft
Johannesburg, 06 Nov 2007

Microsoft has restructured its open value subscription licence by offering a 50% discount off first-year payments to South African SMEs, until 31 December.

According to the company, to qualify for this discount, customers will have to have bought earlier licensed versions of Office.

Mark Reynolds, SME group manager at Microsoft SA, says: "Windows Vista is picking up steadily, particularly among SME customers who benefit from new levels of security, while giving users the best user experience through greater control."

He says Office Professional Plus 2007 and Office Small Business Edition 2007 is also compatible with Windows XP, "so although it is possible, it is not essential to upgrade to Windows Vista to enjoy the benefits of Office Professional Plus 2007".

Good for business

Says Reynolds: "The other big winners are Microsoft`s volume licensing distributors and resellers, who will be able to leverage the offer to drive good business volumes before the end-of-year lull descends on the industry."

Two Microsoft distributors in SA, Workgroup and Comztek, have seen an uptake in the offer from companies looking to upgrade their desktop software, says Reynolds.

According to Roy Blume, IT services research manager at BMI-TechKnowledge, Microsoft is showing commitment to the SME market through a discount to small business for the Office 2007 productivity suite. "We can`t dispute that it is a way for Microsoft to better penetrate the market, but it does not detract from the value it will provide for an SME."

The licensing discount will give small companies the relief of a little extra cash they can redistribute elsewhere, he notes. "Many small businesses would have bought Microsoft products anyway, and the extra cash will give small business a chance to grow."

Microsoft says to determine the exact cost of the discount, customers should contact their preferred resellers, because the pricing varies per customer based on a number of factors.

According to the company, these factors include:

* The minimum number of licences for open value subscription licensing is five, and sometimes they get supplemented with press books and other material.
* The customer can buy Standard, ProPlus or Small Business Edition or Enterprise Edition - and all have different prices.
* There are different levels of service that affect the price that the customer ultimately pays.
* The agreement is for three years, and the 50% discount is for year one of the agreement, and not the second or third years.