Business had until yesterday to sign up for Microsoft`s new licensing plan and while the company says its customers are generally happy with the new scheme, many businesses are looking at software alternatives to avoid the increased costs.
The new licensing scheme, known by the names Software Assurance or Licensing 6.0, guarantees users the latest versions of the company`s software in exchange for an ongoing subscription fee. By signing up, says Tracy McKinon, enterprise solutions marketing manager at Microsoft, "users are buying into tomorrow`s technology ... with the right to have the most recent upgrades available."
She says "the absolute majority" of Microsoft clients are happy with the new licensing model and the company has been working closely with customers to explain the advantages to their business.
She concedes that the new scheme will not suit everyone and in particular it is unlikely to offer an advantage to users who upgrade less than once every three or four years. It is also not aimed at consumers who purchase one boxed item at a time.
"If you upgrade more often than once every three or four years the costs are a lot less with the new licensing model."
Not everyone is happy, however, and many businesses say the new scheme will increase their financial commitments to Microsoft. In a snap survey of users, many highlighted this as a major concern with the new licensing scheme.
Leon Basson, of Liberty Group`s Information Technology and Operations, says the licensing scheme "will most definitely increase our financial commitments to Microsoft", although he says the extent of the increase is not yet clear.
However, Absa`s manager for distributed computing, Mark Basnett, says: "The total financial commitment does not necessarily increase if you intend to stay up to date with software versions." What it does, he says, is "to move you to committing to Microsoft for periods ... and it achieves an annuity stream."
Absa has not signed up for Software Assurance because Basnett says the group is investigating its options although a "combination of Software Assurance and Enterprise Agreement may make most sense at this time for Absa."
Others are less accommodating and Richard Firth, CEO of software development house MIP Holdings, says the company "will not" be signing up for the new licensing scheme. Firth says "if we went with the model it would cost a significant amount of money for no value add."
Willem Marais, account director at SBS, which handles Medscheme`s desktop and server software, agrees that there will be an increased cost, but he says: "Software Assurance also includes an increased benefit." He says the budget will have to be increased to cover the increases. Medscheme has signed up "but not for all Microsoft products".
Most users, however, indicate that whether they have singed up or not, they are investigating other software options. Marais says Windows 2000 is Medscheme`s current standard although it is looking at Linux for limited J2EE applications.
Basson says the Liberty Group "will be investigating [Linux] after doing a proper analysis." Basnett says investigations of alternatives are "ongoing".
Firth, however, is more determined on the issue and says: "We have already moved 20% of our staff base to the Linux platform and Sun StarOffice. We are extremely impressed at the functionality and similarity to Microsoft at a fraction of the price."
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