[Am-info] Microsoft Finds Upgrade Plan A Tough Sell

[Fred A. Miller]

Microsoft Finds Upgrade Plan A Tough Sell

Despite a looming deadline, business IT buyers have yet to
embrace Microsoft's new software licensing program, which
gives customers discounts for signing longer contracts. Some
doubt the program will save them money, while others want to
keep the door open to cheaper choices such as Linux. Two-
thirds of IT buyers recently surveyed separately by research
firms Gartner and Giga Information Group haven't enlisted in
what Microsoft calls its version 6 licensing program. July
31 is the deadline to qualify for discounts.

Microsoft says a company using Windows 2000 Server with more
than 250 desktops would save up to 50% by enrolling in
version 6 of its Software Assurance program, compared with
buying one-time licenses. But the savings depend on how much
a company buys. As a result of the longer contract, version
6 requires customers to commit to buying more software to
qualify for discounts. Version 5 required buying at least
1,000 points--which are based on price--worth of software
over two years. Version 6 requires 1,500 points over three
years. "The story needs to be a bit more convincing from our
perspective in terms of how this benefits us and not just
Microsoft," says Andy Lindahl, a Windows NT technology
manager at Motorola Inc.

Some users may be holding out so they'll have the freedom to
use alternatives. "Everyone's now thinking that Linux is the
next best thing, because we're trying to figure out how to
best manage the nickels we have left," Lindahl says. "Does
Microsoft realize that?" - Paul McDougall

For the full story, go to:
http://update.informationweek.com/cgi-bin4/flo?y=eHZz0Bce7K0V20Bdf10AK

-- 
Fred A. Miller
Systems Administrator
Cornell Univ. Press Services
fm@cupserv.org, www.cupserv.org
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