Microsoft adds a new subscription licensing plan for SMBs
Microsoft is making available in the U.S. and Canada a volume-license subscription plan aimed at small and mid-size businesses (SMBs).
The plan, known as the Open Value Subscription, has been available in various Microsoft international subsidiairies since 2000/2001, according to company officials.
Eric Ligman, Microsoft US Senior Manager for Small Business Community Engagement, announced via a posting on the Microsoft Small Business Community blog Microsoft's strategy to add Open Value Subscription as an option, starting on March 3, 2008. Liggman blogged:
"The Microsoft Open Value Subscription Program provides a way for SMB customers to 'subscribe' to the Microsoft software they want to utilize in their businesses in a 'lease-like' fashion. This option provides the up-front cost-saving benefits of a lease-type model (no, it’s not an actual lease) where they can pay to use the software for a set period of time with the flexibility to increase or decrease in size as their business size does year over year. At the end of the initial term, clients have the options to continue the subscription, buy out the subscription to own the licenses, or to end the subscription."
The new licensing option will allow SMBs to make use of "spread payments in Open Value or budget assistance through Microsoft Financing," Liggman blogged. He added that Microsoft is expanding the availability of the new option due to SMB partner and customer interest.
Microsoft is offering several Webcasts during the next few weeks to explain the program to interested partners and customers.
The Open Value Subscription license, like all Microsoft volume licenses, has its plusses and minuses. As poster "Mark" commented on the Small Business Community blog:
"We've had OVSL (Open Volume Subscrition License) here in the UK for several years now... we operate exclusively in the SMB space and have pushed this licensing model heavily in the last 12-18 months in particular....
"From a pro perspective it enables clients to budget, to plan and manage costs more effectively, to avoid the 3 yearly capital expenditure 'bump'. It enables you as the outsourced IT dept to use deploy the latest software to your client using Volum(e) Licenses and all the nice tools that go with that.
"From a 'con' perspective... it is expensive I think.. given the potential long term buy in of this model it is appalling that Microsoft give you virtually no discount vs other llicensing models. The renewals process whilst generous (you can buy 10 core cals [client access licenses] and add 10 PC's a week later but not pay for them until next year) is onerous. And finally the backend distributor support for this model is still weak.
"Overall we personally like it, I discuss it with every new client, and I would think that 80% end up using it. I just wish MS would be more realistic in pitching it."
Anyone else -- Microsoft customers or partners -- had experience with this new licensing model for SMBs? What's your verdict?