Group: MS license delay 'not enough'

Microsoft's decision to extend the deadline for business customers to join its new licensing scheme has been welcomed by IT managers, but they say it has not addressed their concern that the scheme will raise software costs.

Last week, Microsoft for the second time put back the final deadline for customers to join its Software Assurance programme, under which they will receive operating system and application upgrades in exchange for an annual fee.

The new deadline is 31 July, 2002. "We've listened to customers and they're backing the Software Assurance concept, but to budget effectively they need extra time," said Duncan Reid, licensing manager for Microsoft UK. Reid agreed that Microsoft had not communicated the changes well.

"We're revising the Web site, writing to customers and engaging customers one to one," he added.

The Infrastructure Forum, an industry interest group that has been critical of Microsoft's licensing changes, welcomed the delay but called for further concessions from the company. "It looks like Microsoft is giving customers more time, not more options," the group said in a statement. "The extra time should be spent by Microsoft to appreciate the level of concern among UK businesses over this issue and in explaining why UK businesses should be subject to this 'Windows tax', one that will cost them hundreds of millions of pounds."

According to analyst firm Gartner, the licensing changes could raise software costs for many customers by up to 107 percent.

Microsoft had previously admitted that it had not given customers enough notice about the changes. Andrew Ball of analyst group Frost & Sullivan said, "From my conversations (with Microsoft staff), they acknowledge that they should have given license holders more than six months' notice of the proposed changes."

Microsoft customers expressed frustration at the arrangements. "Microsoft has been very poor in working with businesses to help resolve miscommunications about this issue," said Ashley Barlow, IT manager at online recruiter TopJobs.net. "I have experience of three separate Microsoft-approved licensing companies which have each failed to explain the new arrangements or their impact on our businesses. None of the licensing companies has confirmed any information in writing or in conjunction with authorized personnel from Microsoft."

Another user said Gartner's estimates of how much more firms would pay for software under the new scheme were too conservative: "We wanted to buy BackOffice. In September it cost £1,100. As of 30 September, it was withdrawn, so you now have to buy all the bits individually--a total cost of £13,000."

Microsoft's decision to extend the deadline for business customers to join its new licensing scheme has been welcomed by IT managers, but they say it has not addressed their concern that the scheme will raise software costs.

Last week, Microsoft for the second time put back the final deadline for customers to join its Software Assurance programme, under which they will receive operating system and application upgrades in exchange for an annual fee.

The new deadline is 31 July, 2002. "We've listened to customers and they're backing the Software Assurance concept, but to budget effectively they need extra time," said Duncan Reid, licensing manager for Microsoft UK. Reid agreed that Microsoft had not communicated the changes well.

"We're revising the Web site, writing to customers and engaging customers one to one," he added.

The Infrastructure Forum, an industry interest group that has been critical of Microsoft's licensing changes, welcomed the delay but called for further concessions from the company. "It looks like Microsoft is giving customers more time, not more options," the group said in a statement. "The extra time should be spent by Microsoft to appreciate the level of concern among UK businesses over this issue and in explaining why UK businesses should be subject to this 'Windows tax', one that will cost them hundreds of millions of pounds."

According to analyst firm Gartner, the licensing changes could raise software costs for many customers by up to 107 percent.

Microsoft had previously admitted that it had not given customers enough notice about the changes. Andrew Ball of analyst group Frost & Sullivan said, "From my conversations (with Microsoft staff), they acknowledge that they should have given license holders more than six months' notice of the proposed changes."

Microsoft customers expressed frustration at the arrangements. "Microsoft has been very poor in working with businesses to help resolve miscommunications about this issue," said Ashley Barlow, IT manager at online recruiter TopJobs.net. "I have experience of three separate Microsoft-approved licensing companies which have each failed to explain the new arrangements or their impact on our businesses. None of the licensing companies has confirmed any information in writing or in conjunction with authorized personnel from Microsoft."

Another user said Gartner's estimates of how much more firms would pay for software under the new scheme were too conservative: "We wanted to buy BackOffice. In September it cost £1,100. As of 30 September, it was withdrawn, so you now have to buy all the bits individually--a total cost of £13,000."