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Microsoft licenses push firms to open source

Some analysts are predicting that hikes in Microsoft license fees will cause many firms to switch to open source operating systems.
Written by Chris Lee, Contributor
Companies are considering cutting back on Microsoft products or switching to open source, as the software giant refuses to back down over its new licensing model.

Industry pressure group The Infrastructure Forum (TIF) estimates that around 94 percent of its members will see a hike in their license fees and many are ready to rebel following the introduction this month of Microsoft's Software Assurance scheme. Under the scheme, only businesses that regularly upgrade software are entitled to a discount.

Over the next year, most organizations will reconsider the way they manage their Microsoft products, predicted TIF chief executive David Roberts. "One way for firms to cut costs is to reduce the number of licenses they possess. I fear that if Microsoft insists on this model, there will be a significant backlash and loss of good will," he said.

Roberts added that members were considering open source software as an alternative to Microsoft products, but most companies' strong reliance on Microsoft's software made it fairly easy for it to push through such changes.

One IT manager told IT Week that at present his company was not looking to upgrade, but that when it did, it may well look at alternatives.

Analysts said the situation has created a public relations problem for Microsoft. Andrew Ball, research analyst at market watcher Frost & Sullivan, said, "From my conversations [with Microsoft staff], they are happy for customers to do nothing, but they acknowledge that they perhaps should have given more than six months notice of the proposed changes to licence holders." --Chris Lee, IT Week

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