Sun Microsystems Inc. (NASDAQ: JAVA) posted yet another loss amid speculation that Oracle (NASDAQ: ORCL) will sell off the hardware unit once the $7.4 billion acquisition is completed. Sun’s announcement that it has lost $147 million has a lot of people scratching their heads and wondering if good old Larry has lost his Midas Touch. Despite the rumors, Larry Ellison has come out and publicly said that he plans to retain the unit.
We talk all the time on here about individual companies being targeted by software vendors for piracy and non-compliance with licensing policies. It doesn’t stop there. Recently, Microsoft got settlements from 11 resellers in the UK for selling illegal software and not installing the software properly. Each of the 11 firms have reached settlements with Microsoft and will now work with the company to insure legal practices are being carried out. Ouch.
According to an article from ChannelWeb UK, these new 11 cases bring Microsoft to a total of 103 settlements with resellers just since 2008. The launch of Windows 7, which is only a few months away now, will likely cause an uptake in the fight against piracy over the next 6-12 months. Get your licensing in order - they aren’t playing around!
We get a lot of questions about Oracle licensing of non-Oracle virtualization servers. In order to understand the licensing model, you must understand that Oracle only acknowledges its own virtualization software and only in standalone servers. This is an extremely important point to internalize, especially if you’re using non-Oracle virtualization software (with VMware being one of the most popular).
End users with non-Oracle virtualization software must license based on the physical size of the server. So, if you’re running a VMware cluster, you must license based on the cluster of servers, not a single server where Oracle software is installed. In other words, a license is needed for each server within the cluster - if there are 10 servers in the cluster, the end user must have a license for each of the 10 servers. Licensing can be extremely complex and become more complex when you introduce non-Oracle applications into the mix.
The good news is that Oracle finally launched a SaaS model for ISVs with monthly licensing. People can pay for what they use. My only comment is that Oracle needs to video tape in a better environment. I was distracted by all the items in the background.
It’s no secret that the world is going mobile. With devices like the iPhone and Blackberry that have as much functionality as a laptop computer, workers are working from anywhere and everywhere, on the bus, on planes, from the park, etc. The question remains - where does this leave software developers in terms of licensing? Many software vendors are already developing mobile applications, but in the next few years, more and more advanced applications will be introduced. I wouldn’t doubt by next year we will be able to develop and project PowerPoint presentations from our phones. Licensing models are not designed for mobile applications and are even made more complex based on the vast mobile handset possibilities, operating systems and wireless carriers.
As more and more employees and even employers move to a more “mobile” work environment, software developers have their hands full - they not only are tasked with developing mobile applications, but they must figure out how to monetize and regulate them. My guess is the focus will be on commercial application rollouts to see what catches on and what doesn’t. Once there is a better understanding of how licensing will be used and more importantly, pirated, developers will have a better idea of how they can stop these practices from happening and control the outcome.
The $200 million jury verdict in the i4i-v-Microsoft patent infringement case still stands, but the Texas judge has added another $40 million+ in additional damages to be paid by Microsoft. US District Judge Leonard David upheld the decision against Microsoft and decided that the infringement was willful and ordered that additional compensation to i4i for damages - $37 million in post trial interest & $40 million in punitive damages.
The judge has also ordered Microsoft to shutdown all sales and support for any new copies of Word 2003 and Word 2007 in the U.S. for approximately 60 days. Microsoft, of course, will appeal.
Hmmmm…I wonder what BSA has to say about this. This is definitely a case of IP protection working its magic. People and companies often complain about how these large companies are sucking them dry, but in this case, it’s the little guy that’s winning by protecting his intellectual property.
Click here to view i4i v Microsoft opinion in its entirety. Note: The case was over U.S. Patent # 5,787,449 (Method and System for Manipulating the Architecture and the Content of a Document Separately From Each Other).
In anticipation of the big October launch of Microsoft Windows 7, two new announcements regarding pricing have been made - one a good deal, the other, not so much…
The first offer is called Family Pack, which includes Windows 7 Home Premium installation media and a license key that can be activated on three PCs in a single household. This is being sold for an estimated retail price of $150. Upside is the multiple licenses for this cost - families nowadays are likely to have more than one computer per household, good to see Microsoft recognizing that. The downside? Its available only “while supplies last” which means that you need to fight tooth and nail to get a hold of your family pack! They really should offer this for the long-term if you ask me…
The second announcement is all about upgrades. Microsoft is offering a Windows Anytime Upgrade program which allows Windows users to buy a new PC with one edition of Windows 7 installed with the ability to upgrade later. This is a step in the right direction for those looking to upgrade, but are apprehensive about doing it so soon after the Windows 7 launch. The pricing is fairly straightforward (see the below chart posted by Ed Bott at ZDnet). We definitely think the Anytime Upgrade is a great way to go to give consumers and enterprise customers more choice and freedom for upgrading. It also prevents millions from being forced Beta testers for Microsoft. Does this mean Microsoft has learned its lesson from the disastrous Vista launch?
What do you think? We would love to hear about your plans and how they involve Windows 7!
