fbpx
 

Analyst: Microsoft licensing still difficult

With October a day or two away, and the launch of Windows 7 nears, Microsoft’s licensing hasn’t gotten any clearer. Two analysts at Directions on Microsoft, an analyst firm that reports on the company, has released a report that breaks down five reasons why Microsoft licensing is supposedly difficult:

    1.    Many products and markets.

    Microsoft offers a broader set of products than any other software vendor, sells in virtually every country, and deals with customers of all sizes. A one-size-fits-all product packaging, licensing, and pricing approach couldn’t possibly work; complexity is simply unavoidable.

    2.    Decentralized decision making.
    Although Microsoft has a central licensing division that, among other things, designs and administers licensing programs such as Open and Select, numerous Microsoft product groups decide independently what types of licenses are required for a product and how they are priced. Each product group cares most about responding to its competitors, maximizing its revenues, and addressing specific customer requests. Consistency, simplicity, and ease of compliance often take a back seat.
    3.    New technologies.
    Developments such as the Internet, multicore processors, virtualization, mobile devices, and cloud computing have all forced Microsoft to adjust licensing rules. Each adjustment triggers many transition complications for existing customers and may introduce obscure new rules or exceptions designed to generate new revenue from emerging trends.
    4.    Limited enforcement and compliance tools.
    Most Microsoft products do not include features to help medium and large organizations match product use to license purchases or comply with license usage rules. Customers are responsible for building the complex infrastructure and processes necessary to police themselves. Weak enforcement tools can lead customers to buy more licenses than they need or sign up for “all-you-can-eat” license programs, such as Enterprise Agreements.
    5.    Lack of incentive.
    Microsoft executives don’t see current licensing policies as a problem-customers are still buying-and the executives are reluctant to tinker with such a complex system. Any major restructuring of licensing policies could raise a tsunami of transition issues with great risk of costly, unanticipated, or unintended consequences for both customers and Microsoft. Furthermore, Microsoft would likely face at least a short-term hit to revenues to mitigate transition costs for customers.

The analysts make some good points, but they all seem like reasonable changes that Microsoft should move on – and sooner rather than later. New technology shouldn’t be an excuse for a technology company not to change, especially considering that they are partly responsible for this new technology!

One thought on “Analyst: Microsoft licensing still difficult

Leave a Comment

Your email address will not be published. Required fields are marked *

*
*

Contact Us

If you have an urgent question regarding your software licensing or a software audit, please contact Miro right away.

Phone:
(732)738–8511 x1208
Email:
Webchat:
Use the chat box on the right
Meeting:

About Us

Miro is a leading global provider of software asset management services, specializing in license management, audit advisory, negotiation tactics, support management, and cloud services. We help our clients maximize ROI on their software license investments, stay in compliance, and minimize the impact of audits. Miro's performance guarantee promises that our long-tenured, diverse, and passionate team of expert analysts provides insightful and actionable advice to help our clients achieve the best possible outcomes.

Performance Guarantee

Miro’s no risk Performance Guarantee is that the amount of cost savings that we uncover will be more than our fees.

Managed Services for Oracle Licensing

Miro’s Managed Services for Oracle licensing is a best practice approach for an organization to optimize and outsource the practice of Software Asset Management to specialized external experts to ensure the organization’s compliance with vendor rules and policies.

Learn More