Microsoft has made some licence policy changes to address growing trends such as mobility and virtualization.
So before you enter a new a three-year Enterprise Agreement or a flexible, pay-as-you-go Select Agreement, it’s important to understand how those changes impact your business. Many of the changes are favourable to customers. However, there are some changes that may have serious implications for IT departments, from price increases and for Office to changes to the rules on remote access and virtualized desktops to future retirement of the Select License program. The grace period for renewal of SA (Software Assurance) takes away any tie mfr renegotiation and is likely to alienate a lot of customers and partners
Forrester draws attention to five of these licensing and pricing changes that IT buyers should focus on.
Office Pro Plus – Five Percent Price Increase 1 May 2010
New volume licensing customers pay five percent more for Office 2010 than they did for Office 2007, starting May 1, 2010. Companies with SA licenses get the upgrade for free.
Office 2010 is major step forward and the benefit of Software Assurance is upgrade rights, so are you expecting to upgrade? Do you use the training and customer support ? Buyers renewing an EA (Enterprise Agreement) or adding SA to an Office 2010 consider when the next version is due . what it might contain and whether or when you might want to move to it.
New Licensing Options for Virtualized, Mobile Office Deployments
Microsoft’s traditional definition of Office license is “per device” . Does this make sense with smartphones, thin clients and virtualization in the corporate network So Microsoft has clarified its SA policies. From 1 July 1, 2010, users of a PC with an Office license has rights to Office 2010 Web Apps from PCs or external devices, if companies host the Office Web Apps on either SharePoint Server 2010 or SharePoint Foundation Server 2010.
Additionally, users get Office RUR (Roaming Use Rights) with an active SA license. This allows users to access Office through any streaming or virtualization technology on devices outside the company, such as your home PC, airport kiosk, or smartphone.
Consider using a licensed PC as a server for solutions like GoToMyPC, pcAnywhere, or Office Web Apps.
Microsoft Shakes Up Windows Virtualization Licensing Policies
With Microsoft’s VECD (Virtual Enterprise Centralized Desktop), users with SA on their Windows client OS will no longer have to buy a separate subscription to access Windows in a VDI (virtual desktop infrastructure) environment. Windows virtual desktop access rights now will be a standard SA benefit.
For thin clients and PCs without SA on Windows, Microsoft offers a new license called Windows VDA (Virtual Desktop Access), which will cost $100 per year per device.
Also, much like with Office licenses, the primary users of PCs with SA on Windows will have device roaming rights that let them access a hosted desktop outside of the company walls.
Inlcude desktop virtualization plans into your Windows licensing strategy.
Microsoft Will Stop Selling Select Agreements after July 1, 2011
Microsoft will stop signing new Select Licenses on July 1, 2011, and will replace those with the enhanced Select Plus program. Select License customers can migrate to Select Plus during this time and maintain their current price level.
Microsoft’s Select programs are part of its Volume Licensing that allow customers to buy in volume and “pay as they go” for only the software they use. Businesses should establish a Select Plus contract so it is there if they need it. Companies with expiring Select contracts are under time pressure at the negotiation table; they have no way to buy additional licenses within a volume licensing program after the existing contract ends.
Software Assurance No Longer Has a 30-day Grace Period
Microsoft removed the concept of a grace period at the end of a Select License Agreement or an EA (Enterprise Agreement), during which customers could renew SA without any penalties. When SA expires, a customer’s only option is to re-buy that license again with SA. Prepare for this Change – don’t blame your partner you know when your licence is due to expire.
With the removal of the grace period, adjust the timing of any negotiation and plan a timeline that will deliver an approved deal before SA expires. The likelihood is that Microsoft sales reps will show some leniency when the buyer convinces them that they will get a ‘no deal’ answer if they enforce an impractical, needless deadline but with order processing moving on line the bureaucracy of circumventing the rules will be a challenge.
(this also applies to Dynamics products)
