Microsoft is insisting on converting business customers to its
new software licensing programme this week. The implementation of
the new subscription plan was previously delayed due to users’
complaints. However, according to the company, the 31st July
deadline is “rock solid” and no “last-ditch change” will be
made.
The new licensing plan is called “Software Assurance” and
applies to users such as companies and government agencies, which
licence software in bulk. It marks the end of Microsoft’s current
volume licensing deals that allow users to upgrade software on a
trade-in basis.
Software Assurance aims to move Microsoft’s customers to
multi-year agreements. The plan is similar to insurance policies.
Users will have to pay a premium each year, that will give them the
right to buy software upgrades during the contract term (2 or 3
years). The premium will be 25% or 29% of the original cost of the
software, depending on the product.
From 1st August, customers who don’t subscribe to the new
licensing plan will have to pay the full price of a Microsoft
software product when they want to upgrade to newer versions.
According to Gartner estimates, this could be up to 45% more.
