Microsoft Licensing: Confusing Decisions Lie Ahead.

• Author: BRADLEY, SUSAN E.
• Position: Brief Article

If you are like a typical business, the bulk of your computer software comes from Microsoft. Like it or not, Microsoft controls 90 percent of the desktop operating system and office suite markets; 85 percent market share of Internet browsers; 75 percent market share of Windows language tools; and so on.

Thus, when Microsoft changes the way it sells software, most of us are affected. Microsoft is moving from selling by the box to selling by subscription, called Software Assurance. In the past, if you had any qualifying version of MS software, you could purchase a current version as an upgrade, which was less expensive than a new version. In effect, Software Assurance is an ongoing maintenance contract. However, there is no assurance of phone support built into the cost. Before Feb. 28, you must make some decisions about your software.

TAKE STOCK

What versions of each software do you own? How--well, there is no polite way of putting this--how legal are your licenses? Microsoft requires all retail software versions to be activated, and once you've done it, you can't use the software on another machine.

Previously, Microsoft offered businesses with more than five users or installations, a less expensive option than single package purchases called Microsoft Open License. Typically you'd receive a CD-ROM and license that allowed you to load the software on multiple machines.

If you have Windows 2000 and Office XP, then you should merely purchase Software Assurance before Feb. 28. This ensures that you will receive any new versions of Microsoft software over the next two years. Software Assurance costs will increase 25 percent to 35 percent after Feb. 28.

Between now and Feb. 28, if you purchase multi-user software under a plan called Upgrade Advantage, you'll receive your software's current version and will be automatically grandfathered into Software Assurance licensing. You also will receive the right to obtain any new version that Microsoft releases for the next two years. According to Microsoft, purchasing Upgrade Advantage now will cost 50 percent to 60 percent less than purchasing Software Assurance later.

LICENSE AND SOFTWARE ASSURANCE

After March 1, you will need to purchase your software under License and Software Assurance. And any plan you sign up for must be renewed biennially. Following is a sample of costs for upgrading from Office 97 to Office XP from Microsoft's Open License Web site. Pricing is for reference only...