When large businesses buy software for hundreds of computers, they sign volume-licensing agreements. Not only are these agreements more convenient than buying hundreds of individual boxes of software, they are also less expensive. Microsoft is changing its volume licensing programs, making it easier for organisations to upgrade and maintain their software, through a new Enterprise Agreement Subscription service, and, it says, maintaining or reducing licensing costs for the vast majority of Microsoft’s enterprise customers. However, at the end of the three-year licensing period, the customers will not be able to continue using the software as they can under current agreements.
Bill Henningsgaard, vice president of Microsoft Worldwide Licensing and Pricing said the new licensing programs affect only Microsoft’s volume customers. He added, “our new Enterprise Agreement Subscription program is a first step toward offering software-as-a-service.”
While costs under the Software Assurance plan will remain the same or drop for many large companies, those only upgrading Microsoft programs every three or four years will suffer increased costs.