Microsoft today launched another licensing option for its software, this time focusing on small and medium businesses. The new multi-year open licence gives small business owners the option to pay for the software over a three-year period.
The three annual payments include a subscription to Software Assurance and give users automatic access to the latest versions of Microsoft software during the three-year period. At the end of the period, the business owns the software in perpetuity without further cost, although it can extend the subscription to Software Assurance.
Multi-year open licence follows close on the heels of July`s deadline for users to sign up to another licensing structure, licensing 6.0. Thomas Neergaard Hansen, Microsoft director, small and medium business, says the introduction of multi-year open licence is not related to the uptake of licensing 6.0. However, he adds that the reason for introducing the new structure is to give an opportunity to those users who do not see the value in perpetual subscriptions and never owning the software. With the new licensing option, users "will own the software at the end of the three-year period".
Multi-year open licence is only available in Europe, the Middle East and Africa, and is "based on customer demand ... and feedback in these regions", says Hansen.
"Multi-year open targets two customer segments: those who, for whatever reason, decided not to go for licensing version 6.0, and those who don`t have the money to pay upfront."
He says making the company`s software more affordable to small and medium businesses is an important part of the decision to introduce the multi-year open licence model.
The company also hopes the new licence option will encourage standardisation in small and medium businesses. Companies that opt for it and which standardise on Windows XP Professional, Office XP Professional or other core applications will be given a 15% discount.
Companies that sign up will have access to the most recent version of their software through the Software Assurance programme. On the termination date of the three-year period, they are entitled to the most recent version at that date.
Hansen says expansion is also catered for with companies only needing to pay for the new licences and Software Assurance for the balance period. Expansions of up to 100% annually are accommodated automatically in the multi-year open licence.
"There are many benefits for small and medium businesses, with flexibility built in. From a cash-flow point of view, the split payments reduce the burden on smaller businesses."
Multi-year open licence is available for businesses with between five and 500 PCs. Hansen does not expect any customer comeback from users who have already signed up for the licensing 6.0 scheme less than two months ago and would prefer the new option.
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