Microsoft's New Price Increases and What That Means for Your Business

| Sunday, December 9, 2012
By Joseph B. Kappernick


Surface and Windows 8? Forget about them. The changes surrounding these new Microsoft offerings are nothing compared to the changes in their licensing and pricing strategy. Microsoft's licensing changes are going to affect enterprise and customers everywhere.

Microsoft has recently amended its licensing terminology from "desktop-based" to "device-based" as part of their plan to obtain more licenses for the growing number of devices used in many enterprises. As a result, more enterprises are opting to move from their current Device Client Access License (CAL) to a User CAL instead. This will allow them to be licensed by the number of users instead of the number of devices in order to save money.

Seems like a reasonable solution to the problem, right? That is until Microsoft revealed that they were placing a 15 percent price increase for User CALs. Doing so has put a large number of Microsoft's enterprise customers in a tough spot since both Device CALs and User CALs are now significantly more expensive. This increase is in addition to various other price increases that Microsoft has recently announced for the coming year.

The situation might seem bleak, but it isn't entirely hopeless. Business customers can avoid paying too much for their Microsoft offerings in 2013 by following this advice:

1. Know how your current Mircosoft environment will be affected by the price increases.

2. Understand your long-term Microsoft needs and usage roadmap when making renewal decisions.

3. Don't wait until the last minute! Timing is everything when it comes to negotiations and renewals. If you don't have an EA, act before December 1, 2012 and sign up for a User CAL to get the lower price. You can also avoid the 15 percent increase on the current User CAL if you renew before this date.

The new year will be here before you know it. By the looks of things, Microsoft is not going to make things easy for businesses this year. Keep your budget intact by being prepared and negotiating early.




About the Author:



0 comments:

Post a Comment