Microsoft to raise user licensing fees in response to 'BYOD' movement
Starting Dec. 1, Microsoft will raise the price of user client-access licenses (CALs) for enterprise customers that allow employees to access work software on their personal devices, meaning the "bring-your-own-device" trend will cost companies an extra 15 percent.
As noted by ZDNet, Microsoft is set to charge an additional 15 percent for "user" CALs, which will affect a number of enterprise customers that have begun allowing workers to access company software from any device of their choosing. The CALs are attached to various integral applications widely used in enterprise, like Exchange, Lync, Windows Server, System Center and others.
With the current setup, Microsoft offers "device" and "user" CALs, the former allowing any user server access from one specific device, while the latter gives one user the same access from any number of devices. Previously, both user and device licenses cost about the same.
"Device CALs may make more economic and administrative sense if your company has workers who share devices, for example, on different work shifts," Microsoft said. However, with the rise of BYOD, many firms are forced to purchase user CALs for every employee who needs access to Microsoft's suite.
It should be noted that the user license price hike also applies to Windows-based devices, however those machines have been on the market for decades, suggesting that the move is in response to the BYOD market arguably kick-started by the iPad and iPhone. Device CALs will retain their current pricing under the new plan.
In a statement regarding the upcoming change obtained by ZDNet, Microsoft pointed out that it was well aware of BYOD in enterprise:
In a separate move to protect its stranglehold on enterprise, Microsoft upped the price of tablet virtualization licenses in April, a move seen as a direct response to the iPad's popularity in business. In that arrangement, Windows RT devices like the recently-released Surface come with free licensing rights.
As noted by ZDNet, Microsoft is set to charge an additional 15 percent for "user" CALs, which will affect a number of enterprise customers that have begun allowing workers to access company software from any device of their choosing. The CALs are attached to various integral applications widely used in enterprise, like Exchange, Lync, Windows Server, System Center and others.
With the current setup, Microsoft offers "device" and "user" CALs, the former allowing any user server access from one specific device, while the latter gives one user the same access from any number of devices. Previously, both user and device licenses cost about the same.
"Device CALs may make more economic and administrative sense if your company has workers who share devices, for example, on different work shifts," Microsoft said. However, with the rise of BYOD, many firms are forced to purchase user CALs for every employee who needs access to Microsoft's suite.
It should be noted that the user license price hike also applies to Windows-based devices, however those machines have been on the market for decades, suggesting that the move is in response to the BYOD market arguably kick-started by the iPad and iPhone. Device CALs will retain their current pricing under the new plan.
In a statement regarding the upcoming change obtained by ZDNet, Microsoft pointed out that it was well aware of BYOD in enterprise:
While companies that have existing volume license agreements won't be affected by the new policy until their current contract expires, potential customers looking into licensing Microsoft software must lock in current prices before Dec. 1.These CAL changes include a user-based option that offers more value in support across unlimited devices and simplifies licensing management and compliance as devices in the workplace proliferate. Pricing for user CALs will change to reflect the increased value. Customers should work with their Microsoft partner or account team to assess their options.
In a separate move to protect its stranglehold on enterprise, Microsoft upped the price of tablet virtualization licenses in April, a move seen as a direct response to the iPad's popularity in business. In that arrangement, Windows RT devices like the recently-released Surface come with free licensing rights.
Comments
Ah how the worm has turned.
MS' tired old Win/Office universal-licensing model is going the way of the dodo, and the solution of course, is to use some form of compulsion or duress on customers in order to fight market realties.
MS has become *such* a shitty company. A decade in the making. They never really were impressive beyond implementing a universal licensing racket before anyone else.
May Ballmer continue at the helm for years to come.
Quote:
Originally Posted by rbryanh
The disturbing thing about Microsoft's suicidal tendencies is that once their rusting oil tanker finally drifts to a halt and sinks, Apple, having won, will inevitably _become_ Microsoft.
Unless you possess a crystal ball you can't say that at all. They might become Microsoft. They might also not.
User licenses are becoming more valuable because they are now allowing non company devices to use the resources - that is a benefit.
Folks, prices do rise over time, SQL Server, and Windows server prices also went up this year and the market didn't flinch because like it or not folks, Windows does what it does very well.
BUT--There's no end to the people on these forums who swear up and down on a stack of bibles that Apple is going to lose, that Zune/Windows 8/Android have already beaten Apple. Blah blah walled garden blah blah keyboard cover blah blah stale UI blah blah $30 too expensive blah blah.
... Self inflicted suicidal Microsoft death spiral
remember the good ole days when people said Apple was doomed, Apple should liquidate and repay the share holders, and other things like that...well MS is still massively larger than Apple was at the time, and still very profitable.
MS is nowhere near death spiral...not everyone lives in the apple stores warm glo - some of us live in reality...
There are other companies in the server-side business besides Microsoft that are very hungry. This move may create an opening that others may exploit. Additionally, for MS to allow the Surface special status may open the company to FTC inquiry. They may be asked to provide a good technical basis for this exception.
This does smell of MS is feeling the pinch to their bottom line...
Originally Posted by a_greer
MS is nowhere near death spiral...not everyone lives in the apple stores warm glo - some of us live in reality...
You HAVE seen Windows 8, haven't you?
I don't see a problem with it. They can easily justify the cost of Surface includes the cost of Win8 which could include a device license thus negating a need for a client license.
Using the plane analogy Win8 could be an engine going out but they are not only still flying but still safe even though it's far from an ideal situation and any more issues could make it so bad that they could be crashing to the ground with little to no chance of recovering.
Originally Posted by mdriftmeyer
Microsoft has been a crappy business model corporation since its inception.
Mission Statement: To take the cool stuff that Apple Computer Inc. is doing and sell it as our own. To make software.