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Microsoft's New Licensing Program: Will It Backfire?

Time: 04:35 EST/09:35 GMT | News Source: NewsFactor | Posted By: Byron Hinson

Bill Gates' and Microsoft's biggest problem has always been how best to monetize its software offerings -- but the new subscription model could backfire. In May 2001, Microsoft Corporation announced far-reaching changes to its volume licensing program. Since October 1st, the company's new plan, version 6.0, requires corporate users to subscribe to licenses in either one- or three-year increments through a new "Software Assurance" enrollment policy. The Software Assurance plan, which will affect businesses with 250 or more computers, requires customers to lease the software with the option of purchasing a perpetual right to buy the software, in much the same way people now lease automobiles.

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