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Microsoft Offers Payment Options For Small, Mid-Size Customers | |
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| Time: 10:30 EST/15:30 GMT | News Source: Internet Week | Posted By: Byron Hinson | ||
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In an attempt to cushion the financial blow of a controversial new subscription-based software licensing program for enterprises, Microsoft said on Thursday that small and medium-sized businesses will be able to spread payments for licenses over three years. The new program, called Open Value, will be offered in the spring; for customers looking to buy immediately, Microsoft will arrange third-party, no-interest financing. | ||
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| #1 By 2960 (68.100.157.191) at 11/22/2002 2:01:14 PM |
|
Hehe...
TL |
| #2 By 7390 (63.211.44.114) at 11/22/2002 2:34:46 PM |
| "Lay away" |
| #3 By 3653 (63.162.177.140) at 11/22/2002 5:11:04 PM |
|
Amazing how everybody fingered MSFT as a bad guy on this. Do you all realize that "Licensing 6.0" is EXACTLY the same as what has been in place for enterprise customers for years?
Heck, even Norton has this arrangements on their business software, like GHOST. This is nothing new... just a reason for MS haters to rant. This post was edited by mooresa56 on Friday, November 22, 2002 at 17:11. |
| #4 By 1295 (216.84.211.16) at 11/23/2002 2:23:20 PM |
| Though I really had no big problem with the Licensing 6.0 I think that this is a great way for customers to deal with making the investment into Microsoft software. If, over the course of three years, you haven't gotten a return on investment from the product than you should really look into why you are buying the specific product. This is a great way to bring in new software in a No Interest 36 month loan if you ask me. The real question is what happens if you don't pay and or are they going to be doing credit checks on companies that apply/take advantage of this payment method. |
| #5 By 1845 (12.254.162.111) at 11/23/2002 5:08:02 PM |
|
Realist, first of all the profit margin on Windows for the last quarter was 85% not 89%. It isn't a big difference, but it is a difference. Secondly, and I've been looking unsuccessfully to find the link, many software companies have margins as high as 70% or 80% on their products.
Third, what's with the "overcharging" bit? You'll have to tell me what wouldn't be considered overcharging, because I for one don't feel myself qualified to dictate to a company what they should charge for a product. It's interesting that you attack Microsoft for "overcharging" presumably for Windows, yet its closest competitor (Apple) has charged three times for three versions of its latest OS in little more than a year. That means the cumulative cost of OS X for an early adobpter is greater than the cost of Windows XP for an early adopter. Who is overcharging? I seem to hear migration stories all the time and people claiming they are switching from Windows to Linux or MacOS or Solaris or something else out there. If Microsoft as overbearing as you make them out to be, why haven't even a moderate number (say, 10%) dropped Windows and fled to a better deal? Just perhaps, Windows is a significanly better value proposition than you give it credit for. Just perhaps, Windows' TCO is less than the TCO of its competitors. Just perhaps Windows really is worth the money. If Windows isn't worth the money, then every CTO on the planet that buys it should be fired. |
| #6 By 1845 (12.254.162.111) at 11/23/2002 5:09:52 PM |
| If anyone can find a reference to margins of other software companies, please post it. I seem to remember reading about Symantec and Oracle specifically, this week in an article that talked about Microsoft's margins on Windows. The point of the article, is that you don't need a monopoly to have VERY high margins on software. |
| #7 By 1845 (12.254.162.111) at 11/25/2002 12:59:26 AM |
|
http://money.cnn.com/2002/11/20/technology/techinvestor/briody/index.htm
Oracle and PeopleSoft were mentioned. Oracle's margins were mentioned in the 80% range and PeopleSoft's in the 70% range. I guess that means that you CAN have that margin without a monopoly. |
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