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Microsoft customers sour on Software Assurance | |
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| Time: 00:01 EST/05:01 GMT | News Source: InfoWorld | Posted By: Kenneth van Surksum | ||
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IT procurement managers are finding that Microsoft's Software Assurance maintenance program may not save them money as hoped, according to a survey by Forrester Research. The Microsoft program guarantees updates to new products along with support and training tools. One of the most compelling reasons to buy Software Assurance was free upgrades from, for example, Windows XP to Windows Vista. But Microsoft hasn't stuck to a consistent release schedule, which can actually mean the program could cost companies more money than simply buying new licenses as needed, according to the four-page Forrester report, written by Julie Giera, a vice president at the research firm. | ||
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| #1 By 9589 (75.183.114.138) at 7/10/2007 1:30:37 AM |
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Let's see . . . I am a Forrester Research reporterette and I've been told that bilking corporations with made up crap is on the wane. What to do?
Hey, drag out that shop worn theme, SA dissonance!!! The bilking continues . . . The real story is how much the Fortune 500 spent on the crap that Forrester and others like them churn out and how soured they are? Stories you're unlikely to read here or anywhere . . . |
| #2 By 3653 (68.52.143.149) at 7/10/2007 2:23:44 AM |
| i was under the impression that SA sales were on the rise. What else is pushing Microsoft's quarterly revenues to records each and every quarter? |
| #3 By 15406 (216.191.227.68) at 7/10/2007 9:23:03 AM |
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#1: You sound like you're taking this personally for some bizarre reason. It's a no-brainer; charge people for stuff in 3-year ranges, then make sure everything is 4 years or more. Free money!
#2: I thought it was all those Vista sales. |
| #4 By 28801 (65.90.202.10) at 7/10/2007 9:48:09 AM |
| I thought SA applied to more than just Operating Systems. Between 2000 and 2007 there have been 4 versions of Office, 3 versions of SharePoint, 3 versions of SQL Server, and 3 versions of development suites. The list goes on. If your shop uses a lot of MS products then SA probably makes sense. It may not be as beneficial if you only use Windows. |
| #5 By 9156 (192.55.140.2) at 7/10/2007 1:08:39 PM |
| Lets see, when a company offers a way for consumers to "save money" over the cost of their own product...why would you believe them? This is just like the Energy Companies offering "Budget Billing" to consumers where you are changed the same amount each month of the year. They watch what you use, offer you a "budget rate" and you end up paying more for the energy over a year, its just that you know the exact amount you will be spending. Gee people, do the math. I knew SA was a ploy when it was offered. |
| #6 By 8556 (12.207.97.148) at 7/10/2007 1:23:10 PM |
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#2: Windows Mobile is growing. Server and Exchange are growing. PC sales continue to grow. Newer versions of Windows and Office bring in much more profit for MS than the older ones as far more Vista Premium licenses are being sold than Media Center 2005 licenses were. Per incident service charges doubled to end users. For Partners, Action Pack prices went up $100 per year. Direct sales to customers of Office 2007 and direct sales of Vista upgrades are pure profit, with no $5 per unit cost for physical media. In an age of worldwide competition MS has been able to raise prices unabated.
MS gives nothing away that isn't going to bring in $$$. The sole exception is the extended warranty for the Xbox 360 and the US$1.05 billion charge taken for the 33% failure rate. This probably came about, after denying that more than a tiny portion of 360's were failing, to avoid a costly and serious image damaging class action suit(s). This post was edited by bobsireno on Tuesday, July 10, 2007 at 13:24. |
| #7 By 1896 (68.153.171.248) at 7/10/2007 1:42:48 PM |
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We are right now eveluating the renewal of our CRM 3.0 and SBS 2003 server licenses.
Our biggest issue is that MS is now very secretive about release dates; yes I understand that they do not want to get caught with delays but on the other hand if customers do not know when to expect new version of their software is very difficult to decide what to do. It is a sort of catch 22 but this is caused by the fact that, historically, MS has not been able to comply with the timetable they set. For instance we have already renewed SBS SA once and it could make sense to renew it again in order to get SBS 2008 (Cougar) but so far there are no even a tentative release date. If SBS 2008 will be released at the end of 2008 we would have to renew SA for other two years and I am not sure it is worth to do it; and I am not considering the possible delays too. |
| #8 By 32132 (142.32.208.232) at 7/10/2007 3:17:37 PM |
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"In an age of worldwide competition MS has been able to raise prices unabated."
Most people get their OS preloaded on a new PC. Dell has shown that a PC without Vista Home Premium is about 50$ less. Could you show me where Windows 3.1 or Win95 or Win98 were cheaper (even without adjusting for inflation) than 50$? Or consider: WFW 3.11 retailed for 249.95 http://findarticles.com/p/articles/mi_m0NEW/is_1994_Oct_5/ai_16278924 Windows Vista Business, 13 years later, costs 274.99$ on Amazon. Thats 10% over 13 years. According to the CPI, it should be 350$. |
| #9 By 1896 (68.153.171.248) at 7/10/2007 6:38:39 PM |
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I love statistics: they allow creative people to say everything and the exact opposite and both versions are true.
If I rememeber correctly in 1994 I paid a 486 DX2 or DX4 box with Windows Workgroup around $4000; correct me if I am wrong, I had a long day, but the cost of the OS was 6% or 7 % of the total; nowadays you can buy a Dell Workstation for what? $1000/$1500? Therefore the OS cost is now, more or less, 30% of the total. |
| #10 By 32132 (142.32.208.232) at 7/12/2007 11:03:44 AM |
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50$ for Vista Premium is 30% of 700-1000?
More like 5 to 7%. You don't love statistics. You love making stuff up. |
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