14 DAY TRIAL // Microsoft's strategy to keep users in the dark when it comes down to the upcoming releases of the Windows operating system and the Office productivity suite is but one of the aspects that has backfired against the company. Microsoft's Software Assurance customers are beginning to look for alternatives to the way they are currently doing business with the Redmond company. Introduced back in 2001, Software Assurance has not been a business model that really picked up. And the vast majority of customers that Microsoft managed to convince to take up the maintenance program for volume licensees are now thinking about putting an end to their Software Assurance agreements with the company. A new report from Forrester revealed that no less than 26% of the interviewed customers won't renew their volume licensing supplements.
"An unprecedented number of Microsoft customers are facing licensing renewal decisions this year, and the decisions aren't proving easy. In particular, customers who have had Software Assurance (SA) when new releases were brought to market could install those releases any time they chose, but many are questioning the offering's future value. The economics of buying SA (at 29% of the licensing fee for desktops) for the next three years without any guarantee that they'll recoup their investment, make holding off and buying new licenses until actually needed an attractive option. Lengthening release schedules, uncertain product road maps, and the complexity, cost, and time associated with installing a new release make the value of this program even more uncertain," reveals the synopsis of Forester's "Economics And Alternatives To Microsoft's Software Assurance" report.
In fact, only 11% of respondents stated that they are considering a renewal. Another 18% confirmed that they will seek renewal only for some products, while 13% are undecided but considering to continue with Microsoft, while no less than 31% have not decided either way at this time. In addition to the fact that Microsoft is providing no information over the evolution of currently available products such as Windows Vista and Office 2007, the company is also not breathing a word about future releases of both the operating system and the productivity suite. Forrester underlined the fact that Software Assurance customers have been put off by the lag periods associated with upgrades deployments. SA clients are covered for just three years of releases and upgrades. Additionally, the costs involved in the Software Assurance licenses can be higher than those of new licenses.
"Microsoft hasn't published a product roadmap for the wave of products released last November - Windows Vista, Office 2007, Sharepoint 2007, Exchange 2007, etc." Forrester said as cited by Mary Jo Foley. "Informally, Microsoft has been telling some customers to expect a 'minor' release every two years, and a 'major' release every four years. At this point, minor and major remain undefined. This uncertainty regarding product releases makes it very difficult for IT procurement and sourcing professionals to justify a three-year SA renewal."