Microsoft offers subscription licensing for small businesses

by Elizabeth Montalbano

February 6, 2008 —

Microsoft is offering a new subscription model to small businesses that will
allow them to use the company's software for less cost than the currently available
licensing model.

The plan, called Open Value Subscription program, is part of Microsoft's effort
to give small businesses more flexible and affordable options for purchasing
software, said Cindy Bates, Microsoft's general manager for U.S. small business.

The new plan costs about a third of the license-only expense for the current
licensing program open to small business, called the Open Value program, Bates
said. The plan is cheaper because Microsoft offers upfront discounts for software
purchased through the subscription program, and also allows customers to increase
or decrease pricing over the three-year subscription period if their business
needs change, she said.

Open Value Subscription includes Microsoft's Software Assurance program, the
company's software maintenance and support program for business customers.

Microsoft defines small businesses as those with 50 employees or fewer. Bates
called 50 employees the "break point" for when a company hires IT
management. Up until that number, "usually it's the business owner or office
manager" handling the IT system, she said.

Businesses will be able to sign up for the Open Value Subscription program
beginning in March, Bates said. Microsoft products available through the program
include Microsoft Office Small Business, Office Professional +, Windows Vista
Business Upgrade, Small Business Server Client Access License (CAL), Core CAL,
Desktop Professional Suite and Small Business Desktop Suite.

As part of its small-business outreach, Microsoft also this week is unveiling
a partner program called "Big Easy," which invests about US$10 million
in subsidies to small businesses purchasing products through partners.

Through the program, small businesses purchasing certain products through authorized
specialist partners will get a certain percentage of money back that they can
use to purchase other services from those partners, Bates said.

For example, a small business would get a maximum of 22 percent of the money
it spends if it buys six or more products that are on the approved list. Bates
said Microsoft has figured the average return will be about 15 percent to 17
percent on purchases for small businesses.

Products available for subsidies under the Big Easy program include Microsoft
Office products, Exchange Server, Forefront Security for Exchange Server, System
Center Essentials, Project, Visio, Office SharePoint Server, Forefront Security
for SharePoint and Internet Security and Acceleration Server 2006, among others.

More information about Open Value Subscription can be found on Microsoft's
Web site. The company also provides more information about the Big Easy
on its Microsoft
Small Business Community Blog.

IDG News Service