Microsoft licences push firms to open source

Companies are considering cutting back on Microsoft products or switching to open source, as the software giant refuses to back down over its new licensing model.

Industry pressure group The Infrastructure Forum (TIF) estimates that around 94 percent of its members will see a hike in their licence fees and many are ready to rebel following the introduction this month of Microsoft's Software Assurance scheme. Under the scheme, only businesses that regularly upgrade software are entitled to a discount.

Over the next year, most organisations will reconsider the way they manage their Microsoft products, predicted TIF chief executive David Roberts. "One way for firms to cut costs is to reduce the number of licences they possess. I fear that if Microsoft insists on this model, there will be a significant backlash and loss of good will," he said.

Roberts added that members were considering open source software as an alternative to Microsoft products, but most companies' strong reliance on Microsoft's software made it fairly easy for it to push through such changes.

One IT manager told IT Week that at present his company was not looking to upgrade, but that when it did, it may well look at alternatives.

Analysts said the situation has created a public relations problem for Microsoft. Andrew Ball, research analyst at market watcher Frost & Sullivan, said, "From my conversations [with Microsoft staff], they are happy for customers to do nothing, but they acknowledge that they perhaps should have given more than six months notice of the proposed changes to licence holders."

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Talkback 3 comments

    What are people complaining ab ...Anonymous -- 09/10/01

    What are people complaining about?

    First they copy (steal) software and then they complain.
    What is wrong with them?
    If I go shopping I have to pay for what I buy or it is shop lifting.
    Stop complaining and pay your way!

    Craziness has reached another ...Anonymous -- 09/10/01

    Craziness has reached another level

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