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Technology Stocks : How high will Microsoft fly?
MSFT 456.91-0.5%Jan 15 3:59 PM EST

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To: David Howe who wrote (66953)4/9/2002 11:47:02 PM
From: Just_Observing  Read Replies (1) of 74651
 
Re: I fail to see what the big deal is

The big deal is that Some 80 percent still have a negative view of the annuity-based licensing plan, and 90 percent believe it will increase their licensing costs.

From another source on licensing 6.0

For most organizations, Microsoft Licensing 6.0 means; pay now, or pay more later. Depending on current product inventory, many companies could find software costs rising from 20 percent to 100 percent.

I think it's a big deal to have software costs go up 20 to 100%.

More reasons why MSFT created licensing 6.0:

A. Additional Revenues
In the CIO October survey of 122 IT executives, about half (52 percent) said their companies had upgraded to Office 2000, now 2 years old; 45 percent were still using Office 97. Licensing 6.0 and Software Assurance are meant to reverse the anti-upgrade trend by locking users into regular payments that also guarantee users the latest features.

B. Frequent Upgrades to Facilitate Greater Control of End Users
Rebecca LaBrunerie, Microsoft director of worldwide licensing and pricing, says services will dominate in the future. Upgrades will be "drizzled out more frequently," so frequently, in fact, as to make any licensing scheme other than a subscription impracticable

crn.com

informationweek.com

cio.com
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