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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: The Duke of URL© who wrote (47065)	6/20/2000 11:57:00 PM
From: John F. Dowd	Read Replies (1) \| Respond to of 74651

To the Duke and other Cool Heads: Microsoft To Raise Rates In Revamped Price Structure Prices could rise 50% as vendor moves to charge based on processor consumption By Aaron Ricadela Related links from our sister publications: InternetWeek Breakup Cloud Hangs Over Microsoft (6/12/00) Computer Reseller News Microsoft's Other Hurdle: Delivering For Developers (6/12/00) InternetWeek Glimpse At Web 'Dashboard' (5/1/00) TechEncyclopedia Need a definition of a technology term? Look it up here: Send Us Your Feedback icrosoft this fall plans to reprice its SQL Server database and other back-office software according to the number of processors running the software, rather than the number of users. The move is an effort to bring licensing contracts in line with the demands of E-business-and prices in line with those of its competitors. But it will also result in price hikes for many users-large customers running SQL Server 2000 Enterprise Edition are expected to pay an additional 50% or more, according to Barry Goffe, group manager for Windows DNA at Microsoft. The pricing changes, which will apply to six server products, are designed to replace a complex licensing scheme. Under the current system, companies purchase from resellers a combination of server licenses, client access licenses for named users, and Internet connector licenses for unnamed users. "Customers said, 'How do I know how many people are connecting to my Web site?'" Goffe says. "And our answer was, 'Guess.' Customers never knew if they were in compliance." But the change promises to boost costs along with confidence for Microsoft's customers. SQL Server 2000 Standard Edition will have a list price of $4,999 per CPU, and SQL Server Enterprise Edition will list at $19,999 per processor-though most customers will likely pay $3,500 and $13,000 per CPU, respectively. The upcoming Host Integration Server 2000 will carry a per-CPU list price of $2,499; Internet Security and Acceleration Server will be $1,499 per CPU. Microsoft hasn't set pricing for BizTalk Server, Application Center Server, and Commerce Server. Microsoft says the increase is at least partly intended to keep the vendor on par with its competition. Microsoft is getting beaten on database contracts by IBM and Oracle, which point to SQL Server's low price as evidence that SQL isn't up to snuff. Version 7 is priced at about $4,000, compared with $20,000 to $30,000 for the lowest-end IBM and Oracle configurations. "If you want the recognition of an Oracle or an IBM, you'd better be priced like that," says Terilyn Palanca, a director at Giga Information Group. Users inclined to disagree can take some comfort in the fact that SQL Server 2000 promises to deliver more scalability. Microsoft last week also set the upgrade price for Exchange 2000 Enterprise Server at $1,999, compared with $713 for Exchange Server 5.5 Enterprise Edition. Exchange 2000 Server carries an upgrade price of $349. Both products are due this summer. JFD