Microsoft to Pay Reparations for Vista, Office Delays

 
 
By Peter Galli  |  Posted 2006-08-08 Email Print this article Print
 
 
 
 
 
 
 

The Redmond software maker is seeking ways to make amends to its business customers who are covered by volume-license agreements and who have been negatively impacted by the multiple delays in Windows Vista and Microsoft Office.

Microsoft is working on a new reparations strategy, known internally as a customer incentive program, for those customers with volume licensing programs who will be negatively affected by the delay in the release of Windows Vista and Office 2007. Most enterprises buy volume licensing agreements from Microsoft, along with Software Assurance, which guarantees them the rights to all upgrades for any product covered by the agreement while it is in force.
But even if Microsoft sticks to its current timetable for the delivery of Vista and Office 2007, the delays mean that some customers who bought Software Assurance and who would have qualified for those upgrades if they had shipped as originally expected will not get them before their contracts expire.
Microsoft recently started telling its hardware and software partners that its goal is to release Windows Vista and Office 2007 simultaneously in January. Click here to read more. As such, the Redmond software maker is going to have to make amends through rebates, incentives and the like, to encourage those Software Assurance customers who have now ended up on the wrong side of the licensing tracks through no fault of their own to renew.
The new incentive program, designed to address any possible fallout from that, is still under development within Microsofts OEM group and not yet finalized, is expected to be rolled out sometime in the fall of 2006, a Microsoft spokesperson said to eWEEK, but declined to give any further details. Microsoft also knows all too well the negative impact that can result from any change in licensing terms or in the value customers perceive they get from this. Next Page: Uproar.



 
 
 
 
Peter Galli has been a financial/technology reporter for 12 years at leading publications in South Africa, the UK and the US. He has been Investment Editor of South Africa's Business Day Newspaper, the sister publication of the Financial Times of London.

He was also Group Financial Communications Manager for First National Bank, the second largest banking group in South Africa before moving on to become Executive News Editor of Business Report, the largest daily financial newspaper in South Africa, owned by the global Independent Newspapers group.

He was responsible for a national reporting team of 20 based in four bureaus. He also edited and contributed to its weekly technology page, and launched a financial and technology radio service supplying daily news bulletins to the national broadcaster, the South African Broadcasting Corporation, which were then distributed to some 50 radio stations across the country.

He was then transferred to San Francisco as Business Report's U.S. Correspondent to cover Silicon Valley, trade and finance between the US, Europe and emerging markets like South Africa. After serving that role for more than two years, he joined eWeek as a Senior Editor, covering software platforms in August 2000.

He has comprehensively covered Microsoft and its Windows and .Net platforms, as well as the many legal challenges it has faced. He has also focused on Sun Microsystems and its Solaris operating environment, Java and Unix offerings. He covers developments in the open source community, particularly around the Linux kernel and the effects it will have on the enterprise.

He has written extensively about new products for the Linux and Unix platforms, the development of open standards and critically looked at the potential Linux has to offer an alternative operating system and platform to Windows, .Net and Unix-based solutions like Solaris.

His interviews with senior industry executives include Microsoft CEO Steve Ballmer, Linus Torvalds, the original developer of the Linux operating system, Sun CEO Scot McNealy, and Bill Zeitler, a senior vice president at IBM.

For numerous examples of his writing you can search under his name at the eWEEK Website at www.eweek.com.

 
 
 
 
 
 
 

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