Close
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Development
    • Development

    Microsoft Adds Subscription Licensing

    Written by

    eWEEK EDITORS
    Published May 14, 2001
    Share
    Facebook
    Twitter
    Linkedin

      eWEEK content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.

      In what its characterizing as a first move toward offering customers the ability to license software as a service, Microsoft Corp. last week added a subscription licensing capability to its stable of volume licensing options.

      The subscription program for EA (Enterprise Agreement) volume licensees takes effect Oct. 1.

      Under the program, the Redmond, Wash., company is offering its enterprise users a choice of EA licenses: perpetual or three-year nonperpetual (subscription). If customers want to license some products under perpetual and some under nonperpetual licenses within the same organization, Microsoft is providing that option as well.

      Microsoft also lowered the bar for entry into the EA program, dropping from 500 to 250 the number of PCs for which customers need to purchase software in order to participate.

      Contrary to earlier speculation, Microsoft is not ending perpetual licenses for its volume licensing customers, said Simon Hughes, program manager with Microsofts worldwide licensing group.

      The primary advantages of subscription licenses, Hughes said, are that they will allow companies to treat software costs as operating expenses and, in some countries, reap tax benefits from that method of accounting. Microsoft is also making EA subscription licenses 15 percent less expensive in terms of the upfront amount companies will pay compared with what they currently pay for software licensed under standard EAs, he said.

      At the same time, unlike other Microsoft volume licenses, such as Select, Open and nonsubscription-based EAs, the new subscription licenses can be modified once a year (instead of once every two years, as is the case with Open, or once every three years for standard EAs and Select licenses). Hughes said the one-year option is well-suited for companies whose software needs are either abruptly growing or declining.

      Microsoft is considering whether adding subscription options for its Select and Open volume licensing programs makes sense and has come to no decision yet, Hughes added. He also said that Microsofts decision to postpone the worldwide rollout of its Office XP subscription program–a move the company made public late last week–was unrelated to last weeks announcement, since the Office XP subscription program was designed for individual users, not business licensees.

      Microsoft is expecting that Office XP will be one of the primary products that users will license under the EA subscription program, Hughes said.

      eWEEK EDITORS
      eWEEK EDITORS
      eWeek editors publish top thought leaders and leading experts in emerging technology across a wide variety of Enterprise B2B sectors. Our focus is providing actionable information for today’s technology decision makers.

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      MOST POPULAR ARTICLES

      Artificial Intelligence

      9 Best AI 3D Generators You Need...

      Sam Rinko - June 25, 2024 0
      AI 3D Generators are powerful tools for many different industries. Discover the best AI 3D Generators, and learn which is best for your specific use case.
      Read more
      Cloud

      RingCentral Expands Its Collaboration Platform

      Zeus Kerravala - November 22, 2023 0
      RingCentral adds AI-enabled contact center and hybrid event products to its suite of collaboration services.
      Read more
      Artificial Intelligence

      8 Best AI Data Analytics Software &...

      Aminu Abdullahi - January 18, 2024 0
      Learn the top AI data analytics software to use. Compare AI data analytics solutions & features to make the best choice for your business.
      Read more
      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Video

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2024 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×