Close
  • Latest News
  • 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
  • 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 Latest News

      Microsoft Alters Price, Licensing

      By
      eWEEK EDITORS
      -
      July 16, 2001
      Share
      Facebook
      Twitter
      Linkedin

        Microsoft Corp., reacting quickly to recent appeals court rulings on its antitrust case, is considering sweeping changes to its pricing models for hardware vendors and its largest corporate customers.

        The Redmond, Wash., company is set to make computer makers, or OEMs, pay more for the Windows operating systems they ship with new hardware, according to sources. At the same time, Microsoft will lower the cost of the software for large corporate “named accounts” that buy licenses directly from Microsoft.

        The moves follow licensing concessions Microsoft made last week, giving computer makers more flexibility regarding the placement of icons on the Windows desktop and user access to the Internet Explorer browser.

        The concessions were made after the U.S. Court of Appeals ruled last month that a number of Microsofts licensing policies were “restrictive, anti-competitive and violated Section 2 of the Sherman Act.”

        Microsoft officials were not available for comment at press time. A source at one PC maker, who requested anonymity, said Microsoft is working on adjusting additional pricing and licensing issues.

        “The latest figures we have show that named accounts will see prices fall from $76.50 to $70 a license. But operating system prices for the major PC makers will be raised to varying levels depending on their MDA [market development agreement],” he said.

        MDAs are the contracts Microsoft requires of OEM Windows licensees. In the past, MDAs were more favorable toward the vendors that most heavily marketed and promoted Windows, IE and other Microsoft products. The more MDA provisions to which an OEM agreed, the better per-copy Windows pricing an OEM received, sources said.

        Another source, who also declined to be named, said it appears that Microsoft is “looking to reduce the wide gap between what OEMs pay and what named accounts pay. Basically, Microsoft will be raising the fees it charges OEMs and slightly reducing the fees it charges named accounts. But OEMs will probably still pay significantly less due to their MDAs,” he said.

        One corporate user has also heard that Microsoft is preparing to adjust its licensing and pricing conditions. “Ive been trying to reach my Microsoft representative for two weeks without any luck,” he said. “The reps in Redmond are probably just as confused as the rest of us about what changes will be made over the coming weeks as a result of the courts ruling.”

        Since these maneuvers are considered reactions to the court ruling, Microsofts competitors and legal opponents said they are not enough.

        “This [IE and desktop] proposal falls far short of the remedies or relief we think are necessary,” said Iowa Attorney General Tom Miller, one of Microsofts most vocal critics, in Des Moines, Iowa. However, Miller added, “[the concessions] make clear one thing we have argued for some time now—that [Windows] XP issues are a significant element to be considered in our case.”

        AOL Time Warner Inc., which competes with Microsoft on the instant messaging front, was equally dismissive of the licensing concessions. A spokeswoman said Microsoft still has a long way to go to address its anti-competitive actions, particularly with regard to “all the things like Windows Messenger that it is bolting to the operating system.” But she declined to say if AOL Time Warner was preparing any legal action against Microsoft.

        However, legal experts say the comments from Iowas Miller indicate the 18 attorneys general involved in the antitrust case may be preparing to hold out for stringent concessions from Microsoft in settlement negotiations.

        Dana Hayter, a lawyer with Fenwick & West LLP, in San Francisco, and a former attorney in the Justice Departments Antitrust Division, said it is unlikely the concessions announced will satisfy federal or state officials. “The battle is far from over,” Hayter said.

        If a settlement is not reached, the matter could be appealed to the U.S. Supreme Court or heard by a new district judge.

        Shawn Sanford, Windows XP group product manager, said the licensing concessions were merely a response to a “first reading of the appeals court opinion.”

        While some competitors are pleased with Microsofts concessions, they are wary about whether they will gain much actual freedom. AOL Time Warner is an investor in Gateway Inc., yet even Gateway officials are hesitant to say whether the desktop concessions will enable the company to boost its presence on Gateway PCs.

        Hewlett-Packard Co. spokeswoman Diane Roncal, in Cupertino, Calif., said the company was pleased that Microsoft “is taking these steps with regards to Internet Explorer, and we look forward to the implementation of the courts ruling across additional areas to allow OEMs more flexibility to provide solutions for our customers.”

        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.

        MOST POPULAR ARTICLES

        Big Data and Analytics

        Alteryx’s Suresh Vittal on the Democratization of...

        James Maguire - May 31, 2022 0
        I spoke with Suresh Vittal, Chief Product Officer at Alteryx, about the industry mega-shift toward making data analytics tools accessible to a company’s complete...
        Read more
        Cybersecurity

        Visa’s Michael Jabbara on Cybersecurity and Digital...

        James Maguire - May 17, 2022 0
        I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
        Read more
        Applications

        Cisco’s Thimaya Subaiya on Customer Experience in...

        James Maguire - May 10, 2022 0
        I spoke with Thimaya Subaiya, SVP and GM of Global Customer Experience at Cisco, about the factors that create good customer experience – and...
        Read more
        Cloud

        IGEL CEO Jed Ayres on Edge and...

        James Maguire - June 14, 2022 0
        I spoke with Jed Ayres, CEO of IGEL, about the endpoint sector, and an open source OS for the cloud; we also spoke about...
        Read more
        Cloud

        Yotascale CEO Asim Razzaq on Controlling Multicloud...

        James Maguire - May 5, 2022 0
        Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
        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.
        © 2022 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.

        ×