Microsoft Goes after Enterprise Customers, Raises Licensing Prices

By Monday, December 3, 2012 0 , , Permalink 0

The Windows 8 maker has been bleeding chips for quite some time now with increased competition from Apple’s Mac OS X and Linux variants when it comes to desktop operating system and from Red Hat, Cent OS and others for its Windows Server operating system. Redmond has even gone to the extent of blaming OEMs for not-so-good adoption rates of Windows 8. Home and small business users have moved onto to more mobile alternatives and Microsoft hasn’t got anything concrete in this arena with iOS and Android dominating the scenes.

Recently launched Windows 8 hasn’t given Microsoft the required boost as the adoption rate hasn’t been all that great as compared to that of Windows 7. The only way for Microsoft to raise its revenue figures was by either decreasing prices of its various software offerings in a bid to appeal to home and small business users or increase prices for its enterprise customers. So, what did Microsoft go for? Well, it did go after its enterprise users.

Microsoft’s payment model – Software Assurance has been enforced by Redmond onto those customers who have more than 50 licenses at their disposal and is one thing that has helped them gain steady revenue over the years. By increasing the price of various products under Software Assurance, Microsoft has guaranteed for itself much higher returns as compared to what it may have earned by drawing in more customers with lowered pricing.

Microsoft has increased user CALs pricing 15 per cent; SharePoint 2013 pricing by 38 per cent; Lync Server 2013 pricing by 400 per cent; Project 2013 Server CAL by 21 per cent. This strategy may very well hurt Microsoft in the current times as it is not in sync with declining economy where companies are offering incentives to its customers.