By Andy McCue, 21 September 2005 14:30
NEWS UK IT chiefs have slammed Microsoft over the cost of signing up to the Software Assurance (SA) licensing model, and accused the Redmond giant of wanting to "have its cake and eat it and charge customers to watch".
In the biggest shake-up of the subscription-based SA in the four years it has been running, Microsoft has added technical support, training, desktop deployment planning services and other side benefits in an attempt to placate angry customers.
But UK CIOs and IT directors have rounded on Microsoft, saying the changes do not address root problems with the scheme. All 12 of silicon.com's CIO Jury IT user panel voted 'no' when asked if the new changes to SA went far enough.
Kirk Downey, CTO at Centrica, said Microsoft has failed to address the root problem organisations have with SA - the cost - and that it compares unfavourably to programmes run by the likes of Oracle and SAP.
He said: "If Microsoft is to position its SA programme alongside annual spend for maintenance on other critical technologies, it needs to demonstrate the economic value of the investment and introduce more flexibility in the commercial model to allow enterprise customers to negotiate this expense into their planning cycles."
Sean Powley, head of IS strategy at the London Borough of Barnet, said: "It still looks like Microsoft wants to have its cake, eat it and charge users to watch. Where's the flexibility in the new arrangements for complex organisations like local authorities?"
One IT director who did not wish to be named simply said open source "looks more and more tempting" while Paul Broome, IT director at 192.com, said he plans to migrate off Windows server and SQL server as soon as he can.
Broome said: "It's a millstone to enterprise for an SME. To allow us to grow, all new database servers will use 64-bit Linux and MySQL. We've had enough. We can't scale out with Microsoft as it's too expensive."
Others like Peter Ryder, head of ICT at Preston City Council, never signed up for SA in the first place, calling it "unjustified pricing" that is too expensive, especially for smaller local authorities.
Microsoft's customer relations appear to have taken a severe knock from SA and John Odell, group IT director at the BBA Group, said: "Microsoft's business objectives are not aligned with its customers' and it will stay that way while Microsoft has a near monopoly in this market."
Perhaps the best summary came from Luke Mellors, IT director the Dorchester Hotel in London, who said he initially took out SA and then dropped it.
He said: "Taking out an insurance policy on the future of technology at 27 per cent of the cost price of software per annum does not add up financially, practically or strategically. Using value added services to make a bad investment appear better is rather like using a plaster for a gunshot wound."
Today's CIO Jury was...
Ian Auger, IT director, ITN
Paul Broome, IT director, 192.com
Kirk Downey, CTO, Centrica
Andrew Leaning, IT director, Dod's Parliamentary Communications
Christopher Linfoot, IT director, LDV Vans
Luke Mellors, IT director, the Dorchester Hotel
Colin Moore, head of IS, Department for Education and Skills
Simon Norbury, head of ICT, Westminster City Council
John Odell, group IT director, BBA Group
Andy Pepper, director of business information systems, Tetley
Sean Powley, head of IS strategy, London Borough of Barnet
Peter Ryder, head of ICT, Preston City Council
If you are a CIO, IT director or equivalent at a large or small company in the private or public sector and you want to be part of silicon.com's CIO Jury pool, or you know an IT chief who should be, then drop us a line at editorial@silicon.com
Comments
There are 8 comments. Join the discussion
1. Robert Pogson
The question of when to switch is easy. The longer an organization stays with the monopoly, the stronger will be the lock-in. The monopoly will remain a monopoly as long as business and consumers do not switch in meaningful numbers. When Microsoft sees huge market shifts they will cut prices, improve the product, or both.
Microsoft is completely over-priced on the desktop individually and comparisons are obvious when Linux
2. Frank Smith
Hey you keep buying it, he'll keep charging for it!!
There are alternatives, but it seems you want your cake and to eat it as well.
If you can't be bothered to change your business for the long term don't complain about being charged in the short term.
You knew the licence would be in MS's favour.
3. anonymous
When will MS learn that they should give clients what they need and not what MS thinks the clients want, now or in the future?
Open sourse is looking more inviting all the time.
4. Jimbo
Yep, we're a small company and already two computers are running the latest Open Office Beta. To date it appears to pick up the MS Office stuff without much problem and does everything we'd need.
Even the retail licenses of MS Office are just too expensive for small businesses when you have several computers and 2-3 people using them periodically.
5. Steve Berry
MS have never listened to the customer - they have listened to themselves - Just take a quick look at the latest technologies they're offering Vista/Virtual Folders/Aero - Apple have em' already. Avalon/Indigo - variations on a theme. WinFS - Apple again. They'll keep doing their own thing and getting rich off the back of others (through acquisition) until the market migrates en-masse to Opensource. You need to be as tough with them as they have been with you. Scenario that really scares em' - the Chinese Govt.
Maybe we should all start ordering Chicken curries !
6. anonymous
Dont agree. Microsoft may or may not be taking us for a ride with the SA changes but IT is at fault too. When was the last time that you baked in changes to working practive/processes enabled through a new technology - any technology. The real issue is that too many IT depts push new technology into the business and dont deliver change with it. Therefore IT is cost - and if Linux (or anything else) is 5% cheaper then use it. What amazes me is WHY Linux - when BSD was free for years. Surely not Fashion.....;)
7. Nigel Telles
Hey Bill you keep doing what your doing. I bet the people who paid for SA over the last few years believe they got value for Money for the Upgrade they are still waiting to Get !
This can only be good for Open source in the Long run as more people give up on Microsoft altogether.
Does anyone take into account the continuing changes M$ like to make in there Licensing when it comes to TCO. Besides which now unless you have SA you cannot have Vista....oh well no lose there!
8. stinky
If any other companys goods were as
unreliable as microsofts windows collection I reckon it wouldnt be long before they sued out of business, or go bust after refunding everybodys money,
There arte alternatives but not every body can get to grips with Linux etc,
I blame the uk gov for everything and they have got their beaks into everything that promises a profit for the old boys,