By Ben King, 27 November 2001 10:22
NEWS Microsoft will cut the prices of a range of ASP software products from the beginning of next month, despite its claims that demand is strong and getting stronger. The Redmond behemoth will announce the new prices at the beginning of December, hosting business manager Neil Jordan told silicon. Prices will differ over different product lines. As a sample, though, he said the monthly price of access to a SQL server will fall by around 30 per cent per CPU per month, and monthly fees for Microsoft Outlook will fall 25 per cent. The company is also issuing a new Service Provider License Program, with a number of changes aimed at making the process of hosting Microsoft applications simpler, said Jordan. For example, the language of licensing agreements is being clarified to give customers the right not to have to pay for updated software if they are not using it. A new order entry tool is being introduced to simplify the ordering and reporting process. However, Jordan denied the changes are a response to weak demand for ASP software. He said: "The revenues we are seeing from ASPs in the UK are growing and the rate at which they are growing has been increasing over the past few months. The price cuts are nothing to do with weak demand."
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