What Microsoft's New Price Increases Mean for Your Business
People are starting to talk about the next offerings from Microsoft; Surface and Windows 8. Well, forget about them. The changes that surround these new offerings are nothing compared to the changes in their licensing and pricing strategy. These adjustments to the way that Microsoft licenses and prices the products will affect business and customers everywhere.
Microsoft has recently adjusted its licensing terminology from "desktop-based" to "device-based" as part of their plan to obtain more licenses for the ever-increased number of devices used in many enterprises. Due to this change, more businesses are opting to change from their current Device Client Access License (CAL) to a User CAL. This adjustment will allow businesses to save on cost because being licensed by the number of users is substantially cheaper than being licensed by the number of devices.
For many, this seemed like a reasonable solution to the problem. However, anticipating this adjustment on the part of many businesses, Microsoft revealed that they were placing a 15 percent price increase for User CAL. Doing so has put a large number of Microsoft's enterprise customers in a tough spot since both Device CALs and User CALs are now significantly more expensive. This increase is in addition to various other price increases that Microsoft has recently announced for the coming year.
The situation might seem bleak, but it isn't entirely hopeless. Business customers can avoid paying too much for their Microsoft offerings in 2013 by following this advice:
1. Understand how your current Microsoft environment will be affected by the price increases.
2. Analyze your long-term Microsoft needs and usage roadmap when making renewal decisions.
3. Don't hesitate to act! Timing is everything when it comes to negotiations and renewals. If you don't have an EA, act before December 1, 2012 and sign up for a User CAL to get the lower price. You can also avoid the 15 percent increase on a current User CAL if you renew before this date.
2013 is a little more than a month away and it doesn't look like Microsoft is going to make things easy for enterprises this year. Keep your budget intact by being prepared and negotiating early.
Microsoft has recently adjusted its licensing terminology from "desktop-based" to "device-based" as part of their plan to obtain more licenses for the ever-increased number of devices used in many enterprises. Due to this change, more businesses are opting to change from their current Device Client Access License (CAL) to a User CAL. This adjustment will allow businesses to save on cost because being licensed by the number of users is substantially cheaper than being licensed by the number of devices.
For many, this seemed like a reasonable solution to the problem. However, anticipating this adjustment on the part of many businesses, Microsoft revealed that they were placing a 15 percent price increase for User CAL. Doing so has put a large number of Microsoft's enterprise customers in a tough spot since both Device CALs and User CALs are now significantly more expensive. This increase is in addition to various other price increases that Microsoft has recently announced for the coming year.
The situation might seem bleak, but it isn't entirely hopeless. Business customers can avoid paying too much for their Microsoft offerings in 2013 by following this advice:
1. Understand how your current Microsoft environment will be affected by the price increases.
2. Analyze your long-term Microsoft needs and usage roadmap when making renewal decisions.
3. Don't hesitate to act! Timing is everything when it comes to negotiations and renewals. If you don't have an EA, act before December 1, 2012 and sign up for a User CAL to get the lower price. You can also avoid the 15 percent increase on a current User CAL if you renew before this date.
2013 is a little more than a month away and it doesn't look like Microsoft is going to make things easy for enterprises this year. Keep your budget intact by being prepared and negotiating early.
About the Author:
Joseph B. Kappernick is an online financial expert. Click here to learn more about Cost Reduction Services .
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