USAToday discovers the new Microsoft upgrade scheme is designed to milk every last cent out of those who've locked themselves into Windows...
http://www.usatoday.com/money/tech/2001-09-27-msoft-software.htm
Costs of Microsoft upgrades increase
By Michelle Kessler, USA TODAY
SAN FRANCISCO — Many companies that use Microsoft software will have to pay more to upgrade it, and they're not happy about it.
Most firms will see costs rise 33% to 107%, research firm Gartner says. A company with 5,000 desktops will see its 3-year upgrade cost for Microsoft Office, for instance, jump from about $900,000 to $1.5 million, it says.
"There are a lot of (angry) chief information officers out there," says Steven Steinbrecher, CIO for California's Contra Costa County. His 3-year costs will jump to $651 per desktop from $335.
The new program launches Monday, but Microsoft is giving many companies until Feb. 28 to sign up. If they don't, they will no longer be able to buy upgrades.
Costs are going up because Microsoft will no longer allow corporate customers to buy software upgrades at a volume discount whenever they choose. Instead, firms will receive upgrades when they are released, whether they want them or not.
Microsoft says the changes will make upgrading more simple and that they were made at the request of customers. It claims only 20% of customers will see price increases, 50% will pay the same and 30% will save money. Companies who upgrade a lot will save the most, it says.
But David Roberts, CEO of the British trade group Infrastructure Forum, expects average increases of 94%. The Forum, which represents 98 firms, has asked the British government to investigate the increases.
The problem, critics say, is that Microsoft's software is so dominant that customers have no choice but to pay the higher fees. The software giant is being called an "evil empire, despots — I can't even repeat what the Europeans are saying," says Giga Information Group analyst Rob Enderle.
Steinbrecher says most of Contra Costa County's agencies expect to stick with their old software rather than pay more.
Analysts expect non-profits and small firms to be hardest hit. Habitat for Humanity, which builds houses for poor people, could have its technology budget wiped out by the increases, says Teresa Pudi, vice president of information services.
Some firms also say they don't want to upgrade every time Microsoft kicks out new versions of everything from Office to Windows. The "disruption to our business" would be great, says Rod Hamilton, CIO of Hygeia. The Toronto-based travel health insurance firm, which is still figuring out how its costs will change, recently upgraded to Windows 2000. It took several weeks.
Habitat for Humanity is considering the free Linux operating system. But because Microsoft is so dominant, it will be difficult for firms to switch. Windows runs 92% of PCs. Its Office software has better than a 90% market share, Gartner says.
http://www.usatoday.com/money/tech/2001-09-27-msoft-software.htm
Costs of Microsoft upgrades increase
By Michelle Kessler, USA TODAY
SAN FRANCISCO — Many companies that use Microsoft software will have to pay more to upgrade it, and they're not happy about it.
Most firms will see costs rise 33% to 107%, research firm Gartner says. A company with 5,000 desktops will see its 3-year upgrade cost for Microsoft Office, for instance, jump from about $900,000 to $1.5 million, it says.
"There are a lot of (angry) chief information officers out there," says Steven Steinbrecher, CIO for California's Contra Costa County. His 3-year costs will jump to $651 per desktop from $335.
The new program launches Monday, but Microsoft is giving many companies until Feb. 28 to sign up. If they don't, they will no longer be able to buy upgrades.
Costs are going up because Microsoft will no longer allow corporate customers to buy software upgrades at a volume discount whenever they choose. Instead, firms will receive upgrades when they are released, whether they want them or not.
Microsoft says the changes will make upgrading more simple and that they were made at the request of customers. It claims only 20% of customers will see price increases, 50% will pay the same and 30% will save money. Companies who upgrade a lot will save the most, it says.
But David Roberts, CEO of the British trade group Infrastructure Forum, expects average increases of 94%. The Forum, which represents 98 firms, has asked the British government to investigate the increases.
The problem, critics say, is that Microsoft's software is so dominant that customers have no choice but to pay the higher fees. The software giant is being called an "evil empire, despots — I can't even repeat what the Europeans are saying," says Giga Information Group analyst Rob Enderle.
Steinbrecher says most of Contra Costa County's agencies expect to stick with their old software rather than pay more.
Analysts expect non-profits and small firms to be hardest hit. Habitat for Humanity, which builds houses for poor people, could have its technology budget wiped out by the increases, says Teresa Pudi, vice president of information services.
Some firms also say they don't want to upgrade every time Microsoft kicks out new versions of everything from Office to Windows. The "disruption to our business" would be great, says Rod Hamilton, CIO of Hygeia. The Toronto-based travel health insurance firm, which is still figuring out how its costs will change, recently upgraded to Windows 2000. It took several weeks.
Habitat for Humanity is considering the free Linux operating system. But because Microsoft is so dominant, it will be difficult for firms to switch. Windows runs 92% of PCs. Its Office software has better than a 90% market share, Gartner says.