Microsoft still has a variety of issues with its software licensing structure, according to a new research note by two analysts at Directions on Microsoft. Previous attempts at restructuring the often-complicated licensing for Microsoft products has resulted in benefits to the enterprise, particularly with new technologies such as virtualization. Windows 7 has the potential to introduce new licensing issues upon its general release on Oct. 22.
Microsoft licensing is likely to remain “unwieldy” in the near future, although solutions to licensing issues do exist, according to a new research note by two analysts linked to Directions on Microsoft, an independent organization that tracks the company.
The Sept. 8 research note by Rob Horwitz, CEO and founder of Directions on Microsoft, and Paul DeGroot, the organization’s research vice president, breaks down five reasons why Microsoft licensing is supposedly difficult:
1. A Variety of Products and Markets
The sheer size of the Microsoft product portfolio, coupled with the company’s global reach and multiple markets, means a “one-size-fits-all product packaging, licensing and pricing approach couldn’t possibly work.”
2. Decentralized Decision Making
The different product groups within Microsoft decide their licenses and pricing, often independent of the company’s central licensing division. Each of these product groups operates with an eye toward its own competitive profile and revenue generation.
3. New Technology
Technological innovations such as multicore processors and cloud computing can force Microsoft to adjust its licensing structure, which in turn can complicate life for customers as new rules and exceptions are introduced.
4. Limited Enforcement and Compliance Tools
“Most Microsoft products do not include features to help medium and large organizations match product use to license purchases or comply with license usage rules,” Horwitz and DeGroot write. “Customers are responsible for building the complex infrastructure and processes necessary to police themselves.” This can lead to excessive purchases of licenses or inadvertently signing up for programs such as Enterprise Agreements.
5. Lack of Inventive
According to the research note authors, “Microsoft executives don’t see current licensing policies as a problem … and the executives are reluctant to tinker with such a complex system.” The sheer amount of effort and cost involved in restructuring licensing policies also acts as a drag on the potential for system reform…
Full Story