Monday, December 3, 2012

Microsoft Corporation (NASDAQ:MSFT) Lifts Licensing Fees By 15%

Microsoft Corporation(NASDAQ:MSFT ) has increased its licensing fees by 15%. It is mainly focusing at the corporations with a high percentage of mobile device handling employees. Presently, both device and user client access licenses, which are more popularly known as CALs, are charged the same. According to TechCrunch, the User CAL for select products is supposed to increase on 1st December.

A User Cal is meant for businesses with employees, who use mobile devices like tablets and smartphones. A Device CAL is similar but is designed for one device that can be accessed by multiple workers. In this case, the hike in price affects the User CAL for several products, with the exception of those having contracts that were agreed before and stay effective after the change in price occurs. 

Businesses, who are buying new licenses, may have to pay the higher fee. Also, the present businesses will have to do the same when it comes time to renewing their agreements. Most probably, this could drive more companies to examine and cut back on the number of mobile devices they are using as of now and will need a more meticulous eye on the number of iPads and likes that will be included in the workforce as mobile devices grow more popular. Products that will go through an increase in fees include Enterprise CAL Suite, Bing Maps Server CAL, Projects Server CAL, Core CAL Suite and others.

It goes without doubt that Microsoft sees the opportunity for substantial revenue in the world device implementation. Since it has made the change, other businesses jacking their licensing rates would be likely, even though, the number of stands is yet to be seen. Microsoft is making this move after the explosion in mobile device usage that has taken place over the last few years.

1 comment:

  1. I think that, rather than cutting the number of iPads and iPhones, customers are more likely to examine whether there are alternatives to Microsoft's CAL system. The vast majority of these devices are used in the field, not in the home office.

    A parallel to this short-sightedness by MSFT occurred in the old pharma of pre-1990. When Pharma A's drug went off patent or was eclipsed by a superior new one, Pharma A gambled - and usually one - that there are a certain percentage of prescribers who will keep prescribing Pharma A's brand, and they progressively jacked prices as market share dropped.

    Customers in every industry - drugs, airlines and networking - reject that kind of tactic today. CAL customer CEOs will be calling their IT people in to find alternatives that don't require them to pay MSFT. I'm sure that right now, there are enterprising software people who are on the edge of introducing a CAL system alternative to free MSFT customers from this increase - and perhaps, the CAL system in its entirety


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