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Microsoft Customers Sour on Software Assurance

From PC World:

IT procurement managers are finding that Microsoft Corp.’s Software Assurance maintenance program may not save them money as hoped, according to a survey by Forrester Research Inc.

The Microsoft program guarantees updates to new products along with support and training tools. One of the most compelling reasons to buy Software Assurance was free upgrades from, for example, Windows XP to Windows Vista.

But Microsoft hasn’t stuck to a consistent release schedule, which can actually mean the program could cost companies more money than simply buying new licenses as needed, according to the four-page Forrester report, written by Julie Giera, a vice president at the research firm.

For desktops, Software Assurance (SA) is 29 percent the cost of an annual license. If Microsoft goes at least four years in between releases — the company went about five years between XP and Vista releases — the cost of Software Assurance works out at 116 percent of a new desktop license, Giera wrote. For servers, Software Assurance is about 25 percent the annual cost of a license.

“The uncertainty regarding product releases makes it difficult for IT procurement and sourcing professionals to justify a three-year SA renewal,” the report said.

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[tags]Microsoft Customers Sour, Software Assurance, IT Procurement[/tags]

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