Surface and Windows 8? Forget about them. The changes surrounding these new Microsoft offerings are nothing compared to the changes in their licensing and pricing strategy. Microsoft's licensing changes are going to affect enterprise 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.
Many thought that this was a reasonable solution to the problem. That is until Microsoft revealed that they were placing a 15 percent price increase for User CALs. This puts a large number of Microsoft's enterprise customers in a tough position since both Device CALs and User CALs are now significantly more expensive. This is in addition to various other price increases that Microsoft has recently announced for the coming year.
In spite of all of the pricing and licensing increases, the situation isn't entirely hopeless. Enterprise customers can avoid paying too much for their Microsoft offerings in 2013 if they take heed to the following advice:
1. Understand how your current Microsoft environment will be affected by the price increases.
2. Understand 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 right around the corner 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.
Many thought that this was a reasonable solution to the problem. That is until Microsoft revealed that they were placing a 15 percent price increase for User CALs. This puts a large number of Microsoft's enterprise customers in a tough position since both Device CALs and User CALs are now significantly more expensive. This is in addition to various other price increases that Microsoft has recently announced for the coming year.
In spite of all of the pricing and licensing increases, the situation isn't entirely hopeless. Enterprise customers can avoid paying too much for their Microsoft offerings in 2013 if they take heed to the following advice:
1. Understand how your current Microsoft environment will be affected by the price increases.
2. Understand 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 right around the corner 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 .. Also published at Microsoft's New Price Increases and What That Means for Your Business.
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